Schlagwort-Archiv: Marketing

Case Analysis Vishal Mega Mart Advertising Essay

Case Review Vishal Mega Mart Marketing Essay

VISHAL MEGAMART is definitely a retail house in India.

It operates 50 shops, including two retailers which are operated by their franchisees. These 50 retailers are spread over about 1,282,000 square feet and so are located in 18 says across India. In its work to strengthen their supply chain, it has set up seven regional distributions centres and an apparel manufacturing plant.

It started out as a merchant of ready-built apparels in Kolkata in 2001. During incorporation, the registered office of their Business was located at 4, R. N. Mukherjee Street, Kolkata 700 001. In 2003, it acquired the manufacturing services from Vishal Fashions Personal Small and M/s Vishal Apparels. Subsequently, with evolution of retail industry in India and switch in client aspirations, it diversified their portfolio of offerings to include other retail goods. Currently, it sell ready-made apparels and a wide variety of household merchandise and various other consumer goods such as foot tar, toys, watches, toiletries, grocery items, sports items, crockery, surprise and novelties.

It follows the idea of worth retail in India. In other words, their business strategy is to market quality goods at acceptable prices by either manufacturing them self or straight procuring from manufacturers (largely from small and moderate size vendors and suppliers). It endeavthier to help one-stop-shop convenience because of their customers and to focus on the needs of the complete family. It believes this concept has helped them increase with their current size within a short while frame of their years. Mr. Ram Chandra Agarwal provides been rated as the 28th virtually all pitiful person in the Indian retail sector. In order to reduce costs and take advantage of economies of scale it provides embarked on backward integration of their products.

Type of retail formatting being utilized by that retail chain and known reasons for the choice:-

The type of retail format of vishal mega mart is normally franchisees. The main motives of the opting of these stores believe in facilitating one-stop-shop convenience because of their customers.

Give Strengths, Weaknesses, Possibilities & Threats of employing particular format:-


It believes that the following are their principal competitive strengths that have contributed to their current posture in the retail sector in India:

Understanding of the ‚worth retail‘ segment

Their business plan involves implementation of the idea of the ‚value retailing‘, targeting the middle and loiter middle income groups, which constitute most the populace in India. It intends to provide quality goods at competitive prices. It sells a vast range of products across apparels and accessories, FMCG(frequently marketed consumer goods) products, foods and customer durables with over 74,000 SKUs.Thier emphasis has gone to maximise the value that the customers derive in shelling out for goods bought within their stores.

It endeavthier to constantly lessen their costs through a variety of measures, such as for example, in-house development of apparels, procurement of merchandise directly from the tiny and medium size suppliers and manufacturers, productive logistics and distribution devices along with custom-made product mixture at their stores according to the regional client behavithier and preferences. Central to their value retail technique is to pass on the great things about cost reduction measures with their customers.

Supply chain management:-

Their supply chain supervision involves planning, merchandizing sthiercing, standardization, vendor management, production, logistics, quality control, ‚pilferage‘ control replacement unit acute scalene and replenishment. Their supply chain management provides us overall flexibility to adjust to changing patterns in consumer behavithier and their capability to add value at numerous steps/levels. In particular, their supply chain control gains power from their ability to undertake in-house manufacture, design and production of apparels.

Logistics and distribution network:-

Their distribution and logistics network comprises seven distribution centres. Besides, It hastier individual fleet of 41 trucks, which helps us to transport and deliver their products in a cost and time efficient way. It believe that their distribution and logistics create is It’ll networked and allows us to fulfil the store requisition within short time period of technology and receipt of buy, which has helped us to optimize in-store option of merchandise and minimize transportation costs.

Their strong distribution and logistics network has allowed us to dispense with the requirement of a dedicated space for storage at every retailer, which can be an industry practice, and rather undertake periodical replenishment of depleted inventory. Due to adoption of a competent racking system, it is able to benefit from optimum usage of the area allocated for display in their stores. This provides us assistance in keeping a low working capital necessity and less carrying cost

Geographical spread:-

Their shops and distribution centres will be spread in a variety of parts and regions of the country. It has not only allowed us to build their manufacturer value but likewise facilitated us to explore cost-effective sthiercing from several locations, identify potential markets and proficiently establish new stores in various places. An aggregate of 43 of 50 of their existing stores are positioned in Tier II and Tier III places, which, It believe, permits us to fully capture market share in places where a most their target customers can be found.

Identifying new locations:-

It assume that It possess the opportunity to identify locations with potential for growth, in particular in Tier II and Tier III towns. It has an exclusive site identification and assessment staff, which undertakes systematic research of the business prospects, considering factors such as population, literacy amounts, and nature of occupation, income levels, accessibility, basic infrastructure and establishment and working costs. Further, it has a committed warehouse for the reasons of storing the supplies essential for setting up of new stores.

Private labels:-

It has a number of non-public labels for apparels (my spouse and i.e. apparels made by us) such as for example Zeppelin, Paranoia, Chlorine, Katina Studio, Famine, Flthierier Females and Roseau. In fiscal 2007, their money from their exclusive labels was Rs. 583.60 million, which accounts for 9.68% of their It intends to pursue the following strategies to be able to consolidate their posture as an operator in the ‚value Retail‘ segment in India.

Their growth strategy is founded on:

Total revenue for fiscal 2007. It believes that their concentrate on their private labels and their recognition within their customer segment permits us to differentiate themselves from their rivals.

Information technology systems:-

It believes that reliable it systems, processes and business applications are essential to take care of retail chain of their magnitude. Their office operations will be computerized which support procurement, supply chain logistics, distribution centres operations and store operations including inventory control and billing. It is in the process of implementing SAP. Almost all their stores and distribution centres will be connected through a company-wide digital network connection which really helps to efficiently take care of their network of outlets throughout the country.

Experienced and skilled operations team:-

It comes with an experienced management group which can be complemented by a committed workforce. Their management crew comprises of talented pros who are skilled in the retail sector. This has assisted us in management of their shops. It believes it has generated the right balance of performance bonus deals and other incentives for their employees.

Strengths Points:-

Demographic favour.

Rising disposable income

Increase in number of individuals in earner category.


Shopping convenience

Low labour price of skilled ones.

Changing consumer habits and lifestyles.

Plastic card revolution.

Greater option of quality retail space.


Policy related issues

Lack of industry position for retail.

Numerous licence, permits and sign up.


-farmer and merchant unfriendly APMC act.

Limited consumer insight.

-lack of detailed area specific customer


-less info on spending pattern.

Inadequate recruiting.

-lack of trained employees at all level.

-stringent employment and sector laws.

-fragment approach to human resources.

Taxation hurdle

-inconsistent octori and entry tax structure.

-vat and multiple taxation issues.

-large grey market presence.

Underdeveloped supply chain

-underdeveloped logistics infrastructure.

-absence of national chilly chain networks.

-lack of nationwide distribution networks and hubs

Lack of satisfactory utilities

– lack of basic infrastructure like electricity, transport and

communication creates problems in sustaining retail

operations across the large geographical spread of



Potential for investment.

Location advantage.

Sectors with high development potential.

Fastest growing format.

Falling property cost.

Retail franchising.


Political issues.

Social issues.



Lack of differentiation among the malls that happen to be coming.

Poor inventory turns and share availability measures.

Discuss the organization structure within the store, citing various advantages and disadvantages:-

The organizational framework within the retail store of vishal mega mart is:-


Store manager.



Security guard.





Advantages of this organisation structure:-

The owner has hierd a store manager to manage his works in a very well organised way.

The salesmen perform a vital position by convincing their clients to buy progressively more products from the retail store along with the products they need.

Employees help in learning the things and help to carry them out.

Cashier manages all of the cash dealings in the retail store.

There are sweepers cleaning the store every once in awhile to keep the cleanliness in the retail outlet.

Supervisor supervises the dealings of the retail store.


The customers those people who are not convinced by salesman they do not visit the stores in future.

There are chances of theft in the retail outlet as security sensors are very costly.

The employees could be fraudulent by stealing the items in the store.

Give advice on basis of analysis conducted:-

Suggestions and recommendations:-

Customer facility should always be under watch.

Store should provide free of charge home delivery facility.

Company should have initiative to open innovative outlets in sub-urban location also to improve the life standard of people living there.

Company should make certain that quality and quantity of the commodity is exact.

Generate employment in that area in which the retail store is situated.

Company should do some CRS initiatives for the reason that area to build up the future synonym economic condition of people living it that spot.

Company should provide standard training with their staff and conscious them with the moderate technique of advertising and customer dealing.

To be upgraded the car parking facility.

Range of products ought to be maintained.

Pricing of products in comparison to other stores should always monitor.

Freshness and top quality of products should be always checked.

Teach the counterman how to behave with the client and keep maintaining courtesy and helpfulness of retail store staff.

There is a long delay at the billing/payment counter.mainly due to less amount of billing machines.

There is always a lot of crowd at the weighing counter of the veggie section. People usually do not follow queue system but charge directly to the counter without considering that other people are in the line. The placement of the weighing counter can be not appropriate, creating lot of inconvenience of shopping.