GOVINDRAM SEKSARIA INSTITUTE OF MANAGEMENT AND
RESEARCH, INDORE
A SYNOPSIS ON
“A STUDY ON CONSUMER PERCEPTION AND BEHAVIOUR
TOWARDS TRENT LIMITED (WESTSIDE)”
MASTER OF BUSINESS ADMINISTRATION
2020-2022
GUIDED BY: SUBMITTED BY:
Dr. Dheeraj Tiwari Vijay Patidar
MBA, 3rd Sem.
1. INTRODUCTION
Trent Ltd. (portmanteau of Tata Retail Enterprise) is the retail hand of Tata group. Started
in 1998, Trent operates Westside, one of the many growing retail chains in India based
in Mumbai, Maharashtra, and Landmark, a bookstore chain with Brick-and-Mortar stores in
various locations of India. In 1998 Tata sold off their 50% stake in the cosmetic products
company Lakme to HUL for Rs 200 crore (approx. 45 million US$), and created Trent from
the money it made through the sale. All shareholders of Lakme were given different shares
in Trent. Simone Tata, the chairperson of Lakme, went on to head Trent. The reason behind
the sale was that Tata saw a greater growth potential in retail, and believed that it would be
much more difficult for an Indian company to release new cosmetic products in a market that
had opened up to global companies. In Aug, 2005 Trent acquired a 76% controlling stake in
Landmark, a Chennai-based privately owned books and music retailer, and completed 100%
acquisition in April 2008.
Trent Limited
Type Public
Traded as NSE: TRENT
Industry Retail
Founded 1998
Headquarters Mumbai, Maharashtra
,
India
Revenue 2,346 Crores (2018)
Net income 86 crores (2018)
Parent Tata Group
Website [Link]
1. COMPANY DETAIL
Trent Ltd. is a retail operations company that owns and manages a number of retail chains in
India. The company operates Westside one of India's largest and fastest growing retail
chains; Star Bazaar a hypermarket chain and landmark a family entertainment format store.
They have already established 132 Westside departmental stores measuring 8000-34000
square feet floor space across 74 cities. The Westside stores have several departments to
meet the varied shopping needs of customers. These include menswear women's wear kids'
wear footwear cosmetics perfumes and handbags household furniture accessories lingerie
and gifts. Well-designed interiors sprawling space prime locations and coffee shops enhance
the customers' shopping experience. Trent also operates the Star Bazaar hypermarket chain
that provides customers an array of products that include staple foods beverages health &
beauty products consumer electronics and household items at the most affordable prices. Star
Bazaar also includes a large range of fashionable in-house garments for men women and
children exclusively available at the store. Since 2008 Trent has had a franchise and a
wholesale supply arrangement with Tesco and its wholly-owned subsidiary in India for Star
Bazaar. Trent holds 76% interest in Landmark Ltd a family entertainment format store with a
focus on toys adult and young adult books sports-related merchandise tech accessories
gaming and stationery. Trent has a separate joint venture with the Inditex group for Zara
stores. Trent has introduced a range of creative kitchenware through an exclusive tie-up with
a British company Lakeland. Stores are currently present in Pune and Bengaluru. Trent Ltd
was incorporated in the year 1952 as Lakme Ltd. In March 1998 the company acquired
100% equity shares of Trent Ltd (formerly known as Littlewoods International (India) Ltd)
from Littlewoods International Ltd UK for a consideration of Rs 11.09 crore. Trent Ltd was
amalgamated with the company with effect from July 1 1998 and the name was changed
from Lakme Ltd to Trent Ltd with effect from June 15 1999. The company forayed into the
retailing business post hive off of their cosmetics business to Hindustan Lever in [Link] the
year 1998 the company established Westside a lifestyle retail chain. They started their
operations at Hyderabad and Chennai on December 15 1998 and March 5 1999 respectively.
In April 28 1999 they opened a store at Hughes Road in Mumbai and in August 2000 they
opened a store in [Link] April 2001 the company opened a 12000 sq ft Westside store in
Karol Bagh New Delhi and in June 2001 they opened the Kolkata store admeasuring 18000
sq ft. During the year 2002-03 Fiora Services Ltd became a subsidiary of the company which
is engaged in the business of rendering sourcing activities clearing & forwarding and other
related services to the company. The company opened two new stores New Delhi and
Nagpur during the year. During the year 2003-04 the company opened their stores at
Mumbai Ahmedabad Noida Mulund and Bangalore. During the year 2004-05 the company
acquired 100% of the share capital of Satnam Developers and Finance Pvt Ltd which is
engaged in the business of construction and development of real estate. They opened two
new Westside Stores at Indore and at Andheri Mumbai. In October 2004 the company
opened their first hyper-market in Ahmedabad under the name of Star India Bazaar thus
marking the entrance of the company in a new sector of retailing. During the year 2005-06
the company along with their subsidiaries acquired 79% interest in the partnership firm
Landmark Ltd the largest book and music retailer in the country which is poised for a rapid
expansion for Rs 108.5 crore. Landmark Ltd has been converted into a public limited
company and became a subsidiary of the company. Also, the company acquired 100% of the
share capital of Nahar Theatres Pvt Ltd the owner of premises from where the company
operates their Westside store at Lajpat Nagar New Delhi at a cost of Rs. 28.33 Crores.
During the year the company opened six new Westside stores located at Bangalore Vadodara
Kolkata Ghaziabad Gurgaon and Delhi. They expanded their operations at Lajpat Nagar
(Delhi) Noida and in Mumbai's Kala Goad. In May 2006 they opened a new Landmark store
at Andheri in Mumbai. During the year 2006-07 the company opened four new Westside
stores at Jaipur Lucknow Surat and Mysore. They also relocated their Pune store to larger
premises and extended the Chennai store. The company received the prestigious NDTV
Award of 'Retailer of the Year' and was also rated 'The Best Retailer' in the lifestyle category
in a survey carried out by the Business World Magazine. In February 2007 Landmark Ltd
along with their subsidiaries acquired 52.18% of East West Books (Madras) Pvt Ltd for a
total consideration of Rs 1.14 crore. During the year 2007-08 the company opened three
Westside stores in Ahmedabad Ludhiana and Delhi and two Star Bazaar stores in Mumbai
and Bangalore. The subsidiaries of Landmark Ltd namely Westland Books Pvt Ltd and East
west Books (Madras) Pvt Ltd merged together and formed Westland Ltd with effect from
April 1 2007. In September 2007 the company made a strategic partnership with Benetton
India Ltd for the commercial expansion of Sisley brand in India. They opened four Sisley
stores during the year. The company transferred their Star Bazaar business as a going
concern to their 100% subsidiary Trent Hypermarket Ltd with effect from August 01
[Link] the year 2008-09 the company opened eight Westside stores two Sisley stores
and one Fashion Yatra Store taking the total number of Westside stores to 36 and the total
number of stores under various formats to 42. In February 2009 the company entered into a
MoU with Inditex Group to develop and promote Zara stores in India. Inditex would hold
51% and Trent would hold 49% stake in the proposed joint venture company. On 4
November 2009 Trent Limited entered into definitive agreements for the sale of 14.03 lakh
equity shares of Rs. 10/- each held by the company in its unlisted subsidiary 'Landmark Ltd.'
to TVS Shriram Growth Fund I for a consideration of around Rs 50 crore. Additionally, TVS
Shriram Growth Fund I will subscribe for a further 4.21 lakh equity shares of Rs. 10/- each
in Landmark Ltd. at a consideration of around Rs 15 crore. Landmark is a leading book and
music retail chain. The Board of Directors had Trent Limited at its meeting held on 26 April
2010 approved the issue of securities by the company on a rights basis to its shareholders to
raise an amount not exceeding Rs 500 crore. On 22 July 2011 Trent informed the stock
exchanges that the company has entered into an MOU with the Inditex Group to develop and
promote Massimo Dutti stores in India. As per the MOU signed ZARA Holding BV (an
Inditex Group company) would hold 51% and Trent Ltd. would hold 49% in the proposed
JV Company. The Board of Directors of Trent Ltd at its meeting held on 29 September 2011
decided to seek the approval of shareholders for raising of additional long-term funds of up
to Rs 300 crore. The QIP Issue Committee of the Board of Directors of Trent Ltd at its
meeting held on 16 March 2012 accorded its consent for the allotment of 27.41 lakh equity
shares at a price of Rs 912 per equity share to Qualified Institutional Buyers. Earlier on 14
March 2012 the company successfully completed the Qualified Institutional Placement. The
Board of Directors of Trent Ltd at its meeting held on 4 July 2012 approved an issue of up to
16.67 lakh equity shares to Tata Sons Limited the promoter of the company and/or other
companies in the promoter group on a preferential basis in accordance with the provisions of
SEBI (Issue of Capital and Disclosure Requirements) Regulations 2009 (SEBI ICDR
Regulations).The Board of Directors of Trent Limited at its meeting held on 18 February
2013 approved to purchase from TVS Shriram Growth Fund I (the Fund) its entire
shareholding of 18.25 lakh equity shares of Rs 10/- each of Landmark Ltd. a subsidiary of
the company for a consideration of Rs 84 crores. Further it has been agreed between the
parties that the Fund would retain an option to invest in a minority stake in Westland Limited
(also a subsidiary of Trent Limited) at a future date. Trent Limited would continue to pursue
the build out of the Landmark format increasingly focusing on family entertainment
categories and seek to integrate these operations with the Westside business. This is aimed at
realizing cost and other operating synergies. The Board of Directors of Trent Limited at its
meeting held on 4 March 2013 approved the Scheme of Amalgamation and Arrangement
(The Scheme) between Landmark Limited (Landmark) Fiore Link Road Properties Limited
(Fiore) and Treva ADMC Private Limited (Trema) with the company under the applicable
provisions of the Companies Act 1956 after considering the recommendation of the Audit
Committee. The Appointed Date for the merger shall be 1 April 2013. On 21 March 2014
Trent Limited announced that it has approved definitive agreements regarding an investment
by Tesco PLC UK (Tesco) in Trent Hypermarket Limited (THL) a wholly owned subsidiary
of Trent Limited. The agreements envisage that Tesco Overseas Investments Limited (Tesco
Overseas) a wholly owned subsidiary of Tesco would purchase part of the equity shares
currently held by Trent Limited in THL for an amount of approx. Rs. 150 crores and would
separately subscribe to additional THL equity shares for an amount of approx. Rs. 700
crores. Following the conclusion of the proposed investment Trent Limited and Tesco
Overseas will each hold a 50% stake in THL. The proposed investment by Tesco Overseas is
subject to necessary approvals. THL operates the Star Bazaar business. On 24 April 2015
Trent Limited launched first Sport Zone store the largest chain of sports shops in Portugal in
India at Bangalore. The innovative products and equipment developed and marketed by
Sport Zone will be available to the Indian customers in franchised stores and shop-in-shops
in department stores managed by Trent. The partnership plans to open five Sport Zone stores
in India by end of 2016. The Board of Directors of Trent Ltd. at its meeting held on 28 June
2016 considered and approved the sub-division of equity shares of the company having face
value of Rs 10 per share into 10 equity shares of a face value of Re. 1 each. On 28 October
2016 Trent Ltd. announced that its subsidiary Westland Limited has entered into a definitive
agreement to divest its entire stake held in Westland Publications Limited to Amazon
Eurasia Holdings S.A R.L. Westland Publications Limited is a wholly owned subsidiary of
Westland Limited. Separately Trent Limited Westland Limited and Westland Publications
Limited have also executed a business transfer agreement for the transfer of the publishing
business of Westland Limited to Westland Publications Limited for a lumpsum consideration
of Rs 39.80 [Link] 18 January 2017 Trent Ltd. entered into a definitive agreement with
Amazon Eurasia Holdings S.A R.L. for acquiring 26.03% of the share capital of Westland
Limited on a fully diluted basis from Amazon Eurasia Holdings S.A R.L. thereby making
Westland Limited a wholly owned subsidiary of the company. The Board of Directors of
Trent Ltd. at its meeting held on 19 July 2017 approved entering into definitive agreement
with Trent Hypermarket Private Limited a joint venture of the company for acquiring their
value fashion apparel business. The value fashion business presents significant synergies
with the existing apparel business of the company. On 28 December 2017 Trent Ltd.
informed the stock exchanges that its wholly owned subsidiary Fiora Hypermarket Limited
(FHL) has incorporated a subsidiary namely Fiera Online Limited (FOL) for retailing
business. FOL has been incorporated as a 99.99% subsidiary of FHL.
REVIEW OF LITERATURE
[Link] et al. (1980s):
He directed an exploratory examination in the endeavor to characterize benefit quality and
build up a model of administration quality. The outcomes demonstrated that paying little
heed to the kind of administration, buyers utilized essentially the comparative criteria as a
part of assessing administration quality (Parasuraman et al., 1985). They named those 10
criteria as "administration quality determinants". From that point forward, administration
quality was characterized through 10 measurements: Access, Communication, Competence,
Courtesy, Credibility, Reliability, Responsibility, security, Tangibles and
Understanding/Knowing the client. Later, they were disentangled into five measurements
including Tangibles, Reliability, Responsiveness, Assurance and Empathy.
[Link] and Parker (1994):
Retailer's notoriety is an intermediary for the retailer's validity and can remain for flag of
value. The utilization of retailer's notoriety is when it applies to an arrangement of items
conveyed inside the store.
[Link] et al. (1996) :
He grew Retail Service Quality Model (RSQS). In view of SERVPERF, RSQS incorporates
28 –item scale, of which 17 things are from SERVPERF and 11 things are created by
subjective research. It makes out of 5 measurements, to be specific Physical Aspects,
Reliability, Personal Interaction, Problem Solving; and Policy.
[Link] and Batra (1999):
He additionally discover the relationship between value awareness and private name mark
buy to be certain additionally report that it can fluctuate by various item classifications.
5. Das (2000):
He uncovered that the Indian circumstance is incomprehensible. At $180 billion, the Indian
retail business contributes 10-12% of the GDP higher than some western economies, where
its midpoints 8%. It uncovered that India have the world's thickest thickness of outlets at
5.5% for each 1000 individuals between 12million retail locations, India's per capita retail
space is expulsion 2 sq. ft for eve
OBJECTIVE
OBJECTIVE OF THE STUDY ARE AS FOLLOWS:
1. To know the Customer Perception towards Westside Store.
2. To study the factors influencing the customers decision while doing shopping in their
desired sector in the store.
3. To know if people prefer westside brand over other Famous or Local Brands.
4. To study the reasons and barriers that abstain people from doing shopping from the
westside store.
HYPOTHESIS
Hypothesis is a likely assumption which is made for the purpose of drawing pot and testing
the logical and empirical outcomes of a study. Hypothesis is translated from the objectives of
the study to maintain consistency. Every hypothesis is needs to be tested for validity. The
hypothesis can either proven right or wrong. This testing of hypothesis makes the way for
findings.
RESEARCH METHODOLOGY
Marketing research methodology is the function that links the customer, consumer, and
public to the marketer through information and this information is used to identify and define
marketing opportunities and problems; generate, refine, and evaluate marketing actions;
monitor marketing performance; and improve understanding of marketing as a process.
Marketing research is the systematic and objective identifications, collection, analysis,
dissemination, and use of information for the purpose of improving decision marketing
related to the identification and solution of problems and opportunities in marketing.
BIBLIOGRAPHY
For the study, I got help and assistance through the following: -
1. [Link]
2. [Link].
3. The Hindu Business Line. 31 August 2005. Retrieved 23 February 2011. {Trent
acquires 76% stake in Landmark for Rs. 103.6 cr.}
4. Trent buys out landmark promoter. The Hindu Business Line
5. [Link]
6. [Link]
7. [Link]
