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Malls in Ahmedabad A PROJECT REPORT ON MARKET RESEARCH OF SHOPPING MALLS Submitted by:- Group: - S.Y.M.B.A. 2007-2008 Submitted to:- K.S. School of Business Management Gujarat University Ahmedabad. K. S. School of Business Management - 1- Name Roll no Rahul Mishra 2053 Sneha Bhavsar 2079 Arva Dholkawala 2085 Jimesh Gajjar 2086 Kinjal Gandhi 2087 NAME OF THE Dhara Khakhar 2098 FACULTY GUIDE: - MRS. Parthesh Laheri 2100 MALA SHETH Neha Pandey 2110 Prashant Parmar 2112 SIGNATURE OF Dhara Patel 2114 FACULTY:- K. S. School of Business Management - 2- 1. Acknowledg ement 2. Introduction of Retail Industry 3. History 4. Types of shopping centers 5. General terminology regarding malls 6. Basic requirement . Approvals required for construction 7. 7 P’s of Marketing . Product . Price . Place . Promotion . People . Physical Evidence . Process Management 8. World’s 10 biggest malls 9. About malls . Malls in India Vs Malls In China . Malls in Ahmedabad . Malls profile . Growth of malls . World mall v/s Indian mall . Future plans K. S. School of Business Management - 3- 10. Market Research (Age group 21 to 50 years.) . Research plan .Questionnaire .Analysis 11. Market Research (Age group above 50 years.) . Research plan . Questionnaire . Analysis 12. Suggestions 13. Limitations 14. Conclusion 15. Bibliography 16. Webography K. S. School of Business Management - 4- An Acknowledgement is something which is so often over looked by people who read a project best to us this is something very important, an integral part of this project as this expresses our heart felt gratitude towards all K. S. School of Business Management - 5- those people who helped us during the course of this project & in the end helped us give it the form as seen today. It is true that world out side name of a time is different from what we have perceived. Similarly it is possible that the theoretical knowledge is not only aim of our career , getting practical knowledge is also an important thing, which is not possible without support , guidance, motivation & inspiration provided by different person. Hence, our project bears the imprints of many people. We are greatly indebted to Mrs. SARALA ACHUTAN, the director of K.S School of Business Management, who gave us the valuable opportunity of involving ourselves in such project assignment. We would like to thank Mrs. MALA SHETH for her support & immense help. There are many people out side the college premises who give their valuable time for our project. We would like to thank them also. MR. AKASH , General Manager , Gallops mall MR. RAKESH , Store Manage , Big Bazaar ,S. G. road Branch And special thanks to MR. MITESH MEHTA from U.S.A for providing some data and web sites Related to the topic. K. S. School of Business Management - 6- Retail Sector in India: Issues and Prospects Retail, according to Concise Oxford English Dictionary, is the ‘sale of goods to the public for use or consumption rather than for resale’. Retailing is derived from the K. S. School of Business Management - 7- French word 'retailer' meaning ’breaking bulk' and breaking bulk quantities into smaller sellable units. Usually, a retailer buys goods or products in large quantities from manufacturers or importers, whether directly or through a wholesaler, and then sells individual items in small quantities to the general public or end users. The world over the retail sector has grown rapidly with increasing sophistication and modernization of the life-style of households and individuals and with increasing globalisation of trade; India has begun to cater up rather astonishingly rapidly. An Overview of Indian Retail Sector The retail sector has helped in giving strong impetus to overall economic growth as a significant driver of the growth of service sector, which contributes as mush as 54 per cent of GDP. It has strong backward and forward linkages with other sectors like agriculture and industry through stimulating demand for goods and through mass marketing, packaging, storage and transport. Moreover, it creates considerable direct and indirect employment in the economy. Also, the consumers have benefited in terms of wide range of products available in a market. Components of Retail Sector The major components of the retail sector are: K. S. School of Business Management - 8- Food and Grocery, Fast Moving Consumer Goods (FMCGs), Consumer Durables, Apparel, Footwear, Watches, Jewellery, and Health and Beauty products, etc. The anatomy of the retail market has shown that the clothing and textiles constitutes 39 per cent of the organised retail pie, followed by food and grocery, which accounts for 11 percent of the total retail market. However, according to the survey conducted by KPMG for Federation of Indian Chamber of Commerce and Industry (FICCI), among these, the food and grocery is expected to witness the fastest growth followed by clothing as the second-fastest growing segment. Key Players in the Retail Sector K. S. School of Business Management - 9- The main players in the sector are classified as big corporate houses, dedicated brand outlets and multi-brand outlets. Some of the market leaders are: • Corporate Houses : Tatas (Tata Trent), RPG Group (Food World, Health & Glow), ITC (Life Style), Rahejas (Shoppers’ Stop), Hiranandani (Haike) • Dedicated Brand Outlets: Arrow, Nike, Reebok, Zodiac, etc. • Multi Brand Outlets: Vijay Sales, Apana Bazar, Viveks etc. • Manufacturers/ Exporters: Pantaloons, Bata, Weekender etc. Among these, the formats like supermarkets (e.g. Food Bazaars) have the highest potential for growth in India followed by hypermarkets (e.g. Big Bazaar, Spencer’s). Rural-Urban Share in Retail Sector K. S. School of Business Management - 10- A distinctive feature of organised retailing in India is that it is largely an urban phenomenon. Organised retail has been more successful in metro cities, so in the south and west of India . The reasons for this regional variation range from differences in consumer buying behaviour to cost of real estate and taxation laws. Nonetheless, the case for Indian retailers to explore rural markets is strong. Factoring the size of the rural population and agricultural income growth in rural India, the rural market is certainly an opportunity for retailers with an innovative retail proposition. A clear indicator of this potential is the current share of rural market across major categories of consumption. [The survey conducted by KPMG for Federation of Indian Chamber of Commerce and Industry (FICCI).] Growth and Future Prospects K. S. School of Business Management - 11- With the economy growing at a robust rate at near 8 per cent, the retail sector has also been witnessing notable growth due to an unprecedented consumption boom. The multiple factors driving this boom are: First, favourable demography with roughly 60 per cent of the total population below 30 years of age group. And higher disposable incomes of young middle class consumers due to employment in IT, management and increasing number of working women, Change in consumption pattern with high aspiration levels. The AC Nielsen Online Omnibus Survey 2005 has rated India in the highest category of Aspiration Index (especially in consumer durables segment) in Asia along with China, Indonesia and Thailand. Growth in Major Retail Segments 1. Food and Grocery The food industry is the largest growing industry after the clothing segment. According to the FICCI study, the size of the food and beverages industry is Rs 3, 58,000 crore. The FICCI has urged the government to have pro-active approach for helping the industry to achieve the lower cost, quality improvement and better performance in the competitive environment. 2. FMCG (Fast Moving Consumer Goods) K. S. School of Business Management - 12- In the last couple of years, the FMCG segment has grown at a rapid pace, especially due to increasing number of big FMCG outlets like Big Bazaar. The products, which have shown significant growth in rural markets, are toothpaste, hair oils and shampoos. Shampoo sales, in rural areas have gone up by 30.8 per cent as compared to just 11 per cent in urban areas. 3. Consumer Durables The size of the Indian consumer goods industry is at around Rs 20,000 crore. After three years of buoyant performance, the consumer durable industry has shown a moderate growth (in terms of production) of 13.6 per cent during the period April- January 2006 as compared to 14.8 per cent over the corresponding period in the previous year (Ministry of Statistics and Programme Implementation). Investment in Indian Retail Sector According to the KSA Technopak Retail Summit 2005, investment in the Indian retail sector is estimated at Rs 2000 crore to Rs 2,500 crore in the next two to three years and over Rs 20,000 crore by the end of 2010. Large Indian corporate houses like Tata, Reliance, Raheja, ITC, Bombay Dyeing, etc.Have continued to show interest in huge investments in organised retailing. About Indian Retail Market K. S. School of Business Management - 13- Given the robust growth observed in various retail segments, the current scenario of the Indian retail sector is certainly bright and promising. However, there are number of issues which need attention: 1. Foreign Direct Investment (FDI) According to FDI proponents, some of the major benefits of opening up the retail sector are: • Employment generation, • Competitive environment resulting in price and quality advantage to consumers, • Expansion of manufacturing base and foreign investment, • Reward to farmers if direct purchase of produce from farmers and, • Better standard of living to meet rising aspiration levels of middle and higher- middle income class. 2. Unbalanced Growth The key is in slicing the relevant customer segments and developing appropriate formats. If the specific needs of consumers are recognised, there would be a considerable market expansion, which would divert a part of retail business to rural areas and help in reducing rural-urban imbalance.
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