CHAPTER 1

INTRODUCTION

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1.1 INTRODUCTION TO RESEARCH TOPIC

Value and satisfaction are at the very heart of modern marketing thinking Marketing

is indeed an ancient art; it has been practised in one form or the other, since the days

of Adam and Eve. Today, it has become the most vital function in the worlds of

business.

Marketing, more than any other business function, deals with customers.

Understanding, creating, communicating, and delivering customer and practice.

Marketing is the delivery of customer satisfaction at a profit.

Marketing management is a functional area of business management. it plays a vital

role in developing strategies, plans and programs for each market segment in order

to satisfy the customer wants.

Marketing management represents marketing concept in action. In other words, it

refers to the pre-plan demand management under customer oriented marketing

philosophy. In simple words, marketing management is the management of

marketing activities that is to involve planning, implementation and control of

marketing programmes included in the process of marketing.

Martin Zober has described marketing management as follows:

“Marketing management is the use of interdisciplinary sciences in the coordinative

effort of planning, organizing, and controlling activities that direct the flow of goods

and services from producer and to customers. So that they are fully satisfied and the

objectives of the enterprise are achieved”.

Marketing management has historically been identified with tasks and personnel

dealing with the customer market. It has the task of influencing the level, timing and

composition of demand in a way that will help the organization achieving its

objective marketing management is essentially demand management.

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Market: The word ‘Market’ is derived from the Latin word ‘marcatus’, which

means merchandise, trade or a place where business is conducted. In ordinary

language the term market means a place where goods are bought and sold.

The concept exchange and relationships lead to the concept of market. A market is a

set of actual and potential buyers of a product. Thus buyers share a particular need

or want that can be satisfied through exchanges and relationship. The size of the

market depends on the number of people who exhibit the need, have resources to

engage to exchange, and are willing to offer these resources in exchange for what

they want.

The retail industry is one of the biggest employers in the country. Retailers sell

goods and products to consumers. There are many different kinds of retailers,

including department stores, specialty stores, discounters, catalogs, Internet sites,

independent stores, chain restaurants and grocery stores. Retailers have a real need

for employees who have good people skills.

Many salespersons work evenings, weekends, and long hours from Thanksgiving

through the beginning of January, during sales, and in other peak retail periods.

The retail trade sector comprises establishments primarily engaged in retailing

merchandise, generally without transformation, and rendering services incidental to

the sale of merchandise.

The retailing process is the final step in the distribution of merchandise; retailers are

therefore organized to sell merchandise in small quantities to the general public.

This sector comprises two main types of retailers, that is, store and non-store

retailers. Their main characteristics are described below.

Store Retailers

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Store retailers operate fixed point-of-sale locations, located and designed to attract a

high volume of walk-in customers. In general, retail stores have extensive displays

of merchandise and use mass-media advertising to attract customers. They typically

sell merchandise to the general public for personal or household consumption, but

some also serve business and institutional clients. These include establishments such

as office supplies stores, computer and software stores, gasoline stations, building

material dealers, plumbing supplies stores and electrical supplies stores.

In addition to selling merchandise, some types of store retailers are also engaged in

the provision of after-sales services, such as repair and installation. For example,

new automobile dealers, electronic and appliance stores and musical instrument and

supplies stores often provide repair services, while floor covering stores and window

treatment stores often provide installation services. As a general rule, establishments

engaged in retailing merchandise and providing after sales services are classified in

this sector.

Catalogue sales showrooms, gasoline service stations, and mobile home dealers are

treated as store retailers.

Non-Store Retailers

Non-store retailers, like store retailers, are organized to serve the general public, but

their retailing methods differ. The establishments of this sub-sector reach customers

and market merchandise with methods such as, the broadcasting of infomercials, the

broadcasting and publishing of direct-response advertising, the publishing of

traditional and electronic catalogues, door-to-door solicitation, in-home

demonstration, temporary displaying of merchandise (stalls) and distribution by

vending machines.

The methods of transaction and delivery of merchandise vary by type of non-store

retailers. For example, non-store retailers that reach their customers using

information technologies can receive payment at the time of purchase or at the time

of delivery, and the delivery of the merchandise may be done by the retailer or by a

third party, such as the post office or a courier. In contrast, non-store retailers that

reach their customers by door-to-door solicitation, in-home demonstration,

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temporary displaying of merchandise (stalls) and vending machines typically receive

payment and deliver the merchandise to the customer at the time of the purchase.

The non-store retailer’s sub-sector also includes establishments engaged in the home

delivery of products. This includes home heating oil dealers and newspaper delivery

companies.

Retail Employment: The retail industry accounts for about 11.6 percent of U.S.

employment. Annual retail employment averaged 15.3 million people in 2005.

Retail unemployment was 5.4 percent compared to 5.1 percent overall. Employment

of non supervisory workers in retail averaged 13.0 million in 2005. Non supervisory

retail employees averaged 30.6 hours a week during 2005 with average hourly

earnings of $12.36. Ten year employment projections expect retail to increase 11.0

percent, versus 14.8 percent overall.

Challenges for retail include operating on razor-thin margins, the retail industry is

challenged by static domestic markets, a volatile economic scenario, a need to

globalize and exploit unfamiliar segment, the need to achieve critical mass, rapid

consumer demand shifts, supply chain coordination, and relentless competition.

Retailers are looking for innovative ways of responding to evolving markets,

competitive pricing, new product rollouts, and changing consumer tastes. Existing

retail technology is fragmented, with limited integration between storefront and

corporate systems and even less between the enterprise and its supply chain partners.

Aging platforms are proving inflexible, expensive to maintain, difficult to integrate

and dependent on a shrinking base of experienced support talent.

Retailers worldwide are opting for IT services outsourcing, which enables them to

focus their attention on core functions and business operations, adding value to their

business by freeing up valuable resources and reducing costs.

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1.2 SUBJECT BACKGROUND OF THE TOPIC

The Current Retail Context

As differentiation between retail chains decrease and the need for convenience and

value-added services increases, customers have become more discerning and

demanding but less loyal than before. One retailer's customer today is a potential

customer for all other chains, formats and channels tomorrow.

To create sustainable advantage over competition, retailers are trying to enhance

their product offerings, service levels and pricing models. To prevent value erosion

and to protect margins, retailers are trying to reduce their cost-to-serve per customer

and thereby ensure that the total cost of ownership of a customer over time is

reduced. Managing promotional spends is another critical area for retailers to focus

and target customers more effectively and efficiently.

Generating above 10% of the Gross Domestic Production, Indian retail industry is

the largest source of employment, after agriculture, in the country. Enormous

opportunities exist in this sector.

Driven by the changing lifestyles and strong income growth, retail industry in India

is expected to record an impressive growth in the next five years. Growth in this

sector will be further supported by the favorable demographic patterns. Growing

consumer credit will also help boost consumer demand.

As shopping malls are becoming increasingly common in metropolitan cities, and

the announced development plans project at least 150 new shopping malls by 2008.

Number of departmental stores is growing at an annual 24%. Supermarkets have

been taking a growing share of general food and grocery trade during the past two

decades.

Retailing in India is gradually inching its way toward becoming the next boom

industry. The whole concept of shopping has altered in terms of format and

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consumer buying behavior, ushering in a revolution in shopping in India. Modern

retail has entered India as seen in sprawling shopping centers, multi-storeyed malls

and huge complexes offer shopping, entertainment and food all under one roof. The

Indian retailing sector is at an inflexion point where the growth of organized

retailing and growth in the consumption by the Indian population is going to take a

higher growth trajectory. The Indian population is witnessing a significant change in

its demographics. A large young working population with median age of 24 years,

nuclear families in urban areas, along with increasing working-women population

and emerging opportunities in the services sector are going to be the key growth

drivers of the organized retail sector in India.

The mall's glistening exterior seems to capture the exuberance of India's economic

boom. Inside, however, except for a busy restaurant and supermarket, business is

sluggish, and many shops are slathered with signs proclaiming SALE.

Organized retailers in India are trying out a variety of formats, ranging from

discount stores to supermarket to hypermarkets to specialty chains. However, of late,

most players appear to be gravitating towards the hypermarket format.

Some feel a combination of cash-and-carry and neighborhood stores, as in a hub-

and-spokes model can be a good bet. Says one retail analyst, nascent markets like

India need a lot of room for experimentation on part of the retailers. Ergo, there are

no cut-and-dried solutions when it comes to fixing on the right retail format.

Finally, while in the first flush of the retail boom, the elimination of traditional

intermediaries may bring windfall gains (as well as bring welcome and much-

needed relief to the producers), this source will increasingly dry out as competition

intensifies and margins come under pressure a few years down the line.

What would set the survivors apart from those who are forced to sell out (or go

belly-up) will be differentiators like location, value-added services (convenience),

private labels and customer loyalty programmes, other than price. The last, a result

of retailer-manufacturer tie-ups, state-of-the-art supply chain infrastructure, global

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sourcing and scale will be a key factor. And, if experience in other markets is

anything to go by, an uncanny ability to read shifting trends.

1.3 NEED OF THE STUDY

Retailing is a low-margin, high-volume, commodity business where profitability

gets strained as competition intensifies. And if wrong choices are made regarding

the location or the formatting of the store, woe betide the retailer. The catches are

many and to make it big, a retailer would have to negotiate all the tricky turns most

of the time. Given the number of players getting into the fray today, this clearly

means a winnowing out of the weaker retail players. What's more, that time could be

sooner rather than later, maybe just three or four years down the line.

That's not so surprising, industry insiders even say, pointing out that a large number

of the new entrants may not be committed to retailing in the long term. While some

almost certainly are looking to act as silent partners for foreign players, others may

be more willing to look at an exit option a few years down the line.

Forum has been rated as one of the best malls in the country, now with the entry of

other malls in Bangalore, Forum has been challenged in its position to remain at the

top. The present research would identify whether Forum Mall has the competitive

advantage over other malls in Bangalore.

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CHAPTER 2

RESEARCH DESIGN

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2.1 INTRODUCTION

The Malls in retail industry in India collectively generate 90 crores revenue a

year. Some players have managed to cut through consumer resistance with innovation,

pricing and aggressive marketing. The competition level in the Mall industry is very high

now. Many brands are fighting in the market for maximum share. They have to bring out

a lot of differentiation among them. The major duty of the marketer is to know the

reasons for preferring particular Mall by the consumers.

2.2 REVIEW OF LITERATURE

The Competitive Advantage Report includes questions in four key areas,

Expectations, Purchase Decisions, Customer Service, and Future Purchases. So the

customer should be invited to participate in the survey. Setting realistic expectations

during the sales process is a vital component of making happy customers. How a

company sets and meets product and service expectations plays a pivotal role in

fashioning customer opinions. For this report, how a company meets or exceeds

expectations is measured in three important areas: product/service, support, and price.

These three areas will be used to factor a score for the Expectations category. The results

of the three questions will be used to factor an overall expectations score.

The Purchase Decision category gives us a better understanding of how the customer

perceives the purchase process. Two key areas for questions include an open ended

question on why they purchased and a ratings question on their experience. The rating

Question data will be used for the analysis of Purchase Decision category. The open

ended responses from the “Why” questions will be used for product strengths analysis.

The results of the purchase experience question will be used for the overall Purchase

perception analysis. Customer service is one of the most important differentiations a

company can have. For this report, customers will rate a company in three key areas:

customer service, timeliness for problem resolution, and expertise. These three areas will

be used to factor a score for the Customer Service category.

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PURPOSE OF LITERATURE REVIEW

Literature review is one of the prime parts of every project. The very basic purpose of the

literature review is to gain insight on the theoretical background of the research problem.

It helps the researcher to gain strong Theoretical basis of the problem under study and

also help to explore whether any one has done research on the related issue. That’s why

literature review helps one to find out the path of problem solving. In this regards the

very basic purpose of the literature review in this project is same as mentioned

2.3 PROBLEM STATEMENT

Forum has been rated as one of the best malls in the country, now with the entry of other

malls in Bangalore, Forum has been challenged in its position to remain at the top. The

present research would identify whether Forum Mall has the competitive advantage over

other malls in Bangalore.

2.4 OBJECTIVES

The principle objective of the present research study is to analyze the competitive

advantage of the major retailing mall in the retail industry of the metropolitan, Bangalore.

The specific objective of the study are :-

1. To identify the competitive advantage of Forum in the retail industry in terms of

Promotional activities

Brand value

Customer perception

Brand offerings

2. To critically take up a comparative study of Forum Mall with Garuda Mall, Sigma

Mall, Eva Mall.

2.5 RESEARCH METHODOLOGY

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POPULATION

The population in this present study consists of the regular visitors in the mall during

the last 15 days.

SAMPLE AND SAMPLING TECHNIQUE

The sample taken is 100 and the sampling technique used here is convenient

sampling..

SOURCES OF DATA

Secondary and primary data would be collected for the study. After identifying

and defining the research problem and determining specific information required

solving the problem the researcher will look for the type and sources of data which

may yield the desired results

Secondary data: Secondary data is available in the form of company records, trade

publications, company reports, Daily Newspaper, Textbook, Various Websites and

libraries.

Primary data: Primary data is collected by framing questionnaires. The questionnaire

contained questions which are both open-ended and closed-ended.

2.6 SCOPE

The study conducted would help in understanding and analyzing the various aspects

in the retail industry. It would indicate that global supply chain development shall

also be a key success factor, the retailers who are able to provide high quality

products at the most competitive prices will be the winners. Finally, the Indian

retailers will have to brace themselves for increased competition on a global level.

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2.7 LIMITATIONS

1. The study is time-bound (1 month)

2. The research is conducted only in Bangalore

3. The sample taken is limited as it is a research and not a census.

CHAPTER SCHEME

1. Introduction

2. Research Methodology

3. Profile of the Industry and Company

4. Analysis of the Data Collected

5. Findings, Suggestions and Conclusion

Bibliography

Appendix

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CHAPTER 3

PROFILE OF INDUSTRY & COMPANY

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3.1 RETAIL INDUSTRY

After leading the IT bandwagon, India is poised to grow as a Retail hub. It is imperative

to sustain the modernization of the retail sector and dispel the myth that the game is big

Vs small or traditional Vs modern or organized Vs unorganized or local Vs foreign .

What is needed is to create an appropriate environment to propel retail where all benefit,

he said.

India's huge population, he said, has the potential for mammoth consumption if given the

power of spending and that is only possible through large scale development generating

employment which is already happening with retail as the driving force.

According to IMAGES India Retail Report 2007, of the Rs.12,00,000 crores retail

market, food & grocery retail is by far the single largest block estimated to be worth a

whopping Rs.7,43,900 crores, but more than 99 per cent of this market is dominated by

the neighborhood kirana stores.

But unlike the experiences in most other countries, growth of Indian retail is not going to

be a staggered and time-taking process: India has already shown the world how quick it

can adapt to hi-tech products and services and will again set a record of sorts in setting up

world class retail formats across the country in record time. In the next five years India

should have retail entities strong enough to compete with the best in the world

At present, India's retail sector is largely unorganized, with about 15 million tiny outlets

catering to consumer needs across the country – it employs the second-largest number of

people after agriculture. Organized retail is now focused primarily on the 300 million

urban "middle classes'' and an additional 200 million rural rich, who form a consumer

market worth more than US$100 billion. So, there is enough ground for the modern and

the traditional formats to co-exist.

India's economic growth story consists three important things:

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One - that here is a society in which the fruits of development are more evenly spread, in

which democracy is more real and palpable to the mass of the population, which makes

for a stable social environment that is attractive and reassuring;

Two - that India is an enormous market, of which you are seeing only the tip of the

iceberg;

Three - the tremendous resilience of India: we survived the zooming oil prices, the

fluctuating dollar and global recession, with barely a hiccup.

The Indian economy is integrating with the world, and yet it simultaneously has its own

dynamics, which cushion global shocks as in no other country. India had kept the retail

sector largely closed to outsiders to safeguard the livelihood of nearly 15 million small

storeowners and only allows 51 per cent foreign investment in single-brand retail with

prior government permission. FDI is also allowed in the wholesale business. Single-brand

retailers such as Louis Vuitton, Fendi, LLadro, Nike and Toyota can operate now on their

own. Metro is already operating through the cash-and-carry wholesale mode. .

“To understand the reasoning and implications of such moves it was vital to size up the

entire retail market in various segments and consumption levels across product categories

with share of the organized segment and it was just the right time for India Retail Forum

to take the initiative of researching the scope of retail businesses in India”

Till, couple of years back the Indian organized retail market was either dominated by the

apparel brand stores or regional retail chains. There was no Pan-India retail chain on the

line of developed economies and the organized retail in India contributes roughly 3.5 ñ 4

per cent of the total Indian retail, which is very small compared to the developing

economies like Thailand, Brazil and so on. ICICI Property Services and Technopak

estimate that the total real estate required by the upcoming organized retail chains will be

in the range of 500 million square feet, out of which 250 mn sq ft should be contributed

by the shopping malls. However, as per the current plans of real estate developers, only

143-mn sq ft of mall space is being planned over the next five years and this leaves the

retail industry with a shortage of more than 40 per cent. Developers are now more attuned

to the demand by both domestic and foreign companies, where tenants are driving on

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improvement in the quality of commercial real estate development. The success of retail

real estate business depends on the developer’s ability to recognize and respond to the

changing consumer and market trends. As the competition in the market is intense, mall

developers, in a bid to offer distinctive value propositions are planning specialty malls.

These malls have a higher conversion rate as consumers go there with specific

requirements. A number of malls are being developed as a part of a large residential

development, driven by the concept of providing a total quality lifestyle with residential,

retail and office space as a part of integrated development. The retail component helps

boost the property values of the overall development and the available catchments from

the residential component aid in marketing the mall. With so much action in the shopping

mall space, there is always a debate going on about the implication on the existing retail

real estate. The study shows that high streets being in operation for long have assured

footfalls of the target segment and in fact, most of the retailers experience much higher

space productivity in a high street shop than a regular mall. However, the speedy

development of ill-conceived and poorly planned malls has and will continue to lead to

lower profits for mall owners and retailers. India has also seen many foreign developers

as well as investors coming in the last year to get a foothold in the lucrative real estate

market. Many Indian developers have also raised funds from the global investors or are

planning to raise capital from the capital market. Mall management has been a major

challenge for India’s shopping mall owners, who until recently have mostly developed

properties and then sold it to investors who further lease it out to the retailers. This has

resulted in unplanned and uncontrolled developments of the malls and may lead to

eventual loss of rental values. The mall owners and developers need to consider the

importance of controlling and managing their malls in order to maximize the value on

their investments. The right mix of tenants would lead to maximizing the market value of

the mall. India is getting into an interesting phase as far as retail and real estate is

concerned and we will see more and more and world class shopping ambience being

created by developer.

With new shopping-malls having become operational in many cities across India, it is

interesting to observe how the shopping-behavior of consumers in the vicinity of these

malls has changed and thereby draw some lessons that could be of some use to the

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developers of hundreds of new malls that are currently under planning or construction

across India.

It is still not too long ago that the operators of a particular new shopping-mall at Mumbai

had to contemplate restricting entries of visitors by imposing conditions that such entry

was limited to those having mobile phones or credit cards a.k.a., the income tax

department's one in six criterion for filing a tax return.

Rentals, rather than going down with more malls coming up, started moving up even as

the quality of services within the malls started deteriorating.

In this context, therefore, it is somewhat surprising that questions are already being

asked, albeit in whispers, whether shopping-malls can survive and operate profitably in

India.

Many tenants lament about the low percentage of conversions from those who walk

through the portals of these malls, and casual observers routinely find shopping-bags

missing in the hands of the supposed shoppers visiting these malls as an indicator that the

initial euphoria about shopping in the malls is already on the wane and that consumers

are reverting to their traditional shopping-destinations.

There are some myths and some realities about these observations. It is, indeed, true that

many Indian retailer tenants in the shopping-malls have now become familiar with terms

such as footfalls, conversions, average transaction value, and repeat customers.

However, it is also true that for many of these tenants, it has been their first expansion

beyond their traditional high street locations and hence, they have expectations born more

out of hype than by any real experience.

There is no reason to believe that it should be any different in a shopping-mall, which, in

any case, is fundamentally no different from a traditional shopping-high street, except

that a mall has a more modern and compact structure, in most cases a single roof.

Local retailer tenants who move into a new mall for the first time should not expect any

customer loyalty being built up overnight.

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Mall developers also have to create distinctive identities for their specific malls, much

like the identities that have developed over time for major shopping-high streets in

various cities in the country.

Their work is not done just when the mall has been commissioned! As for the would-be

retailer tenants, it is important to realize that merely moving into a mall does not

guarantee business for them.

They have to work as hard to draw consumers to their own stores once the latter have

entered the mall, and then have the right value proposition for them to get converted into

customers, and then become repeat customers.

The final, obvious, conclusion is that mall developers have to invest in getting a better

understanding about the retail business, while retailers have to get a better understanding

about the dynamics of operating at a new location.

India's vast middle class and its almost untapped retail industry are key attractions for

global retail giants wanting to enter newer markets. Driven by changing lifestyles, strong

income growth and favorable demographic patterns, Indian retail is expected to grow 25

per cent annually.

The retail road ahead

The Indian retail market is estimated at US$ 350 billion. But organized retail is estimated

at only US$ 8 billion. However, the opportunity is huge--by 2010, organized retail is

expected to grow to US$ 22 billion. With the growth of organized retailing estimated at

40 per cent (CAGR) over the next few years, Indian retailing is clearly at a tipping point.

India is currently the ninth largest retail market in the world. And it is names of small

towns like Dehradun, Vijayawada, Lucknow and Nasik that will power India up the

rankings soon.

Moving up the evolutionary ladder won't be easy for India's retailers. Especially given the

large number of potential spoilers. Availability of quality retail space will be a key

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determinant for the growth of the sector. With most Indian cities undergoing rapid

urbanization, spiraling rental costs has most retailers worried already.

Hitherto, most retailers have preferred to go in for long-term leases. But with real estate

prices in most top tier cities hitting the roof in the past two years, lease rental increases

are making business unviable for organized retail.

According to PricewaterhouseCoopers (PWC), the current average lease rentals across

some of the top cities range from Rs 88 per sq feet per month to as high as Rs 120 per sq

ft per month. On an average, lease rentals account for 7-8% of the revenue and 40-45% of

the non-material cost for retailers. Unless these prices stabilize, most retail businesses

could end up taking much longer than originally planned to break even.

Foreign retailers have shown that managing operations innovatively can provide a

significant competitive advantage to retailers. Wal-Mart, for instance, leverages IT to

track supply chain processes like cross-docking very effectively. Similarly, Tesco

requires lean production techniques of its suppliers and has high-reliability delivery

systems in place such as 'milk-runs'.

The other key metric -- stock availability -- is telling too: Where global retailers achieve

more than 95% availability of all stock-keeping units on the retail shelves, their Indian

counterparts cut a rather poor figure at 5-15%.There are other areas that retailers would

have to master -- such as reaping economies in procurement and transportation, bulk

storage, trend forecasting to minimize inventory levels -- before they can truly claim to

have arrived. There are various retail formats currently in use in India. These include

hyper and supermarkets, convenience stores, department stores and specialty chains.

Among these formats a notable trend has been the development of integrated retail-cum-

entertainment centers and malls as opposed to stand-alone developments.

About 25 million square feet of organized retail space is expected to come up across the

country by 2005. Mumbai and Delhi rank amongst the top two cities in India for

organized retail growth. Although, the emergence of the organized retail outlets has

predominantly been an urban phenomenon, in the next couple of years, organized

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retailers will to enter semi-urban areas in India, where disposable income is also fast

increasing.

Retailing is not yet officially recognized as an industry. India does not allow 100 percent

foreign direct investment (FDI) in the retailing sector. There have been discussions

between the government and the industry on opening up the retail sector to FDI, and at

least allow 26 percent foreign equity initially, but a decision has not yet been taken. A

case is being made to the Government of India by officials of some global majors to

allow FDI in retail trading of low-volume, high-value products.

Though 100 percent FDI is not allowed, it is still possible for the foreign retailers to

enter the Indian market through three channels - franchise agreements, cash and carry

wholesale trading, and strategic license agreements.

With tariffs on imported consumer items gradually being aligned to meet prescribed

WTO norms and reduction of import restrictions, the retailing sector will get a major

boost. To attract and sustain the interest of international retailers, India still has quite a

way to go by way of reforming the real estate laws, restructuring the tax structure, and

allowing FDI in the retail sector.

The growing consuming class coupled with the entry and expansion of organized sector

players in the recent years has set the pace for corporate investment in retail business. It

has seen the emergence of supermarkets, huge department stores and shopping malls.

Large-format supermarkets are coming up including centrally air-conditioned malls. The

retailers have started looking at new business formats, business planning and expansion.

However, the sector faces several challenges. Property and real estate issues, capital

availability, legal framework, human resources, supply chain development and

management, and logistics are amongst the prominent ones. The foremost challenge

facing the organized retail industry in India is competition from the unorganized sector.

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Traditional retailing (12 million outlets) has been established in India (as elsewhere in the

world) for centuries. It is a low cost structure, mostly owner-operated, has negligible real

estate and labor costs and little or no taxes to pay. Consumer familiarity that runs from

generation to generation is a big advantage for the traditional retailing sector.

In contrast, players in the organized sector have big expenses to meet, and yet have to

keep prices low enough to be able to compete with the traditional sector. High costs for

the organized sector arises from: higher labor costs, social security to employees, high

quality real estate, much bigger premises, comfort facilities such as air-conditioning,

back-up power supply, taxes etc. Organized retailing also has to cope with the middle

class psychology that the bigger and brighter a sales outlet, the more expensive it will be.

Despite these difficulties, investor interest in this sector is growing. Also, with tariffs on

imported consumer items gradually being aligned to meet prescribed WTO norms and

reduction of import restrictions, the retailing sector will get a major boost.

Competition

The figures for the Indian retail business, when compared to developed markets, look

small. But in the Indian context they are attractive enough to invite investors' attention.

Some of the largest Indian corporate houses such as the Tatas, Rahejas, and Goenkas

have entered the retailing sector. In addition, the last decade has seen many retail startups

such as Pantaloon, Shoppers' Stop, and Ebony entering the organized retail fray.

Although some have fallen by the way side, a significant number of new retail businesses

have surged ahead of the pack and are now aiming to become nation wide chains.

Current retailing formats such as street carts, pavement shops, kirana stores (mom and

pop stores), public distribution system, kiosks, weekly markets etc. are unique to India

and have been in existence for a long time.

A major contrast to these formats is the emergence of modern large-scale formats such as

supermarkets, specialty stores, chain stores, department stores, hypermarkets, factory

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outlets and discounters. In addition to these formats, the emergence of malls has

transformed the retailing environment in India and is expected to push organized retailing

into the fast track.

A unique distinction in the mall development in India is that Indian malls have a

combination of high value outlets, as well as mass brands, while in comparison malls

overseas either cater to the mass category or are the boutique type. If a city like Mumbai

is examined, there are three types of malls in existence in Mumbai.

Though malls are on route to be the kings of organized retail in the future, their

sustainability is debatable. It will eventually come down to what value proposition a mall

manager can provide versus the competition to increase footfalls into the mall. Given the

number of retail malls coming up around the country, only the one that satisfies the

Indian consumers' need for value-for-money proposition will survive.

Of course, there is a perception that the offerings of these spacious, plush and up scale

stores will be high priced. To counter those apprehensions, stores have started offering

budget-pricing schemes, offers and sales to attract that price sensitive customer. Unlike

the early days of organized retailing in India, people of all strata of society are now

walking into these stores.

Market Access

The Global Retail Development Index (GRDI), developed by AT Kearney has ranked

India fifth in a global ranking of emerging destinations in the retail sector for food and

general merchandise retailers who have international expansion plans. Since Foreign

Direct Investment is not allowed or encouraged, India remains only a potential attractive

destination for investments.

Retailing is one of the few sectors of the Indian economy that is closed to Foreign Direct

Investment (FDI). One of the major arguments against allowing FDI is that the advent of

large retailers will cause the demise of the mom and pop stores.

23

However, those in favor of allowing FDI argue that there are obvious benefits of

permitting FDI in retail - it will boost a key growth sector of the economy, create

employment, benefit consumers with the increase in the retailer efficiency and

competitiveness, and introduce best practices and access to world-class technologies.

Despite the perceived benefits of permitting FDI into the retail trade sector, reticence still

persists amongst policy makers.

Strategic License Agreements: Mango, a well-known apparel brand, has used this route to

enter into India as it is said to be the easiest alternative for global retailers. A strategic

License Agreement involves the signing of a joint venture agreement with a domestic

retailer. Although global retailers are using the above routes as an alternative to FDI,

major chambers and associations are sparing no effort to make the government

understand the opportunities FDI in this sector will bring in for the economy. It will be a

while before the government realizes that FDI will not only boost the retail scenario but

will also attract FDI in various upstream activities such as food processing and

packaging. In this scenario, global retailers will be unable to enter into India till the

government decides to open its shores to foreign investment. However, in addition to the

routes mentioned above it is important to note that non-resident Indians can invest in the

real estate development sector. Therefore, it is possible for foreign property developers to

tie up with NRIs to invest in property development in India.

Retailers are faced with the enormous challenges of globalization, regulation, growing

costs, and demanding customers. In addition to these changing market conditions, there

are now multiple channels to reach customers. All of this increases the need for flexibility

and agility in the business applications. However, at a time when competition is keenly

interested in buzzwords like agility and adaptability, businesses are confronted with

systems seemingly built of steel and cement. Businesses are stuck with applications

which were developed as though things would never change. These applications become

more expensive and cumbersome each time organizations tweak them to fit new business

imperatives. Unfortunately, this leads to less materialization of automation because

systems require constant human intervention and IT development. All too often, the

alignment of technology with business objectives gets bogged down by integration

problems and progresses no further than the white board.

24

Embracing emerging technologies to enhance the overall experience of the customers and

improve efficiency within the organization. These pressures are forcing retailers to

rethink their overall strategies. Current legacy systems—either in store or at the corporate

headquarters—were designed and implemented many years back, and retailing has

moved on since then. These legacy solutions tend to be uni-functional. For example

check-out systems remain single-purpose devices, and even though new point-of-service

(POS) solutions offer inventory management, price optimization, and customer

management some retailers are still only using POS devices to check-out the customer.

In addition, current retail solutions are built as separate siloed systems. Brick-and-mortar

retail channel runs independently from the e-commerce channel, which runs

independently of the catalog base-order management system, and so on. However,

customers are increasingly using the stores to touch and feel the products but ordering the

products from e-commerce sites. As broadband availability becomes pervasive, the

distinction between different channels is blurring. Customers are expecting the same

experience irrespective of how they shop. They expect their preferences and customer

information to be carried between the channels and expect to accrue loyalty points across

all channels.

3.2 COMPANY PROFILE - The Forum

BACKGROUND

The Prestige Group, who is the leading property developer of Bangalore, is promoting

this Project. The Group has completed over 5 million square foot of space and has

delivered over a 100 projects. The Group also has over five decades of experience in

retailing and represents leading brands in Bangalore. This unique combination of real

estate experience and retail expertise gives the Group the technical competence and the

conceptual sensitivity to design, build and manage an integrated only for lease and not

for sale SHOPPING MALL that offers complementary experiences.

The Project design incorporates market research, product profile and mall customer

psychology inputs from international property and mall management consultants from

USA and Hong Kong through CB Richard Ellis and Jones Lang LaSalle. Following thru

on these inputs the Project design process proceeded as follows:

25

1. The target customer was profiled to be between 15 and 40, of the ‘now-

generation’ and in the middle / upper middle class segment.

2. The experiences that the target customer group would seek and which

should be offered were identified to be:

Retail

Food & Beverage

Entertainment, and

A multiplex

3. The total space that should be allocated for each experience was identified.

E.g., Retail 38%

4. Within each experience, the trade mix that must be present to provide

prospective customers with a comprehensive offering was determined.

E.g., Apparel 36%

5. For each trade mix the constituent trade category was identified. E.g.,

Men’s Formal 17%.

6. For trade category a wish list of constituents was drawn up. E.g.,

Raymond’s, Louis Philippe.

The resultant offering to the consumer would thus be focused and capable of making the

SHOPPING MALL a destination.

The Project is comprised of 650,000 sft of built area in four- and – a – half acres of land.

Of the total area, 350,000 sft is the people space and 300, 000 sft for parking around 800

vehicles. The highlights of the project are:

Consumer focus design.

Complementary experience / product offering.

Only for lease.

Presence of only ‘top-of-mind’ recall brands.

11 – Screen multiplex.

Parking for around 1000 vehicles.

Mall promotion and management by promoter.

Operational by mid 2003.

26

The Project is unique, relevant and contemporary in concept, positioning and success

potential.

LOCATION

The property is located at 21. Hosur Road, Koramangala, Bangalore. It is within four and

a half kilometers from Brigade Road, which marks the Central Business District. The

property gains access from two main roads and has a frontage of over 350 ft. The

catchments area of the project includes prime residential areas of Koramangala,

Jayanagar, Richmond Town, BTM layout and Indiranagar. The location is part of the IT

corridor. The travel time from the CBD is within 10 minutes. Several colleges [Jyothi

Nivas College, Christ College, St. John’s Medical College], software [Lucent

Technologies] / commercial [Mico] offices, stores [Big Bazaar, Globus, Raheja Arcade],

eat-outs [Pizza Corner] are located within a radius of 1 km, but no organized ‘brand’

retailing is in the vicinity.

NEED FOR THE PROJECT

Consistent with the faster pace of life, time has become a commodity: to be conserved

and wisely spent. It is in acknowledging this new value for time that marketers

worldwide recognized the convergence of shopping and entertainment and the emergence

of family entertainment centers as the premier destination of all spenders of leisure time.

Shopping and entertainment are today complementary expectations for shoppers and

entertainment seekers. All current platforms of shopping and entertainment in Bangalore

– whether in high streets, shopping complexes, cinema theaters, video parlors or

restaurants – are in mutually exclusive locations. This places limits upon the customers

potential to maximize time….. and it is in response to this, that this project has been

conceived.

International property consultants have the following to say:

83% of entrepreneur retailers contacted are planning expansion – CB Richard

Ellis

27

Bangalore is right on top of new expansion list of most brand managers – CB

Richard Ellis

Shopping Malls and cinema are currently the most attractive leisure destinations –

CB Richard Ellis

Bangalore is one of the four best markets in the country having a high level of

retail maturity – Jones Lang LaSalle

Organized retailing in India is set to increase five fold from US $ 1.2 billion in

2000 to US $ 7.6 billion in 2005 – Kurt Salmon Associates

This Project’s offering is thus supported by strong research fundamentals.

PROJECT COMPONENTS

The principle ideation behind the Mall is to offer:

A Brand optimizing presence

A synergistic environment, and

A potential for 300 minutes of ‘shopper-tainment’

Consistent with this ideation and supported by the researched findings of international

property consultants, the Project has the following components:

Two levels of retail space. Each level is about 85000 SFT.

One level of food courts, play stations and entertainment

One level of cinema housing an 11 – screen multiplex, with 2150 seats.

All the components are scheduled to be commissioned simultaneously and would be

supported by:

100 % power back up

Intelligent computerized car parking system for 1000 vehicles

Centralized air conditioning

Indoor air quality management system.

Professional Mall management for services and Mall promotion

Joint exclusive marketing mandate to CB Richard Ellis and Jones Lang LaSalle.

28

ENVIRONMENTAL ASPECTS

The Project is located in an area designated for commercial use in terms of the

Comprehensive Development Plan of the Bangalore Development Authority. Its

immediate neighborhood is consistent with the planned activity. Provisions for water

treatment and sewage treatment have been incorporated into the Project planning.

PRESENT STATUS

1. The Mall is full fledged functional from February 2004.

2. All designing has been completed.

3. Leasing program with all Tenants is complete.

4. Commitments received for 100% of space.

SL# CATEGORY AREA OCCUPIED IN

SFT

IN PERCENTAGE

1 ANCHORS 81458 23.27

2 FOODCOURT 29008 8.32

3 F&B 27742 7.96

4 BRANDED STORES 98882 28.76

5 NON BRANDED 5508 1.57

6 MULTIPLEX 104875 30.08

347473 100.00

PARTICIPATING BRANDS INCLUDE:

LEVEL 0

MC DONALD

ARCHIES

REEBOK

CARBON

ZODIAC

TITAN

29

HSBC

HEALTH & GLOW

FX CURRENCY

CAFÉ COFFEE DAY

LEVIS

ADIDAS

METRO

ARROW

NIKE

KFC

FAB MART

RELIANCE WEB STORE

BENETTON

PLANET FASHION

TOMMY HILFIGER

WEEKENDER KIDS

PEPE

PROLINE

WESTSIDE

LEVEL 1

ISIS

MUSTARD

CHAI

SWAROVSKI

SF JEANS

WILLIAM PENN

JOCKEY

GREEN HILLS

COOKIE MAN

PETER ENGLAND

30

PROVOGUE

SAMSONITE

MOCHI

SCULLERS

PIZZA HUT

RAYMONDS

MASPAR

AFFINITY

FFARNA

LEE

WRANGLER

LANDMARK

LUSH

MILANO

ETHOS

KHADDAR

LEVEL 2

BOSE

AFTON

WHIZZ

SWEET WORLD

MODEL ART

KALMANE

SONODYNE

SANGEETHA

APPLE

AMOEBA

NIK NISH

FEATHERLITE

TRANSIT

31

LEVEL 3

PVR CINEMAS

BASKIN ROBBINS

BODY CRAFT - NAIL BAR

LEVEL 4

PVR CINEMAS

DECCAN DREAMS

The Bangalore-based real estate developers Prestige Group took root way back in 1956 in

the avatar of a retail store, Prestige Fashions, that bartered in custom tailoring and

retailing ready-to-wear garments. It was in 1985-86 that the company forayed into real

estate development with the construction of Prestige Court in KH Road, Bangalore.

Over the years, the Prestige Group has played a major role in changing the skyline of

Bangalore and is fast emerging as one of the leading developers of South India. So far

Prestige Constructions has completed over 120 projects, encompassing more than 10

million sq. ft. of commercial and residential area.

In the residential segment, Prestige has undertaken projects such as Prestige Kensington

Gardens, Prestige Wellington Park, and Prestige Shantiniketan. The group is also

developing United Breweries' real estate venture, UB City. Prestige has also made a mark

by developing high-quality commercial projects like Prestige Nebula and Prestige

Technology Park.

In an effort to cash in on the retail boom in the country, the Prestige Group has planned to

develop over 7 malls in South India at an investment of Rs. 2500 crore. The group's

Forum Mall in Bangalore, an entertainment-cum-retail complex, includes 11 theatre

multiplexes with food, bowling and shopping facilities.

32

Besides being an ISO 9001:2000 certified company, the Prestige Group has also received

the Crisil DA1 rating for its commitment to excellence.

Beginning with a retail store and growing to become one of the most trusted names in

real estate- the Prestige Group has come a long way.

It was one man's dream, his grit and foresight that laid the firm foundations of Prestige,

way back in 1956. Mr. Razack Sattar - the visionary who glimpsed what others would

comprehend many years later and the founder of what is today the Prestige Group of

Companies. The grand old man of retailing, endowed with unmatched business acumen,

sowed the seeds of high quality retailing in Bangalore with Prestige Fashions on

Commercial Street. Having started with custom tailoring and retailing ready-to-wear

garments, the company today scores skylines with innumerable impressive constructions.

A success story truly made possible by the founder's progeny - Irfan, Rezwan, Noaman

and Anjum, the group has been groomed into great leaders who continue to uphold the

Prestige vision.

Spreading the falcon's wings

We moved into the sphere of property development with Prestige Court (KH Road,

Bangalore) in 1985-86. The last decade saw the Prestige Group strengthening its pillars

of trust, quality and credibility, thereby leaving an indelible mark on the skyline of

Bangalore and its people, as one of the leading developers of South India. And as the

scorecard proudly reads today - over 120 developments completed, encompassing more

than 10 million sq.ft. of commercial and residential area - it's proof that there's no looking

back for Prestige. Several developments in the pipeline include noted developments like

UB cITy, Prestige Shantiniketan as well as the Prestige Technology Park. What's more,

we are also planning to spread out into other cities - with plans of a mall in Hyderabad, a

residential development in Cochin, a technology park in Chennai and villas in Goa.

Strengthening our promise

Today, as a real estate development company honoured with people's trust and credited

with transforming the skyline of Bangalore, we at Prestige constantly strive for

33

perfection. The ultimate aim is to exceed your expectations. A proof of our efforts - we

are the only builders to get a reaffirmation of the Crisil DA1 rating; we have also become

an ISO 9001:2000 certified company. We are also the only builders in Bangalore whose

software and residential facilities have won the reputed FIABCI award.

At present, our Rs. 300 crore construction conglomerate is spearheaded by Irfan Razack

and ably supported by Rezwan Razack. Noaman Razack, the youngest of the three

brothers, looks after the retailing business. Faiz Rezwan, the son of Rezwan Razack has

recently joined the board as a director and is already proving to be an asset to the

company.

34

CHAPTER 4

DATA ANALYSIS & INTERPRETATION

35

ANALSIS OF DATA COLLECTED

“COMPETITIVE ADVANTAGE OF RETAIL INDUSTRY” – A study on Forum

Mall.

PROBLEM STATEMENT

Forum has been rated as one of the best malls in the country, now with the entry of other

malls in Bangalore; Forum has been challenged in its position to remain at the top. The

present research would identify whether Forum Mall has the competitive advantage over

other malls in Bangalore.

OBJECTIVES

The principle objective of the present research study is to analyze the competitive

advantage of the major retailing mall in the retail industry of the metropolitan, Bangalore.

The specific objective of the study are :-

3. To identify the competitive advantage of Forum in the retail industry in terms of

Promotional activities

Brand value

Customer perception

Brand offerings

4. To critically take up a comparative study of Forum Mall with Garuda Mall, Sigma

Mall, Eva Mall.

36

RESEARCH METHODOLOGY

POPULATION

The population in this present study consists of the regular visitors in the mall during

the last 15 days.

SAMPLE AND SAMPLING TECHNIQUE

The sample taken is 100 and the sampling technique used here is convenient

sampling.

SOURCES OF DATA

Secondary and primary data would be collected for the study. After identifying

and defining the research problem and determining specific information required

solving the problem the researcher will look for the type and sources of data which

may yield the desired results

Secondary data: Secondary data is available in the form of company records, trade

publications, company reports, Daily Newspaper, Textbook, Various Websites and

libraries.

Primary data: Primary data is collected by framing questionnaires. The questionnaire

contained questions which are both open-ended and closed-ended.

37

Analysis of data collected

AGE OF THE RESPONDENTS

Table No. 1

AGE NO. OF RESPONDENTS % OF RESPONDENTS

18-2524 24%

25-4042 42%

40-5519 19%

ABOVE 5515 15%

TOTAL100 100%

Interpretation:

The above table showing the age categories of the Mall visitors who participated in the

survey

.

38

18-2525-40

40-55>55

S1

0

5

10

15

20

25

30

35

40

45

AGE

RESPONDENTS

AGE OF RESPONDENTS

Analysis:

Above 40% of the respondents of the survey were between25-40 of age and second

most respondents were between18-25. There were only 15 respondents of above 55.

39

GENDER OF THE RESPONDENTS

Table No. 2

GENDER NO OF RESPONDENTS % OF RESPONDENTS

MALE 45 45%

FEMALE 55 55%

TOTAL 100 100%

Interpretation:

The above table showing the gender of the respondents those who participated in the survey

40

GENDER OF THE RESPONDENTS

Male

Female

Analysis

Above 55% of respondents of the survey were female customers and there were

only 45% male respondents.

41

OCCUPATION OF THE RESPONDENTS

Table No. 3

Occupation No of Respondents % of Respondents

Business 18 18%

Professional 14 14%

Employee 20 20%

Student 38 38%

Others 10 10%

Total 100 100%

Interpretation:

The above table showing the occupation of the Mall Visitors those who participated

in the survey and their percentage wise analysis

42

Occupation of the Respodents

0

5

10

15

20

25

30

35

40

Business Pfsnl Emplye Stdnt Others

Occupation

No

of

Res

po

nd

ents

Analysis:

The majority of the Mall Visitors participated in the survey were students.

consisting of 38% and the employees consisted of 20%. And the Professionals

and Businessmen constitute only 32%.

43

FREQUENT MALL VISITOR

Table No. 4

Mall Visitor No. of Respondents %age of Respondents

Yes 89 89%

No 11 11%

Total 100 100%

Interpretation:

The above table showing that the number of respondents who frequently visit malls

during the survey.

44

FREQUENT VISITOR

YES

NO

Analysis

Around 90% of the respondents are frequent mall visitors as compared to the 10% of

those who don’t visit regularly.

45

HOW OFTEN DO YOU GO TO MALLS.

Table No.5

Frequency of visit Respondents %age of Respondents

Once a week 25 25%

Twice a week 53 53%

Thrice a week 22 22%

Total 100 100%

Interpretation

The above table shows the frequency of respondents visiting malls during the survey.

46

0

10

20

30

40

50

60

Respondents

Once a week Twice a week Thrice a week

Frequency of visit

Analysis

The majority of the respondents have been visiting malls twice a week as compared to the

other respondents.

47

REASON FOR MALL VISIT

Table No.6

Reason for Mall Visit Respondents %age of Respondents

Movies 12 12% 

Shopping 29  29% 

Food Court 2  2%

All 57  57% 

Total 100  100% 

Interpretation

The above table shows the reasons as to why respondents go to malls during the survey.

48

Reason for Mall visit

0

10

20

30

40

50

60

Movies Shopping Food Court All

Resp

onde

nts

Analysis

It is seen that most of the respondents visit malls for all the aspects mentioned i.e.

movies, shopping and food court.

49

WHICH MALL DO YOU PREFER GOING TO

Table No.7

Mall Preference Respondents %age of Respondents

Forum 52 52%

Sigma 11 11%

Eva 6 6%

Garuda 31 31%

Total 100 100%

Interpretation

The above table shows the Mall preference by the respondents during the survey.

50

Mall Preference by Respondents

Forum

Sigma

Eva

Garuda

Analysis

The analysis shows that most of the Respondents prefer going to Forum Mall.

51

SHOPPING ATTRIBUTES SOUGHT FROM A MALL

Table No.8

Shopping Attributes Respondents %age of Respondents

Ambience 23 23%

Stores 34 34%

Proximity 26 26%

Food courts 17 17%

Total 100 100%

Interpretation

The above table shows the shopping attributes that respondents look for while shopping

in a mall.

52

Shopping Attributes in a Mall

Ambience

Stores

Proximity

Food courts

Analysis

The analysis shows that stores are the main attributes that respondents look for while

shopping in malls followed by proximity.

53

ARE YOU AWARE OF THE FORUM SHOPPING FESTIVAL HELD LAST

YEAR

Table No.9

Awareness Respondents %age of respondents

Yes 100 100%

No - -

Total 100 100%

Interpretation

The table shows that if the respondents were aware of the Forum Shopping Festival that

was held last year.

54

Awareness of the Forum Shopping Festival

0

20

40

60

80

100

120

Yes No

Resp

onde

nts

Analysis

The analysis shows that all of the respondents were aware of the Forum Shopping

Festival.

55

THE MALL OFFERING THE BEST MIX OF BRAND OUTLETS

Table No.10

Mall with right brand mix Respondents %age of Respondents

Forum 54 54%

Sigma 12 12%

Eva 9 9%

Garuda 25 25%

Total 100 100%

Interpretation

The table shows which mall offers the best mix of brands that the respondents prefer.

56

Malls with right mix of brands

0 10 20 30 40 50 60

Forum

Sigma

Eva

Garuda

Respondents

Analysis

The analysis shows that the respondents favor Forum Mall in having the right mix of brand outlets.

57

RATING OF THE MALLS

5-Excellent, 4-Very Good, 3-Good, 2-Poor, 1-Very Poor

Table No.11Parameters Location Layout Entertainment Hygiene Parking Overall

Forum 5 4 4 4 4 4

Sigma 3 3 2 3 3 3

Eva 3 1 2 3 2 2

Garuda 5 3 3 3 3 3

Interpretation

The above table shows the ratings given by the respondents based on the parameters of the Malls.

58

Mall Ratings

0

1

2

3

4

5

6

Location Layout Entertainment Hygiene Parking

Parameters

Ratin

g

Forum

Sigma

Eva

Garuda

Analysis

The analysis shows that Forum has got the maximum ratings among the other malls in contention in Bangalore.

59

INFERENCE FROM THE DATA ANALYIS

From the data analysis I can say that my objectives have been proved right i.e. Forum has

a competitive advantage in terms of

Promotional activities

Brand value

Customer perception

Brand offerings

Also from the comparative study it can be concluded that Forum does have competitive

advantage when compared to the other malls.

60

CHAPTER 5

FINDINGS, SUGGESTIONS & CONCLUSION

61

FINDINGS

The old prophecy that once a customer is a customer has become a myth in the

present day competitive world. Brand image no longer works a magic with the consumer.

So to hold the customer to the brand and attract new consumers the company must come

up with strategies that is efficient and competent along with its marketing activities that

help in market visibility.

After analyzing the response of the respondent through questionnaire and observation the

following were found in the study.

1) Majority of the customers visit Forum to watch movies, visit Landmark,

McDonald’s, Transit and Westside.

2) Most of the respondents felt that there is a need for space to keep their

luggage.

3) Most of the respondents are influenced to come to the malls due to friends,

relatives and word of mouth.

4) Some respondents felt that Forum should go for advertisements.

5) Some of the respondents (Corporate Clients) felt that the price paid to

Forum for their promotional activities is not satisfactory.

6) Some of the respondents (Retail Showrooms at the Mall) felt that the rent

paid to Forum is not satisfactory.

7) It is found that Forum Mall has the largest parking space (3, 00,000 sq.ft)

when compared to other Malls in Bangalore city.

8) Quality service and product is the motto that Forum inculcates to all its

stores.

62

SUGGESTIONS

No product or a service can completely satisfy the customers. Satisfaction is the state of

mind of each and every customer which is termed as a black box for any organization or

for a manufacturer, it is also highly an impossible task. Therefore suggestions must be

given on the basis of research work. A few important suggestions regarding The Forum

Mall are the following.

1) The mall must have a suggestion box for the staff & all the suggestions must be

reviewed & the best of them must be rewarded.

2) The customers must be provided with a space for keeping their luggage.

3) The Mall must have coin box (telephone) that works at all levels.

4) For the appraisal of the staff, the management should implement some points

system, where in who ever gets more points should be awarded once in six

months.

5) Motivational activities should be conducted for the staff.

6) Experts should be invited for guest lectures to the employees to update their skills

and knowledge.

7) The brands which are not performing well in the Mall should be removed and

replaced with other brands for better performance.

8) Identifying the staff with executive talents for developing them to occupy

managerial positions.

9) Frequent organizing of carnivals, sponsoring events should be arranged, so that

customer foot falls will be more.

10) They could promote art and cultural activities which could help conserving the

heritage and it could attract customers

63

CONCLUSION

A careful study has been done to understand the behavior of customers through

questionnaires, observation and through proper guidance of respective faculties.

The study which lasted for one month has provided information to understand the

buying behavior, and what are the factors which influence buying in the malls is

studied in order to apply various activities for promotion in order to bring the crowds.

Thus the project leads with all the details of origin of malls and their developments in

future is given brief.

The study is restricted to the four malls namely Forum, Sigma, Eva, Garuda, and the

facts clearly show that people go with intense as well as impulse behavior. It also

determines that opinion leaders play an important role while they have to be attracted

most because they influence buying.

The foremost point to understand the customer was through customer care, which

helps to know what customers want, and what type they are.

The features at Forum are exceptional from other Malls and attract the potential

customers.

The study shows the satisfaction levels who visit to malls and what sort of future it

has, as a retail industry

64

BIBLIOGRAPHY

TEXTBOOKS REFERRED

RETAIL MARKETING - MALCOLM SULLIVAN & DENNIS ADCOCK

RETAIL MARKETING - GIBSON G VEDMANI

PRINCIPLES OF MARKETING - PHILIP KOTLER

MAGAZINES

BUSINESS TODAY

BUSINESS WORLD

BUSINESS STANDARD

NEWSPAPER REFERRED

ECONOMICS TIMES

HINDU BUSINESS LINE

THE TIMES OF INDIA

BUSINESS STANDARD

WEB SITE REFERRED

www.theforumexperience.com

www.prestigeconstructions.com

www.retailworld.com

www.indiainfoline.com

www.businessworldindia.com

65

ANNEXURE

QUESTIONNAIRE

Dear customer,

.

I M CALVIN VARGHESE final year MBA student of the Kristu Jayanti College of

Management and Technology doing a project work on “Competitive advantage in retail

industry-A study on Forum Mall” for my academic purpose. I request you to kindly fill

this questionnaire.

Thanking you,

Sincerely yours,

1. Name:-

2. Age:- 18-25 25-40 40-55 >55

3. Sex Male Female

4. Occupation:-

Business Professional Employee

Student Others

5. Are you a frequent visitor to malls?

Yes No

6. How often do you go to the malls?

66

Once a week Twice a week Thrice a week

7. Why do you go to malls?

Movies Shopping Food court All

8. Which mall do you prefer to go to the most?

Forum Sigma Eva Garuda

9. What do you look for most while shopping in a mall?

Ambience Stores Proximity Food courts

10. Are you aware of the Forum Shopping Festival that was held last year?

Yes No

11. Which Mall offers you the right mix of brand outlets?

Forum Sigma Eva Garuda

12. Please rate the malls on the following.

FORUM MALL

Parameters Excellant Very Good Good Poor Very Poor

Location

Layout

Entertainment

Hygiene

Parking

67

EVA MALL

Parameters Excellant Very Good Good Poor Very Poor

Location

Layout

Entertainment

Hygiene

Parking

SIGMA MALL

Parameters Excellant Very Good Good Poor Very Poor

Location

Layout

Entertainment

Hygiene

Parking

GARUDA MALL

Parameters Excellant Very Good Good Poor Very Poor

Location

Layout

Entertainment

Hygiene

Parking

Thank you for devoting your time I am truly grateful.

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