A THESIS ON

A COMPARATIVE ANALYSIS ON THE IMPACT OF ORGANIZED RETAIL STORES ON EXISTING SMALL DOMESTIC ESTABLISHMENTS IN VADODARA CITY WITH SPECIAL EMPHASIS ON FOOD, GROCERY AND APPAREL PRODUCTS

SUBMITTED BY ENROLLMENT NUMBER UNIVERSITY ID SUBMITTED TO

: : : :

KARAN KAPOOR 8NBVD059, SEM - IV 0801212842 Mr. AMOL RANADIVE

A THESIS ON
A COMPARATIVE ANALYSIS ON THE IMPACT OF ORGANIZED RETAIL STORES ON EXISTING SMALL DOMESTIC ESTABLISHMENTS IN VADODARA CITY WITH SPECIAL EMPHASIS ON FOOD, GROCERY AND APPAREL PRODUCTS By KARAN KAPOOR 8NBVD059 SUBMITTED TO: Mr. AMOL RANADIVE A Report submitted in partial fulfillment of The requirement of The MBA PROGRAM (The Class of 2010)

CERTIFICATE
This is to certify that the Management Thesis titled

______________________________________________________________________ ___________________________________submitted during Semester

_________________ of the MBA Program (The Class of 2010) embodies original work done by me. Signature of the Student Name (in Capitals) Enroll Number Campus : ________________________________________________ : ________________________________________________ : ________________________________________________

Signature of the Faculty Supervisor Name (in Capitals) Designation Campus : : :

TABLE OF CONTENTS
Acknowledgement..5 Summary....6 Abbreviations...7 Introduction..8 Objectives10 Review of literature..11 Review of Related Theoretical Concepts..40 Research Methodology....42 Analysis...44 Conclusion. 50 Recommendations / Suggestions......53 Appendices....54 References.61

ACKNOWLEDGEMENT

I am thankful to Mr. AMOL RANADIVE, faculty supervisor who has helped me and encouraged me in doing Management Thesis on A comparative analysis of the impact of organized retail stores on existing small domestic establishments in Vadodara city with special emphasis on food, grocery and apparel products. He not only guided me throughout the project but also gave me a constant encouragement, which instilled in me a confidence to make the best out of this project. I am indebted towards him for taking time from his very busy schedule to guide me at every stage. Mr. RANADIVE has provided me constant support and complete independence in conducting the project. Also my sincere gratitude and thanks to all the respondents for their valuable support and cooperation. I am deeply indebted to them. Knowledge is of no use, unless you know the way to express it. I have learnt this over the years from great number of people. Special thanks to all my instructors in life, who have contributed in shaping my career. I am grateful to almighty God, because he has given me strength and wisdom for the study.

Karan Kapoor

SUMMARY
From this management thesis I came to know about organized and unorganized retail stores. I critically analyzed the impact of organized retail stores on small domestic establishments. In order to get quality information, I used questionnaire as a tool which helped me in this management thesis. To collect this particular type of data a questionnaire was been administered to take the personal interview of the small retailers of Vadodara. After collection of the desired data, the data has been compiled and analyzed with the help of various statistical tools to draw conclusion out of mathematical data. The collected data has been categorized and presented in to the meaningful diagrammatic presentations following its proper classification. All these analytical information is subjected to the conclusions following justified interpretation of the results drawn from the statistical tools.

ABBREVIATIONS

SKU MBO

Stock Keeping Units Multi Brand outlets

FDI
GDP FMCG RPG C & C stores ET PRIL RRL LVMH

Foreign Direct Investment

Gross Domestic Product Fast Moving Consumer Goods Ramah Prasad Goenka Cash & Carry Stores Economic Times Pantaloon Retail India limited Reliance Retail Limited Louis Vuitton Moet Hennessy Group

INTRODUCTION
Retail is being hailed as Indias industry of the future, incited by the countrys huge urban middle class population. Food and grocery is the second-largest segment of the retail industry and the potential for new entrants in this segment is enormous, particularly in untapped markets like rural and semi-rural areas. Growing at the rate of 30%, the Indian food retail is going to be the major driving force for the retail industry. The paper on FOOD RETAIL AN EMERGING FACET maps out the Background of food retailing as well as current scenario catching up the retail front, up-and-coming multiple formats of food retail. The food industry is on a roller coaster ride as Indians continue to have a feast, fuelled by large disposable incomes the food sector is witnessing a remarkable change in consumption patterns, especially in terms of food. Food retailing has come of age from a period when food items were sold in small road side grocer shops & mandis, haats and bazaars by vendors to a stage when food products (processed and groceries) are retailed through supermarket stores where consumers can inspect, select and pick up the products they like in a comfortable ambience and still pay a fair price for the product and the merchandise and sometimes even pay less than the price they would have paid at the nearest food stores. Shopping for groceries is no longer a strenuous and uncomfortable affair.

Instead, it is a pleasurable experience. From simple trading activity, food retailing is now heading to the status of an industry. Imagine yourself walking through the air conditioned lanes smelling fresh food and groceries, enjoying light music, experiencing five star ambiences and above
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all buying food products (vegetables, spices and beverages) without bargaining with the vendors. Food retail has surpassed the dominating apparel and accessories sector. "Contrary to the belief that fashion is the largest segment of organized retail in India, food & beverages is the major segment, worth Rs 8,97,000 crore," said Arvind Singhal, Chairman, Technopak, at the Indian Retail Forum held in Mumbai. There is an old industry saying that CUSTOMER IS KING retailers today had updated that saying to CUSTOMERS IS THE DICTATOR because of fierce competition, new technology and business practices the market power of customer is strong and growing stronger.

OBJECTIVES
To understand the structure of the unorganized retail and organized retail. To understand the strategies adopted by the organized retailer in India for maximum market penetration. To examine its impact on unorganized retailer with emphasis on revenue, profit, employment and level of competition. To know various initiatives taken by small domestic establishments to counter competition. To study the market share of retailers existing in the market. To apply the theoretical knowledge gained throughout academic curriculum. In this thesis, I shall apply my best knowledge, theories, management concepts and models to the corporate world and find solutions to problems/issues, which I have learnt till date.

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REVIEW OF THE LITERATURE

The research process involved a two tier process. The first involved complete survey of previous work published, in my case survey of articles and second, collecting primary data for analysis from existing small domestic establishments. The development of the literature review requires four stages as follows:

Stage: 1 Problem Formulation

With the increased globalization and liberalization policies adopted by the Govt. of India since 1990s, the domestic establishments (Kirana Shops) in India have been facing a tremendous competition in terms of customer retention and expanding their reach to new customers. The new organized retail segment has been posing a severe threat to these grocery stores existing since centuries in form of Haats in the Indian markets. The study is aimed to find a solution about estimating the degree of dominance that this upcoming organized retail segment is going to establish over small domestic establishments. The study will also help the domestic establishments to understand and optimize their service strength and become polymorphic to sustain against this growing giant.

Stage: 2 Literature Search

The real GDP is expected to grow at 8-10 % per annum in the next five years. As a result, the consuming class with annual household incomes above Rs. 90,000 is expected to rise from about 370 million in 2006-07 to 620 million in 2011-12. Consequently, the retail business in India is estimated to grow at 13 per cent annually from US$ 322 billion in 200607 to US$ 590 billion in 2011-12.
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A research conducted by ICRIER shows The unorganized retail sector is expected to grow at about 10 per cent per annum with sales rising from US$ 309 billion in 2006-07 to US$ 496 billion in 2011-12. Given the relatively weak financial state of unorganized retailers, and the physical space constraints on their expansion prospects, this sector alone will not be able to meet the growing demand for retail. Hence, organized retail which now constitutes a small 4% of total retail sector is likely to grow at a much faster pace of 45-50 % per annum and quadruple its share in total retail trade to 16 per cent by 2011-12. This represents a positive sum game in which both unorganized and organized retail not only coexist but also grow substantially in size. The majority of unorganized retailers surveyed in this study, indicated their preference to continue in the business and compete rather than exit.

Organized Retailing Involves: Understanding the needs of the customer. Developing good assortment of merchandise. Displaying the merchandise in an effective manner so that consumers find it easy and attractive to buy. Retailers compromise of street vendors, local kirana stores, supermarkets, food joints,
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 saloons, airlines, automobile showrooms, video kiosks, direct marketers, vending machine operators, etc. Traditionally, Indians were used to buying their sugar, wheat, pulses, rice etc. from their neighborhood baniya. The majority of food and food products were and still are retailed through neighborhood kirana (baniya) stores. The origins of retailing in India can be traced back to the emergence of Kirana stores and mom-and-pop stores. These stores used to cater to the local people. Eventually the government supported the rural retail and many indigenous franchise stores came up with the help of Khadi & Village Industries Commission. The economy began to open up in the 1980s resulting in the change of retailing. The first few companies to come up with retail chains were in textile sector, for example, Bombay Dyeing, S Kumar's, Raymonds, etc. Later Titan launched retail showrooms in the organized retail sector. With the passage of time new entrants moved on from manufacturing to pure retailing. The majority of fresh produce is sold from the carts of traveling vendors. Such produce is deemed to be of low product quality, variety and hygiene. This concept is still popular in B-class and II Tier cities of India and giving employment to thousands of its inhabitants. Initially the food retail format was seen in A-class cities like Mumbai, Delhi, Chennai which had co-operative stores like "Apna Bazaar" in Mumbai and "Kendriya Bhandar" in Delhi. Both were very successful and are operating many outlets in all strategic localities in the city. Escorts group in the late eighties diversified into non-auto sectors by getting into agri business or food business. It came out with first "Nanz" store at South Extension in Delhi in 1990. Until the late 1990s, food retailing has been a typical kirana store has a retail area of 200 sq ft and sells 500 to 800 stock keeping units (SKUs).
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The kirana stores focus on dry food products because the infrastructure for cold storage was lacking. Southern India has been witnessing revolutionized activity in food retailing. It has thoroughly experienced the food retailing in various formats such as the supermarkets, hypermarkets and neighbourhood stores. These include Food World, Subhiksha, Nilgiris, Margin Free, and Big Bazaar. The reason being that most entrepreneurs who started organised retail came from southern India and the cost of real estate in the southern region was less than other regions (particularly north and west). Since then, however, organised food retailing has emerged across the country, inspired by the presence of high potential markets in the north, west and east as well as the success of some nonfood retailers and food services companies in these regions. Retail outlets such as Foodworld in FMCG, Planet M and Music world in Music, Crossword in books entered the market before 1995. Shopping malls emerged in the urban areas giving a world-class experience to the customers. Eventually hypermarkets and supermarkets emerged. The evolution of the sector includes the continuous improvement in the supply chain management, distribution channels, technology, back-end operations, etc. this would finally lead to more of consolidation, mergers and acquisitions and huge investments. The small local stores have dominated Indian retailing over the decades and are present in every village and local community, addressing the needs of the population in the area and being the point of contact with the consumer. The distribution networks of brands extend right upto this point to stay in touch with customer needs and preferences. India like most other countries has a very large network of local stores. The retail industry in rural India has typically two forms: "Haats" and "Melas". You will find these in almost every village and locality. A lot of them function as paan and cigarette outlets with tea and coffee sometimes also offered. Besides this these stores stock and offer small eats and soft drinks including biscuits, soft drinks, chocolate, sweets, bread and baked products. Many of them also sell fruits like bananas and a range of toiletries and cosmetics like soaps, shampoos, toothpastes and some creams. These small stores cater to the needs of their own local population and travelers who stop by for a smoke or a snack.
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Fruits and vegetables that are perishable are usually maintained and offered by exclusive vegetable stores and not by the normal groceries. Every fair sized village is likely to have at least one grocery store, a fruit and vegetable shop and a paan and cigarette shop. This network is very large and spread all across India. It is not really a network since each store is individual or family owned and has no connection with the other. It does however represent a network since large consumer product companies like Unilever, Procter & Gamble, ColgatePalmolive, Cadbury, Coca Cola, Pepsi and ITC uses them as their final point of retail to the consumer. While it is commonly believed that the new retail chains will drive these small stores out of business, reality points the other way and it is likely that these stores will continue even in the next two decades. These small stores are very personal and have strong relationships with the local population. They are points of news and connection. They offer credit to the local population and help out in times of crisis. They also have a very good understanding of requirements of the local population and have very low overheads enabling them to offer the best price for their products. Looking Ahead Many strong regional and national players emerging across formats and product categories Most of these players are now geared to expand far more rapidly than the initial years of starting up Most have regained / improved profitability after going through their respective learning curves. The Indian Retail growth can be attributed to the several factors including 1. Demography Dynamics: Approximately 60 per cent of Indian population below 30 years of age.

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2. Double Incomes: Increasing instances of Double Incomes in most families coupled with the rise in spending power. 3. Plastic Revolution: Increasing use of credit cards for categories relating to Apparel, Consumer Durable Goods, Food and Grocery etc. 4. Urbanization: increased urbanization has led to higher customer density areas thus enabling retailers to use lesser number of stores to target the same number of customers. Aggregation of demand that occurs due to urbanization helps a retailer in reaping the economies of scale. Investment Opportunities Potential for Investment: The total estimated Investment Opportunity in the retail sector is around US$ 5-6 Billion in the Next five years. Location: with modern retail formats having made their foray into the top cities namely Hyderabad, Coimbatore, Ahmedabad, Mumbai, Pune, Chennai, Bangalore, Delhi, Nagpur there exists tremendous potential in two tier towns over the next 5 years UP-AND-COMING FOOD RETAIL FORMATS With the changing food consumption patterns, consumers need for convenience, choice and value for money the set-up of retail format is changing. The Indian consumers do visit about eight to ten outlets to purchase various food products, which make up the daily consumption basket. These outlets include neighbourhood kirana stores, bakeries, fruit and vegetable outlets, dairy booths and chakkies (small flour mills), which is very time-consuming and unproductive way of shopping for food. With changing lifestyle there is growing scarcity of time, and convenience in food shopping is emerging as an important driver of growth of one-stop retail formats that can offer consumer 'value for time' in addition to 'value for money'. These are giving an opportunity to various other retail formats:

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A. Neighborhood Stores In India about 90% of food purchases are made within a distance of 1.5 km from the customer's home. This means that an organised retailer would need to have a 'neighbourhood store' close to customers in order to capture the share of wallet that is spent on food. These stores would cater to the consumer's daily and weekly needs. The outlets closest to a neighbourhood store in India are 'Safal' outlets operated by Mother Dairy in Delhi, Margin Free in Kerala and Subhiksha. B. Supermarkets This format caters to the consumers' need for choice and variety. These needs translate into 'more width' and 'more depth' in each category. These stores cater to the consumers in a catchment area with a radius of 3 to 4 km and therefore need to be destination stores. A supermarket can cater to the consumers' weekly, monthly and occasional needs. Examples of supermarkets already in India are Food World, Trinetra and Nilgiri's. C. Hypermarkets Hypermarkets are essentially destination stores catering to the consumers' bulk shopping needs in both food and non-food categories. The key added values for the customer are 'choice' and 'value for money' because products are sold at a discounted price. The hypermarkets model of food retailing is new to India. Spencers (RPG), Big Bazaar (Pantaloons), Star India Bazaar. D. Cash & Carry (C & C) Stores These stores sell their products to their members only. The members are typically retailers and institutions. The key added value is a wide range of products under one roof, available at wholesale prices. Metro has started the first C & C store in India in Bangalore. The typical area of a C & C store is 70,000 to 100,000 sq. ft. and both food and non-food products are stocked.

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KEY DEVELOPMENTS IN RETAIL The major development in food retail is consideration of Foreign Direct Investment (FDI) with a limitation that all companies would have to meet mandated export obligations. Food processing minister Subodh Kant Sahay told ET that We are considering a proposal to allow FDI in food retail. It should be in such a way that it would boost our agriculture. Our farmers must also get benefits of economic liberalization. The government is also considering the opening up of the $330-billion retail market with adequate provisions to protect neighborhood stores. In every retail format food trade is growing. More and more corporate houses such as HLL, ITC, Godrej and Reliance are already working into food retail. Huge increase is expected from the corporate players, which will help grow the entire food retail sector. Daburs Amit Burman has also forayed into food retailing. According to Amit "Food and beverages retailing is a very attractive segment and with Lite Bite Concepts we are targeting Rs 1,000 crore sales in a couple of years with around 200 outlets," Well-established players such as Subhiksha, Food Bazaar and Spencer's Daily are also tapping into backward linkages, while trying to match their expanding geographies with retail formats. Also, most food retail players have been region-specific as far as geographical presence is concerned. Take the RPG Group's FoodWorld, Nilgiris, Margin Free, Giant, Varkey's, all of which are more or less spread in the Southern region; Sabka Bazaar, Big Apple has a presence only in and around Delhi; names such as Haiko and Radhakrishna Foodland are Mumbai-centric; while Adani is Ahmedabad-centric. Retailers' entrance in the unbranded food space Modern food formats like Food Bazaar and Spencer's have their eye on the unbranded part of the consumer's shopping basket. This constitutes as much as 60% of the total purchases and growing sharply, says AC Nielsen estimates. Retailers are offering a package of convenience and freshness, and have an edge over manufacturers that focus mainly on packaged conveniences.
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Food retailers are offering 'live kitchen' formats, which offer on-thespot home-style gravies, dal, cooked rice and kneaded dough with options like grinding coffee fresh at store, idli batter, paneer, curd and cut vegetables. FOOD RETAIL AND ITS STEPPING STONES Rising Investment There are strong opportunities in food retail as a result of encouraging changes in consumer purchasing patterns, the availability of real estate and supply chain development. Organized food retail presents a unique investment opportunity for corporates looking to diversify. A good understanding of consumer, access to the right locations and the ability to manage the supply chain efficiently will be critical success factors for the new entrant. FDI Policy for Retail Gates have been opened up for single brand retailers. In February 2006, the door was opened to some extent when the government allowed 51% FDI by single brand companies subject to government approvals. Emergence of Logistic Providers The present lack of logistic support exposes the need for an integrated logistic provider. As retail activity gathers momentum and large quantities of perishables are sold in modern formats, the logistic service providers would have a crucial role to play in bridging the supply gap. Retail players would also benefit from an efficient supply chain inventory management.

INDIA RETAIL BY 2011-12

50 million sq. ft. of quality space under development. 7 major cities to account for 41 million sq ft development. 300 malls, shopping centers and multiplexes under construction.
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To open 35 hypermarkets. 325 large department stores. 1500 supermarkets and Over 10,000 new outlets. To add US $10 billion of business to organized retail.

Briefing on the report Mr. R S Roy, Editorial Director, IMAGES Group said that the presentation of India Retail Report 2009 required a yearlong interaction with over 1000 companies representing the entire gamut of manufacturing, retailing and the services sector that had direct or indirect impact on consumer spending. The study required a thorough understanding of the world market, major players, strategies and emerging trends and the evolution of Indian retail across multiple segments. "Supported with the findings of various research reports of IMAGES and KSA Consumer Outlook study the India Retail Report 2005 presents size, strengths and scope with performance of key players in each segment and explores new emerging segments that have potential for new and existing players," Major Formats of In-Store Retailing Branded Stores Exclusive showrooms either owned or franchised out by a manufacturer. Complete range available for a given brand, certified product quality. Specialty Stores Focus on a specific consumer need; carry most of the brands available. Greater choice to the consumer, comparison between brands is possible. Department Stores Large stores having a wide variety of products, organized into different departments such as clothing, house wares, furniture, appliances, toys, etc. One stop shop catering to varied/ consumer
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needs. Supermarkets Extremely large self-service retail outlets One stop shop catering to varied consumer needs Discount Stores Stores offering discounts on the retail price through selling high volumes and reaping economies of scale, Low Prices Hyper- mart Larger than a supermarket, sometimes with a warehouse appearance, generally located in quieter parts of the city Low prices, vast choice available including services such as cafeterias. Convenience stores Small self-service formats located in crowded urban areas. Convenient location and extended operating hours. Shopping Malls An enclosure having different formats of in-store retailers, all under one roof. Variety of shops available. Formats Adopted by Key Players in India 1) Retailer 2) Original formats 3) Later Formats RPG Retail Supermarket (Foodworld) Hypermarket (Spencer's)Specialty Store (Health and Glow) Piramal's Department Store (Piramyd Megastore) Discount Store (TruMart) Pantaloon Retail
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Small format outlets (Shoppe) Department Store (Pantaloon) Supermarket (Food Bazaar) Hypermarket (Big Bazaar) Mall (Central) K Raheja Group Department Store (shopper's stop) Specialty Store (Crossword) Supermarket Hypermarket Tata/ Trent Department Store (Westside) Hypermarket (Star India Bazaar) Landmark Group Department Store (Lifestyle) Hypermarket Others Discount Store (Subhiksha, Margin Free, Apna Bazaar), Supermarket (Nilgiri's), Specialty Electronics Road Ahead- Plans of Large Retailers Reliance Retail: investing Rs. 30,000 crore ($6.67 billion) in setting up multiple retail formats with expected sales of Rs. 90,000 crore plus ($20 billion) by 2009-10. Pantaloon Retail: It Will occupy 10 mn sq. ft retail space and achieve Rs.9,000 crore-plus ($2 bn) sales by 2008. RPG: Planning IPO will have 450-plus Music World, 50-plus Spencer's Hyper covering 4 mn sq. ft by 2010. LIFESTYLE: Investing Rs.400 crore-plus ($90 mn) in next five years on Max Hypermarkets & value retail stores, home and lifestyle centres.

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Raheja's: Operates Shoppers' Stop, Crossword, Inorbit Mall, and 'Home Stop' formats. Will operate 55 "Hypercity" hypermarkets with US$100 million sales across India by 2015. Piramyd Retail: Aiming to occupy 1.75 million sq.ft retail space through 150 stores in next five years. TATA (Trent Ltd.): Trent to open 27 more stores across its retail formats adding 1 mn sq.ft of space in the next 12 DLF malls. Titan industries to add 50-plus Titan and Tanishq stores in 2006.

INDIAN PLAYERS
1- Pantaloon retail India limited (PRIL)

Renamed itself as "FUTURE RETAIL'' in march 2006, as part of its restructuring and expansion plans. Headed by Kishore Biyani include pantaloons. Big bazaar, food bazaar, gold bazaar and the central mall. The first menswear pantaloons outlet was set up in 1992. The company sold products under the bare denim, springboard, Lombard and John miller brand names. Pantaloons offered a wide range of clothing options to Indian consumers. It stocked garments, accessories and life style products. The target audience for pantaloons was upper and middle class urban population in India. Customer feedback and customer satisfaction were the key focus at PRIL.
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Company relied heavily on IT for collecting customer data and opinions .PRIL realized the potential of huge middle class population in India, apart from retailing lifestyle products, it ventured in to BIG BAZAARin 2001 PRIL opened its first big bazaar, which had an area of 30,000 sq ft. in Kolkata .the major USP of the big bazaar store was low prices and the best price proposition being offered to customers. The caption used in the promotion is se sasta aur accha kahin nahin (cheaper and better than this? nowhere else!) indicating value for money stores. Big bazaar stocks over 2,00,000 products that include apparel, food products, home appliances, and cosmetics. Product are cheaper than the the market price by as much as 5-60 %, apparel are cheaper by 25-60%.

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The success of PRIL comes from cheaper sourcing of products and lower distribution costs. In addition to big bazaar, PRIL also started 'FOOD BAZAAR' in 2001. The first food bazaar store was set up in the lower parel region of Mumbai. Food represented PRIL's foray in to yet another value retailing business, which focused on food and grocery products. The stores were designed based on PRIL's understanding of the domestic needs of Indian housewives. The caption used in the promotion campaign of food bazaar was ab ghar chalaana kitna Aasaan ( now, it is so easy to run a house ). It had over 50,000 stock keeping units that covered a range of products like cereals, pulses, sugar, rice, juices, milk products and FMCG products, besides stocking vegetables and fruits. Most products were sold at Discounts ranging between 2- 20 %. Due to its focused Marketing and merchandising strategies, the food bazaar stores soon became popular among customers. PRILs central malls are targeted towards the up-market segment of urban population. In 2005 PRIL had three central malls located at Hyderabad, Bangalore & Pune. Each central mall has different departments for home Products, fashion, leisure, food, health, restaurant, beauty parlors, a pub and a nightclub. PRIL also ventured in to online retailing by launching its e-retail portal, futurebazaar.com, in may 2006 .with the launch of this online shopping portal, PRIL planned to invest Rs 150mn and hoped to earn Rs 3 bn from the venture. To counter competition from leading e-commerce portals in India like e Bay, Rediff, Fabmall and Indiatimes. 2- RPG GroupThe Ramah Prasad Goenka group one of the entrants in to the organized retail sector in India . They launched the 'FOOD WORLD' chain of grocery stores in 1999. By 2005, there were more than 90 Food world stores across India, making it the largest food & grocery retail chain. Food world has been growing at an annual growth rate of 30 % over last 5 years. Food world stocks almost 5000 items. In each outlet. Suppliers can deliver products directly to warehouse, from warehouse the products than be distributed to individual food world. This shortens the distribution channel, resulting saving and saving passed on to the customer, providing quality
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goods at lower costs. RPG too used IT for running operation smoothly and also hi- tech Cash registers and bar code scanners. RPG also owns spencer's hyper market a chain of retail hyper market in India. Spencer's hypermarket stock a wide range of products right from groceries, food items, home needs, fresh food, garments and consumer durables. Spencers Retail is one of Indias fastest growing retail stores with multiple formats and retailing food, apparel, fashion, electronics, lifestyle products, music and books. Established in 1996, Spencers has become a popular destination for shoppers in India with supermarkets, hypermarkets and dailies spread all over India. Operations Spencers has retail footage of over 2 million square feet and over 400 Spencers storesin65cities. The company operates through the following formats: Spencers Hypermarkets: A fast growing retail network of hypermarkets with large format stores in Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Hyderabad, Vizag, Vijayawada, Aurangabad Durgapur and Kolkata. Spencers Super: one of the largest supermarket chains in the food and grocery segment in India. Spencers Daily: small format stores conveniently located with a range of products to meet your daily household needs. Spencers Express : your food and grocery store next

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RPG Enterprises, established in 1979, is one of Indias fastest growing business groups with a turnover touching USD $3.25 billion. The group has more than twenty companies managing diverse business interests in the areas of Power, Transmission, IT, Speciality, Carbon Black, Tyre, Retail and Entertainment. Wide-ranging businesses, growing returns and a reputation to reckon, makes working with RPG an enriching experience. Where entrepreneurial skills are valued, excellence is the by-word, and performance is a prerequisite. Management The RPG Management Board is the backbone of the conglomerate. Its members are highly qualified professionals, well experienced in their respective fields. Values RPGs business ethics promote higher levels of excellence. The groups values of Customer Sovereignty, People Orientation, Innovation & Entrepreneurship, Transparency & Integrity, Passion for Superior Performance, Anticipation, Speed and Flexibility propel it to perform and excel in all spheres of the business. Quality For RPG quality determines success. Continuous process improvements
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are carried out to ensure complete satisfaction of customer and market requirements. Beyond Business RPG is a socially responsible organization; believing in giving back to the community what it has gained from it. The group regularly contributes toward the welfare of various social groups and is involved in promoting social activities in the field of sports and arts. MUSIC WORLD- launched in 1997 is another RPG retail venture, largest music retail chain in India with over 170 outlets. It stocks music videos, audios, accessories etc. the store ambience and presentation of products have contributed strongly to music world's success. 'Health & Glow'- joint venture between RPG & Dairy farm international. Launched in 1997- it is the first retail chain catering exclusively to the health and beauty requirement .the health & glow outlets offer cosmetic and medicinal products and services, all under one roof. 3- Tata Group The group started its Retail Business in 1998 with the purchase of the little woods Retail stores, originally owned by a UK based firm. The company was renamed Trent limited and the littlewoods store was called westside. As of 2005, there were 16 west- side stores across India about 20,000 sq ft in size. The Westside outlets are in apparel stores a cross India about 20.000 sq .ft in size.

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The Westside out lets are in appored and accessories retailing and offer international shopping experience with value for Money. Offer quality products with latest designs. Each Westside store has two divisions, one apparel division and other product division. These divisions are further classified in to seven departments (catering to men, women, kid's wear and needs) Star India Bazaar: A hypermarket with a large assortment of products at the lowest prices. Started in 2004, these outlets offers a wide choice of staple food, beverages, health and beauty products, vegetables, fruits, dairy products, consumer electronics and household items. Presently there is only one 50,000 square feet store in Ahmedabad and plans to extend its presence across all major metros. Landmark: In 2005, Tatas acquired 76per cent stake in Landmark, India's largest book and music retailer. At present Landmark has 7 stores, varying in size from 12,000 sq. ft. to 45,000 sq. ft, 3 in Chennai and 1 each in Bangalore, Gurgaon, Mumbai and Vadodara. Landmarks product profile includes books, stationery, greeting cards, music CDs, toys and other gift items. Infiniti Retail / Croma: Deals with consumer electronics and durable products under the retail outlet brand name Croma. The company would be investing upto Rs 4 billion for this venture. Croma is set to expand all over the country with at least 100 stores by 2011. With the backing of technical and sourcing collaboration with Australias retail major Woolsworths, Croma offer products in home entertainment, appliances, white goods, computers, software, communication, music and gaming from leading brands such as Apple, Godrej, LG, Kenstar, Canon, Sony. Titan industries established in 1984- it is India's leading watch manufacturer and retailer. Titan market its range of watches under the 'Titan' and 'sonata' brands and hold a 25% market share in watch industry . Titan's series of watches included Fastrack, Edge, Nebula, Raga, Sonata, Regalia, Bandan and Steel. Sonata was targeted at middle class consumer, who is both price conscious and quality conscious. Competitors of Titan are HMT and TIMEX.
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Titan entered in to jewelry segment under the brand name 'Tanishq' in 1995. Tanishq jewelry is sold exclusively by 69 outlets spread over 53 Indian cities and also exported to US, Europe, Australia, and Middle East. 4-K.Raheja Corp. Group of CompaniesIndia's largest real estate players. They launched Shopper's Stop in 1991 & its outlets stock apparel, accessories, household items, perfumes and cosmetics, coffee shops and book stores to give consumers a complete shopping experience. Crossword Bookstores Ltd- a subsidiary of Shopper's Stop in book retailing business has 22 stores across India. 5-RRL (Reliance Retail Limited)On june 26, 2006, mukesh Ambani, C & MD, Reliance industries limited, announced his plans to foray in to the retail sector with an initial investment of US$ 5.6 bn. RRL was expected to have its presence across India withdifferent retailing formats such as warehouse clubs, hypermarkets, supermarkets, specialty stores and convenience storess . Reliance also had plans to open restaurant outlets within its stores. In Nov 2006, RIL launched its first retail store 'RELIANCE FRESH' at Hyderabad. The store catered to consumer needs by providing fresh fruits, vegetables, groceries and dairy products. 6- A.B.Birla Group- which has acquired supermarket chain TRINETHRA has ruled out partnering foreign firms in its bid to be among the country's top retailers. 7- Gati- a cargo management and logistics solutions provider, on Jan 07 launched its foray in to the retail sector, opening the first of its retail store, 'Cafe d'eliver' in Hyderabad on 6 Jan 07. Gati has targeted the opening of 100 'Cafe d'eliver' by march 2008 to offer various services like fax, document photocopying, calling and printing, internet browsing in addition to own cargo services. 8- SUBHIKSHA- is a chain of food and pharmacy discount retail stores. It is based in Chennai and has a strong presence in southern India.
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9- MARGIN FREE- is a Kerala based chain of discount stores. 10- CALVIN KLEIN, MURJANI GROUPCalvin Klein Inc., the clothing design and marketing studio formed in 1968, is to set up a retail operation in India. The clothing empire and Murjani India Ltd. have announced an agreement for the latter to market and distribute the brand's various labels throughout India and open dozens of retail stores planned for the subcontinent. The agreement authorises Murjani to market the Calvin Klein lineup through exclusive retail outlets and select department stores approved by the company. It includes the original Calvin Klein Jeans line and the unisex ck Calvin Klein label, which the company introduced in the mid-1990s. Murjani India, a subsidiary of the Murjani Group, focuses on attracting international brands and retail concepts to India. Murjani forged a separate deal with The Warnaco Group, a New York-based apparel company, granting Warnaco exclusive rights to distribute the Calvin Klein Underwear line of products in India and supply Calvin Klein Jeans to Murjani. The broad plan is to open at least 40 Calvin Klein-branded stores during the first five years of the operation, with construction beginning as early as March 2007. 11- DISNEY ARTIST STORESThe Ravi Jaipuria held company RJ Corp has signed an exclusive master franchise agreement with Disney Consumer Products to source and market Disney character branded cards, stationery, arts, crafts and party products through exclusive Disney Artist stores in India . The first of the stores is to open in Mumbai in January 2007. Under the Disney Artist brand in India, RJ Corp will sell as vast range of Disney character-led products aimed at the kids and youth categoryThe Ravi Jaipuria held company RJ Corp has signed an exclusive master franchise agreement with Disney Consumer Products to source and market Disney character branded cards, stationery, arts, crafts and party products through exclusive Disney Artist stores in India . The first of the stores is to open in Mumbai in January 2007.
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Under the Disney Artist brand in India, RJ Corp will sell as vast range of Disney character-led products aimed at the kids and youth category 12 -Vishal Group - launched their first hyper market Vishal Mega mart in Udaipur this month. Spread over 25,000 sq.ft, the store offers extensive range of men's, women's and kids' range of fashion clothing. Beside fashion attire, it will also have separate sections and counters for watches, sunglasses, fashion accessories, gifts and novelties, electrical appliances, digital diaries, perfumes, cosmetics and grocery items etc. Currently, Vishal Mega Mart operates 29 fully integrated and self-owned stores spread over a total shopping area of 5,70,000 sq.ft in 21 cities across India.

SUBHIKHSHA Subhikshas taking on the kiranas and targeting the Rs 2,000-3,000 that households spend every month on food and toiletries. Hes also clear that the chain does not intend to target the more affluent households.Our outlets are not destination stores like those located in malls, he says. The shops are not air-conditioned and about 1,500- 2,000 square feet in size. Most do not allow consumers to walk around and browse; consumers have to walk down a single aisle and in many shops, cant turn back. Subhikhshas value proposition: provisions that are a good 10 per cent cheaper than those available at the kiranas. And home delivery to boot. Thats going to be the long term differentiator. Says Khattar, We offer the lowest prices across products, not just on 50 or 100 items and were cheaper than supermarkets or kiranas. Our customers should easily be able to save around Rs 700-800 every month on a bill of Rs 4,000. What Subhikhsha believes will work for it are the attractive prices that are available throughout and not just on some days of the week. It hopes to attract a large portion of the total food and grocery spends, which are estimated to be as much as 40 per cent of total spends. Some of the stores also stock medicines and telecom products. Gibson Vedamani, chief operating officer, Retailers Association of India, likes the strategy. Says he, They have positioned themselves on the value-for-money platform which is a strong property and will help them attract consumers quickly. To be able to sell to customers at attractive prices, Subhikhsha needs to
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build scale quickly. Today, the company has a total floor space of 1.3 million square feet; by the end of 2008-09, it hopes to be able to increase this by at least two and half times to around 3.25 million square feet. Industry experts point out that since the company is not banking on experience shopping and relies on its low-cost advantage ,it has to scale up before hypermarkets enter the game as they will offer consumers both the experience and good prices. Says Harminder Sahni, principal associate, KSA Technopak, Subhiksha largely caters to a segment driven by price. Hypermarkets could be cheaper and Subhiksha will be squeezed between the experience stores and the hyper markets. Vedmani agrees. When hypermarkets enter they will pose a huge threat. But if the company can scale up quickly, it will be able compete with the new entrants, he observes. As of now though, Subhikshas stores are doing brisk business. In fact, the demand, says Khattar, has been overwhelming and there have been times when stores have run out of stocks.Hes busy making sure that the shopshelves are full. That should make sure the stores too are full.

FOREINGN PLAYERS IN RETALING 1- Wal-Mart Stores Inc- is the largest retailer in the world and is based in Bentonville, Arkansas, USA. For the year ended Jinuary 2006, Wal-Mart had revenues of US$ 315.65 bn and a net income of US$ 11.23 bn (source: finance.google.com).it tied up with Bharti mittal group to launced its product in India. It is also the largest employment provider in USA. 2- CARREFOUR SA - is a French retail group that operates networks of hypermarkets, supermarkets, discount store, convenience stores and cashand carry outlets. for the year ended december 2005, Carrefour had revenues of 74.49 a net income of 1.58 bn (source: finance.google.com) 3- TESCO Plc- is the largest retailer in UK. For the year ended February 2006, the group's sales were 57.93 bn and a net income of 2.31 bn (source: www.hoovers.com)
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4- Rosy Blue Group - the world's largest Diamond manufacturer is planning to invest Rs.900mn in setting up 40 exclusive ORRA Diamond Jewelry showrooms in India. 5- LVMH Group - Dior, the well known watch brand from the Louis Vuitton Moet Hennessy (LVMH) Group is planning to include India among its top 12 world markets, most global players were opting for the franchisee route. However, despite the restriction on FDI, Foreign retailers had other modes of entry in to the Indian retail market. This included franchising, strategic alliances and the wholesale trading. It was reported that Tesco had plans to enter the Indian retail market through a joint venture through Homecare Retail Mart Pvt.Ltd. for opening 50 stores by 2010.

STAGE: 3 DATA EVALUATION

Organized vs. Unorganized Retail

In the developed economies, organized retail is in the range of 75-80 per

cent of total retail, whereas in developing economies, the unorganized sector dominates the retail business.

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 The share of organized retail varies widely from just one per cent in Pakistan and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia Modern retail formats, such as hypermarkets, superstores, supermarkets, discount and convenience stores are widely present in the developed world, whereas such forms of retail outlets have only just begun to spread to developing countries in recent years. In developing countries, the retailing business continues to be dominated by family-run neighborhood shops and open markets. As a consequence, wholesalers and distributors who carry products from industrial suppliers and agricultural producers to the independent familyowned shops and open markets remain a critical part of the supply chain in these countries. The real GDP is expected to grow at 8-10 per cent per annum in the next five years. As a result, the consuming class with annual household incomes above Rs. 90,000 is expected to rise from about 370 million in 2006-07 to 620 million in 2011-12. Consequently, the retail business in India is estimated to grow at 13 per cent annually from US$ 322 billion in 200607 to US$ 590 billion in 2011-12. The study shows: The unorganized retail sector is expected to grow at about 10 per cent per annum with sales rising from US$ 309 billion in 2006-07 to US$ 496 billion in 2011-12.Given the relatively weak financial state of unorganized retailers, and the physical space

constraints on their expansion prospects, this sector alone will not be able to meet the growing demand for retail. Hence, organized retail
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which now constitutes a small four per cent of total retail sector is likely to grow at a much faster pace of 45-50 per cent per annum and quadruple its share in total retail trade to16 per cent by 2011-12.This represents a positive sum game in which both unorganized and organized retail not only coexist but also grow substantially in size. The majority of unorganized retailers surveyed in this study, indicated their preference to continue in the business and compete rather than exit.

Global retail sales are estimated to cross US$12 trillion in 2007.1 Almost reflecting the growth in the world economy, global retail sales grew strongly in the last five years (2001-06) at an average nominal growth of about 8 per cent per annum in dollar terms. This is in contrast to near stagnant global retail sales during the previous five years, 1996-01. Grocery dominates retail sales with a share of approximately 40 per cent which varies from about 30 per cent in rich Japan to an average of 60 per cent in poor Africa. Retail sales through modern formats have been rising faster than total retail sales; the share of modern retail has risen from about 45 per cent
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in 1996 to over 52 per cent in 2006.Organized retailers are the contemporary formats by which shoppers have the edge of a world class shopping experience. Fine examples of these formats are Pantaloon, Shoppers Stop and Trent.

Source: Planet Retail and Technopak Advisers Pvt. Ltd.

Indias growing no. of Domestic Groceries Chain and early foreign entrants. Five Reasons why Indian Organized Retail is at the brink of Revolution: 1. Scalable and Profitable Retail Models are well established for most of the categories 2. Rapid Evolution of New-age Young Indian Consumers 3. Retail Space is no more a constraint for growth 4. Partnering among Brands, retailers, franchisees, investors and malls 5. India is on the radar of Global Retailers Suppliers

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There are various factors paving the way to revolutionizing food retailing in India. Among them few are:

Changing life styles and tastes Growing need for convenience Increasing disposable income Increasing numbers of working women Change in consumption patterns Higher aspirations among youth Impact of western lifestyle Plastic Revolution Increased use of credit cards and debit cards

Organized retail may broadly be classified into the following formats Malls Hypermarket MBOs:-Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros. Supermarket Discount stores Convenience store Departmental store Exclusive store Specialty store
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ORGANIZED RETAIL EXPANSION BY FORMAT Average Size (sq. No. ft.) of Stores 2001 Area ('000 sq. ft.) 400 2006 Share No. Area Share in of ('000 in Total Stores sq. ft.) Total Space Space (%) (%) 11.9 4,751 4,751 15.5

Format

Supermarkets / convenience stores Hypermarkets Discount stores Speciality stores Department stores Total

1,000

400

40,000 1,000 800 30,000

0 48

0 48

0.0

75

3000

9.8

2,651 26 3,125

1.4 2,121 63.3 780 23.3

1,472 1,472 4.8 20,612 16,490 53.7 166 4,980 16.2

3,349 100.0 27,076 30,693 100.0

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REVIEW OF RELEVANT THEORITICAL CONCEPTS

This section consists of the various concepts and business practices that have affected the project. Here we would be reviewing the various research and analysis concepts that have been widely and prudently used for gathering vital information from customers and competitors. Concepts that have enabled us do a sound analysis from the facts assimilated are also discussed here. What is Marketing Research? The American Marketing Association defines marketing research as follows: Marketing Research is a function which links the consumer, customer and the public to the marketer through information information used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing Research specifies the information required to address these issues; designs the method for collecting information; manages and implements the data collection process; analyses the results; and communicates the findings and their implications. Marketing Research Process The marketing research process consists of the following six steps: 1. Specifying research objectives. In this step questions like What is the purpose of the project ? and What are the objectives of the project ? need to be carefully addressed and sincerely answered. 2. Preparing a list of needed information. Here after a satisfactory statement of the studys purpose and objectives has been established, it is necessary to prepare a list of the information needed to attain the objectives.

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3. Designing the data collection project. Here the researcher determines whether such information is already available, either in company records or with outside sources. He should collect data from field after duly reviewing secondary data available. If the required information is unavailable, the researcher will have to collect information from the field for which he needs to design a data collection project. This includes answering questions like should research be conclusive or exploratory?, who should be interviewed? and how should the data collection form be designed?. 4. Selecting a sample type. As collecting information from a large population is difficult and cumbersome, a sample is selected and information collected. We may select either a probability sample or a non probability sample. 5. Determining the sample size. This step decides about the size of the sample that can vary from fewer than 10 to more than 1000. The sample size depends on the accuracy needed, the budget available and time constraints if they apply. 6. Organizing and carrying out the fieldwork. Fieldwork includes selecting, training, controlling and evaluating the members of the field force. A large number of errors are could arise at this stage due to the large number of people involved. Timely spot checks and reviews should be carried out to ensure accuracy and genuineness of responses. 7. Analyzing the collected data and reporting the findings. After all interviews and observations are made, the completed data collection forms should be processed in a way that yields fruitful results. Data needs to be tabulated and analyzed appropriately. While preparing reports, it should be ensured that the researchers suggestions and recommendations are included in the executive summary.

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RESEARCH METHODOLOGY RESEARCH METHODOLOGY

RESEARCH TYPE : Random sampling RESEARCH INSTRUMENT: Questionnaire SAMPLING UNITS : Individual SAMPLING SIZE : 50 SAMPLING METHOD : Questionnaire and personal Interview method for conducting surveys intending to gather primary data. INFORMATION SOURCES: 1. Primary Data Questionnaires Interviews of existing small domestic establishments. 2. Secondary Data Internet Books Articles Literature

DATABASE In this thesis, I had to do research to study a comparative analysis to find out the impact of organized retail stores on the small domestic establishments in Vadodara city. I completed the research activity by conducting survey. Target population: existing small domestic establishments of Vadodara.

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Research Design: - Data Collection. The method of data collection is primary data from existing small domestic establishments. Mode of communication: Personal interview with the respondent through structured direct questionnaire containing list of alternatives. The Research Type was of Random sampling and the Research Instrument is Questionnaire, the Sampling Units is Individual and the Sampling Size was 50. The personal Interviews conducted of establishments; some of them are as follows: VIMALESHWAR STORE RIDDI SIDDHI STORE GANDHI STORE ANKUR STORE PRATIK STORE AMUL STORE KHETESHWAR STORE SHREE KRISHNA STORE VIMAL STORE SUVARNA STORE BALAJI STORE SHYAM STORE existing small domestic

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Analysis on small domestic establishments with special emphasis on food and grocery

I conducted survey of 25 small domestic establishments with special emphasis on food and grocery. I came to know that 15 stores are 15 years old, remaining 10 stores are 5-6 years old. What kinds of product are offered by you to customers?

Name of products Fruits Groceries milk products Spices Ready to eat food Biscuits cold drinks

No. of stores 10 30 30 20 15 30 25

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No. of customers visit their stores on daily bases.

NO. OF CUSTOMERS less than 50 50-100 more than 100

NO. OF STORES 16 8 6

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Effect of the following factors in influencing or switching away your regular customers
good aesthetic 5 4 1 prime location 5 4 1 5 3 2 friendly store person 0 1 9 selling supp gds 7 2 1 discount offer 8 2 0 high advertise 6 2 2 big brand 6 2 2 free home delivery 0 0 10

atmosphere

Effect on products of small domestic establishments due to the organized retail stores

ready to cook Not at all Some what Considerable 6 2 2

Milk products 5 1 4

vegetables 7 2 1

fruits 7 2 1

groceries 6 0 4

spices 10 0 0

biscuits & con 3 1 6

cold drinks 3 1 6

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Services or facilities offered to maintain your loyal customers

No. of services are given Credit is given Free home delivery Order taking on telephone Fast delivery Discount

No. of stores 15 28 25 30 0

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Analysis of small domestic establishments with special emphasis on apparel

I conducted survey of 25 small domestic establishments with special emphasis on apparel. I covered Raopura and Mangalbazar area of Vadodara city. Do you think any of the following things has happened because of organized retail stores? Not at Some all what Considerable 15 5 5 15 5 5 15 15 3 4 7 6

Decrease in total no. of customer base Frequency of purchase of individual customers Demand of more facilities like big business group shopping mall Decrease in annual turnover

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Factors influencing customers for switching

High Impact Good aesthetic Atmosphere prime location Friendly store person selling supplementary ( large variety ) Discount offer high add big brand name selling other house hold offering latest wear availability of more international brand other recreational factor like parking 8 8 9 0 6 3 7 8 8 7 5 6

Some what 2 2 1 3 2 1 2 0 1 1 2 2

No impact 0 0 0 7 2 6 1 2 1 2 3 2

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CONCLUSION - FOOD AND GROCERY

During their entry phase when organized retailers came into the market somewhat they were affected at some level. After sometime the customers started to come to their stores. PRICE : Respondents replied that Reliance fresh is giving one rupee discount on milk and vegetables which are available at less prize ( 50 paisa ) because of their purchase from suppliers in bulk quantity as compared to small domestic establishment in order to the customers. If we talk about the products then I can say that Biscuits, cold drinks, milk products and groceries are the most affected as the organized retailers are offering the same services at low cost and also these products have a low profit margin. Nowadays, customers have many options to buy a particular product. So they buy from those retailers who sell them at least prices. Literate Employees: In competitive scenario retailers have to maintain their loyal customers. We believe that big retailers are giving more and more services like home delivery, providing information of products with their literate employees who have good communication skills and thus interact with the customers in a very pleasing manner. Customers are not satisfied with the issues of exchange of products due to bad quality, with the small domestic establishment. Because goods once sold cannot be taken back. This becomes one of major factor going against the small domestic establishment. On the other hand, Customers now have trust on organized retailers as they visit their stores regularly. And in the case of exchange of products due to bad quality, customers are not worried because organized retailers exchange the goods with a smiling face and have not kept it time bound, this on the other hand increased customer satisfaction and loyalty. After learning from small domestic establishment now organized retailers are also providing free home delivery service which was earlier a distinctive service of small domestic establishment.
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The small domestic establishment which are 15-16 years old or wholesalers are not affected by the organized retail stores, because they have already build very personal and strong relationship and bonding with their customers. The major reason behind it can be the credit services for a month or two provided by them to the customers plays a vital role in their existence. Customers of Small domestic establishments are easily wooed and influenced by discounts, mass advertisements. Customers are now also become brand choosy or brand conscious but Small domestic establishments keep most of their products which are local, they dont keep international brands as compared to organized retailers. But, if we talk about overall small retail stores, I can say that they are not much affected by the organized retail stores, as Small domestic establishments are providing fair amount of services to their customers.

CONCLUSION - apparel

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 As per my survey I can say that 15 stores of Raopura are not affected much by organized retail stores but 10 stores from Mangalbazar and mandvi are affected. According to the small domestic establishments retailers of Raopura say that Raopura is prime location for shopping. On the other hand, Mangalbazar is not posh location so high middle class people or young people does not preferred this location to shop, reason being young people are attracted by malls i.e., organized retail stores. Small domestic establishments have less variety and less volume of clothes as compared to organized retail stores. Customers do not get more choices from Small domestic establishments because of limited merchandise. In the cases of exchange, malls have time limit but small retailers are flexible enough. The retailers of Boutique like Trezer says that they have more party wear or fashionable apparel compare to the malls. People go to malls by attraction of the discount offer on the FMCG goods so they go and just see but they dont buy the apparel from malls. So, I can say that prime location plays major role for the customers. But, as per my findings some stores are affected by the organized retail stores but not all the stores are affected.

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SUGGESTIONS
CREDIT: It is a distinctive and USP of small domestic establishment, they should never stop giving credit to their customers. QUALITY: Small domestic establishment should be consistent in improving the quality of goods. This is the major reason of lagging behind in competition. Customers are not satisfied with the issues of exchange of products due to bad quality, with the small domestic establishment. So if the quality is improved so there will be no case of exchange. PRICE: Small domestic establishment should set standard market prices and not charge higher even if it is a case of 50 paise, because nowadays customers are very much price conscious. MARKETING: As the Small domestic establishment does not have that much capital as in the case of organized retailers so they lack in advertising. But they can gain advantage of word of mouth publicity by providing good quality products and services. SERVICES: On time delivery of products should be taken care of by Small domestic establishment because they lack in providing this services.

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APPENDICES
Retailing is derived from the French word retailer, which means to cut a piece off. MBO - Multi Brand outlets PRIL - Pantaloon retail India limited Unstructured questionnaires: are usually open ended and try to probe into the mind of respondent, allowing the interview to express his own thoughts rather than restricting him to the available response options.

QUESTIONNAIRE FOR FOOD & GROCERY

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Name and Address of Retailer:1) What is your store Name? ____________________________________________________________ 2) How many years old your store? ____________________________________________________________ 3) What kinds of product are offered by you to your customers? Fruits Groceries Milk products Species Ready to eat food Biscuits & confectionaries Cold drinks General Merchandise Others

4) How many customers visit your store daily? Less than 50 50 100 100 150

5) What is your total customers base?

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6) Do you think any of the following things has happened because of organized retail stores? Not at all Decrease in total no. of customer base Frequency of purchase of individual customers Reduction in their bill size Demand of more facilities like big business group shopping mall Decrease in annual turnover 7) What will be the effect of the following factors in influencing or switching away your regular customers? High Impact Good aesthetic Atmosphere Prime location Friendly store person Selling supplementary
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Somewhat

considerable

Cant say

somewhat

No impact

Cant say

items(large variety) Discount offer High advertising & promotion Big brand name of the company Free home Delivery

8) Which of your products get affected with the advent of organized firms in your city? Not at all Ready to cook Milk products Vegetables Fruits Groceries Species Biscuits & confectionaries Cold drinks General merchandise Some What Considerable Cant say

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9) Which services or facilities you offer to maintain your loyal customers? Credit Free home delivery Order taking on telephone Fast delivery Discounts

APPAREL QUESTIONNAIRE

Name of Retailer:Address:1. What is your store Name? 2. How many years old your store? 3. How many customers come at your store daily? Less than 50
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50 100 100 - 150

4. Which of the following apparel categories are do you stock? Ladies Wear Office wear ( formal ) Party Wear Casual Wear Festival Wear Kids Wear Office wear ( formal ) Party Wear Casual Wear Festival Wear Office wear ( formal ) Party Wear Casual Wear Festival Wear

Gents Wear-

5. Do you think any of the following things has happened because of organized retail stores? Not at all Decrease in total no. of customer base Frequency of purchase of individual customers Demand of more facilities like big business group
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Somewhat

considerable

Cant say

shopping mall Decrease in annual turnover

6. As per your opinions of what will be the effect of the following factors in drawing away you regular customers? High somewhat Impact Good aesthetic atmosphere Prime location Friendly store person Selling supplementary items(large variety) Discount offer High advertising & promotion Big brand name of the company Selling other households necessity items under are roof Offering latest Wear Available of more International brands Other recreational factors like parking
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No Cant say impact

REFERENCES
http://siadipp.nic.in/policy/icrier_report_27052008.pdf http://www.managementparadise.com/forums/archive/index.php/t161305.html http://www.peerpower.com/hotdiscussions/Has_organised_retail_faile d_to_blunt_inflation_3539 http://www.atimes.com/atimes/South_Asia/GF09Df03.html http://www.financialexpress.com/printer/news/151762/ http://www.rbs.edu.in/research/ret.html http://www.sarkaritel.com/news_and_features/infa/july2009/15ban_bi g_retail_trade.htm http://en.wikipedia.org/wiki/Wal-Mart www.indiabiznews.com/biznews/categoryNewsDesc.jsp?catId www.indianmba.com/Faculty_Column/FC504/fc504.html www.imagesretail.com/india_retail_report.html www.trends.com www.businessoutlook.com www.businessindia.com
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 www.businessworld.com www.businesseconomy.com www.financialexpress.com www.timesofindia.com www.economictimes.com www.marketresearch.com

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