Part 2 MR Singh
Part 2 MR Singh
INTRODUCTION TO
THE TOPIC
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1.1.1 INTRODUCTION
Sales promotion is one of the elements of the promotional mix. The primary elements in the
promotional mix are advertising, personal selling, direct marketing and publicity/public
relations. Sales promotion uses both media and non-media marketing communications for a
pre-determined, limited time to increase consumer demand, stimulate market demand or
improve product availability. Examples include contests, coupons, freebies, loss leaders,
point of purchase displays, premiums, prizes, product samples, and rebates.
Sales promotions can be directed at either the customer, sales staff, or distribution channel
members (such as retailers). Sales promotions targeted at the consumer are called consumer
sales promotions.
Sales promotions targeted at retailers and wholesale are called trade sales promotions.
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Sales promotion includes several communications activities that attempt to provide added
value or incentives to consumers, wholesalers, retailers, or other organizational customers to
stimulate immediate sales.
These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices
used in sales promotion include coupons, samples, premiums, point-of-purchase (POP)
displays, contests, rebates, and sweepstakes.
Sales promotion is implemented to attract new customers, to hold present customers, to
counteract competition, and to take advantage of opportunities that are revealed by market
research. It is made up of activities, both outside and inside activities, to enhance company
sales. Outside sales promotion activities include advertising, publicity, public relations
activities, and special sales events. Inside sales promotion activities include window displays,
product and promotional material display and promotional programs such as premium awards
and contests.
Sale promotions often come in the form of discounts. Discounts impact the way consumers
think and behave when shopping. The type of savings and its location can affect the way
consumers view a product and affect their purchase decision. The two most common
discounts are price discounts (“on sale items”) and bonus packs (“bulk items”). Price
discounts are the reduction of an original sale by a certain percentage while bonus packs are
deals in which the consumer receives more for the original price. Many companies present
different forms of discounts in advertisements, hoping to convince consumers to buy their
products.
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Online interactive promotion game: Consumers play an interactive game associated
with the promoted product.
Rebates: Consumers are offered money back if the receipt and barcode are mailed to
the producer. Contests/sweepstakes/games: The consumer is automatically entered
into the event by purchasing the product.
Point-of-sale displays:-
Aisle interrupter: A sign that juts into the aisle from the shelf.
Dangler: A sign that sways when a consumer walks by it.
Dump bin: A bin full of products dumped inside.
Bidding portals: Getting prospects.
Glorifier: A small stage that elevates a product above other products.
Wobbler: A sign that jiggles
Lipstick Board: A board on which messages are written in crayon.
Necker: A coupon placed on the 'neck' of a bottle.
YES unit: "your extra salesperson" is a pull-out fact sheet.
Electroluminescent: Solar-powered, animated light in motion.
Kids eat free specials: Offers a discount on the total dining bill by offering 1 free kids
meal with each regular meal purchased
Sampling: Consumers get one sample for free, after their trial and then could decide whether to
buy or not.
New technologies have provided a range of new opportunities for sales promotions. Loyalty
cards, personal shopping assistants, electronic shelf labels, and electronic advertising displays
allow for more personalised communications and more targeted information at the point of
purchase. For example, shoppers may receive alerts for special offers when they approach a
product in a specific aisle.
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product
Dealer loader: An incentive given to induce a retailer to purchase and display a product.
Trade contest: A contest to reward retailers that sell the most product.
Point-of-purchase displays: Used to create the urge of "impulse" buying and selling your
product.
Training programs: dealer employees are trained in selling the product.
Push money: also known as "spiffs". An extra commission paid to retail employees to
push products. Trade discounts (also called functional discounts): These are payments to
distribution channel members for performing some function.
Customers can, depending on the delivery company, choose to pay online or in person,
with cash or card. A flat rate delivery fee is often charged with what the customer has bought.
Sometimes no delivery fees is charged depending upon the situation. Tips are often
customary for food delivery service. Contactless delivery may also be an option.
Other aspects of food delivery include catering and wholesale food service deliveries to
restaurants, cafeterias, health care facilities, and caterers by foodservice distributors.
1.1.7 HISTORY
The first food delivery service was for naengmyeon (cold noodle) in Korea, recorded in 1768.
Hyojonggaeng (hangover soup) was also delivered for the yangban in the 1800s.
Advertisement for food delivery and catering also appeared in the newspaper in 1906.
traditional asymmetrical gender roles). The tiffins are then returned either in the afternoon or the
next day by the same system.
In the Philippines, most commonly delivered meals are from fastfood chains like Jollibee,
McDonald's, Pizza Hut, Shakey's, KFC, etc. Orders are being done through their delivery
websites, mobile apps, or by phone. Time of delivery usually takes around 30 to 45 minutes.
Meal delivery services offer prepared meals by subscription.
According to Forbes, grocery stores should delivery their own groceries to help prevent third
party, part-time, non-store deliverers from becoming the 'face' or brand image of their local
grocer.
Limitations of having to pick and deliver groceries within a short period of time need to be
remedied to allow for more flexibility to enable more deliveries to be more efficiently routed.
Frozen and fresh food refrigeration units inside the store and the delivery vehicle, as well as
lockable, consumer refrigeration boxes at the consumers home will be a solution that allows
the groceries to be delivered at any time, further relieving delivery issues. This scenario will
allow more local grocers to delivery with employee vs outside delivery services.
1.1.11ASSOCIATED FEES
A farmer in his field buys his breakfast from a motorcycle-based traveling vendor. Zhangpu
County, Fujian
In addition to paying for the food, customers will often have to pay a delivery fee. The
delivery fee will cover the cost of gas or other transportation costs, but usually does not go to
the delivery person. For meal delivery, it is common to give the deliverer an optional tip upon
paying for the order. In Canada and the United States, tipping for delivery is customary.
Opinions on appropriate amounts vary widely. In addition, grocery stores may charge more
for the foods that are ordered online for delivery than they charge for the same items off-the-
shelf.
In restaurant delivery, if the delivery service is provided by a third party, such as Uber Eats or
Deliveroo, the delivery fee, which can be as much as 25 or 30 percent of the value of the
order, is paid by the restaurant to the service provider. In addition to the delivery fees, the
service companies charge the restaurants a fee to set up the account, further cutting into the
restaurants' margins. Due to intense competition between the service providers wishing to
sign up restaurants to use their services, restaurants have been able to negotiate lower
delivery fees. McDonald's negotiated the delivery fees charged by Uber Eats from nearly 20
percent to "around 15 percent," according to a report in the Wall Street Journal.
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CHAPTER-2
Industry & Company
Profile
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RETAIL INDUSTRY
Retail is the process of selling consumer goods or services to customers through
multiple channels of distribution to earn a profit. Retailers satisfy demand identified through
a supply chain. The term "retailer" is typically applied where a service provider fills the small
orders of a large number of individuals, who are end-users, rather than large orders of a small
number of wholesale, corporate or government clientele. Shopping generally refers to the act
of buying products. Sometimes this is done to obtain final goods, including necessities such
as food and clothing; sometimes it takes place as a recreational activity. Recreational
shopping often involves window shopping and browsing: it does not always result in a
purchase.
Retail markets and shops have a very ancient history, dating back to antiquity. Some of the
earliest retailers were itinerant peddlers. Over the centuries, retail shops were transformed
from little more than "rude booths" to the sophisticated shopping malls of the modern era.
Most modern retailers typically make a variety of strategic level decisions including the type
of store, the market to be served, the optimal product assortment, customer service,
supporting services and the store's overall market positioning. Once the strategic retail plan is
in place, retailers devise the retail mix which includes product, price, place, promotion,
personnel and presentation. In the digital age, an increasing number of retailers are seeking to
reach broader markets by selling through multiple channels, including both bricks and
mortar and online retailing. Digital technologies are also changing the way
that consumers pay for goods and services. Retailing support services may also include the
provision of credit, delivery services, advisory services, stylist services and a range of other
supporting services.
Retail shops occur in a diverse range of types and in many different contexts – from strip
shopping centres in residential streets through to large, indoor shopping malls. Shopping
streets may restrict traffic to pedestrians only. Sometimes a shopping street has a partial or
full roof to create a more comfortable shopping environment – protecting customers from
various types of weather conditions such as extreme temperatures, winds or precipitation.
Forms of non-shop retailing include online retailing (a type of electronic-commerce used
for business-to-consumer (B2C) transactions) and mail order
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HISTORY:
Retailing in antiquity
Marketplace at Trajan's Forum, the earliest known example of permanent retail shopfronts
Retail markets have existed since ancient times. Archaeological evidence for trade, probably
involving barter systems, dates back more than 10,000 years. As civilizations grew, barter
was replaced with retail trade involving coinage. Selling and buying is thought to have
emerged in Asia Minor (modern Turkey) in around the 7th millennium BCE.[5] Gharipour
points to evidence of primitive shops and trade centres in Sialk Hills in Kashan (6000 BCE),
CatalkHuyuk in modern-day Turkey (7,500–5,700 BCE), Jericho (2600 BCE) and Susa (4000
BCE). Open air, public markets were known in ancient Babylonia, Assyria, Phoenicia and
Egypt. These markets typically occupied a place in the town's centre. Surrounding the
market, skilled artisans, such as metal-workers and leather workers, occupied permanent
premises in alleys that led to the open market-place. These artisans may have sold wares
directly from their premises, but also prepared goods for sale on market days. In ancient
Greece markets operated within the agora, an open space where, on market days, goods were
displayed on mats or temporary stalls. In ancient Rome, trade took place in the forum. Rome
had two forums; the Forum Romanum and Trajan's Forum. The latter was a vast expanse,
comprising multiple buildings with shops on four levels. The Roman forum was arguably the
earliest example of a permanent retail shop-front. In antiquity, exchange involved direct
selling via merchants or peddlers and bartering systems were commonplace.
The Phoenicians, noted for their seafaring skills, plied their ships across the Mediterranean,
becoming a major trading power by the 9th century BCE. The Phoenicians imported and
exported wood, textiles, glass and produce such as wine, oil, dried fruit and nuts. Their
trading skills necessitated a network of colonies along the Mediterranean coast, stretching
from modern day Crete through to Tangiers and onto Sardinia The Phoenicians not only
traded in tangible goods, but were also instrumental in transporting culture. The Phoenician's
extensive trade networks necessitated considerable book-keeping and correspondence. In
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around 1500 BCE, the Phoenicians developed a consonantal alphabet which was much easier
to learn that the complex scripts used in ancient Egypt and Mesopotamia. Phoenician traders
and merchants were largely responsible for spreading their alphabet around the
region. Phoenician inscriptions have been found in archaeological sites at a number of former
Phoenician cities and colonies around the Mediterranean, such as Byblos (in present-
day Lebanon) and Carthage in North Africa.
In the Graeco-Roman world, the market primarily served the local peasantry. Local
producers, who were generally poor, would sell small surpluses from their individual farming
activities, purchase minor farm equipment and also buy a few luxuries for their homes. Major
producers such as the great estates were sufficiently attractive for merchants to call directly at
their farm-gates, obviating the producers' need to attend local markets. The very wealthy
landowners managed their own distribution, which may have involved exporting and
importing. The nature of export markets in antiquity is well documented in ancient sources
and archaeological case studies. The Romans preferred to purchase goods from specific
places: oysters from Londinium, cinnamon from a specific mountain in Arabia, and these
place-based preferences stimulated trade throughout Europe and the middle East. Markets
were also important centres of social life.
The rise of retailing and marketing in England and Europe has been extensively studied, but
less is known about developments elsewhere. Nevertheless, recent research suggests that
China exhibited a rich history of early retail systems. From as early as 200 BCE, Chinese
packaging and branding was used to signal family, place names and product quality, and the
use of government imposed product branding was used between 600 and 900 Eckhart and
Bengtsson have argued that during the Song Dynasty Chinese society developed a
consumerist culture, where a high level of consumption was attainable for a wide variety of
ordinary consumers rather than just the elite. The rise of a consumer culture led to the
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commercial investment in carefully managed company image, retail signage, symbolic
brands, trademark protection and sophisticated brand concepts.
RETAIL STRATEGY
Retailers make many strategic decisions – store type, market served, product assortment and
customer services
In retailing, the strategic plan is designed to set out the vision and provide guidance for retail
decision-makers and provide an outline of how the product and service mix will optimize
customer satisfaction. As part of the strategic planning process, it is customary for strategic
planners to carry out a detailed environmental scan which seeks to identify trends and
opportunities in the competitive environment, market environment, economic environment
and statutory-political environment. The retail strategy is normally devised or reviewed every
3– 5 years by the chief executive officer.
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The retailer also considers the overall strategic position and retail image
1.
2. Market analysis
Market size, stage of market, market competitiveness, market attractiveness, market
trends
3. Customer analysis
Market segmentation, demographic, geographic and psychographic profile, values and
attitudes, shopping habits, brand preferences, analysis of needs and wants, media
habits
4. Internal analysis
Other capabilities e.g. human resource capability, technological capability, financial
capability, ability to generate scale economies or economies of scope, trade relations,
reputation, positioning, past performance
5. Competition analysis
Availability of substitutes, competitor's strengths and weaknesses, perceptual
mapping, competitive trends
6. Review of product mix
Sales per square foot, stock-turnover rates, profitability per product line
7. Review of distribution channels
Lead-times between placing order and delivery, cost of distribution, cost efficiency of
intermediaries
8. Evaluation of the economics of the strategy
Cost-benefit analysis of planned activities
At the conclusion of the retail analysis, the retail marketers should have a clear idea of which
groups of customers are to be the target of marketing activities. Retail research studies
suggest that there is a strong relationship between a store's positioning and the socio-
economic status of customers. In addition, the retail strategy, including service quality, has a
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significant and positive association with customer loyalty. A marketing strategy effectively
outlines all key aspects of firms' targeted audience, demographics, preferences. In a highly
competitive market, the retail strategy sets up long-term sustainability. It focuses on customer
relationships, stressing the importance of added value, customer satisfaction and highlights
how the store's market positioning appeals to targeted groups of customers.
1. BIG BAZAAR
2. RELIANCE
3. METRO AG
4. VISHAL MEGA MART
5. WALL MART
INDUSTRIAL PROFILE
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India's
leading business houses with multiple businesses spanning across the consumption space.
While retail forms the core business activity of Future Group, group subsidiaries are present
in consumer finance, capital, insurance, leisure and entertainment, brand development, retail
real estate development, retail media and logistics.
Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square
feet of retail space in over 71 cities and towns and 65 rural locations across India. The group
owns several leading formats including Pantaloons, Big Bazaar, Food Bazaar, Home Town,
eZone and Central. Pantaloon Retail was awarded the International Retailer of the Year -
2008, by the US-based National Retail Federation, the largest retail trade association and the
Emerging Market Retailer of the Year 2008 at the World Retail Congress in Barcelona.
Future Group believes in developing strong insights on Indian consumers and building
businesses based on Indian ideas, as espoused in the group's core value of 'Indianness'. The
group's corporate credo is, 'Rewrite rules, Retain values'.
ABOUT FUTUREBAZAAR.COM:-
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FutureBazaar.com is the e-commerce arm of the Future Group. Future Bazaar provides an
integrated shopping site where consumers are able to buy products from our flagship stores
including eZone, Pantaloons and Big Bazaar online and get home delivery of products.
Future Bazaar delivers across more than 1500 cities and towns in India covering 16,000 pin
codes. Future Bazaar carries genuine products and offers manufacturer's warranty (as
opposed to Seller's warranty) which most other sites offer. Future Bazaar offers products
where the complete supply chain is managed by Future Group entities unlike other sites that
are marketplaces.By the virtue of being a part of Future Group, Future Bazaar is able to offer
a wide range of genuine products at very competitive prices, confidence of buying from a
trusted source and the convenience of returning in our physical stores.
HISTORY:- Big Bazaars journey began in October 2001, when the young, first generation
entrepreneur Kishore Biyani opened the country’s first hypermarket retail outlet in Kolkatta
(then Calcutta). In the same month, two more stores were added one each in Hyderabad and
Mumbai, thus starting on a successful sojourn which began the chapter of organized retailing
in India.
Speaking on this momentous occasion and remembering the days of conceptualising the
hypermarket idea Mr. Kishore Biyani said, We initially decided to name the format as Bazaar
because we had designed the store keeping the Indian mandi style in mind. Since the size of
the hypermarket was big than an average mandis, the thought came to name it as Big Bazaar.
However, we had freezed on the punch line Isse Se SastaAurAchhaKahiNahi much before we
met the creative agency to design the final logo of Big Bazaar.
Though, Big Bazaar was started purely as a fashion format including apparel, cosmetics,
accessory and general merchandise, the first Food Bazaar format was added as Shop-In-Shop
within Big Bazaar in the year 2002. Today, Big Bazaar, with its wide range of products and
service offering, reflects the aspirations of millions of Indians.
The journey of Big Bazaar can be divided into two phases one pre and the other post January
26th, 2005, when the company rewrote the retail chapter in India, with the introduction of a
never-before sales campaign SasbeSasta Din. In just one day, almost the whole of India
descended at various Big Bazaar stores in the country to shop at their favorite shopping
destination.
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Further, what followed was the time and again rewriting of the Indian Retail experience,
wherein understanding of the Indian consumers reflected in the products and services offered,
creating innovative deals, expanding in the tier II and tier III towns, tying up with branded
merchandise to offer exclusive products and services to its customers.
Big Bazaar is present today in 59 cities and occupying over 5million sq.ft. retail space and
driving over 110 million footfalls into its stores. The format is expecting the number of
footfall in the storesto increase by over 140 million by this financial year. Over the years, Mr.
Biyani for his vision and leadership, and Big Bazaar for its unique proposition to its
customers, have received every prestigious consumer awards both nationally and
internationally.
1. BIG BAZAAR:-
Big Bazaar is not just another hypermarket. It caters to every need of your family. WhereBig
Bazaar scores over other stores is its value for money proposition for the Indian customers.
At Big Bazaar, you will definitely get the best products at the best prices - that's what we
guarantee. With the ever increasing array of private labels, it has opened the doors into the
world of fashion and general merchandise including home furnishings, utensils, crockery,
cutlery, sports goods and much more at prices that will surprise you. And this is just the
beginning. Big Bazaar plans to add much more to complete your shopping experience.
The Big Bazaar is a useful place to find cheap household items, clothes, and food all under
one roof. However, the chaos and crowds often make shopping there a challenge. Pros
Low prices.
Great sales and promotions.
Wide range of products under the one roof.
Many stores.
CONS:-
Overcrowded.
Checkout can be extremely slow.
Complaints of poor customer service and overcharging.
Quality is variable.
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Description:-
There was a time not so long ago that large department stores were a completely foreign
concept in India -- but not anymore. The Big Bazaar is one such department store to have set
up shop across the country. Since its first outlet opened in Kolkata in late 2001, the Big
Bazaar has spread to towns and cities at an alarming rate.
These multi-level shopping meccas stock everything from food to fridges, and cookware to
clothes. However, the Big Bazaar isn't your ordinary department store. It's been especially
designed to appeal to the Indian consumer. You may be thinking, what does that mean? In
short, organized chaos.
You won't find neatly ordered aisles at the Big Bazaar. Instead, stores are laid out to replicate
a market environment, with items all thrown in together. Promotions such as "SabseSaste
Teen Din" (Cheapest Three Days) and "Purana Do, Naya Lo" (Give Old, Take New) result
in shoppers flooding the stores, to the point that some stores have become so overcrowded
they've had to close.
If you visit the Big Bazaar in the daytime during the week, it is possible to have a deceptively
pleasant and hassle free shopping experience.
However, don't make the mistake of going there during a sale, on holidays, evenings, or on
Sunday. When I did this, I had to wait for almost an hour just to be served at the checkout.
Forget about getting the all items I wanted, I was happy to get out of there in one piece!
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I've also found that the full price is all too often charged on sale items, so do check your
receipt to make sure that discounts have been properly recorded.
Big Bazaaris a household name that is used synonymously with ‘retail’ in India. We
represent the requirements of a typical Indian home. Founded in 2001 by Kishore Biyani, we
as a retail chain operate under the parent organisation – Future Group – that holds a
significant prominence in the Indian retail and fashion sectors. Big Bazaar is one of the oldest
hypermarket chains that houses around 250+ stores in the country. We cover three essential
categories in Indian retail: home, food, and fashion. Popular retail chains – like the Food
Bazaar and fbb form an integral part of Big Bazaar’s identity. The latter (i.e. fbb) has
exponentially grown into a major brand that epitomizes fashion in India.
In spite of covering a wide gamut of consumer essentials at reasonable prices, we are best
known for our understanding of our customers’ evolving needs and comforts. In a fast-paced
world, we are perceived as a thought leader who relies on traditional Indian values of seva or
‘care for the customer’ while remaining firmly futuristic in taking business decisions that fuel
better quality and efficiency.
Big Bazaar is not just another hypermarket; it caters to every need of your family. Where Big
Bazaar scores over other stores is its value for money proposition for Indian customers. We
guarantee the best products at the best prices. With the ever-increasing array of in-house
brands, we have opened doors in the world of fashion and general merchandise, including
home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will
surprise you. And this is just the beginning.
2. Reliance Retail
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1.2 Financial Position
It had a turnover of Rs. 337 billion in the financial year 2016-17. Reliance Retail has
announced revenues of Rs. 450 billion for the nine months ended December 2017 for
financial year 2017-18, showing of over 90% jump from the corresponding previous period.
The company also reported a profit of Rs. 7 billion for the period.
There are over 45 Subsidiaries & divisions of Reliance Retail. Following is the list of major
divisions:
In the last nine months, more than 20 stores of Reliance Retail, which is the retail arm of
Reliance Industries, have been shut across the country. These stores were mainly in the value
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(food and grocery) and jewellery formats. The company is trying to shut shops which are
unprofitable and instead concentrate on a new concept called Reliance Smart.
As per sources, Reliance Smart stores will have clothing, accessories among others and will
be spread out on areas ranging from 7,000 square feet to 20,000 square feet. It is said that the
format will be bigger than Reliance Fresh but smaller than the hypermarket format of
Reliance Mart. The plan, as per sources, is to rebrand the existing hypermarkets and
supermarkets as reliance Smarts.In December 2015, the company had 597 stores operational
under Reliance Fresh, Reliance Mart, reliance Market and so on. In the value and other
format, the company had 616 stores as of March 2015. In the fiscal 2015, the company has
shut down over 100 stores, primarily in value and jewellery formats. But the company
increased its overall store count from 2,857 at the end of September quarter to 3,043 stores at
the end of December quarter as Reliance Retail added stores mainly in the digital and
lifestyle formats.
3. METRO AG
History
In June 2009, it was reported that the company was looking to purchase some of the assets
of Arcandor, after the firm filed for bankruptcy.[citation needed] They split off and floated
their Praktiker division in December 2006, a DIY/home improvement chain with stores in
several countries.
In 2012, the company threatened Microsoft with legal action for infringing on "Metro"
trademarks held by Metro AG. "Metro" had been the name of Microsoft's new "Windows 8-
style" user interface.
On June 15, 2015, Metro AG agreed to sell Galeria Kaufhof to Canadian retail
conglomerate Hudson's Bay Company for $3.2 billion.
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Sales divisions
Metro and Makro Cash and Carry (Makro stores in the United Kingdom and elsewhere in
Europe were acquired from SHV Holdings in 1998): This division accounts for nearly
half of group sales as of 2004, and is by far the most internationalised division, with
stores in almost every country in which the group operates.
Real: A hypermarket operator. 265 stores in Germany and 34 elsewhere as of early 2005
On March 30, 2016, Metro Group announced that it will be splitting into two independent
companies:
Wholesale and food, comprising Metro, Makro and Real, as well as a corresponding
division and service companies.
Consumer electronics products and services, comprising Media Markt and Saturn and its
portfolio including strong formats and brands.
A spin-off of the wholesale and food sector of current Metro AG will be responsible for the
group’s division into two independent and publicly listed companies. Both will have their
own Management, Supervisory Board and independent company profiles.
OUR VISION
METRO is a partner of many small and mid-sized independent companies. Their success is
our focus. We have made it our goal to lift the food and hospitality sector to a new level and
to take advantage of the unique opportunity that the comprehensive digitisation of the
industry presents – both for our customers, who can transform their business for long-term
prosperity, and for us. By accompanying them on this path, we can foster customer loyalty
and tap additional economic potential. Our vision: to deliver sustainable solutions with
superior added economic value for independent entrepreneurs.
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As a platform, we are working jointly with diverse market players to set tomorrow’s
standards: for absolute customer focus, practice-oriented digital solutions and sustainable
business models.
The foundation for this is our profitable wholesale segment, which is oriented to business
customers and enjoys stable growth rates – because the core of our business is our trusting
relationship with our some 21 million customers in 35 countries. We see ourselves as a
relationship company.
METRO is furthermore shaped by highly motivated employees who fill our open corporate
culture with life. They combine passion, a collaborative approach and outstanding
performance in our core business. In boldly pursuing new ideas, they continually challenge
the status quo and drive our business forward.
Digital solutions
We view digitisation as a unique opportunity. Like us, independent entrepreneurs in the food
and hospitality sector can profit from the new possibilities for approaching customers and
gaining their loyalty, and from solutions for greater efficiency in daily operations. We
therefore aim, on the one hand, to make digital innovations usable for METRO. On the other,
we advance the transformation of the food and hospitality sector with digital solutions. To do
so, we cooperate with, among others, external partners such as start-ups. As a platform, we
give them access to an attractive market which they could open up independently only with
considerable effort. In the medium term, we expect that the newly developed digital offerings
will contribute to further setting METRO apart from our competitors, thus further
strengthening our customers' loyalty and helping us achieve our growth targets.
Continued development and stability are not a contradiction to us: we look far ahead,
systematically implementing what is required today and translating it into sustainable
business models. In concrete terms, this means that we strive to create as lean an organisation
as possible and to constantly increase our efficiency. Moreover, we embrace our
environmental and social responsibility in order to ensure the long-term viability of METRO.
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We are fully committed to this, as well as to enabling our customers to meet high standards in
matters of sustainability.
Vishal retail ltd is the largest market retail chain in india with more than 175 stores in 24
states & 104 cities across india. Retailing in commerce, consists of buying goods or product
in large quantities from manufactures or importers, either directly or through a wholesaler , &
then selling individual items or small quantities to the general public or end user customers ,
usually in a shop ,called stores. Retailers are at the end of supply chain that link
manufacturers ,wholesalers, other suppliers and the final consumers. Marketers see retailing
as a part of their overall distribution strategy.Manufactured goods are worthless until they
pass through acid test of retail distribution.
The vishal brand is known for great modern style for men, women and children. Vishal offers
high level fashion styling. Since 1986, our name has been synonymous with quality,value and
fashion integrity. We offer an unparalleled collection of clothes for the entire family. Each
garments is hand selected for quality and contemporary styling. Vishal manufactures majority
of its own garments and out sources some under its direct quality supervision. This enable us
to offfer the lowest possible and most reasonable price.
Vishal mega mart stores offer affordable family fashion at prices to suit every pocket.
The outlet retails garments, footwear, home furnishing, household, food and non-food
products,ladies accessories, lifestyle,hardware,car accessories, Tecno and electricals, utensils,
sports and fitness, stationary, toys and games, travel accessories, furniture, sanitary ware,
crockery, consumer durables,FMCG, etc.in almost all price ranges.
What started as a humble one store enterprice in 1986 in kolkata (erstwhile, calcutta) is today
a conglomerate encompassing 183 showrooms in 24 states / 110 cities. India’s first hyper-
market has also been opened for the indian consumer by vishal. Situated in the national
capital delhi this stores boasts of the single largest collection of goods and commodities sold
under one roof in india.
Vishal is one of fastest growing retailing groups in india. Its outlets cater to almost all price
ranges. The showrooms have over 70,000 products range which fullfills all your household
24
needs,and can be catered to under one roof. It is covering about 29,90,148 ssq.ft. in 24 states
across india. Each stores gives you international quality goods and prices hard to match. The
cost benefits that is derived from the large central purchase of goods and services is passed on
to the consumer.
Vishal mart has been fortunate in having very eminent and honest men of vision and grate
talent as board of directors and executives. The ever increasing profit figures of the vishal
depict the efficiency of the management. Discount and several other developments in and
around the organized retail trade (the 3% of the total retail trade) indicate the changing
dynamics of the sector and the way the business will take shape in the years to come. For
Ram Chandra Agarwal, MD, Vishal Mega Mart, the discount war is just a component of the
overall evolution process initiated by retailers. “ we are concentrating on buying in volumes
through cash purchasewhich give us an edge. Ultimately, the convenience,value and variety
given to customers will make a difference,” he says. Be it managing a supply chain grappling
with hundreds of suppliers or handling stores inventory- the modern retail industry is a big
affair. Then follow other aspects like positioning of the brand with apt pricing, packaging and
retail experience, understanding the customers, dealings with partners such as
Suppliers, mall developers and franchisees. However, the biggest challenges is saving bucks
either through margins or rentals, so that there is profit even after the discounts. Though it
reads as a complete win- win situation, it is surely a tough targrts to be achieved.
“Though organized retail is at its nascent stage, once the brands are established, the FMCGs
will have to deliver to their expectation. Moreover, if these FMCGs buckle up with retailers,
the country will see a slew of private labels coming in,” says Sahni. He adds, “These private
labels will gradually end up carving a niche for themselves even in the unexplored territories,
including rural India. Minimal advertising or promotional costs will further increase the
margins.”
25
that Indian FMCG companies need to do to cater to the demands of an organized retail
scenario.
Apparel and Accessories for Men, Women and Children, Sarees, Linens,
Baby Accessories,
Cosmetics,
Crockery,
Footwear,
Toys,
5. WALMART
WalmartInc.(formerlyWal-MartStores,Inc.) is
anAmerican multinational retail corporation that operates a chain of hypermarkets, discount
department stores, and grocery stores. Headquartered in Bentonville, Arkansas, the company
was founded by Sam Waltonin 1962 and incorporated on October 31, 1969. It also owns and
operates Sam's Club retail warehouses. As of January 31, 2019,Walmart has 11,348 stores
and clubs in 27 countries, operating under 55 different names. The company operates under
the name Walmart in the United States and Canada, as Walmart de México y
26
Centroamérica in Mexico and Central America, as Asda in the United Kingdom, as the Seiyu
Group in Japan, and as Best Price in India. It has wholly owned operations in Argentina,
Chile, Canada, and South Africa. Since August 2018, Walmart only holds a minority stake in
Walmart Brasil, with 20% of the company's shares, and private equity firm Advent
International holding 80% ownership of the company.
The company was listed on the New York Stock Exchange in 1972. By 1988, Walmart was
the most profitable retailer in the U.S., and by October 1989, it had become the largest in
terms of revenue. Originally geographically limited to the South and lower Midwest, by the
early 1990s, the company had stores from coast to coast: Sam's Club opened in New Jersey in
November1989 and the first California outlet opened in Lancaster in July 1990. A Walmart
in York, Pennsylvania opened in October 1990: the first main store in the Northeast.
Walmart's investments outside North America have seen mixed results: its operations and
subsidiaries in the United Kingdom, South America, and China are highly successful,
whereas its ventures in Germany and South Korea failed.
27
Walmart's operations are organized into four divisions: Walmart U.S., Walmart
International, Sam's Club and Global eCommerce. The company offers various retail formats
throughout these divisions, including supercenters, supermarkets, hypermarkets, warehouse
clubs, cash-and-carry stores, home improvement, specialty electronics, restaurants, apparel
stores, drugstores, convenience stores, and digital retail.
Walmart U.S. is the company's largest division, accounting for US$331.666 billion, or 65
percent of total sales, for fiscal 2019. It consists of three retail formats that have become
commonplace in the United States: Supercenters, Discount Stores, Neighborhood Markets,
and other small formats. The discount stores sell a variety of mostly non-grocery products,
though emphasis has now shifted towards supercenters, which include more groceries. As of
January 31, 2019, there are a total of 4,756 Walmart U.S. stores. In the United States, 90
percent of the population resides within 10 miles of a Walmart store.
Walmart Supercenters, branded simply as "Walmart", are hypermarkets with sizes varying
from 69,000 to 260,000 square feet (6,400 to 24,200 square meters), but averaging about
178,000 square feet (16,500 square meters).[11] These stock general merchandise and a full-
service supermarket, including meat and poultry, baked goods, delicatessen, frozen foods,
dairy products, garden produce, and fresh seafood. Many Walmart Supercenters also have a
garden center, pet shop, pharmacy, Tire & Lube Express, optical center, one-hour photo
processing lab, portrait studio, and numerous alcove shops, such as cellular phone stores, hair
and nail salons, video rental stores, local bank branches (such as Woodforest National
Bank branches in newer locations), and fast food outlets.
28
Many Walmart Supercenters have featured McDonald's restaurants, but in 2007, Walmart
announced it would stop opening McDonald's restaurants at most of their newer stores, most
likely due to nutritional concerns. Most locations that opened up after the announcement had
Subway as their restaurants, and some McDonald's inside the stores were replaced
with Subways.[102] In some Canadian locations, Tim Hortons were opened. Recently, in
several Supercenters, like the Tallahassee, Florida location, Walmart added Burger King to
their locations, and the location in Glen Burnie, Maryland, due to its past as a hypermarket
called Leedmark, which operated from May 1991 to January 1994, boasts an Auntie
Anne's and an Italian restaurant.
Some locations also have fuel stations which sell gasoline distributed by Murphy
USA (which spun off from Murphy Oil in 2013), Sunoco, Inc. ("Optima"),
the Tesoro Corporation ("Mirastar"), USA Gasoline, and even now Walmart-branded gas
stations.The first Supercenter opened in Washington, Missouri, in 1988. A similar
concept, Hypermart USA, had opened a year earlier in Garland, Texas. All Hypermart USA
stores were later closed or converted into Supercenters.
As of January 31, 2019, there were 3,570 Walmart Supercenters in 49 of the 50 U.S. states,
the District of Columbia, and Puerto Rico.Hawaii is the only state to not have a Supercenter
location. The largest Supercenter in the world, covering 260,000 square feet (24,000 square
meters) on two floors, is located in Crossgates Commons in Albany, New York.
A typical supercenter sells approximately 120,000 items, compared to the 35 million products
sold in Walmart's online store.
The "Supercenter" name has since been phased out, with these stores now simply referred to
as "Walmart", since the company introduced the new Walmart logo in 2008. However, the
branding is still used in Walmart's Canadian stores (spelled as "Supercentre" in Canadian
English).
29
The exterior of the Walmart Discount Store in Charlotte, North Carolina
Walmart Discount Stores, also branded as simply "Walmart", are discount department stores
with sizes varying from 30,000 to 206,000 square feet (2,800 to 19,100 square meters), with
the average store covering 105,000 square feet (9,800 square meters). They carry general
merchandise and limited groceries. Some newer and remodeled discount stores have an
expanded grocery department, similar to Target's PFresh department. Many of these stores
also feature a garden center, pharmacy, Tire & Lube Express, optical center, one-hour photo
processing lab, portrait studio, a bank branch, a cell phone store, and a fast food outlet. Some
also have gasoline stations.Discount Stores were Walmart's original concept, though they
have since been surpassed by Supercenters.
In 1990, Walmart opened its first Bud's Discount City location in Bentonville. Bud's operated
as a closeout store, much like Big Lots. Many locations were opened to fulfill leases in
shoppingcenters as Walmart stores left and moved into newly built Supercenters. All of the
Bud's Discount City stores had closed or converted into Walmart Discount Stores by 1997.
As of January 31, 2019, there were 386 Walmart Discount Stores in 41 states and Puerto
Rico. Idaho, Montana, Nebraska, North Dakota, South Carolina, South Dakota, Utah, District
of Columbia, West Virginia, and Wyoming are the only states and territories where a
discount store does not operate.
As of January 31, 2019, Walmart's international operations comprised 5,993 stores and
800,000 workers in 26 countries outside the United States. There are wholly owned
operations in Argentina, Brazil, Canada, and the UK. With 2.2 million employees worldwide,
the company is the largest private employer in the U.S. and Mexico, and one of the largest in
Canada. In fiscal 2019 Walmart's international division sales were US$120.824 billion, or
23.7 percent of total sales. International retail units range from 8,900 to 186,000 square feet
(830 to 17,280 square metres), wholesale units range from 35,000 to 185,000 square feet
30
(3,300 to 17,200 square metres) and other units (including drugstores and convenience stores)
range up to 2,400 square feet (220 square metres). Judith McKenna is the president and CEO.
2.1.2.1 Argentina
Walmart Argentina was founded in 1995 and, as of January 31, 2019, operates 92 stores
under the banners Walmart Supercenter (31 locations), Changomas (53 locations), and Mi
Changomas (8 locations).
Walmart also owns 51 percent of the Central American Retail Holding Company
(CARHCO), which, as of January 31, 2019, consists of 250 stores in Guatemala (under the
Paiz [26 locations], Walmart Supercenter [10 locations], Despensa Familiar [171 locations],
and Maxi Dispensa [43 locations] banners), 97 stores in El Salvador (under the Despensa
Familiar [63 locations], LaDespensa de Don Juan [17 locations], Walmart Supercenter [5
locations], and Maxi Despensa [12 locations] banners),[1][2] 105 stores in Honduras
(including the Paiz [8 locations], Walmart Supercenter [3 locations], Dispensa Familiar [68
locations], and Maxi Despensa [26 locations] banners),[1][2] 103 stores in Nicaragua
(including the Pali [72 locations], La Unión [9 locations], Maxi Pali [20 locations], and
Walmart Supercenter [2 locations] banners), and 256 stores in Costa Rica (including the Maxi
Pali [42 locations], Mas X Menos [37 locations], Walmart Supercenter [11 locations], and
Pali [166 locations] banners.
2.1.2.3 Chile
In January 2009, the company acquired a controlling interest in the largest grocer in Chile,
Distribución y Servicio D&S SA.[140][141] In 2010, the company was renamed Walmart
Chile. As of January 31, 2019, Walmart Chile operates 371 stores under the banners
LiderHiper (91 locations), Lider Express (96 locations), SuperbodegaAcuenta (116
locations), Ekono (60 locations), and Central Mayorista (8 locations).
2.1.2.4 Mexico
Main article: Walmart de México y Centroamérica
As of January 31, 2019, Walmart's Mexico division, the largest outside the U.S., consisted of
2,442 stores. Walmart in Mexico operates Walmart Supercenter (274 locations), Sam's Club
(163 locations), Bodega Aurrera (520 locations), Mi Bodega Aurrera (364 locations), Bodega
Aurrera Express (1,026 locations), and Superama (95 locations).
31
2.1.2.5 Canada
Main article: Walmart Canada
Walmart has operated in Canada since it acquired 122 stores comprising the Woolco division
of Woolworth Canada, Inc in 1994. As of January 31, 2019, it operates 411 locations
(including 339 supercentres and 72 discount stores) and, as of June 2015, it employs 89,358
people, with a local home office in Mississauga, Ontario. Walmart Canada's first three
Supercentres (spelled
In 2010, Walmart Canada Bank was introduced with the launch of the Walmart Rewards
MasterCard.
Walmart's UK subsidiary Asda (which retained its name after being acquired by Walmart) is
based in Leeds and accounted for 42.7 percent of 2006 sales of Walmart's international
division. In contrast to the U.S. operations, Asda was originally and still remains primarily a
grocery chain, but with a stronger focus on non-food items than most UK supermarket chains
other than Tesco. As of January 31, 2019, Asda had 633 stores, including 147 from the 2010
32
acquisition of Netto UK. In addition to small suburban Asda Supermarkets, which has 209
locations,[2] larger stores are branded Supercentres, which has 32 locations. Other banners
include Asda Superstores (341 locations), Asda Living (33 locations), and Asda Petrol
Fueling Station (18 locations). In July 2015, Asda updated its logo featuring the Walmart
Asterisks behind the first 'A' in the Logo. In May 2018, Walmart announced plans to sell
Asda to rival Sainsburys for $10.1 billion. Under the terms of the deal, Walmart gets a 42%
stake in the combined company and about £3 billion in cash.
2.1.2.7 Africa
On September 28, 2010, Walmart announced it would buy Massmart Holdings Ltd.
of Johannesburg, South Africa in a deal worth over US$4 billion giving the company its first
footprint in Africa. As of January 31, 2019, it has 389 stores in South Africa (under the
banners Game Foodco [71 locations], CBW [46 locations], Game [49 locations], Builders
Express [46 locations], Builders Warehouse [33 locations], Cambridge [43 locations], Dion
Wired [23locations], Rhino [19 locations], Makro [21 locations], Builders Trade Depot [13
locations], Jumbo [10 locations], and Builders Superstore [15 locations]), 11 stores in
Botswana (under the banners CBW [7 locations], Game Foodco [2 locations], and Builders
Warehouse [2 locations]),[1][2] 4 stores in Ghana under the banners Game (3 locations) and
Game Foodco (1 location), 2 stores in Kenya (under the Game Foodco banner), 3 stores in
Lesotho (under the banners CBW [2 locations] and Game Foodco [1 location]),[1]2 stores in
Malawi (under the Game banner), 6 stores in Mozambique (under the banners Builders
Warehouse [2 locations], Game Foodco [2 locations], CBW [1 location], and Builders
Express [1 location]), 4 stores in Namibia (under the banners Game Foodco [2 locations],
Game [1 location], and CBW [1 location]), 5 stores in Nigeria (under the banners Game
[4 locations] and Game Foodco[1 location], 1 store in Swaziland (under the CBW
banner), 1 store in Tanzania (under the Game banner), 1 store in Uganda (under the Game
banner), and 7 stores in Zambia (under the banners CBW [1 location], Game [3 locations],
Builders Warehouse [2 locations], and Builders Express [1 location]).
2.1.2.8 China
33
A Walmart in Hangzhou, China
In February 2012, Walmart announced that the company raised its stake to 51 percent in
Chinese online supermarket Yihaodian to tap rising consumer wealth and help the company
offer more products. Walmart took full ownership in July 2015.
Japan
In Japan, Walmart owns 100 percent of Seiyu as of 2008.[151][152] As of January 31, 2019,
there are 332 stores under the Seiyu (Hypermarket) (88 locations), Seiyu (Supermarket) (236
locations), Seiyu (General Merchandise) (1 location), and Livin (7 locations) banners.
2.1.2.9 India
In November 2006, the company announced a joint venture with Bharti Enterprises to operate
in India. As foreign corporations were not allowed to enter the retail sector directly, Walmart
operated through franchises and handled the wholesale end of the business. The partnership
involved two joint ventures—Bharti manages the front end, involving opening of retail
outlets while Walmart takes care of the back end, such as cold chains and logistics. Walmart
operates stores in India under the name Best Price Modern Wholesale. The first store opened
in Amritsar on May 30, 2009. On September 14, 2012, the Government of India approved 51
percent FDI in multi-brand retails, subject to approval by individual states, effective
September 20, 2012. Scott Price, Walmart's president and CEO for Asia, told The Wall Street
Journal that the company would be able to start opening Walmart stores in India within two
years. Expansion into India faced some significant problems. In November 2012, Walmart
admitted to spending US$25 million lobbying the Indian National Congress; lobbying is
conventionally considered bribery in India.Walmart is conducting an internal investigation
into potential violations of the Foreign Corrupt Practices Act.Bharti Walmart suspended a
number of employees, rumored to include its CFO and legal team, to ensure "a complete and
thorough investigation". As of January 31, 2019, there are 22 Best Price locations. In October
2013, Bharti and Walmart separated to pursue business independently.
34
On May 9, 2018, Walmart announced its intent to acquire a 77% majority stake in the Indian
e-commerce company Flipkart for $16 billion, in a deal that was completed on August 18,
2018.
35
CHAPTER-3
Review of literature
36
3 INTRODUCTION
Sales promotion is one of the elements of the promotional mix. The primary elements in the
promotional mix are advertising, personal selling, direct marketing and publicity/public
relations. Sales promotion uses both media and non-media marketing communications for a
pre-determined, limited time to increase consumer demand, stimulate market demand or
improve product availability. Examples include contests, coupons, freebies, loss leaders,
point of purchase displays, premiums, prizes, product samples, and rebates.
Sales promotions can be directed at either the customer, sales staff, or distribution channel
members (such as retailers). Sales promotions targeted at the consumer are called consumer
sales promotions.
Sales promotions targeted at retailers and wholesale are called trade sales promotions.
Sales promotion includes several communications activities that attempt to provide added
value or incentives to consumers, wholesalers, retailers, or other organizational customers to
stimulate immediate sales.
These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices
used in sales promotion include coupons, samples, premiums, point-of-purchase (POP)
displays, contests, rebates, and sweepstakes.
Sales promotion is implemented to attract new customers, to hold present customers, to
counteract competition, and to take advantage of opportunities that are revealed by market
research. It is made up of activities, both outside and inside activities, to enhance company
sales. Outside sales promotion activities include advertising, publicity, public relations
activities, and special sales events. Inside sales promotion activities include window displays,
product and promotional material display and promotional programs such as premium awards
and contests.
Sale promotions often come in the form of discounts. Discounts impact the way consumers
think and behave when shopping. The type of savings and its location can affect the way
consumers view a product and affect their purchase decision. The two most common
discounts are price discounts (“on sale items”) and bonus packs (“bulk items”). Price
discounts are the reduction of an original sale by a certain percentage while bonus packs are
deals in which the consumer receives more for the original price. Many companies present
different forms of discounts in advertisements, hoping to convince consumers to buy their
products.
37
communications and brand strategy, it is also a form of advertisement used within a short
period of time. Researchers Farhangmehr and Brito, reviewed the definitions of sales
promotions in marketing texts and journals and identified a set of common characteristics of
sales promotion, including:
38
Sometimes consumers will end up spending money on an item they would not
normally buy had it not been in a bonus pack. As a result, items bought in a bonus
pack are often wasted and is viewed as a “loss” for the consumer.
Coupons: coupons have become a standard mechanism for sales promotions.
Loss leader: the price of a popular product is temporarily reduced below cost in order
to stimulate other profitable sales.
Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for
delivery.
Checkout dispensers: On checkout the customer is given a coupon based on products
purchased.
Mobile couponing: Coupons are available on a mobile phone. Consumers show the
offer on a mobile phone to a salesperson for redemption
Online interactive promotion game: Consumers play an interactive game associated
with the promoted product.
Rebates: Consumers are offered money back if the receipt and barcode are mailed to
the producer. Contests/sweepstakes/games: The consumer is automatically entered
into the event by purchasing the product.
Point-of-sale displays:-
Aisle interrupter: A sign that juts into the aisle from the shelf.
Dangler: A sign that sways when a consumer walks by it.
Dump bin: A bin full of products dumped inside.
Bidding portals: Getting prospects.
Glorifier: A small stage that elevates a product above other products.
Wobbler: A sign that jiggles
Lipstick Board: A board on which messages are written in crayon.
Necker: A coupon placed on the 'neck' of a bottle.
YES unit: "your extra salesperson" is a pull-out fact sheet.
Electroluminescent: Solar-powered, animated light in motion.
Kids eat free specials: Offers a discount on the total dining bill by offering 1 free kids
meal with each regular meal purchased
Sampling: Consumers get one sample for free, after their trial and then could decide whether to
buy or not.
New technologies have provided a range of new opportunities for sales promotions. Loyalty
cards, personal shopping assistants, electronic shelf labels, and electronic advertising displays
allow for more personalised communications and more targeted information at the point of
purchase. For example, shoppers may receive alerts for special offers when they approach a
product in a specific aisle.
39
store. Although discounts can be found online and in stores, there is a different thought
process when shopping in each location .For example, “online shoppers are more price-
sensitive because of the readily available low search cost and direct price comparisons”.
Consumers can easily go to other websites and find better deals as opposed to physically
going to various stores. In addition, buyers tend to refrain from purchasing bonus packs
online because of the skepticism (of fraud and scams) that may come with the deal. Since “…
bonus packs are more difficult than price discounts to process online, they are more difficult
and effortful for the consumer to understand”. For example, a buy-one-get-one-free deal on a
website requires more work than the same bonus pack offered in a store. Online, consumers
have to deal with payment processing, shipping and handling fees, and days waiting for the
products’ arrival, while in a store, the products are available without those additional steps
and delays.
Customers can, depending on the delivery company, choose to pay online or in person,
with cash or card. A flat rate delivery fee is often charged with what the customer has bought.
Sometimes no delivery fees is charged depending upon the situation. Tips are often
customary for food delivery service. Contactless delivery may also be an option.
Other aspects of food delivery include catering and wholesale food service deliveries to
restaurants, cafeterias, health care facilities, and caterers by foodservice distributors.
40
3.1.6 HISTORY
The first food delivery service was for naengmyeon (cold noodle) in Korea, recorded in 1768.
Hyojonggaeng (hangover soup) was also delivered for the yangban in the 1800s.
Advertisement for food delivery and catering also appeared in the newspaper in 1906.
traditional asymmetrical gender roles). The tiffins are then returned either in the afternoon or the
next day by the same system.
In the Philippines, most commonly delivered meals are from fastfood chains like Jollibee,
McDonald's, Pizza Hut, Shakey's, KFC, etc. Orders are being done through their delivery
websites, mobile apps, or by phone. Time of delivery usually takes around 30 to 45 minutes.
Meal delivery services offer prepared meals by subscription.
41
Various meal kit delivery subscription services have started in Europe and North America
since 2007. These typically have pre-measured ingredients designed for accompanying
recipes.
According to Forbes, grocery stores should delivery their own groceries to help prevent third
party, part-time, non-store deliverers from becoming the 'face' or brand image of their local
grocer.
Limitations of having to pick and deliver groceries within a short period of time need to be
remedied to allow for more flexibility to enable more deliveries to be more efficiently routed.
Frozen and fresh food refrigeration units inside the store and the delivery vehicle, as well as
lockable, consumer refrigeration boxes at the consumers home will be a solution that allows
the groceries to be delivered at any time, further relieving delivery issues.
3.1.10ASSOCIATED FEES
A farmer in his field buys his breakfast from a motorcycle-based traveling vendor. Zhangpu
County, Fujian
42
In addition to paying for the food, customers will often have to pay a delivery fee. The
delivery fee will cover the cost of gas or other transportation costs, but usually does not go to
the delivery person. For meal delivery, it is common to give the deliverer an optional tip upon
paying for the order. In Canada and the United States, tipping for delivery is customary.
Opinions on appropriate amounts vary widely. In addition, grocery stores may charge more
for the foods that are ordered online for delivery than they charge for the same items off-the-
shelf.
In restaurant delivery, if the delivery service is provided by a third party, such as Uber Eats or
Deliveroo, the delivery fee, which can be as much as 25 or 30 percent of the value of the
order, is paid by the restaurant to the service provider. In addition to the delivery fees, the
service companies charge the restaurants a fee to set up the account, further cutting into the
restaurants' margins. Due to intense competition between the service providers wishing to
sign up restaurants to use their services, restaurants have been able to negotiate lower
delivery fees. McDonald's negotiated the delivery fees charged by Uber Eats from nearly 20
percent to "around 15 percent," according to a report in the Wall Street Journal.
43
CHAPTER-4
Research Methodology
RESEARCH METHODOLOGY
44
To know about the retail industry.
To know about the awareness of customers towards Vishal Mega Mart and big
bazaar.
To know whether the customers are satisfied with present service given by Vishal
Mega Mart and Big Bazaar.
Factors considering while purchasing retail products.
To know the effectiveness of the promotional activities done by Vishal Mega Mart
and Big bazaar.
To know the strategy to make a customer retention.
RESEARCH
Research refers to a search for knowledge. One can also define research as a scientific and
systematic search for pertinent information on a specific topic.
Flexible Design.
Non-Probability Sampling Design.
No pre-planned design for analysis.
Unstructured instruments for collection of data.
No fixed decisions about the operational procedures.
RESEARCH DESIGN
“A research design is the arrangement of condition for collection &analyzing of
45
data in a manner that aims to combine relevance to the research purpose with
economy in procures."
“Research design is the framework or the blueprint or foundation for conducting
the research project”
“Research design is the conceptual structure within which research IS conducted
its Constitutes. The blueprint for the collection, measurement and analysis of
data”
TYPES OF RESEARCH DESIGN
Descriptive Design
Exploratory Design
Experimental Design
Causal Research
Applied Research
Others
(A)DESCRIPTIVE RESEARCH
A descriptive study undertaken in order to ascertain and be able to describe the characteristics
of variables of interest in a situation. Quite frequently, descriptive studies are undertaken in
an organizations to learn about and describe the characteristics of a group of employees, as
for example, the age, educational level, job status, and length of service.
(B)EXPLORATORY RESEARCH
Exploratory studies are conducted to clarify the ambiguous problems. Ambiguity means that
the nature of problem to be solved is unclear. Management may have discovered general
problems, but research is needed to gain better understanding of the dimensions. Exploratory
research is conducted with the expectation that subsequent research will be required to
provide conclusive evidence.
(C)EXPERIMENTAL DESIGN
Experimental research studies arc those where the researcher test the hypothesis of casual
relationships between variables.
46
(D) CAUSAL RESEARCH
The main purpose is causal research is to identify the cause and effect relationship between
variables. In causal studies it is typical to have an expectation of the relationship to be
explained, such as predicting the influence of price, packaging, advertising and the like, on
sales. Thus, the researchers must be knowledgeable about the research subject.
Applied research is conducted when a decision is to be made about a specific real- like
problem. Applied research aims at finding a solutions for an immediate problem facing a
business organization.
SAMPLING TECHNIQUE
SAMPLE DESIGN
The sample design provides information on the target information and final sample sizes. I
have used conveyed convenient sampling surveyed in research.
METHOD OF SAMPLING
SAMPLE SIZE
Sample size refers to the numbers of respondents researcher have selected for the survey. I
have selected 100 respondents.
47
DATA COLLECTION METHOD
Both primary and secondary data were collected to meet the objective.
Source of Data
(a) Primary Data:
Primary data is the data which is collected for the first time. It is collected
from the source of origin
For primary data collection questionnaire was framed considering certain
Factors like manpower planning, recruitment sources, selection method etc.
A copy of questionnaire is also attached in the Annexure. Questionnaire
method is being followed and was preferred over interview method
because:-
It is more economical
This method can cover wider areas.
This method is original and therefore very reliable.
Respondents feel more comfortable while answering the
Questions asked.
(b) Secondary Data:
The secondary data are those which are already in existence and which have
been collected for some other purpose.
The secondary data can be collected from the following sources:-
Company Reports.
Pamphlets.
Magazines.
Personnel Department.
Books on communication
48
understand the ever changing and increasing need and wants of their customers.
So it is important to know perception of the consumer towards our product because the
consumer perception that can make or break your brand may be carefully cultivated through
clever and effective advertising. Changes in consumer perception can also spring seemingly
out of nowhere. Whether your company has painstakingly fostered customer perception or
had the great fortune to unwittingly benefit from it, the importance of your brand’s reputation
should never be underestimated.
The study has been done for the Retail sector so more or less it helps in understanding the
consumer perception towards the Retail sector. The study can help in analyzing certain weak
point, improving on which a company can overcome the low sales of its products. At the later
stages of research, a customer survey was included to understand the impact of the
customers’ perceptions regarding the programs.
49
CHAPTER-5
Data analysis and
Interpretation
50
Once in a Twice in Once in a Twice in Once in Total
week a week month a month year
Vishal 12 2 13 22 1 50
Mega
Mart
Big 10 3 12 24 1 50
Bazaar
30
25 24
22
20
5 3
2
1 1
0
Once in a Twice in a Once in a Twice in a Once in
week week month month year
DATA INTERPRETATION
The above chart presents that out of 50 respondents,in case of Vishal Mega Mart 22
respondents comes to visit a store twice in a month, 13 respondents, once in a month, 12
respondents, once in a week, 2 respondents, twice in a week and 1 respondent once in a year.
In case of Big Bazaar out of 50 respondents, 24 respondents comes to visit a store twice in a
month, 13 respondents, once in a month, 12 respondents, once in a week, 2 respondents,
twice in a week and 1 respondent once a year.
From this survey it is concluded that in both companies maximum visit of respondents are
twice in a month.
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2. Are you satisfied with the customer service offered?
Good Average To an extent Need to be Total
improved
Vishal Mega 8 24 5 13 50
Mart
Big Bazaar 7 25 6 12 50
30
25
25 24
20
0
Good Average To an extent Need to be
improved
DATA INTERPRETATION
The above chart presents that out of 50 respondents, in case of Vishal Mega Mart 24
respondents said that their customer service is average, 13 said that there is need to be
improved, 8 said that their service is good, and 5 said that, to an extent.
In case of Big Bazaar 25 respondents said that their customer service is aveage, 10
respondents said that there is need to be improved, 9 respondents said that their service is
good, and 6 said that, to an extent.
From this survey it is concluded that in both companies maximum respondents are assuming
that the customer service offered here is average.
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3. Main reason for coming to the store?
Value of Discount Product Saving of Nearby Total
money range time
offered
Vishal 2 3 9 13 23 50
Mega
Mart
Big 1 4 9 14 22 50
Bazaar
25 23 22
20
15 13 14
10 9 9
DATA INTERPRETATION
The above chart presents that out of 50 respondents, in case of Vishal Mega Mart 23
respondents said that we go to the store because of location(Nearby), 13 respondents said that
the reason is saving of time, 9 said that product range offered is good, 3 said that because of
discount, and 2 respondents said that the reason is value of money.
In case of Big Bazaar, 22 respondents said that we go to the store because of
location(nearby), 14 respondents said that the reason is saving of time, 9 said that product
range offered is good, 4 said that because of discount, and 1 said that the reason is value of
money.
From this survey it is concluded that in both companies maximum number of respondents are
coming to the stores because it is near to their home.
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4. Distance covered while coming to store?
0-5kms 5-10kms 10-15kms More than Total
15kms
Vishal 24 15 9 2 50
Mega Mart
Big Bazaar 22 18 8 2 50
30
25 24
22
20 18
15
15 Vishal Mega Mart
Big Bazaar
10 9
8
5
2 2
0
0-5kms 5-10kms 10-15kms More than
15kms
DATA INTERPRETATION
The above chart presents that out of 50 respondents, in case of Vishal Mega Mart 24
respondents said that we have to cover the distance of 0-5kms while coming to store, 15 said
that we have to cover 5-10kms, 9 said that we have to cover 10-15kms, and 2 said that we
have to cover more than 15kms while coming to store.
In case of Big Bazaar 22 respondents said that we have to cover 0-5kms while coming to
store, 18 said that we have to cover 5-10kms, 8 said that we have to cover 10-15kms, and 2
said that we have to cover more than 15kms while coming to store.
From this survey it is concluded that in both companies most of the respondents cover0-
5kms while coming to store.
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5. Which advertisement mode provide you more information about the store?
No. of respondents
Magazine 6
TV(local channel) 2
Local newspaper 34
Radio 20
Relative/ friends 28
Visuals 10
Total 100
No. of respondents
2
10 6
Magazine
TV(local channel)
Local newspaper
Radio
28 34 Relative/ friends
Visuals
20
DATA INTERPRETATION
The above chart presents that out of100 respondents, 34 respondents said that we knows
about the store through local newspaper, 28 said that relative/ friends, 20 said that radio,
10said that visuals, 6 said that magazine and the 2 respondent said that they knows about the
store through local TV channel.
From this survey it is concluded that maximum number of respondents knows about thestore
through local newspaper.
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6. Which section of the store do you like the most ?
House Homeware Food Kids Jewl Total
hold mart mart
Vishal 16 4 14 15 1 50
Mega
Mart
Big 18 4 12 14 2 50
Bazaar
20
18
18
16
16 15
14 14
14
12
12
10 Vishal Mega Mart
8 Big Bazaar
6
4 4
4
2
2 1
0
House Homeware Food mart Kids Jewl mart
hold
DATA INTERPRETATION
The above chart presents that out of 50 respondents, in case of Vishal Mega Mart 16
respondents said that they like house hold section in the store, 15 said that they like kids
section, 14 said that they like food mart, 4 said that homeware, and the 1 said that jewl mart.
In the case of Big Bazaar 18 respondents said that they like house hold section in the store,
14 said that they like kids section, 12 said that they like food mart, 4 said that homeware and
the 2 respondents said they like jewel mart in the store.
From this survey it is concluded that in both companies maximum respondents like
household section in the store.
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7. How much rating will you give to this store?
Average Very good Excellent Can’t say Total
Vishal Mega 17 16 10 7 50
Mart
Big Bazaar 15 17 11 7 50
18 17 17
16
16 15
14
12 11
10
10
Vishal Mega Mart
8 7 7 Big Bazaar
0
Average Very good Excellent Can’t say
DATA INTERPRETATION
The above chart presents that out of 50 respondents, in case of Vishal Mega Mart 17
respondents gave average rating, 16 said that very good, 10 said that excellent and the 7
respondents said that we can’t say about it.
In the case of Big Bazaar 15 respondents gave average rating, 17 said that very good, 11 said
that excellent, and the 7 respondents said that we can’t say about it.
From this survey it is concluded that only few respondents gave excellent rating to both
the companies.
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8. How do you pay your bill?
No. of respondents
Cash 30
Credit card 20
Debit card 40
Paytm 10
Total 100
No. of respondents
45
40
40
35
30
30
25 No. of respondents
20
20
15
10
10
5
0
Cash Credit card Debit card Paytm
DATA INTERPRETATION
The above chart presents that out of 100 respondents, 40 respondents pays their bills by debit
card, 30 pays their bills by cash, 20 pays their bills by credit card and 10 respondents pays
their bills by paytm.
From this survey it is concluded that maximum respondents pays their bills by debit card
while purchasing in the store.
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9. Have you faced any problem at the time of purchase & usage from the retail
store?
No. of respondents
Yes 10
No 90
Total 100
No. of respondents
100
90
90
80
70
60 No. of respondents
50
40
30
20
10
10
0
Yes No
DATA INTERPRETATION
The above chart presents that out of 100 respondents, only 10% respondents have problem
while purchasing from the stores and 90% respondents have not face any problem.
59
10. Do you recommend these services to your friends, Colleagues & Family?
No. of respondents
Yes 60
No 30
Can’t say 10
Total 100
No. of respondents
120
100
100
80
60 No. of respondents
60
40 30
20 10
0
Yes No Can’t say Total
DATA INTERPRETATION
The above chart presents that out of 100 respondents, 60 respondents said that they
recommend these services to your friends, Colleagues & Family and 30 respondents said that
they don’t want to recommend these services to your friends, colleagues & family and the 10
respondents said that we can’t say about it.
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CHAPTER-6
Conclusion and Suggestions
CONCLUSION
In both stores people visit mostly twice in a month and were very few who visits
twice in a week.
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The stores were rated average in relevance of customer service offered by maximum
number of respondents.
Respondents said they visit the stores because these two store were nearer to them
which saves they time.
Most of the respondents who use to visit were within 5 km to both the stores there
were very less respondents who come from very long distance.
The maximum number of respondents said they mostly they get to know from
newspapers, radio and from relative/friends.
The food, kids and house hold section were most liked by the respondents.
Most of the respondents rated positively to both the stores but some of the
respondents were not completely sure about rating.
SUGGESTIONS
As very few people were visiting both the stores very frequently, the stores should
make some strategies to attract more customers and to make them visit more
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frequently.
From the above analysis the stores were rated average so both the stores should
increase the quality of service offered the stores should try to know exactly what their
customers wants from them.
It is good that the stores were near to the customers but respondents didn’t find the
products offered by the stores were value for money, here the stores should try to
change the perception of customers towards their store by providing new offers and
maintain stock always available so the customers shouldn’t have to leave the stores
empty handed.
People weren’t coming from long distances to the stores, so the stores should make its
advertisements by distributing pamphlets, broachers and to put on hoardings nearer to
those customers who are far away from the stores.
Here the stores should make more advertisements on newspapers and radio as most of
respondents said they react mostly on these modes of advertisements.
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CHAPTER-7
ANNEXURE
Bibliography
Questionnaire
BIBLIOGRAPHY
BOOKS:
Marketing Management- Philip Kotler
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Principle of Marketing-Philip Kotler
Marketing Management- Santon
Business research methodology- C.R. Kothari
BLOGS:
www.tumblr.com
WEBSITES:
www.bigbazaar.com
www.vishalmegamart.com
www.retailindia.com
www.humanpsychology.com
www.wikipedia.com
www.google.com
https://economictimes.indiatimes.com/
www.myaccountingcourse.com
Questionnaire
1. How often do you visit the stores?
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(b) Twice in a week
(c) Once in a month
(d) Twice in a month
(e) Once in a year
5. Which advertisement mode gives you more information about the store ?
(a) Magazine
(b) TV(local channel)
(c) Local newspaper
(d) Radio
(e) Relatives / friends
(f) Visuals
9. Have you faced any problem at the time of purchase & usage from the retail store?
(a) Yes
(b) No
10. Do you recommend these services to your friends, Colleagues & Family?
(a) Yes
(b) No
(c) Can’t say
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