1.

1 INDUSTRY PROFILE Retail is Indias largest industry, accounting for over 10 per cent of the countrys GDP and around 11 percent of the employment. Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. But because of the heavy initial investments required, break even is difficult to achieve and many of these players have not tasted success so far. However, the future is promising; the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations. 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 consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in Sprawling shopping centers, multi-storied malls and huge complexes offer shopping, entertainment and food all under one roof.

SIZE OF INDIAN RETAIL MARKET India's retail sector is estimated to touch us$ 833 billion by 2013 and us$ 1.3 trillion by 2018, with a compound annual growth rate (cagr) of 10% - which is quite lucrative. Althese estimations are due to the fact that the consumer spending has seen a rise of around 75%, in the past four years. The organized indian retail market is slated to grow at a cagr of 40%, touching us$ 107 billion by 2013. 5% of the indian retail market is occupied by the organized retail sector, which is all slated to witness the majority number of large format malls and branded retail stores. The increase in the number of such malls would be first seen in south india, followed by north, west and the east over the coming two years.

Another latest research shows that more than 100 malls spanning a space of over 30 million sq feet is estimated to open in india between 2009 and 2010end. Investment in the organized retail market would be around us$ 503.2 million in 2009. This could go further up to us$ 1.26 billion in the next four to five years, at a cagr of 40%.India has emerged as the third most attractive market destination for apparel retailers over the years. In india, apparel is the second largest retail category and will have a 12-15% growth rate every year. Apparel, food and grocery is expected to lead the organized retail sector in india. The indian retail market has been witnessing exponential growth with developments taking place not only in major cities and metros but tier-ii and tier-iii cities in india are also on the focus.

1.2 COMPANY PROFILE

The year 1930 was when the world suffered the great depression. Companies across the globe began closing down. In UK and in India, the textile industry in particular was in trouble. At about this time, Mahatma Gandhi championed the Swadeshi Movement and at his call, people from all across India began boycotting fine and superfine fabrics, which had so far been imported from England. In the midst of this depression one family saw opportunity. The Lalbhais reasoned that the demand for fine and superfine fabrics still existed. And any Indian company that met this demand would surely prosper. The three brothers, Kasturbhai, Narottambhai and Chimanbhai, decided to set up a mill to produce superfine fabric. Next they looked around for state-of-the-art machinery that could produce such high quality fabric. Their search ended in England. The best technology of that time was acquired at a most attractive price. And a company called Arvind Limited was born. Arvind Limited started with a share capital of Rs 2,525,000 ($55,000) in the year 1931. With the aim of manufacturing the high-end superfine fabrics Arvind invested in very sophisticated technology. With 52,560 ring spindles, 2552 doubling spindles and 1122 looms it was one of the few companies in those days to start along with spinning and weaving facilities in addition to full-fledged facilities for dyeing, bleaching, finishing and mercerizing. The sales in the year 1934, three years after establishment were Rs 45.76 lakh and profits were Rs 2.82 lakh. Steadily producing high quality fabrics, year after year, Arvind took its place amongst the foremost textile units in the country.
3

In the mid 1980s the textile industry faced another major crisis. With the power loom churning out vast quantities of inexpensive fabric, many large composite mills lost their markets, and were on the verge of closure. Yet that period saw Arvind at its highest level of profitability. There could be no better time, concluded the Management, for a rethink on strategy. The Arvind management coined a new word for it new strategy Reno vision. It simply meant a new way of looking at issues, of seeing more than the obvious and that became the corporate philosophy. The national focus paved way for international focus and Arvinds markets shifted from domestic to global, a market that expected and accepted only quality goods. An in-depth analysisof the world textile market proved an eye opener. People the world over were shifting from synthetic to natural fabrics. Cottons were the largest growing segments. But where conventional wisdom pointed to popular priced segments, Reno vision pointed to high quality premium niches. Thus in 1987-88 Arvind entered the export market for two sections -Denim for leisure & fashion wear and high quality fabric for cotton shirting and trousers. By 1991 Arvind reached 1600 million meters of Denim per year and it was the third largest producer of Denim in the world. In 1997 Arvind set up a state-of-the-art shirting, gabardine and knits facility, the largest of its kind in India, at Santej. With Arvinds concern for environment a most modern effluent treatment facility with zero effluent discharge capability was also established. Year 2005 was a watershed year for textiles. With the muliti-fiber agreement getting phased out and the disbanding of quotas, international textile trade was poised for a quantum leap. In the domestic market too, the rationalizing of the cenvat chain and the growth of the organized retail industry was likely to make textiles and apparel see an explosive growth.

MEGA MART :

The underlying theme running across the broad spectrum of all business activities at Arvind is that of enhancing lifestyles of people, across all diversities and demographics. To serve that end, the corporate vision for Arvind states: We will enable people to experience a better quality of life by providing enriching and inspiring lifestyle solutions.

OUR PHILOSOPHY

WE BELIEVE In people and their unlimited potential; in content and in focus on problem solving; in teams for effective performance, in the power of the intellect.

WE ENDEAVOUR To select, train and coach people to obtain higher responsibilities; to nurture talent, and to build leaders for the corporations of tomorrow; to reward, celebrate and activate all intellectual business contributions.

WE DREAM Of excellence in all endeavors; of mutual benefit and prosperity; of making the world a better place to live in.

Megamart, a pioneer in the apparel value-retail segment, is today the largest value-retail company in India. Megamart, a pioneer in the apparel value-retail segment, is today the largest value-retail chain in India. By offering customers complete value-for-money through best of deals throughout the year with some of the top international and national apparel brands all at fabulous deals. The chain is spread over 60 cities with around 160 stores across the country giving you a gurantee.

Setup in 1996, Megamart is a venture of the prestigious Arvind Ltd. In spite of being a value retail chain, Megamart boasts of providing an excellent shopping experience. The brand believes that 'no frills' ought not to come at the cost of great ambience, customer-friendly store layouts and well designed interiors. Megamart arrived at a time when multi-brand discount outlets were still an unheard of phenomenon and changed the rules of the retailing in India. By keeping overheads and other costs to a bare minimum, it was able to pass on maximum savings to customers. Today, Megamart is the largest player in this segment. Megamart operates in 2 formats Megamart stores that occupy around 2000 4000 sq. ft. and BIG Megamart stores that occupy 30,000 60,000 sq. ft. BIG Megamart stores have on offer more than 200 of the top international & national brands with fabulous offers throughout the year. Add to this some of the best deals around and you have a shopping experience that is truly unparalleled.

1.3 PRODUCT PROFILE Arvind is amongst a few organizations worldwide with a portfolio of brands that are as distinctive and relevant across diverse consumers. At Arvind, brands work across multiple channels, price points and consumer segments. The expanse of the Arvind brandscape is spread across the Indian market with around 273 standalone brand stores in addition to 975 counters selling through key accounts and multibrand outlets across India.

OWN BRANDS MAINSTREAM EXCALIBUR GANT FLYING MACHINE

LICENSENED BRANDS BRIDGE TO LUXURY U.S.A. 1949 ENERGIE

JOINT VENTURE BRANDS BRIDGE TO LUXURY TOMMY HILFIGER

POPULAR RUF & TUF NEW PORT UNIVERSITY

PREMIUM ARROW WRANGLER CHEROKEE MOSSIMO

Arvind runs India's largest Value Retail Chain - Mega mart. The Mega Mart format offers a unique and differentiated proposition to the consumers. It offers mega brands at amazingly low prices and provides a retail experience of a high-end department store. The Mega mart stores range in size from 2000 sq ft to 65000 sq ft. The larger stores are called Big Mega mart and there are 6 such stores across Bangalore, Chennai, Pune and Mumbai. The smaller formats spreads across the country are 205 in number. Mega mart is expanding rapidly and is expected to be a Rs. 1000 cr chain within the next two years. THE BRANDS SOLD EXCLUSIVELY IN MEGAMART INCLUDE: RUGGERS SKINN ELITUS DONUTS KARIGARI MEA CASA AUBURN HILL BAY ISLAND COLT LEISHA EDGE
8

1.4 NEED FOR THE STUDY The consumer satisfaction plays a vital role in the field of marketing. This holds up the existing customers and also to gain new customers by improving their services. For this reason the study of customer satisfaction has been taken to meet the customers needs and to analyze the level of business. This analytical study concentrates on the customer satisfaction of Mega Mart. The study helps to identify present needs and needs which arise in future. This study may also help the company to establish healthy relationship with consumers by way of satisfying overall needs of consumers and to sustain in the competitive market.

1.5 OBJECTIVES OF THE STUDY To study the level of satisfaction attained by the customer towards Mega Mart. To know the consumer perception towards Mega Mart. To understand the factors influencing the choice of the Mega Mart. To suggest various ways to improve quality of product and service.

10

1.6 SCOPE OF THE STUDY The Mega Mart Group is a thriving example of three generations of a family working and striving together to ensure quality, satisfaction and extensive growth. The study consists of the respondents, who are the consumers of Mega Mart. Around 75 respondents where survived by preparing questionnaire. Questionnaire consists of questions like personal details, purpose for using Mega Mart, its Quality, Availability, durability etc. in order to study the customer satisfaction level.

11

1.7 REVIEW OF LITERATURE: Topic: Analyzing customer satisfaction and quality in construction. Source: The case of public and private customers -helsinki university of technology. Construction economics and management. Abstract: Improving quality and customer satisfaction has received considerable attention in recent years. This study examines construction in terms of customer satisfaction and quality. Conclusion: The research presented here has focused on customer satisfaction and quality in the construction industry. As construction companies face increasing competition, greater attention continues to be given to customer relationships and satisfied customers. The results highlight the need tin design the service product from the customers perspective. Typically, customers were satisfied with the contractors.

12

Topic: Customer satisfaction leads to changes in sales performance in food retailing Source: Miguel I.gomez department of applied economics and management of Cornell University. Abstract: They measured the links between store attribute perceptions and customer satisfaction and between customer satisfaction and sales performance, in the food retail sector. The measurement of complexities of the satisfaction-sales performance links based on an empirical model of first differences, and a discussion of how managers can use such results for customer satisfaction policies. Conclusion: There empirical investigation demonstrates that it is possible to identify important linkages between customer satisfaction and store sales performance in the food retail sector. There work includes an illustration of how food retailers can use these links to develop appropriate customer satisfaction policies leading to increased store sales.

13

1.8 LIMITATIONS OF THE STUDY Some answers of the respondents were positive and negative which may also be biased one and does not give accurate results. The limited period posed as a major constraint in working. The sample size of 75 respondents was not adequate to make a proper comment considering the whole city.

14

2.1 RESEARCH METHODOLOGY A research cannot be conducted abruptly. The researcher has to proceed systematically in the early planned directions with the help of a number of steps in sequence. To make the research systemized the researcher has to adopt certain methods. The method adopted by the researcher for completing the project is called research methodology. DATA COLLECTION Both primary and secondary data are used for the study. Primary data Primary data are those which are collected fresh and for the first time and thus happen to be original in character. For our study we adopted questionnaire as our tool for the purpose of collection of data. Secondary data Secondary data refers to use of information already collected either published or unpublished. For the study secondary data is collected through company information from marketing department, books, internet, etc. TYPE OF QUESTIONNAIRE Structure non-disguised type of questionnaire was used for the survey. Question were prepared and distributed to the employees. Questions are basically closed end questions were answers are pre specified which are easy to interpret and tabulate.

15

SAMPLE SIZE: A sample of 75 customers was taken from different customers in order to get an idea and clear knowledge about the population. SAMPLE PROCEDURES: Customers are selected based on the convenience sampling. TOOLS USED: The data is analyzed with the help of tools which are following: o Percentage analysis o Chi-square test STATISTICAL TOOLS USED FOR THE STUDY: 1. CHI-SQUARE TEST: This is one of the simplest and most widely used non-parametric tests in statistical work. The test is also called as x method. Chi-square test is applied in statistics to verify the distribution of observed data with assumed theoretical distribution of observed data with assumed theoretical distribution. The formula for computing chi-square is, X2 = (O-E)2 / E Where o is observed frequency E is expected frequency.

16

Table No 3.1 Table showing the gender of the respondents Sl.no Gender No. of Respondents Percentage of respondents. 1 2 Male Female Total 57 18 75 76 24 100

Inference The above table shows that most (68%) of the respondents were male respondents.

17

Table No 3.2 Table showing the Occupation of the respondents Sl.no Occupation No. of Respondents Percentage of respondents. 1 2 3 4 Student Employee Business Others Total 11 25 25 14 75 15 33 33 19 100

Inference The above table shows that most (42.7%) of the respondents were students.

18

Table No 3.3 Table showing the Age of the respondents Sl.no Age No. of Respondents Percentage of respondents. 1 2 3 4 5 20 years under 21 25 years 2630 years 31 35 years 36 years and over Total 14 35 15 6 5 75 18.7 46.7 20 8 6.7 100

Inference The above table shows that most (46.7%) of the respondents were belongs to the age group of 21-25.
19

Table No 3.4 Table showing the respondents aware of Mega Mart Sl.no Choice No. of Respondents Percentage of respondents. 1 2 YES NO Total 67 8 75 89.3 10.7 100

Inference The above table shows that most (89.3%) of the respondents were aware of Mega Mart.

20

Table No3.5 Table showing the by how they come to know about Mega Mart Sl.no Medium No. of Respondents Percentage of respondents. 1 2 3 4 Newspaper Television Radio Friends Total 23 24 6 24 75 30.7 32 8 29.3 100

Inference The above table shows that most (32%) of the respondents were came to know through television.

21

Table No3.6 Table showing the number of times consumed from Mega Mart Sl.no contents No. of Respondents Percentage of respondents. 1 2 3 4 Only once Two Three Three or more Total 16 23 15 21 75 21.3 30.7 20 28 100

Inference The above table shows that most (30.7%) of the respondents were consumed two times.

22

Table No3.7 Table showing the that how long the customers associated with Mega Mart Sl.no NO. Of years No. of Respondents Percentage of respondents. 1 2 3 New 1-2 years 3-above Total 16 47 12 75 21.3 62.7 16 100

Inference The above table shows that most (62.7%) of the respondents were associated with Mega Mart for 1-3 years

23

Table No 3.8 Table showing the customers satisfied with the quality of Mega Mart Sl.no contents No. of Respondents Percentage of respondents. 1 2 3 4 Highly satisfied Satisfied Average Fair Total 15 46 13 1 75 20 61.3 17.7 3 100

Inference The above table shows that most (61.3%) of the respondents were satisfied with the quality of Mega Mart.

24

Table No 3.9 Table showing the what makes the customers to choose Mega Mart Sl.no contents No. of Respondents Percentage of respondents. 1 2 3 4 Execution of outlets Discounts Quality Above all Total 17 34 20 4 75 22.7 45.3 267 5.3 100

Inference The above table shows that most (45.3%) of the respondents were made to choose because of discounts provided.

25

Table No 3.10 Table showing the respondents satisfied with the customer treatment Sl.no contents No. of Respondents Percentage of respondents. 1 2 3 4 Highly satisfied Satisfied Average Fair Total 14 46 13 2 75 18.7 61.3 17.3 2 100

Inference The above table shows that most (61.3%) of the respondents were satisfied with the customer treatment in the outlet.

26

Table No 3.11 Table showing the how the customers has been greeted well while enter and exit from the outlet Sl.no contents No. of Respondents Percentage of respondents. 1 2 3 4 Excellent Very Good Good Bad Total 10 23 40 2 75 13.3 30.7 53.3 2.7 100

Inference The above table shows that most (53.3%) of the respondents feels that their way of greeting was average.
27

Table No 3.12 Table showing the satisfaction level of customers with the product display in outlet Sl.no contents No. of Respondents Percentage of respondents. 1 2 3 4 Excellent Very Good Good Bad Total 14 21 38 2 75 18.6 28 50.7 2.7 100

Inference The above table shows that most (50.7%) of the respondents were happy with the product display in the outlet.

28

Table No 3.13 Table showing the Opinion on the availability of products Sl.no contents No. of Respondents Percentage of respondents. 1 2 3 4 Easy Available Available Not Available Out of stock Total 8 51 15 1 75 10.7 68 20 1.3 100

Inference The above table shows that most (68%) of the respondents feels that there is a availability of the products

29

Table No 3.14 Table showing the satisfaction of customer with the service rendered Sl.no contents No. of Respondents Percentage of respondents. 1 2 3 4 Excellent Satisfied Dis-satisfied No Opinion Total 4 29 6 5 75 9.1 65.9 13.6 11.4 100

Inference The above table shows that most (65.9%) of the respondents were satisfied with the service rendered.

30

Table No 3.15 Table showing the customer satisfaction with the advertisement of Mega Mart Sl.no contents No. of Respondents Percentage of respondents. 1 2 3 4 Highly satisfied Satisfied Average Fair Total 10 38 19 8 75 13.3 50.7 19 10.7 100

Inference The above table shows that most (50.7%) of the respondents were satisfied with the advertisement.

31

Table No 3.16 Table showing the Employee spend enough time with customer Sl.no contents No. of Respondents Percentage of respondents. 1 2 3 4 Strongly Agree Agree Dis-Agree Strongly Dis-Agree Total 14 42 17 2 75 18.7 56 22.7 2.7 100

Inference The above table shows that most (56%) of the respondents agrees that employee spend enough time with them.

32

Table No 3.17 Table showing the satisfaction level of offers provided by Mega Mart Sl.no contents No. of Respondents Percentage of respondents. 1 2 3 4 Highly satisfied Satisfied Average Fair Total 12 34 27 2 75 16 45.3 36 2.7 100

Inference The above table shows that most (45.3%) of the respondents were satisfied with the offers provided by Mega Mart.

33

Table No 3.18 Table showing the satisfaction level of customer with the billing time Sl.no contents No. of Respondents Percentage of respondents. 1 2 3 4 Highly satisfied Satisfied Average Fair Total 19 39 16 1 75 25.3 52 21.3 1.3 100

Inference The above table shows that most (52%) of the respondents were satisfied with the billing time.

34

Table No 3.19 Table showing the overall opinion about Mega Mart Sl.no contents No. of Respondents Percentage of respondents. 1 2 3 4 Excellent Satisfied Dis-satisfied No Opinion Total 23 51 1 0 75 30.7 68 1.3 0 100

Inference The above table shows that most (68%) of the respondents gave, satisfied as their overall opinion towards Mega Mart.

35

Statistical tool Table 3.20 Chi square test Hypothesis: H0: There is no relationship between occupation and frequency of purchase. H1: There is a relationship between occupation and frequency of purchase. Occupation Observed N students employees business other Total 17 17 8 2 44 Expected N 11.0 11.0 11.0 11.0 Residual 6.0 6.0 -3.0 -9.0

36

Number of times do consumed from MegaMart Observed N only once two three three or more Total 8 11 8 17 44 Expected Residual N 11.0 11.0 11.0 11.0 -3.0 .0 -3.0 6.0

Test Statistics How many times do you Occupation Chi-Square df Asymp. Sig. 14.727 3 .002 consumed from Mega Mart? 4.909 3 .179

Inference Since 0.179>0.05 so that H0 is accepted and there is no relationship between occupation and frequency of purchase.
37

4.1 FINDINGS OF THE STUDY

42.7% of the respondents were young people who visits the outlet. 46.7% of the respondents were belongs to the age group of 21-25 who visits the shop. 76% of the respondents were male. Around 32% of people come to about Mega Mart through television. About 63% of the respondents were associated with Mega Mart for more than one year. The most 61.3% of the respondents were satisfied with the quality of Mega Mart. 45.7%of the respondents were made to choose Mega Mart because of the discounts
provided by them.

61.3% of the respondents were satisfied with the customer treatment in the outlet. 50.7% of the respondents were happy with the product display in the outlet. 68% of the respondents feels that there is a availability of the products. 65.9% of the respondents were satisfied with the service rendered by the Mega Mart. 50.7% of the respondents were satisfied with the advertisement of Mega Mart. 45.3% of the respondents were satisfied with the offers provided by Mega Mart. 52% of the respondents were satisfied with the billing time. At overall 68% of respondents were satisfied.

38

4.2 SUGGESTION The store should concentrate on service rendered to the customers with the adequate employee. The outlet should concentrate on more offers to increase customer satisfaction. The Store has to concentrate on availability of products even more to the consumers for further sales. The Store has to stop charging for packing of the products, hence many customers are dis-satisfied with that activity. The store should concentrate on other medium of advertisement other than T.V in order to increase more customers.

39

4.3 CONCLUSION Consumer satisfaction is important tools that can increase profit by penetrating consumer from default causes. Mega Mart briefs as one of the growing retail outlet in and around the city and also becoming more and more dominant in the lives of urban and semi urban people. In olden days they thought to the taken occasionally or for festivals but now a days consumption of clothings and accessories becoming causal. Even though Mega Mart is in a good position, it has to expandits hands and has to walk more mile stones to reach the position of a market leader. In order to increase the satisfaction of the customers, the companyhas to modify the marketing strategies to beat the stiff competition from Europa and other companies. In order to achieve greater heights. More efforts should be taken by research and development department, to introduce more varieties into the market and also to improve the existing one by new packaging, pricing and retailing strategy should also be taken into consideration by offering more offers and creative schemes to the customers in order to keep them satisfied and also to develop the strategy of customer retention.

40

5.ANNEXURE
QUESTIONNAIRE Dear respondent, This information is collected only for the purpose of MBA project so kindly corporate Name (optional):
1. Gender

Male
2. Occupation

Female

Student
3. Age

Employee

Business

Others

20 years and under 3135years

2125 years 36 years and over

2630 years

4. Are you aware of the Mega Mart?

Yes

No

5. How do you come to know about the Mega mart?

Newspaper

Television

Radio

Friends

6. How many times you have consumed from Mega Mart?

Only once

Two

Three

Three or more

7. How long you have been associated with Mega Mart?

New

1-2 years

3-above

8. Are you satisfied with the quality of Mega Mart?

Highly satisfied Satisfied Average Fair

9. What makes you to choose Mega Mart?

Execution of outlets

Discounts

Quality

Above all

10. Are you satisfied with the customer treatment?

Highly satisfied Satisfied Average Fair

41

11. Have you been greeted well while enter and exit from the outlet?

Excellent

Very Good

Good

Bad

12. Are you satisfied with the product display in the outlet?

Excellent

Very Good

Good

Bad

13. Opinion on the availability of products?

Easy available

Available

Not available

Out of stock

14. Are you satisfied with service rendered?

Excellent

Satisfied

Dis-satisfied

No Opinion

15. Are you satisfied with advertisement of Mega mart?

Highly satisfied Satisfied Average Fair

16. Employee spend enough time with you: Before sales, During sales and After sales

Strongly agree

Agree

Disagree

Strongly Disagree

17. Are you satisfied with the offers provided by Mega Mart?

Highly satisfied Satisfied Average Fair

18. Are you satisfied with the billing time?

Highly satisfied Satisfied Average Fair

19. What is your overall opinion about Mega mart?

Excellent

Satisfied

Dis-satisfied

No Opinion

20. How do you rate the following factors of Mega Mart?

Excellent Quality Price Design Variety Durability [ [ [ [ [ ] ] ] ] ]

Good [ [ [ [ [ ] ] ] ] ]

Satisfied [ [ [ [ [
42

Bad ] ] ] ] [ [ [ [ [ ] ] ] ] ]

6.BIBLOGRAPHY

BOOKS

Kotler, Philip, Marketing Management 10th edition, Prentice-Hall of India, New Delhi, 1999.

Colley, Russel H., Defining Advertising Goals for Measured Advertising Results, Association of National Advertisers, New York, 1961.

Chunawalla and sethia, Foundation of advertising Theory and Practice, Himalaya Publishing House, Bombay, 2002.

Keller, Lane, Kevin. Strategic Brand Management Building, Measuring and Managing Brand equity, Second Edition, Pearson Education, New Delhi 2004.

WEBSITES

www.megamartstores.com www.wikipedia.com www.google.com www.answers.com

43