In partial fulfillment of internal assessment required for subject “Research Methodology” for term II of Executive MBA

Executive Summary:

Evaluation of “SHOPPING EXPERIENCE

IN ORGANIZED RETAIL”

Arun Thakur…………………………………………………………………………….21
Kapil Joshi………………………………………………………………………………07
Komalkant Maski…………………………………………………………...................03
Sukanta Biswas………………………………………………………………………...34
Raju Jaiswal…………………………………………………………………………….16

SUBMITTED TO:

PROF. ANAHAT

Institute for Technology and Managament

Department of SMBA
 Index
 Indian Retail Market Overview
 Top performers…
– Future Group
– Reliance Retail
– Aditya Birla Group
 Market Research
– Background & description of problem
– The methodology
– The Sample
– Findings
 Conclusion & recommendations
– Research Questionnaire
Indian Retail Industry Overview

 “A recent Nielsen global consumer confidence survey showed

Indians as being the most optimistic, especially about job
prospects and personal finances. Retailers will be hoping that
this optimism translates into higher spending at their stores”.
 India retail industry is the largest industry in India, with an
employment of around 8% and contributing to over 10% of the
country's GDP.
 Retail industry in India is expected to rise 25% yearly being driven by
strong income growth, changing lifestyles, and favorable
demographic patterns. 
 CB Richard Ellis' findings state that India's retail market is currently
valued at US$ 511 billion. 
 100 per cent FDI is allowed in cash-and-carry wholesale formats.
Franchisee arrangements are also permitted in retail trade.
 51 per cent FDI is allowed in single-brand retailing.
Top Performers: Future Group
Future Group: Brief fact file…
 1987: Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser,
India’s first formal trouser brand.
 1992: Initial public offer (IPO) was made in the month of May.
 1995: John Miller – Formal shirt brand launched .
 1997: Company enters modern retail with the launch of the first 8000 square feet store,
Pantaloons in Kolkata.
 2001: Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and
Hyderabad.
 2002: Food Bazaar, the supermarket chain is launched.
 2004: Central - India’s first seamless mall is launched in Bangalore.
 2005: Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League
Clothing and Planet Retail.
 2007: Future Group crosses $1 billion turnover mark.
Pantaloon Retail wins the International Retailer of the Year at US-based National Retail
Federation convention in New York and Emerging Retailer of the Year award at the World
Retail Congress held in Barcelona.
 2008: Future Capital Holdings becomes the second group company to make a successful
Initial Public Offering in the Indian capital markets.
 Top Performers: Reliance Retail
 Since its inception in 2006, Reliance Retail Limited (RRL) has grown into an organization
that caters to millions of customers, thousands of farmers and vendors.

 RRL increased its footprint to more than 900 stores in 80 cities across 14 states in India.

  RRL now operates not only 'value' formats such as Reliance Fresh
(neighbourhood store), Reliance Mart (all under one roof supermarket) &
Reliance Super (mini-mart), which offer a range of products for daily household
usage; but also specialty formats, such as Reliance Digital (consumer durables
& information technology), Reliance Trends (apparel & accessories), Reliance
Wellness (health, wellness & beauty), iStore (Apple products), Reliance
Footprint (footwear), Reliance Jewels (jewellery), Reliance TimeOut (books,
music & entertainment), Reliance AutoZone (automotive products & services)
and Reliance Living (homeware, furniture, modular kitchens, furnishings). .
Top Performers: Aditya Birla Retail Limited
 The Group’s foray into the retail sector began in 2006, when it acquired Trinethra, the south-India based chain of
stores. May 2007 saw Aditya Birla Retail Limited (ABRL), launching their own brand of stores MORE.
 Till end of July 2008, the company has set up 640 supermarkets and two hypermarkets.
 All the supermarkets (including the former Trinethra stores) are now branded MORE and the hypermarkets are
branded MORE Megastore. The company has around 11,000 employees and has a pan India presence.
 The supermarkets have a minimum size of 2,500 sq ft, while hypermarkets are larger with a minimum size of
50,000 sq ft.
 The stores offer a range of products in processed foods, home and personal care, fruits and vegetables, general
merchandise, apparel and CDIT.
 In addition, many of the stores have a bakery and other shop in shops catering to mobile stores, pharmacy, Indian
sweets and the like.
 Background & definition of the problem
 In Metros, by now, Mall culture is completely on fire.
 Shopping/Window shopping is the first preferred time pass for all.
 Ambience, cleanliness, AC are the prime offerings of the Malls.
 But, shopping experience in Mall is not always pleasant.

 Main Research Objective: “Evaluation of Shopping experience and

challenges faced in the organized retail chains”
 The Methodology
 The best suitable method for our survey was “In-Person” survey. We segmented our
Sample from New Mumbai area. We considered sample from Vashi, Nerul, Belapur &
Kharghar.

 We carried our in person interviews at “Vashi Rail-Way Station / Bus Depot”, “Centre
One Mall”, Raghu-Leela Mall”, Nerul SBI colony, Army Colony, Belapur Bus Depot,
D.Y. Patil college & “Little World Mall” Kharghar.

 We designed the questionnaire in such a way that we managed to eliminate people

who does not like to shop in Malls.

 The locations were selected based on the easiness of the availability of the people.
Large part of the samples who actually put more interest in the survey were people
standing in the queues at Railway station & Bus Depot. Students from college
responded with quiet a good amount of enthusiasm.
The Sample

Total Sample
n = 100

Vashi Nerul Belapur Kharghar

n = 35 n = 25 n = 25 n = 15

Service Service Service Service

n = 25 (25%) n = 15 (15%) n = 17 (17%) n = 8 (8%)

Business Business Business Business

n = 10 (10%) n = 10 (10%) n = 8 (8%) n = 7 (7%)
Findings

 People still love to shop in Big Bazaar. Aggressive marketing strategy.

 In new Mumbai, D’Mart banks of lower middle class.
 For upper class it’s a new trend to visit Hypercity, nowadays. It’s the “Ambience” that
matter for the niche market.
 More & Reliance are already moving downwards as people are not finding these as
their preferred shopping destination..
Reasons for shopping in the Mall

 The most compelling factor for shopping in the Mall for customers is “Value for Money”.
 Availability of the required stock plays important role in the “Repeat Customer Concept”.
 IGWIW: I Get What I Want….. That’s the bottom-line.
 For upper class customer, Ambience, personal treatment & Gestures from the staff
are very much considerable factors.
 Now a days, Car Parking facility is also very crucial.
Reasons for not shopping at Big Bazzar

 “Long Standing Queues” is the biggest Headache at Big Bazzar

 Offers printed in the news paper are found to be “not working”, many of the times.
 Other issues from the customers are “indecent behavior & improper VMs”
 Now a days, Car Parking facility is also very crucial.
HyperCity Vs D’Mart (1=Poor, 5=Excellent)

 “HyperCity banks on Ambience, Niche Market whereas D’Mart has upper hand in Value for Money
& attractive offers.
 “HyperCity” is much lucrative option for upper class.
 D’Mart is popular in lower middle class.
 Challenges are observed in Ambience & penetration in Niche market for D’Mart.
 HyperCity faces tough challenge in the area of cost effectiveness.
Future Strategies and areas of improvement

 Big Bazzar is putting more focus on Queue Management & Core business initiatives.
 Reliance, Mukesh Ambani has shown some interest in expanding the business as he hired few
people from Tesco Thialand.
 Kumar Mangalam Birla is not still optimistic on Retail, so there is no upcoming strategy
published by Aditya Birla Retail.
 Conclusion
 It is strongly indicated that “D’Mart” is the most preferred destination of New Mumbai
Customers. Ability to purchase own lands is the key differentiator of “D’Mart”. Also its
simple nature, range of merchandises and attractive offers make it the “Best Shopping
Place” for customers.

 Hypercity, is the much preferred destination for Niche markets. Very pleasant
ambience, good merchandise range & cleanliness makes it the most upcoming
desired destination to shop. It is another bench mark store from Raheja, which follows
their strategy to concentrate to target Niche Market.
 Big Bazaar still enjoys their market position as leader. But not so many stores
available in Navi Mumbai and “Long Sanding Queues” are the teething problems for it.
Brand Name helps it a lot, but still people think before entering Big Bazaar.
 Reliance Fresh & More enjoys more penetration in the market of Navi Mumbai. But
increased operating cost and lack of clear cut guidelines from the top management
are the big questions.
Market Research: Research Questionnaire
Market Research: Research Questionnaire
Market Research: Research Questionnaire
Thank You!