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SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE
OF MASTER OF BUSINESS ADMINISTRATION 2009-2011 SUBMITTED BY: Raj Hussain ROLL.NO.1203102100 Admission No. 12SOB102106 MBA- 3rd SEM. UNDER GUIDENCEOF (Mr. Neeraj Juneja)
Galgotias University
Yamuna Expressway Greater Noida
CERTIFICATE OF INSTITUTE
This is to certify that Raj Husain is a bona fied student of MBA 3rd Semester during session 2012-2014.Project Report entitled Impact of marketing Activities Retail Management has been prepared by him in partial fulfillment of the award of Master Degree in Business Administration of Galgotias University Greater Noida. His report is satisfactory and not copied from anywhere to the best of my knowledge.
Date:
AKNOWLEGMENT
I extent my gratitude to Mr. Jai Veer Singh The H.R. Manager and Mr. Lucky The H.R. Person of VISHAL RETAIL LIMITED for giving me an opportunity to work on a very interesting project. It helped me to understand the functions of retail company, its product and consumer behavior.
I also extent a word of thanks to Mr. Neeraj Juneja guide faculty who helped me on this interesting project under their guidance and support.
I also would like to thanks to Galgotias University. and the faculty for providing me support and guidance during the project.
My 45 day association with VISHAL MEGA MART has enhanced my knowledge and understanding of corporate world in Retail Sector in particular. All the interactions have been really fruitful and have added to make this an enriching experience.
DECLARATION
This is Certify that myself Raj Hussain MBA Student Galgotias University in Session 2012-2014 I have Undergone 45dayss summer Training in VISHAL MEGA MART Gorakhpur.
All the information that is given in Certificate is true as per my Knowledge if there is any mistake any action can be taken against me.
Thanks
Signature
Date:
TABLE OF CONTENT:
(1) Executive summary (2) Objective of project (3) Project profile (4) Introduction of topic (5) Company profile (6) Swot Analysis (7) Research methodology (8) Sampling Technique (9) Sample Size (10) Sample Unit (11) Sampling Area (12) Recomendation (13) Conclusion (14) Questionnaires (15) Bibliography \\
EXECUTIVE SUMMARY
A summer Training project study and training was under taken with VISHAL MEGA MART, An Indian leading Retail Company under the guidance of Mr. Navin yadav, store manger and Mr. Vivek, asst. store manager.
The training included study of consumer behavior to retail company and competitive study of VISHAL MEGA MART with its competitors, study of daily footfall and sales and Plano gram and to understand the retail operations.
The behavioral study included a survey, which was carried out among the various customers of VISHAL MEGA MART WELCOME. The objective of the study was to understand the needs expectations and requirement of customers and to what extent VISHAL MEGA MART is reaching up to their expectations.
The competitive study included the study of offers, schemes and discount for the customers given by VISHAL MEGA MART and its competitors.
The study of daily footfall and sales included to study foot fall and sales regularly and to compare that what day selling is falling and why it is falling and selling can be increased.
On the basis of analysis done and key finding, Gorakhpur region was scanned and SWOT analysis of each and every corner was done to find the prospective location where Vishal retail can open its future stores.
Retail operations like study of layouts, Plano gram, etc These all things have enhanced my knowledge therefore once again I would like to thanks to all those help me for this interesting project.
Thanking you
Objectives of project
3. To study the daily footfall and sales and how sale can increase.
Retailing involves a direct interface with the customer and the coordination of business activities from end to endright from the concept or design stage of a product or offering, to its delivery and post-delivery service to the customer. The industry has contributed to the economic growth of many countries and is undoubtedly one of the fastest changing and dynamic industries in the world today.
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TYPES OF RETAIL
The retail industry is divided into organized and unorganized sectors. 1. ORGANIZED RETAIL : Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed
hypermarkets and retail chains, and also the privately owned large retail businesses.
Organized Retail 3%
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2-UNORGANIZED RETAIL :
Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local shops, owner manage general stores, provision shops, convenience stores, hand cart and pavement vendors, etc.
Unorganized Retail 97%
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and grocery organized retail sales. Example: Big Bazaar. VISHAL MEGA MART, SPENCER HYPER, etc.
Convenience and a wide variety for customer. But it does not provide a feel of the product and is sometimes not authentic. Examples are Amazon.com, Ebay.com, etc.
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3. The organized retail sector is growing at 40-45% followed by greater china at 27%.
4. India has one retail outlet per 90 people, one of the highest densities of the world.
5. 8% of the Indian population is employed by the retail sector ;( 22 million people) second only to agriculture.
7. Ranked second in a Global Retail Development Index of 30 developing countries drawn up by AT Kearney.
8. India is rated the fifth most attractive emerging retail market: a potential goldmine.
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1. GLOBAL PLAYERS :
(1) WALMART
(2) KINGFISHER
(3) COSTCO
(4) TESCO
(5) CARREFOUR
(6) TARGET
(7) KMART
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2. INDIAN PLAYERS:
(4) RELIANCE
(5) PANTALOON
(6) MORE
(8) SUBHIKSHA
(9) PIRAMYD
(10) DABUR
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http://www.vishalmegamart.net
The group had a turnover of Rs. 1463.12 million for fiscal 2005, under the dynamic leadership of Mr. Ram Chandra Aggarwal. The group had of turnover Rs 2884.43 million for fiscal 2006 and Rs. 6026.53 million for fiscal 2007 The groups prime focus is on retailing. The vishal stores offer affordable family fashion at prices to suit every pocket. The groups philosophy is integration and towards this end has
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initiated backward integration in the field of high fashion by setting up a state of the art manufacturing facility to support its retail endeavors.
Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all price ranges. The showrooms have over 70,000 products range which fulfills all your household needs, and can be catered to less than one roof. It is covering about 24, 04,982 sq. ft. in 20 states across India. Each store gives you international quality goods and prices hard to match. The cost benefit that is derived from the large central purchase of goods and services is passed on to the consumer.
The group had a turnover of Rs. 1463.12 million for fiscal 2005. The group had of turnover Rs 2884.43 million for fiscal 2006. Rs. 6026.53 million for fiscal 2007.
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Ambitious growth plans Vishal Retail continues to have ambitious growth plans, targeting 190 stores with over 3.7 million square feet by FY-09 and over 500 stores with 10 million sq ft by FY-11. It also intends to invest in logistics, restaurants and consumer PE fund (similar to that run by Pantaloon). Expansion is to be led by Tier-3 and Tier-4 towns, which might mean lower ticket sizes and average sales per sq ft, although profitability may remain at the same levels due to lower rent and employee costs. To meet its expansion plans for the next three years, Vishal would have to invest about Rs 2,500 corer. The company has little by way of internal accruals. Vishal intends to fund its expansion plans through a 2:1 combination of debt and equity. It is already heavily leveraged and bears an interest cost of 11.75 per cent on its loans. This could go up in a rising interest rate environment. These circumstances call for a moderation in growth expectations.
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BUSINESS STRATEGY:
Company competitors:
1. BIGBAZAR 2. PANTALOON RETAIL 3. SALASAR 4. SPENCER 5. SUBHIKSHA 6. RELIANCE RETAIL 7. INDIA BULLS RETAIL 8. DABUR RETAIL 9. SABAKA BAZAR 10. MORE
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Total no. of showrooms in all India. Total area covered by Vishal Retail in India. Total no. of states in which Vishal is situated. Total no. of cities in which Vishal is situated. Total no. of products. Total no. of showrooms in all north zone. Total area covered by Vishal Retail in North zone
126 showrooms
83 cities.
About 70,000 81
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Mr. Surendra
Mr. Ram Chandra Agarwal (HUF), Unicon Marketing Private Limited, icon Commodities Private Limited and Vishal Water World Private Limited.
Promoter Group:
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Mr. SantoshBajoria,
Island Enterprises
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Prospectus The prospectus filed with the Roc in terms of Section 60 of the Companies Act, containing, among other things, the Issue Price that is determined at the end of the Book Building Process, the size of the Issue and certain other information.
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Store Management:
1. Store Manager
3. Admin.
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Store Size:
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The Behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products, services, and ideas.
Consumer Behavior focuses on how individuals make decisions to spend their available resources i.e. TIME, MONEY, and EFFORT on CONSUMPTION related items.
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2. Out of 500 , 290 customers visited vishal once in a week and 110 once in a month and 70 once in a day and 30 once in 2 day
3. 390 customers prefer vishal due to variety of products and 80 like offers & schemes and few customers come to vishal due to location.
4. 380 customers out of 500 like home ware & house hold and more than 100 customers like appraisal section.
6. 265 customers are satisfied with quality. 7. 380 customers are satisfied with employees behaviors.
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9. 320 customers comes from 0-5 kilometers, 180 customers comes from above 05 kilometers.
11.170 belongs to age group 15-25 130 belongs to age group 25-35
12. 190 are student, 110are business, 75 are professionals, 30 are serviceman, and 95 are house hold out of 500.
13.270 belongs to income group nil, 172 belongs to 10000-20000 and 45 belongs to 20000-40000 and Remaining to 40000-80000.
14.500 out of 500 customers say that will visit vishal store.
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LIMITATIONS OF THE STUDY: Sometime respondents are not taking interest in such Type of surveys therefore there is chance that they might Be giving wrong information. The respondents are free from all barriers so he/she can Give his/her opinion which may not be true in many Occasions. The staff of the Vishal only provides/ communicates the Merits of its products
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STUDY OF PLANOGRAM:
A Program is a diagram of fixtures and products that illustrates how and where retail products should be displayed, usually on a store shelf.
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Aesthetics: A well-designed plan-o-gram has to be visually appealing. For instance if one were to stack shampoo bottles of all sizes side by side on the same shelf, it may not look as good as if one were to stack it as per the different sizes available.
Tactical benefits: A plan-o-gram can be used to achieve higher sales and margins on a long-term perspective. However the same can be true from a tactical point of view. A plan-o-gram can be redesigned to gain tactical mileage during specific seasons (deodorants in summer, lotions in winter) or during special promotions (more visibility for a buy one get one free offer).
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SALE:
An exchange of goods or services for currency or credit; a particular opportunity for a sale; the activities involved in selling goods or services; the sale of goods at reduced prices; the act of putting up for auction to the highest bidder
FOOTFALL:
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Superior product performance vs. competitors. Brand Image. Products have required accreditations. High degree of customer satisfaction.
WEAKNESSES
Not very popular in the international market. Customer service staff needs training. Team members, team leaders and floor managers also needs training.
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OPPORTUNITIES
Profit margins will be good. Could extend to overseas. Could seek better supplier deals. An applied research centre to create opportunities for developing techniques to provide added-value services.
THREATS
Vulnerable to reactive attack by major competitors.
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Research Methodology:
Analysis.
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Type of Research: Descriptive research (Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening.)
TO FILL THE QUESTIONAIR I RENDOMELY SELECT THE CUSTOMERS 0F ALL AGE GROUPS FROM EACH SECTIONS.
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Data Sources:
Primary Data:
Data for consumer behavior, study of Plano gram, comparative study I obtained primary data
Secondary Data:
Data for study of daily footfall and sales, analysis for fast and slow moving products etc I obtained secondary data from the store.
Expected Benefits:
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ANALYSIS ON DATA
Due to physical counting team member are busy in counting on every Monday and Tuesday, this also effect the selling. C. Due to good planning of competitors
D. Some others
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Customers like VISHAL MEGA MART due to variety of products and offers and scheme on them. According to survey 60 % customers like home ware and household and also more than 50 % customers like apparel. The like apparel due to variety of products and quality products and their reasonable price. of
The FMCG section is more famous of BIGBAZAR than VISHAL MEGA MART due to offers and discount on products and availability of products.
The products which customers want but are note in VISHAL MEGA MART.
There are so many products in FMCG and Techno Mart sections that are frequently demanded by the customers but are not
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available in VISHAL MEGA MART due to this selling is affected. 1. FMCG SECTION:
Food:
1. Rattan Bhog Atta (Local Brand).
2. Rath Vanaspati.
7. Uncle chips.
8. Lijjat papad.
9. Cold Coffee.
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Non Food:
1. Garnier facial cream.
3. Sai Dhoop.
4. Sai Agrabatti.
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8. Fauna surf.
9. Ghadi surf.
Life Style:
Products name
companies name
1. Kajal
Color bar
Color bar
3. Eye pencil
Color bar
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Revlon
5. V.T. Lipstick
Revlon
6. Lip liner
Revlon
7. Pencil Kajal
Revlon
Techno Mart:
TELEVISION
1. L.G.
2. Oneida.
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3. Sony.
4. Samsung.
5. Videocon.
Washing Machine
1. L.G.
2. Videocon.
Freeze
1. L.G.
2. Whirlpool.
3. Samsung.
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DVD:
1. L.G.
2. Sony.
1. Philips.
2. Sony.
3. Intel.
A.C.
1. Videocon.
2. L.G.
3. Samsung.
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LCD:
1. L.G.
2. Sony.
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ANALYSIS:
The fast moving and slow moving depend on the following points.
1. Offers and scheme on the products. 2. Display mode of the products. 3. Price of the products. 4. Brand of the product. 5. Quality of the product. 6. Off season and on season for the product.
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BIG BAZAR
SALASAR
SUBHIKSHA
On purchasing of Rs2000 & above get 05 kg sugar free. I f purchase whole month get 5 % off.
Shopping from food mart sections Rs 999 get 05 kg sugar free. In Rs105 get 05 kg Atta free .Home foil Rs.63 Buy 1 get 1 free. Colgate family pack Rs 79 300 gm +extra clean tooth brush free coke 2 liter (all
01 in Rs.63 and 03 Rs 88. Colgate family packs 300 gm in Rs 79. Pantene / head & shoulder 750 ml in 30 % off. All variant cold drinks 2 liter with
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variant) buy 01 in Rs 50 &2 in Rs 85.fortrune soya oil in Rs 90.Dhara mustard oil Rs 82. Shakti bhog Atta 10 kg Rs183 .Sugar in 5 kg at Rs.95 Rooh afza 700 ml at Rs 88.
02 at Rs.85. Tops noodles Buy 01 get 01 free Fortune soya oil at Rs.78. Mustard oil in Rs 85 Shakti bhog Atta 10 kg in Rs 184 Sugar 5 kg Rs101
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VISUAL MERCHANDISING
Visual Merchandising (VM) is the art of presentation, which puts the merchandise in focus. It educates the customers, creates desire and finally augments the selling process. This is an area where the Indian textile and clothing industry, particularly, the SMEs lack adequate knowledge and expertise. This inadequacy is best reflected in poor presentation/display and communication in various national and international exhibitions.
VM helps in:
Educating the customers about the product/service in an effective and creative way.
Establishing a creative medium to present merchandise in 3D environment, thereby enabling long lasting impact and recall value.
Setting the company apart in an exclusive position. Establishing linkage between fashions, product design and marketing by keeping the product in prime focus.
Combining the creative, technical and operational aspects of a product and the business.
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Drawing the attention of the customer to enable him to take purchase decision within shortest possible time, and thus augmenting the selling process.
STATUS OF VM IN INDIA:
Unlike the western countries, where VM receives highest priority in commercial planning of a product, the Indian industry understands and practice of the concept of VM is inadequate. With phasing out of quantitative restrictions after the year 2004, the textile industry will have to compete purely on the competitive edge of the products and VM will be a helpful tool in projecting
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market access and sales. It is high time that the Indian textile and clothing industry, therefore, understands and adopts the scientific and professional system of VM rather than the traditional practices of display of products and communication.
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Layouts:
The arrangement of all layouts is good. All lay outs like AC LAYOUT, CCTV Layouts, IT layout, Gondola lay out are working well. There are some negatives also.
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1. Store Layout:
Store layout is good. All store covers 36700 sq. ft. area. It covers three floors. But in rainy days store is filled with water and there is no arrangement for this. After rain it take time to clean the store and throw the water from the store due to this customers have to suffer and this also affect the selling and footfall.
2. Gondola Layout:
There are proper gondolas and there is proper arrangement for gondolas but some part of gondolas is always empty, it create negative image in the eye of customers.
3. A.C. Layout:
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4. Light Layout:
There is again negative thing in light when current goes there is deep dark in 1st and 2nd floor it creates a problem to customers and it takes time to start a generator therefore there should some arrangement for emergency light of inverter on each floor.
Display modes:
There is proper display. For apparel section they use standees for display but here also some weakness like.. 1. Customer face problem in searching the right size of apparel for them, there fore display should be size wise with their rates. 2. In FMCG Section many product were not put on their right place according to their price information slip.
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Developing Themes:
There are so many developing things like..
1. Continuous announcement of offers and schemes through customer service desk counter.
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CONCLUSION:
Generally customer come from home in store, they like variety in the
According to survey 60% customer also like home ware & house hold
Products and same 60% customer also like appraisals due to variety of
According to survey more than 80% customer like vishal mega mart than
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Recomendation
1. Many products which are demanded by the customers are not in VISHAL MEGA MART.
4. In rainy days store is filled with water and there is no arrangement for this. After rain it take time to clean the store and throw the water from the store due to this customers have to suffer and this also affect the selling and footfall.
5. Some part of gondolas is always empty, it create negative image in the eye of customers.
6. There is again negative thing in light when current goes there is deep dark in 1st and 2nd floor it creates a problem to customers and it takes time to start a generator.
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7. Customer face problem in searching the right size of apparel for themselves.
8. In FMCG Section many product were not put on their right place according to their price information slip.
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Suggestions:
1. There should be all regional preference products.
7. There should be some arrangement for emergency light of inverter on each floor.
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RETAIL TERMINOLOGY:
Gondola It is the assembled non-trading item which is used to display the articles to be sold.
Tiny winy
It is the assembled aluminum-glass frames as counters with two part assembly, it is used to display the goods which are expensive or small or both - to carry or for display purpose.
Average inventory cost is found by adding the beginning cost inventory for each month plus the ending cost inventory for the last month in the period.
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Brand
A brand is a name, symbol or other identifying mark for a seller's goods or services. It is distinct from other sellers.
Break-Even Point
The point in business where the Net profit becomes equals to the expenses. There is no profit and no loss.
Business Plan
A detailed document describing the past, present and future financial and operational objectives of a company.
Cash Discount
Cash Flow
The movement of money in and out of a business and the resulting availability of cash.
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Chain Store
Number of retail stores under the same ownership and dealing in the same merchandise.
Contribution Margin
Contribution Margin is the difference between total sales revenue and total variable costs. The term is applied to a product line and is generally expressed as a percentage.
The price paid for the product, plus any additional costs necessary to get the merchandise into inventory and ready for sale, including shipping and handling.
Coupon
A promotional tool in the form of a document that can be redeemed for a discount when purchasing goods or services. Coupons feature specific savings amount or other special offer to persuade consumers to purchase specific goods or services or to purchase from specific retailers.
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Customer Relationship Management (CRM) is a business strategy designed to reduce costs and increase profitability by strengthening customer loyalty.
A measure of inventory productivity that expresses the relationship between your total sales, the gross profit margin you earn on those sales, and the number of dollars you invest in inventory.
Gross Margin
Gross margin is the difference between what an item costs and for what it sells.
Inventory Turnover
The number of times during a given period that the average inventory on hand is sold and replaced.
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Keystone
Keystone pricing is a method of marking merchandise for resell to an amount that is double the wholesale price.
Loss Leader
Merchandise sold below cost by a retailer in an effort to attract new customers or stimulate other profitable sales.
Loss Prevention
Loss prevention is the act of reducing the amount of theft and shrinkage within a business.
Marketing Calendar
Marketing calendar is a tool used by retailers to show what marketing events, media campaigns and merchandising efforts are happening when and where, as well as the results.
Markup
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Suppliers pricing policy that does not permit its resellers to advertise prices below some specified amount. It can include the resellers retail price as well.
Odd-Even pricing
A form of psychological pricing that suggests buyers are more sensitive to certain ending digits.
Open-to-Buy
Merchandise budgeted for purchase during a certain time period that has not yet been ordered.
Operating Expenses
The sum of all expenses associated with the normal course of running a business.
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Plano gram
Visual description, diagram or drawing of a store's layout to include placement of particular products and product categories.
Point-of-Purchase Display
Point-of-purchase displays, or POP displays, are marketing materials or advertising placed next to the merchandise it is promoting. These items are generally located at the checkout area or other location where the purchase decision is made. For example, the checkout counters of many convenience stores are cluttered with cigarette and candy POP displays.
POS Point of Sale (POS) refers to the area of a store where customers can
pay for their purchases. The term is normally used to describe systems that record financial transactions. This could be an electric cash register or an integrated computer system which records the data that comprises a business transaction for the sale of goods or services.
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Private Label
Products which are generally manufactured or provided by one company under another company's brand.
The stages that a new product is believed to go through from the beginning to the end: Introduction, Growth, Maturity and Decline.
Purchase Order
A purchase order (PO) is a written sales contract between buyer and seller detailing the exact merchandise or services to be rend from a single vendor.
Quantity Discount
A reduction in price based on the amount purchased. It may be offered in addition to any trade Discount.
Retailing
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Sales Floor
The sales floor is the location of a retail store where goods are displayed and sales transactions take place. For example, the receiving of merchandise takes place in the stock room, but all direct sales and customer interactions are done on the sales floor.
Shoplifting
Shoplifting is the theft of property and which occurs with the intent to deprive the owner of that piece of property. The crime of shoplifting is the taking of merchandise offered for sale without paying.
Shrinkage
Retail shrinkage is a reduction or loss in inventory due to shoplifting, employee theft, paperwork errors and supplier fraud.
SKU
The Stock Keeping Unit (SKU) is a number assigned to a product by a retail store to identify the price, product options and manufacturer.
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Soft lines
A store department or product line primarily consisting of merchandise such as clothing, footwear, jewelry, linens and towels.
Staple Goods
Staple goods are products purchased regularly and out of necessity. Traditionally, these items have fewer markdowns and lower profit margins. While price shifts may raise or lower demand for certain kinds of products, the demand for staple goods rarely changes when prices change.
Trade Credit
Trade Discount
Visual Merchandising
Visual merchandising is the art of implementing effective design ideas to attract the footfalls and convert them in customers inside the store.
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Wholesale
Wholesale is the sale of goods, generally in large quantity, to a retailer for resale purposes.
Impulse purchase
Conversion
Tills
Billing counters
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BIBLIOGRAPHY:
http://retail.about.com/od/glossary/g/visual_mdse.htm
http://www.businessgyan.com/content/view/551/472/
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QUESTIONNAIRE
Q1. Do you know about the discounts and schemes running in the store? (A) yes (B) no (C) sometimes (D) every times Q2. How Vishal can be compared with competitors in respect of, marketing activity? (A) average (B)good (C)very good (D) excellent
Q3. According to the promotional ads. given in the newspaper do you find schemes Implemented at the store level? (A) yes (B) no (C) sometime (D) every time
Q4. Were the announcement made at the store level is making for updating schemes? (A) yes (B) no (C) sometime (D) every time
Q5. To promote sales we need to increase marketing activities by(A).Double (B).Triple (C).Sometime (D).Every time
Q6. Marketing activities help us to improve sales? (A) yes (B) no (C) sometime ( D) every time
Q7. Marketing activities help us to improve sales? (A) yes (B) no (C) sometime ( D) every time
Q8 Which sort of marketing activity plays a pivotal role in pushing the customer towards The store? (A)display (B) space selling (C) promoters (D) others
Q9. Can we include regular discount and promotion as the part of marketing activity? (A) yes (B) no (C) sometime (D) every time
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Q10. Are the people happy with the promotional events at the store level? (A) yes (B) no (C) sometime (D) every time Q11. Can loyalty program me increase to fulfill at the conversion of store level? (A) yes (B) no (c) sometime (D) every time Q12. Effective segmentation can be integral part of retail marketing? (A) yes (B) no (C) sometime (D) every time Q13. Scheme like free parking, Meander and others should be part of daily promotion (A) yes (B) no (C) sometime (D) every time
Q14. Are our stores employees give right pre sales and post sales service? (A) yes (B) no (C) sometime (D) every time Q15. Are we following 4P, s of marketing? (A) yes (B) no (C) sometime (D) every time
Q16. Is local campaigning is necessary at the store level. (A).Yes (B).No (C).Sometime (D). Every time
Q17. Customer has come to the store through (A).Banners (B) hoardings (C) handouts (D) others
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