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Research Project Report
On
ldquoSTUDY OF CHANGING CONSUMER PREFERENCE
TOWARDS ORGANIZED RETAILING FROM
UNORGANIZED RETAILING CHANGING rdquo
Submitted for Partial Fulfillment Of
ldquoMaster of Business Administrationrdquo
(MBA -2010-2012)
Under The Guidance of- Submitted By-
Mrs Neetu Singh Ajeet Pratap Singh
Roll No 1028770003
Naraina College of Engineering amp Technology
Ratanpur Kanpur-208020
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INSTITUTE CERTIFICATE
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STUDENT DECLARATION
I Ajeet Pratap Singh student of MBA at Naraina College of Engineering amp
Technology Kanpur of hereby declare that the Project work entitled ldquoSTUDY
OF CHANGING CONSUMER PREFERENCE TOWORDS ORGANIZED
RETAILING FROM UNORGANIZED RETAILINGrdquo is compiled and
submitted under the guidance of Mrs Neetu Singh This is my original work
Whatever information furnished in this project report is true to the
best of my knowledge
Ajeet Pratap Singh
MBA Final Year
Roll No - 1028770003
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ACKNOWLEDGEMENT
I would like to express my Acknowledgement to those people without whose
contribution Support and guidance this Report would not have seen the light of the day
I am also thankful and would like to express my Gratitude to the Honorable Dr KG
Chaubey amp Mrs Neetu Singh and the entire Institute for giving me a Platform to have
this wonderful opportunity and being able to get a glimpse of the Corporate World
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PREFACE
I take this opportunity to offer my sincere gratitude to those who helped me in this report
I feel indebted to all those thoughts have been helpful in bringing out
The project is quit original in style and method and point have been spared to make it as
compact preface and reliable possible
I must assume full responsibility however for error of my short which have expect in text
and would welcome the comments and suggestion of our learned teacher to help me make
the project even more sensitive
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CONTENTS
SNo Topics Page No
Institute‟ Certificate
Acknowledgement
Student Declaration
Preface
1 Introduction
Objective of the Study
Signification of The Study
1
11
13
2 Literature of Review 15
3 Industry Overview 18
4 Company Profile 30
5 Consumer Behaviour amp Retailing Decision 42
6 Organized vs Unorganized Retail 48
7 Research Methodology 50
8 Analysis of Data 53
9 Findings 66
10 Suggestion 68
11 Conclusion 70
12 Limitation of The Study 73
13 Questionnaire 75
14 Bibliography 79
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INTRODUCTION
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INTRODUCTION TO INDIAN RETAIL INDUSTRY
The sea of change can pull customers in many directions It is our responsibility to light
the way and take care of themhellip before the competition does
Retailing Means ldquoRe-tailingrdquo to the customers so that they comeback
Retailing consists of all activities involved in selling goods and services to consumers for
their personal family or household use It covers sales of goods ranging from
automobiles to apparel and food products and services ranging from hair cutting to air
travel and computer education Sales of goods to intermediaries who resell to retailers or
sales to manufacturers are not considered a retail activity
The Indian retail story couldnt have been more different India has approx 12 million
retail stores more than rest of the world put together But the per capita square feet area
under retail is just 2 sqft or 02 sq meters with fragmented kirana stores being the
predominant players
Retailing in India has remained in the unorganized sector and largely untouched by
corporate The first decade of modern retail in India has been characterized by a shift
from traditional channels to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories
Modern retail formats have mushroomed in metros and mini-metros in the last few years
modern retail has also established its presence in the second rung cities Thus exposing
the residents of these cities to shopping options they have never experienced before It
has been forecasted that the share of modern retail will increase from 2 per cent currently
to about 15-20 per cent over the next decade
To begin with retailers today will have to support the large retail infrastructure in terms
of Malls and Superstores that are being created The challenge for leading retailers shall
therefore shift from diverting demand to creating demand
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With all the modern stores offering convenience in terms of an assortment of products
ambience service and innovative products the paradigm shall shift from competing with
the kirana stores to an in-house demand creation Relevant experiences from consumer
goods companies which have successfully crafted an explosion in demand in their
sectors through innovation consumer driven strategies will be head runner Times are
changing With the GDP at an all time high and income levels shooting through the roof
the average Indian consumer has never had it so good
The propensity to consume has reached peaks that had never been scaled before Credit
cards are flashed with disdain and shopping baskets are getting bigger all the time
Here are some factors that indicate the potential of retail in India
At 271 million one of the largest consuming base in the world forming 27 of
the total population
A high spending community below 45 years comprises 81 percent of the
population
A young population with 54 population below 25 years
Increased literacy from 44 in 1965 to 70 in 2003
Increase in working women from 13 million in 1961 to 48 million in 1998
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The first decade of modern retail in India has been characterized by a shift from
traditional kirana shops to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories Modern retail formats
have mushroomed in metros and minimetros
In the last few years modern retail has also established its presence in the second-rung
cities exposing residents to shopping options like never before However even as
modern retailers garner share from traditional channels there is a larger role they would
be required to play in boosting consumption levelsFigures suggest that the total turnover
of the sector is around Rs 10 lakh crores of which 4 percent is contributed by the
organised sector
The retail sector in India is highly fragmented with organized retail contributing to only
2 of total retail sales The retail sector in developed countries was also highly
fragmented at the beginning of the last century but emergence of large
chains like Wall Mart Sears and McDonald‟s led to rapid growth of organized retail
and growing consolidation of the retail industry in the developed countries
Organized retail is growing rapidly and we see the emergence of large organized retailchains like Shopper‟s Stop Lifestyle and Westside We also find retail malls
mushrooming all over the country The opportunities in retail industry in India will
increase since Indian retailing is on the threshold of a major change
India retail industry is the largest industry in India with an employment of around 8
and contributing to over 10 of the countrys GDP Retail industry in India is expected to
rise 25 yearly being driven by strong income growth changing lifestyles and favorable
demographic patterns It is expected that by 2016 modern retail industry in India will be
worth US$ 175- 200 billion India retail industry is one of the fastest growing industries
with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of
5 yearly A further increase of 7-8 is expected in the industry of retail in India by
growth in consumerism in urban areas rising incomes and a steep rise in rural
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consumption It has further been predicted that the retailing industry in India will amount
to US$ 215 billion by 2010 from the current size of US$ 75 billion
Shopping in India have witnessed a revolution with the change in the consumer buying
behavior and the whole format of shopping also altering Industry of retail in India which
have become modern can be seen from the fact that there are multi- stored malls huge
shopping centers and sprawling complexes which offer food shopping and
entertainment all under the same roof India retail industry is expanding itself most
aggressively as a result a great demand for real estate is being created
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TRADITIONAL CONVENIENCE STORES
Traditional convenience stores are too well established in India than to be wiped out and
besides there is uniqueness in the traditional items that represent the sub-continent
The retail stores in India are essentially dominated by the unorganized sector or
traditional stores Infact the traditional stores have taken up 98 percent of the Indian retail
market Now stores run by families are primarily food based and the set up is as Kirana or
the corner grocer stores Basically they provide high service with low prices If the
stores are not food based then the type of retail items available are local in nature
The traditional family run convenience stores can take pride in the fact that the Kirana isthe most common outlet forms for the consumers
The tough competition for convenience stores are coming from organized retail stores
dealing in food items like
Apna Bazaar
Canteen stores
Food World
Subhiksha
Food Bazaar
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Convenience Stores are open for long hours and is one of the formats of the Indian retail
stores that cater to basic needs of the consumer A good example of such would be
Convenio These stores are found in both residential as well as commercial markets The
food products of traditional family run convenience stores are comprised of branded as
well as non-branded items The benefits of family run convenience stores is that they give
importance to
Personal touch
Facilities of credit
Quick home delivery
Non-food based stock comprises of multiple and varieties of local brands
The future of such stores as they face competition from organized sector would dependon the following particulars
Place and capacity
Diligent area coverage
Disciplined work schedule
Managing turnover
Revenue from assets
Customer service and satisfaction
The traditional family run convenience stores serves the purpose of the housewives who
definitely wants to avoid traveling long distances to purchase daily needs The
convenience factor in terms of items among people in general can be highlighted as
below
Groceries
Fruits
Drug Store
Necessary stationery
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INDIAN ORGANIZED RETAIL MARKET
Indian organized retail market is growing at a fast pace due to the boom in the India retail
industry In 2005 the retail industry in India amounted to Rs 10000 billion accounting
for about 10 to the countrys GDP The organized retail market in India out of this total
market accounted for Rs 350 billion which is about 35 of the total revenues
Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010
Traditionally the retail industry in India was largely unorganized comprising of drug
stores medium and small grocery stores Most of the organized retailing in India have
started recently and is concentrating mainly in metropolitan cities The growth in the
Indian organized retail market is mainly due to the change in the consumers behavior
This change has come in the consumer due to increased income changing lifestyles and
patterns of demography which are favorable Now the consumer wants to shop at a place
where he can get food entertainment and shopping all under one roof This has given
Indian organized retail market a major boost
Retail market in the organized sector in India is growing can be seen from the fact that
1500 supermarkets 325 departmental stores and 300 new malls are being built Many
Indian companies are entering the Indian retail market which is giving Indian organized
retail market a boost One such company is the Reliance Industries Limited It plans to
invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500
supermarkets Pantaloons is another Indian company which plans to increase its retail
space to 30 million square feet with an investment of US$ 1 billion Bharti Telecoms an
Indian company is in talks with Tesco a global giant for a pound 750 million joint venture A
number of global retail giants such as Walmart Carrefour and Metro AG are also
planning to set up shop in India Indian organized retail market will definitely grow as a
result of all this investments
Classifying Indian retail
(A)Modern Format retailers
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1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (Shoppers Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated (BP)
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(B)Traditional Format Retailers
1) Kiranas Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets
4) Exclusive Multiple Brand Outlets
(C)Large Indian retailers
1 Hypermarket
1) Big Bazaar2) Giants
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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INSTITUTE CERTIFICATE
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STUDENT DECLARATION
I Ajeet Pratap Singh student of MBA at Naraina College of Engineering amp
Technology Kanpur of hereby declare that the Project work entitled ldquoSTUDY
OF CHANGING CONSUMER PREFERENCE TOWORDS ORGANIZED
RETAILING FROM UNORGANIZED RETAILINGrdquo is compiled and
submitted under the guidance of Mrs Neetu Singh This is my original work
Whatever information furnished in this project report is true to the
best of my knowledge
Ajeet Pratap Singh
MBA Final Year
Roll No - 1028770003
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ACKNOWLEDGEMENT
I would like to express my Acknowledgement to those people without whose
contribution Support and guidance this Report would not have seen the light of the day
I am also thankful and would like to express my Gratitude to the Honorable Dr KG
Chaubey amp Mrs Neetu Singh and the entire Institute for giving me a Platform to have
this wonderful opportunity and being able to get a glimpse of the Corporate World
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PREFACE
I take this opportunity to offer my sincere gratitude to those who helped me in this report
I feel indebted to all those thoughts have been helpful in bringing out
The project is quit original in style and method and point have been spared to make it as
compact preface and reliable possible
I must assume full responsibility however for error of my short which have expect in text
and would welcome the comments and suggestion of our learned teacher to help me make
the project even more sensitive
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CONTENTS
SNo Topics Page No
Institute‟ Certificate
Acknowledgement
Student Declaration
Preface
1 Introduction
Objective of the Study
Signification of The Study
1
11
13
2 Literature of Review 15
3 Industry Overview 18
4 Company Profile 30
5 Consumer Behaviour amp Retailing Decision 42
6 Organized vs Unorganized Retail 48
7 Research Methodology 50
8 Analysis of Data 53
9 Findings 66
10 Suggestion 68
11 Conclusion 70
12 Limitation of The Study 73
13 Questionnaire 75
14 Bibliography 79
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INTRODUCTION
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INTRODUCTION TO INDIAN RETAIL INDUSTRY
The sea of change can pull customers in many directions It is our responsibility to light
the way and take care of themhellip before the competition does
Retailing Means ldquoRe-tailingrdquo to the customers so that they comeback
Retailing consists of all activities involved in selling goods and services to consumers for
their personal family or household use It covers sales of goods ranging from
automobiles to apparel and food products and services ranging from hair cutting to air
travel and computer education Sales of goods to intermediaries who resell to retailers or
sales to manufacturers are not considered a retail activity
The Indian retail story couldnt have been more different India has approx 12 million
retail stores more than rest of the world put together But the per capita square feet area
under retail is just 2 sqft or 02 sq meters with fragmented kirana stores being the
predominant players
Retailing in India has remained in the unorganized sector and largely untouched by
corporate The first decade of modern retail in India has been characterized by a shift
from traditional channels to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories
Modern retail formats have mushroomed in metros and mini-metros in the last few years
modern retail has also established its presence in the second rung cities Thus exposing
the residents of these cities to shopping options they have never experienced before It
has been forecasted that the share of modern retail will increase from 2 per cent currently
to about 15-20 per cent over the next decade
To begin with retailers today will have to support the large retail infrastructure in terms
of Malls and Superstores that are being created The challenge for leading retailers shall
therefore shift from diverting demand to creating demand
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With all the modern stores offering convenience in terms of an assortment of products
ambience service and innovative products the paradigm shall shift from competing with
the kirana stores to an in-house demand creation Relevant experiences from consumer
goods companies which have successfully crafted an explosion in demand in their
sectors through innovation consumer driven strategies will be head runner Times are
changing With the GDP at an all time high and income levels shooting through the roof
the average Indian consumer has never had it so good
The propensity to consume has reached peaks that had never been scaled before Credit
cards are flashed with disdain and shopping baskets are getting bigger all the time
Here are some factors that indicate the potential of retail in India
At 271 million one of the largest consuming base in the world forming 27 of
the total population
A high spending community below 45 years comprises 81 percent of the
population
A young population with 54 population below 25 years
Increased literacy from 44 in 1965 to 70 in 2003
Increase in working women from 13 million in 1961 to 48 million in 1998
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The first decade of modern retail in India has been characterized by a shift from
traditional kirana shops to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories Modern retail formats
have mushroomed in metros and minimetros
In the last few years modern retail has also established its presence in the second-rung
cities exposing residents to shopping options like never before However even as
modern retailers garner share from traditional channels there is a larger role they would
be required to play in boosting consumption levelsFigures suggest that the total turnover
of the sector is around Rs 10 lakh crores of which 4 percent is contributed by the
organised sector
The retail sector in India is highly fragmented with organized retail contributing to only
2 of total retail sales The retail sector in developed countries was also highly
fragmented at the beginning of the last century but emergence of large
chains like Wall Mart Sears and McDonald‟s led to rapid growth of organized retail
and growing consolidation of the retail industry in the developed countries
Organized retail is growing rapidly and we see the emergence of large organized retailchains like Shopper‟s Stop Lifestyle and Westside We also find retail malls
mushrooming all over the country The opportunities in retail industry in India will
increase since Indian retailing is on the threshold of a major change
India retail industry is the largest industry in India with an employment of around 8
and contributing to over 10 of the countrys GDP Retail industry in India is expected to
rise 25 yearly being driven by strong income growth changing lifestyles and favorable
demographic patterns It is expected that by 2016 modern retail industry in India will be
worth US$ 175- 200 billion India retail industry is one of the fastest growing industries
with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of
5 yearly A further increase of 7-8 is expected in the industry of retail in India by
growth in consumerism in urban areas rising incomes and a steep rise in rural
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consumption It has further been predicted that the retailing industry in India will amount
to US$ 215 billion by 2010 from the current size of US$ 75 billion
Shopping in India have witnessed a revolution with the change in the consumer buying
behavior and the whole format of shopping also altering Industry of retail in India which
have become modern can be seen from the fact that there are multi- stored malls huge
shopping centers and sprawling complexes which offer food shopping and
entertainment all under the same roof India retail industry is expanding itself most
aggressively as a result a great demand for real estate is being created
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TRADITIONAL CONVENIENCE STORES
Traditional convenience stores are too well established in India than to be wiped out and
besides there is uniqueness in the traditional items that represent the sub-continent
The retail stores in India are essentially dominated by the unorganized sector or
traditional stores Infact the traditional stores have taken up 98 percent of the Indian retail
market Now stores run by families are primarily food based and the set up is as Kirana or
the corner grocer stores Basically they provide high service with low prices If the
stores are not food based then the type of retail items available are local in nature
The traditional family run convenience stores can take pride in the fact that the Kirana isthe most common outlet forms for the consumers
The tough competition for convenience stores are coming from organized retail stores
dealing in food items like
Apna Bazaar
Canteen stores
Food World
Subhiksha
Food Bazaar
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Convenience Stores are open for long hours and is one of the formats of the Indian retail
stores that cater to basic needs of the consumer A good example of such would be
Convenio These stores are found in both residential as well as commercial markets The
food products of traditional family run convenience stores are comprised of branded as
well as non-branded items The benefits of family run convenience stores is that they give
importance to
Personal touch
Facilities of credit
Quick home delivery
Non-food based stock comprises of multiple and varieties of local brands
The future of such stores as they face competition from organized sector would dependon the following particulars
Place and capacity
Diligent area coverage
Disciplined work schedule
Managing turnover
Revenue from assets
Customer service and satisfaction
The traditional family run convenience stores serves the purpose of the housewives who
definitely wants to avoid traveling long distances to purchase daily needs The
convenience factor in terms of items among people in general can be highlighted as
below
Groceries
Fruits
Drug Store
Necessary stationery
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INDIAN ORGANIZED RETAIL MARKET
Indian organized retail market is growing at a fast pace due to the boom in the India retail
industry In 2005 the retail industry in India amounted to Rs 10000 billion accounting
for about 10 to the countrys GDP The organized retail market in India out of this total
market accounted for Rs 350 billion which is about 35 of the total revenues
Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010
Traditionally the retail industry in India was largely unorganized comprising of drug
stores medium and small grocery stores Most of the organized retailing in India have
started recently and is concentrating mainly in metropolitan cities The growth in the
Indian organized retail market is mainly due to the change in the consumers behavior
This change has come in the consumer due to increased income changing lifestyles and
patterns of demography which are favorable Now the consumer wants to shop at a place
where he can get food entertainment and shopping all under one roof This has given
Indian organized retail market a major boost
Retail market in the organized sector in India is growing can be seen from the fact that
1500 supermarkets 325 departmental stores and 300 new malls are being built Many
Indian companies are entering the Indian retail market which is giving Indian organized
retail market a boost One such company is the Reliance Industries Limited It plans to
invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500
supermarkets Pantaloons is another Indian company which plans to increase its retail
space to 30 million square feet with an investment of US$ 1 billion Bharti Telecoms an
Indian company is in talks with Tesco a global giant for a pound 750 million joint venture A
number of global retail giants such as Walmart Carrefour and Metro AG are also
planning to set up shop in India Indian organized retail market will definitely grow as a
result of all this investments
Classifying Indian retail
(A)Modern Format retailers
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1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (Shoppers Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated (BP)
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(B)Traditional Format Retailers
1) Kiranas Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets
4) Exclusive Multiple Brand Outlets
(C)Large Indian retailers
1 Hypermarket
1) Big Bazaar2) Giants
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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STUDENT DECLARATION
I Ajeet Pratap Singh student of MBA at Naraina College of Engineering amp
Technology Kanpur of hereby declare that the Project work entitled ldquoSTUDY
OF CHANGING CONSUMER PREFERENCE TOWORDS ORGANIZED
RETAILING FROM UNORGANIZED RETAILINGrdquo is compiled and
submitted under the guidance of Mrs Neetu Singh This is my original work
Whatever information furnished in this project report is true to the
best of my knowledge
Ajeet Pratap Singh
MBA Final Year
Roll No - 1028770003
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ACKNOWLEDGEMENT
I would like to express my Acknowledgement to those people without whose
contribution Support and guidance this Report would not have seen the light of the day
I am also thankful and would like to express my Gratitude to the Honorable Dr KG
Chaubey amp Mrs Neetu Singh and the entire Institute for giving me a Platform to have
this wonderful opportunity and being able to get a glimpse of the Corporate World
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PREFACE
I take this opportunity to offer my sincere gratitude to those who helped me in this report
I feel indebted to all those thoughts have been helpful in bringing out
The project is quit original in style and method and point have been spared to make it as
compact preface and reliable possible
I must assume full responsibility however for error of my short which have expect in text
and would welcome the comments and suggestion of our learned teacher to help me make
the project even more sensitive
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CONTENTS
SNo Topics Page No
Institute‟ Certificate
Acknowledgement
Student Declaration
Preface
1 Introduction
Objective of the Study
Signification of The Study
1
11
13
2 Literature of Review 15
3 Industry Overview 18
4 Company Profile 30
5 Consumer Behaviour amp Retailing Decision 42
6 Organized vs Unorganized Retail 48
7 Research Methodology 50
8 Analysis of Data 53
9 Findings 66
10 Suggestion 68
11 Conclusion 70
12 Limitation of The Study 73
13 Questionnaire 75
14 Bibliography 79
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INTRODUCTION
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INTRODUCTION TO INDIAN RETAIL INDUSTRY
The sea of change can pull customers in many directions It is our responsibility to light
the way and take care of themhellip before the competition does
Retailing Means ldquoRe-tailingrdquo to the customers so that they comeback
Retailing consists of all activities involved in selling goods and services to consumers for
their personal family or household use It covers sales of goods ranging from
automobiles to apparel and food products and services ranging from hair cutting to air
travel and computer education Sales of goods to intermediaries who resell to retailers or
sales to manufacturers are not considered a retail activity
The Indian retail story couldnt have been more different India has approx 12 million
retail stores more than rest of the world put together But the per capita square feet area
under retail is just 2 sqft or 02 sq meters with fragmented kirana stores being the
predominant players
Retailing in India has remained in the unorganized sector and largely untouched by
corporate The first decade of modern retail in India has been characterized by a shift
from traditional channels to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories
Modern retail formats have mushroomed in metros and mini-metros in the last few years
modern retail has also established its presence in the second rung cities Thus exposing
the residents of these cities to shopping options they have never experienced before It
has been forecasted that the share of modern retail will increase from 2 per cent currently
to about 15-20 per cent over the next decade
To begin with retailers today will have to support the large retail infrastructure in terms
of Malls and Superstores that are being created The challenge for leading retailers shall
therefore shift from diverting demand to creating demand
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With all the modern stores offering convenience in terms of an assortment of products
ambience service and innovative products the paradigm shall shift from competing with
the kirana stores to an in-house demand creation Relevant experiences from consumer
goods companies which have successfully crafted an explosion in demand in their
sectors through innovation consumer driven strategies will be head runner Times are
changing With the GDP at an all time high and income levels shooting through the roof
the average Indian consumer has never had it so good
The propensity to consume has reached peaks that had never been scaled before Credit
cards are flashed with disdain and shopping baskets are getting bigger all the time
Here are some factors that indicate the potential of retail in India
At 271 million one of the largest consuming base in the world forming 27 of
the total population
A high spending community below 45 years comprises 81 percent of the
population
A young population with 54 population below 25 years
Increased literacy from 44 in 1965 to 70 in 2003
Increase in working women from 13 million in 1961 to 48 million in 1998
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The first decade of modern retail in India has been characterized by a shift from
traditional kirana shops to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories Modern retail formats
have mushroomed in metros and minimetros
In the last few years modern retail has also established its presence in the second-rung
cities exposing residents to shopping options like never before However even as
modern retailers garner share from traditional channels there is a larger role they would
be required to play in boosting consumption levelsFigures suggest that the total turnover
of the sector is around Rs 10 lakh crores of which 4 percent is contributed by the
organised sector
The retail sector in India is highly fragmented with organized retail contributing to only
2 of total retail sales The retail sector in developed countries was also highly
fragmented at the beginning of the last century but emergence of large
chains like Wall Mart Sears and McDonald‟s led to rapid growth of organized retail
and growing consolidation of the retail industry in the developed countries
Organized retail is growing rapidly and we see the emergence of large organized retailchains like Shopper‟s Stop Lifestyle and Westside We also find retail malls
mushrooming all over the country The opportunities in retail industry in India will
increase since Indian retailing is on the threshold of a major change
India retail industry is the largest industry in India with an employment of around 8
and contributing to over 10 of the countrys GDP Retail industry in India is expected to
rise 25 yearly being driven by strong income growth changing lifestyles and favorable
demographic patterns It is expected that by 2016 modern retail industry in India will be
worth US$ 175- 200 billion India retail industry is one of the fastest growing industries
with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of
5 yearly A further increase of 7-8 is expected in the industry of retail in India by
growth in consumerism in urban areas rising incomes and a steep rise in rural
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consumption It has further been predicted that the retailing industry in India will amount
to US$ 215 billion by 2010 from the current size of US$ 75 billion
Shopping in India have witnessed a revolution with the change in the consumer buying
behavior and the whole format of shopping also altering Industry of retail in India which
have become modern can be seen from the fact that there are multi- stored malls huge
shopping centers and sprawling complexes which offer food shopping and
entertainment all under the same roof India retail industry is expanding itself most
aggressively as a result a great demand for real estate is being created
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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TRADITIONAL CONVENIENCE STORES
Traditional convenience stores are too well established in India than to be wiped out and
besides there is uniqueness in the traditional items that represent the sub-continent
The retail stores in India are essentially dominated by the unorganized sector or
traditional stores Infact the traditional stores have taken up 98 percent of the Indian retail
market Now stores run by families are primarily food based and the set up is as Kirana or
the corner grocer stores Basically they provide high service with low prices If the
stores are not food based then the type of retail items available are local in nature
The traditional family run convenience stores can take pride in the fact that the Kirana isthe most common outlet forms for the consumers
The tough competition for convenience stores are coming from organized retail stores
dealing in food items like
Apna Bazaar
Canteen stores
Food World
Subhiksha
Food Bazaar
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Convenience Stores are open for long hours and is one of the formats of the Indian retail
stores that cater to basic needs of the consumer A good example of such would be
Convenio These stores are found in both residential as well as commercial markets The
food products of traditional family run convenience stores are comprised of branded as
well as non-branded items The benefits of family run convenience stores is that they give
importance to
Personal touch
Facilities of credit
Quick home delivery
Non-food based stock comprises of multiple and varieties of local brands
The future of such stores as they face competition from organized sector would dependon the following particulars
Place and capacity
Diligent area coverage
Disciplined work schedule
Managing turnover
Revenue from assets
Customer service and satisfaction
The traditional family run convenience stores serves the purpose of the housewives who
definitely wants to avoid traveling long distances to purchase daily needs The
convenience factor in terms of items among people in general can be highlighted as
below
Groceries
Fruits
Drug Store
Necessary stationery
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INDIAN ORGANIZED RETAIL MARKET
Indian organized retail market is growing at a fast pace due to the boom in the India retail
industry In 2005 the retail industry in India amounted to Rs 10000 billion accounting
for about 10 to the countrys GDP The organized retail market in India out of this total
market accounted for Rs 350 billion which is about 35 of the total revenues
Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010
Traditionally the retail industry in India was largely unorganized comprising of drug
stores medium and small grocery stores Most of the organized retailing in India have
started recently and is concentrating mainly in metropolitan cities The growth in the
Indian organized retail market is mainly due to the change in the consumers behavior
This change has come in the consumer due to increased income changing lifestyles and
patterns of demography which are favorable Now the consumer wants to shop at a place
where he can get food entertainment and shopping all under one roof This has given
Indian organized retail market a major boost
Retail market in the organized sector in India is growing can be seen from the fact that
1500 supermarkets 325 departmental stores and 300 new malls are being built Many
Indian companies are entering the Indian retail market which is giving Indian organized
retail market a boost One such company is the Reliance Industries Limited It plans to
invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500
supermarkets Pantaloons is another Indian company which plans to increase its retail
space to 30 million square feet with an investment of US$ 1 billion Bharti Telecoms an
Indian company is in talks with Tesco a global giant for a pound 750 million joint venture A
number of global retail giants such as Walmart Carrefour and Metro AG are also
planning to set up shop in India Indian organized retail market will definitely grow as a
result of all this investments
Classifying Indian retail
(A)Modern Format retailers
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1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (Shoppers Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated (BP)
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(B)Traditional Format Retailers
1) Kiranas Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets
4) Exclusive Multiple Brand Outlets
(C)Large Indian retailers
1 Hypermarket
1) Big Bazaar2) Giants
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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ACKNOWLEDGEMENT
I would like to express my Acknowledgement to those people without whose
contribution Support and guidance this Report would not have seen the light of the day
I am also thankful and would like to express my Gratitude to the Honorable Dr KG
Chaubey amp Mrs Neetu Singh and the entire Institute for giving me a Platform to have
this wonderful opportunity and being able to get a glimpse of the Corporate World
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PREFACE
I take this opportunity to offer my sincere gratitude to those who helped me in this report
I feel indebted to all those thoughts have been helpful in bringing out
The project is quit original in style and method and point have been spared to make it as
compact preface and reliable possible
I must assume full responsibility however for error of my short which have expect in text
and would welcome the comments and suggestion of our learned teacher to help me make
the project even more sensitive
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CONTENTS
SNo Topics Page No
Institute‟ Certificate
Acknowledgement
Student Declaration
Preface
1 Introduction
Objective of the Study
Signification of The Study
1
11
13
2 Literature of Review 15
3 Industry Overview 18
4 Company Profile 30
5 Consumer Behaviour amp Retailing Decision 42
6 Organized vs Unorganized Retail 48
7 Research Methodology 50
8 Analysis of Data 53
9 Findings 66
10 Suggestion 68
11 Conclusion 70
12 Limitation of The Study 73
13 Questionnaire 75
14 Bibliography 79
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INTRODUCTION
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INTRODUCTION TO INDIAN RETAIL INDUSTRY
The sea of change can pull customers in many directions It is our responsibility to light
the way and take care of themhellip before the competition does
Retailing Means ldquoRe-tailingrdquo to the customers so that they comeback
Retailing consists of all activities involved in selling goods and services to consumers for
their personal family or household use It covers sales of goods ranging from
automobiles to apparel and food products and services ranging from hair cutting to air
travel and computer education Sales of goods to intermediaries who resell to retailers or
sales to manufacturers are not considered a retail activity
The Indian retail story couldnt have been more different India has approx 12 million
retail stores more than rest of the world put together But the per capita square feet area
under retail is just 2 sqft or 02 sq meters with fragmented kirana stores being the
predominant players
Retailing in India has remained in the unorganized sector and largely untouched by
corporate The first decade of modern retail in India has been characterized by a shift
from traditional channels to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories
Modern retail formats have mushroomed in metros and mini-metros in the last few years
modern retail has also established its presence in the second rung cities Thus exposing
the residents of these cities to shopping options they have never experienced before It
has been forecasted that the share of modern retail will increase from 2 per cent currently
to about 15-20 per cent over the next decade
To begin with retailers today will have to support the large retail infrastructure in terms
of Malls and Superstores that are being created The challenge for leading retailers shall
therefore shift from diverting demand to creating demand
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With all the modern stores offering convenience in terms of an assortment of products
ambience service and innovative products the paradigm shall shift from competing with
the kirana stores to an in-house demand creation Relevant experiences from consumer
goods companies which have successfully crafted an explosion in demand in their
sectors through innovation consumer driven strategies will be head runner Times are
changing With the GDP at an all time high and income levels shooting through the roof
the average Indian consumer has never had it so good
The propensity to consume has reached peaks that had never been scaled before Credit
cards are flashed with disdain and shopping baskets are getting bigger all the time
Here are some factors that indicate the potential of retail in India
At 271 million one of the largest consuming base in the world forming 27 of
the total population
A high spending community below 45 years comprises 81 percent of the
population
A young population with 54 population below 25 years
Increased literacy from 44 in 1965 to 70 in 2003
Increase in working women from 13 million in 1961 to 48 million in 1998
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The first decade of modern retail in India has been characterized by a shift from
traditional kirana shops to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories Modern retail formats
have mushroomed in metros and minimetros
In the last few years modern retail has also established its presence in the second-rung
cities exposing residents to shopping options like never before However even as
modern retailers garner share from traditional channels there is a larger role they would
be required to play in boosting consumption levelsFigures suggest that the total turnover
of the sector is around Rs 10 lakh crores of which 4 percent is contributed by the
organised sector
The retail sector in India is highly fragmented with organized retail contributing to only
2 of total retail sales The retail sector in developed countries was also highly
fragmented at the beginning of the last century but emergence of large
chains like Wall Mart Sears and McDonald‟s led to rapid growth of organized retail
and growing consolidation of the retail industry in the developed countries
Organized retail is growing rapidly and we see the emergence of large organized retailchains like Shopper‟s Stop Lifestyle and Westside We also find retail malls
mushrooming all over the country The opportunities in retail industry in India will
increase since Indian retailing is on the threshold of a major change
India retail industry is the largest industry in India with an employment of around 8
and contributing to over 10 of the countrys GDP Retail industry in India is expected to
rise 25 yearly being driven by strong income growth changing lifestyles and favorable
demographic patterns It is expected that by 2016 modern retail industry in India will be
worth US$ 175- 200 billion India retail industry is one of the fastest growing industries
with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of
5 yearly A further increase of 7-8 is expected in the industry of retail in India by
growth in consumerism in urban areas rising incomes and a steep rise in rural
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consumption It has further been predicted that the retailing industry in India will amount
to US$ 215 billion by 2010 from the current size of US$ 75 billion
Shopping in India have witnessed a revolution with the change in the consumer buying
behavior and the whole format of shopping also altering Industry of retail in India which
have become modern can be seen from the fact that there are multi- stored malls huge
shopping centers and sprawling complexes which offer food shopping and
entertainment all under the same roof India retail industry is expanding itself most
aggressively as a result a great demand for real estate is being created
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TRADITIONAL CONVENIENCE STORES
Traditional convenience stores are too well established in India than to be wiped out and
besides there is uniqueness in the traditional items that represent the sub-continent
The retail stores in India are essentially dominated by the unorganized sector or
traditional stores Infact the traditional stores have taken up 98 percent of the Indian retail
market Now stores run by families are primarily food based and the set up is as Kirana or
the corner grocer stores Basically they provide high service with low prices If the
stores are not food based then the type of retail items available are local in nature
The traditional family run convenience stores can take pride in the fact that the Kirana isthe most common outlet forms for the consumers
The tough competition for convenience stores are coming from organized retail stores
dealing in food items like
Apna Bazaar
Canteen stores
Food World
Subhiksha
Food Bazaar
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Convenience Stores are open for long hours and is one of the formats of the Indian retail
stores that cater to basic needs of the consumer A good example of such would be
Convenio These stores are found in both residential as well as commercial markets The
food products of traditional family run convenience stores are comprised of branded as
well as non-branded items The benefits of family run convenience stores is that they give
importance to
Personal touch
Facilities of credit
Quick home delivery
Non-food based stock comprises of multiple and varieties of local brands
The future of such stores as they face competition from organized sector would dependon the following particulars
Place and capacity
Diligent area coverage
Disciplined work schedule
Managing turnover
Revenue from assets
Customer service and satisfaction
The traditional family run convenience stores serves the purpose of the housewives who
definitely wants to avoid traveling long distances to purchase daily needs The
convenience factor in terms of items among people in general can be highlighted as
below
Groceries
Fruits
Drug Store
Necessary stationery
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INDIAN ORGANIZED RETAIL MARKET
Indian organized retail market is growing at a fast pace due to the boom in the India retail
industry In 2005 the retail industry in India amounted to Rs 10000 billion accounting
for about 10 to the countrys GDP The organized retail market in India out of this total
market accounted for Rs 350 billion which is about 35 of the total revenues
Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010
Traditionally the retail industry in India was largely unorganized comprising of drug
stores medium and small grocery stores Most of the organized retailing in India have
started recently and is concentrating mainly in metropolitan cities The growth in the
Indian organized retail market is mainly due to the change in the consumers behavior
This change has come in the consumer due to increased income changing lifestyles and
patterns of demography which are favorable Now the consumer wants to shop at a place
where he can get food entertainment and shopping all under one roof This has given
Indian organized retail market a major boost
Retail market in the organized sector in India is growing can be seen from the fact that
1500 supermarkets 325 departmental stores and 300 new malls are being built Many
Indian companies are entering the Indian retail market which is giving Indian organized
retail market a boost One such company is the Reliance Industries Limited It plans to
invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500
supermarkets Pantaloons is another Indian company which plans to increase its retail
space to 30 million square feet with an investment of US$ 1 billion Bharti Telecoms an
Indian company is in talks with Tesco a global giant for a pound 750 million joint venture A
number of global retail giants such as Walmart Carrefour and Metro AG are also
planning to set up shop in India Indian organized retail market will definitely grow as a
result of all this investments
Classifying Indian retail
(A)Modern Format retailers
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1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (Shoppers Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated (BP)
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(B)Traditional Format Retailers
1) Kiranas Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets
4) Exclusive Multiple Brand Outlets
(C)Large Indian retailers
1 Hypermarket
1) Big Bazaar2) Giants
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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PREFACE
I take this opportunity to offer my sincere gratitude to those who helped me in this report
I feel indebted to all those thoughts have been helpful in bringing out
The project is quit original in style and method and point have been spared to make it as
compact preface and reliable possible
I must assume full responsibility however for error of my short which have expect in text
and would welcome the comments and suggestion of our learned teacher to help me make
the project even more sensitive
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CONTENTS
SNo Topics Page No
Institute‟ Certificate
Acknowledgement
Student Declaration
Preface
1 Introduction
Objective of the Study
Signification of The Study
1
11
13
2 Literature of Review 15
3 Industry Overview 18
4 Company Profile 30
5 Consumer Behaviour amp Retailing Decision 42
6 Organized vs Unorganized Retail 48
7 Research Methodology 50
8 Analysis of Data 53
9 Findings 66
10 Suggestion 68
11 Conclusion 70
12 Limitation of The Study 73
13 Questionnaire 75
14 Bibliography 79
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INTRODUCTION
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INTRODUCTION TO INDIAN RETAIL INDUSTRY
The sea of change can pull customers in many directions It is our responsibility to light
the way and take care of themhellip before the competition does
Retailing Means ldquoRe-tailingrdquo to the customers so that they comeback
Retailing consists of all activities involved in selling goods and services to consumers for
their personal family or household use It covers sales of goods ranging from
automobiles to apparel and food products and services ranging from hair cutting to air
travel and computer education Sales of goods to intermediaries who resell to retailers or
sales to manufacturers are not considered a retail activity
The Indian retail story couldnt have been more different India has approx 12 million
retail stores more than rest of the world put together But the per capita square feet area
under retail is just 2 sqft or 02 sq meters with fragmented kirana stores being the
predominant players
Retailing in India has remained in the unorganized sector and largely untouched by
corporate The first decade of modern retail in India has been characterized by a shift
from traditional channels to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories
Modern retail formats have mushroomed in metros and mini-metros in the last few years
modern retail has also established its presence in the second rung cities Thus exposing
the residents of these cities to shopping options they have never experienced before It
has been forecasted that the share of modern retail will increase from 2 per cent currently
to about 15-20 per cent over the next decade
To begin with retailers today will have to support the large retail infrastructure in terms
of Malls and Superstores that are being created The challenge for leading retailers shall
therefore shift from diverting demand to creating demand
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With all the modern stores offering convenience in terms of an assortment of products
ambience service and innovative products the paradigm shall shift from competing with
the kirana stores to an in-house demand creation Relevant experiences from consumer
goods companies which have successfully crafted an explosion in demand in their
sectors through innovation consumer driven strategies will be head runner Times are
changing With the GDP at an all time high and income levels shooting through the roof
the average Indian consumer has never had it so good
The propensity to consume has reached peaks that had never been scaled before Credit
cards are flashed with disdain and shopping baskets are getting bigger all the time
Here are some factors that indicate the potential of retail in India
At 271 million one of the largest consuming base in the world forming 27 of
the total population
A high spending community below 45 years comprises 81 percent of the
population
A young population with 54 population below 25 years
Increased literacy from 44 in 1965 to 70 in 2003
Increase in working women from 13 million in 1961 to 48 million in 1998
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The first decade of modern retail in India has been characterized by a shift from
traditional kirana shops to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories Modern retail formats
have mushroomed in metros and minimetros
In the last few years modern retail has also established its presence in the second-rung
cities exposing residents to shopping options like never before However even as
modern retailers garner share from traditional channels there is a larger role they would
be required to play in boosting consumption levelsFigures suggest that the total turnover
of the sector is around Rs 10 lakh crores of which 4 percent is contributed by the
organised sector
The retail sector in India is highly fragmented with organized retail contributing to only
2 of total retail sales The retail sector in developed countries was also highly
fragmented at the beginning of the last century but emergence of large
chains like Wall Mart Sears and McDonald‟s led to rapid growth of organized retail
and growing consolidation of the retail industry in the developed countries
Organized retail is growing rapidly and we see the emergence of large organized retailchains like Shopper‟s Stop Lifestyle and Westside We also find retail malls
mushrooming all over the country The opportunities in retail industry in India will
increase since Indian retailing is on the threshold of a major change
India retail industry is the largest industry in India with an employment of around 8
and contributing to over 10 of the countrys GDP Retail industry in India is expected to
rise 25 yearly being driven by strong income growth changing lifestyles and favorable
demographic patterns It is expected that by 2016 modern retail industry in India will be
worth US$ 175- 200 billion India retail industry is one of the fastest growing industries
with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of
5 yearly A further increase of 7-8 is expected in the industry of retail in India by
growth in consumerism in urban areas rising incomes and a steep rise in rural
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consumption It has further been predicted that the retailing industry in India will amount
to US$ 215 billion by 2010 from the current size of US$ 75 billion
Shopping in India have witnessed a revolution with the change in the consumer buying
behavior and the whole format of shopping also altering Industry of retail in India which
have become modern can be seen from the fact that there are multi- stored malls huge
shopping centers and sprawling complexes which offer food shopping and
entertainment all under the same roof India retail industry is expanding itself most
aggressively as a result a great demand for real estate is being created
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TRADITIONAL CONVENIENCE STORES
Traditional convenience stores are too well established in India than to be wiped out and
besides there is uniqueness in the traditional items that represent the sub-continent
The retail stores in India are essentially dominated by the unorganized sector or
traditional stores Infact the traditional stores have taken up 98 percent of the Indian retail
market Now stores run by families are primarily food based and the set up is as Kirana or
the corner grocer stores Basically they provide high service with low prices If the
stores are not food based then the type of retail items available are local in nature
The traditional family run convenience stores can take pride in the fact that the Kirana isthe most common outlet forms for the consumers
The tough competition for convenience stores are coming from organized retail stores
dealing in food items like
Apna Bazaar
Canteen stores
Food World
Subhiksha
Food Bazaar
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Convenience Stores are open for long hours and is one of the formats of the Indian retail
stores that cater to basic needs of the consumer A good example of such would be
Convenio These stores are found in both residential as well as commercial markets The
food products of traditional family run convenience stores are comprised of branded as
well as non-branded items The benefits of family run convenience stores is that they give
importance to
Personal touch
Facilities of credit
Quick home delivery
Non-food based stock comprises of multiple and varieties of local brands
The future of such stores as they face competition from organized sector would dependon the following particulars
Place and capacity
Diligent area coverage
Disciplined work schedule
Managing turnover
Revenue from assets
Customer service and satisfaction
The traditional family run convenience stores serves the purpose of the housewives who
definitely wants to avoid traveling long distances to purchase daily needs The
convenience factor in terms of items among people in general can be highlighted as
below
Groceries
Fruits
Drug Store
Necessary stationery
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INDIAN ORGANIZED RETAIL MARKET
Indian organized retail market is growing at a fast pace due to the boom in the India retail
industry In 2005 the retail industry in India amounted to Rs 10000 billion accounting
for about 10 to the countrys GDP The organized retail market in India out of this total
market accounted for Rs 350 billion which is about 35 of the total revenues
Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010
Traditionally the retail industry in India was largely unorganized comprising of drug
stores medium and small grocery stores Most of the organized retailing in India have
started recently and is concentrating mainly in metropolitan cities The growth in the
Indian organized retail market is mainly due to the change in the consumers behavior
This change has come in the consumer due to increased income changing lifestyles and
patterns of demography which are favorable Now the consumer wants to shop at a place
where he can get food entertainment and shopping all under one roof This has given
Indian organized retail market a major boost
Retail market in the organized sector in India is growing can be seen from the fact that
1500 supermarkets 325 departmental stores and 300 new malls are being built Many
Indian companies are entering the Indian retail market which is giving Indian organized
retail market a boost One such company is the Reliance Industries Limited It plans to
invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500
supermarkets Pantaloons is another Indian company which plans to increase its retail
space to 30 million square feet with an investment of US$ 1 billion Bharti Telecoms an
Indian company is in talks with Tesco a global giant for a pound 750 million joint venture A
number of global retail giants such as Walmart Carrefour and Metro AG are also
planning to set up shop in India Indian organized retail market will definitely grow as a
result of all this investments
Classifying Indian retail
(A)Modern Format retailers
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1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (Shoppers Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated (BP)
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(B)Traditional Format Retailers
1) Kiranas Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets
4) Exclusive Multiple Brand Outlets
(C)Large Indian retailers
1 Hypermarket
1) Big Bazaar2) Giants
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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CONTENTS
SNo Topics Page No
Institute‟ Certificate
Acknowledgement
Student Declaration
Preface
1 Introduction
Objective of the Study
Signification of The Study
1
11
13
2 Literature of Review 15
3 Industry Overview 18
4 Company Profile 30
5 Consumer Behaviour amp Retailing Decision 42
6 Organized vs Unorganized Retail 48
7 Research Methodology 50
8 Analysis of Data 53
9 Findings 66
10 Suggestion 68
11 Conclusion 70
12 Limitation of The Study 73
13 Questionnaire 75
14 Bibliography 79
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INTRODUCTION
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INTRODUCTION TO INDIAN RETAIL INDUSTRY
The sea of change can pull customers in many directions It is our responsibility to light
the way and take care of themhellip before the competition does
Retailing Means ldquoRe-tailingrdquo to the customers so that they comeback
Retailing consists of all activities involved in selling goods and services to consumers for
their personal family or household use It covers sales of goods ranging from
automobiles to apparel and food products and services ranging from hair cutting to air
travel and computer education Sales of goods to intermediaries who resell to retailers or
sales to manufacturers are not considered a retail activity
The Indian retail story couldnt have been more different India has approx 12 million
retail stores more than rest of the world put together But the per capita square feet area
under retail is just 2 sqft or 02 sq meters with fragmented kirana stores being the
predominant players
Retailing in India has remained in the unorganized sector and largely untouched by
corporate The first decade of modern retail in India has been characterized by a shift
from traditional channels to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories
Modern retail formats have mushroomed in metros and mini-metros in the last few years
modern retail has also established its presence in the second rung cities Thus exposing
the residents of these cities to shopping options they have never experienced before It
has been forecasted that the share of modern retail will increase from 2 per cent currently
to about 15-20 per cent over the next decade
To begin with retailers today will have to support the large retail infrastructure in terms
of Malls and Superstores that are being created The challenge for leading retailers shall
therefore shift from diverting demand to creating demand
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With all the modern stores offering convenience in terms of an assortment of products
ambience service and innovative products the paradigm shall shift from competing with
the kirana stores to an in-house demand creation Relevant experiences from consumer
goods companies which have successfully crafted an explosion in demand in their
sectors through innovation consumer driven strategies will be head runner Times are
changing With the GDP at an all time high and income levels shooting through the roof
the average Indian consumer has never had it so good
The propensity to consume has reached peaks that had never been scaled before Credit
cards are flashed with disdain and shopping baskets are getting bigger all the time
Here are some factors that indicate the potential of retail in India
At 271 million one of the largest consuming base in the world forming 27 of
the total population
A high spending community below 45 years comprises 81 percent of the
population
A young population with 54 population below 25 years
Increased literacy from 44 in 1965 to 70 in 2003
Increase in working women from 13 million in 1961 to 48 million in 1998
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The first decade of modern retail in India has been characterized by a shift from
traditional kirana shops to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories Modern retail formats
have mushroomed in metros and minimetros
In the last few years modern retail has also established its presence in the second-rung
cities exposing residents to shopping options like never before However even as
modern retailers garner share from traditional channels there is a larger role they would
be required to play in boosting consumption levelsFigures suggest that the total turnover
of the sector is around Rs 10 lakh crores of which 4 percent is contributed by the
organised sector
The retail sector in India is highly fragmented with organized retail contributing to only
2 of total retail sales The retail sector in developed countries was also highly
fragmented at the beginning of the last century but emergence of large
chains like Wall Mart Sears and McDonald‟s led to rapid growth of organized retail
and growing consolidation of the retail industry in the developed countries
Organized retail is growing rapidly and we see the emergence of large organized retailchains like Shopper‟s Stop Lifestyle and Westside We also find retail malls
mushrooming all over the country The opportunities in retail industry in India will
increase since Indian retailing is on the threshold of a major change
India retail industry is the largest industry in India with an employment of around 8
and contributing to over 10 of the countrys GDP Retail industry in India is expected to
rise 25 yearly being driven by strong income growth changing lifestyles and favorable
demographic patterns It is expected that by 2016 modern retail industry in India will be
worth US$ 175- 200 billion India retail industry is one of the fastest growing industries
with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of
5 yearly A further increase of 7-8 is expected in the industry of retail in India by
growth in consumerism in urban areas rising incomes and a steep rise in rural
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consumption It has further been predicted that the retailing industry in India will amount
to US$ 215 billion by 2010 from the current size of US$ 75 billion
Shopping in India have witnessed a revolution with the change in the consumer buying
behavior and the whole format of shopping also altering Industry of retail in India which
have become modern can be seen from the fact that there are multi- stored malls huge
shopping centers and sprawling complexes which offer food shopping and
entertainment all under the same roof India retail industry is expanding itself most
aggressively as a result a great demand for real estate is being created
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TRADITIONAL CONVENIENCE STORES
Traditional convenience stores are too well established in India than to be wiped out and
besides there is uniqueness in the traditional items that represent the sub-continent
The retail stores in India are essentially dominated by the unorganized sector or
traditional stores Infact the traditional stores have taken up 98 percent of the Indian retail
market Now stores run by families are primarily food based and the set up is as Kirana or
the corner grocer stores Basically they provide high service with low prices If the
stores are not food based then the type of retail items available are local in nature
The traditional family run convenience stores can take pride in the fact that the Kirana isthe most common outlet forms for the consumers
The tough competition for convenience stores are coming from organized retail stores
dealing in food items like
Apna Bazaar
Canteen stores
Food World
Subhiksha
Food Bazaar
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Convenience Stores are open for long hours and is one of the formats of the Indian retail
stores that cater to basic needs of the consumer A good example of such would be
Convenio These stores are found in both residential as well as commercial markets The
food products of traditional family run convenience stores are comprised of branded as
well as non-branded items The benefits of family run convenience stores is that they give
importance to
Personal touch
Facilities of credit
Quick home delivery
Non-food based stock comprises of multiple and varieties of local brands
The future of such stores as they face competition from organized sector would dependon the following particulars
Place and capacity
Diligent area coverage
Disciplined work schedule
Managing turnover
Revenue from assets
Customer service and satisfaction
The traditional family run convenience stores serves the purpose of the housewives who
definitely wants to avoid traveling long distances to purchase daily needs The
convenience factor in terms of items among people in general can be highlighted as
below
Groceries
Fruits
Drug Store
Necessary stationery
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INDIAN ORGANIZED RETAIL MARKET
Indian organized retail market is growing at a fast pace due to the boom in the India retail
industry In 2005 the retail industry in India amounted to Rs 10000 billion accounting
for about 10 to the countrys GDP The organized retail market in India out of this total
market accounted for Rs 350 billion which is about 35 of the total revenues
Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010
Traditionally the retail industry in India was largely unorganized comprising of drug
stores medium and small grocery stores Most of the organized retailing in India have
started recently and is concentrating mainly in metropolitan cities The growth in the
Indian organized retail market is mainly due to the change in the consumers behavior
This change has come in the consumer due to increased income changing lifestyles and
patterns of demography which are favorable Now the consumer wants to shop at a place
where he can get food entertainment and shopping all under one roof This has given
Indian organized retail market a major boost
Retail market in the organized sector in India is growing can be seen from the fact that
1500 supermarkets 325 departmental stores and 300 new malls are being built Many
Indian companies are entering the Indian retail market which is giving Indian organized
retail market a boost One such company is the Reliance Industries Limited It plans to
invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500
supermarkets Pantaloons is another Indian company which plans to increase its retail
space to 30 million square feet with an investment of US$ 1 billion Bharti Telecoms an
Indian company is in talks with Tesco a global giant for a pound 750 million joint venture A
number of global retail giants such as Walmart Carrefour and Metro AG are also
planning to set up shop in India Indian organized retail market will definitely grow as a
result of all this investments
Classifying Indian retail
(A)Modern Format retailers
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1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (Shoppers Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated (BP)
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(B)Traditional Format Retailers
1) Kiranas Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets
4) Exclusive Multiple Brand Outlets
(C)Large Indian retailers
1 Hypermarket
1) Big Bazaar2) Giants
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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INTRODUCTION
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INTRODUCTION TO INDIAN RETAIL INDUSTRY
The sea of change can pull customers in many directions It is our responsibility to light
the way and take care of themhellip before the competition does
Retailing Means ldquoRe-tailingrdquo to the customers so that they comeback
Retailing consists of all activities involved in selling goods and services to consumers for
their personal family or household use It covers sales of goods ranging from
automobiles to apparel and food products and services ranging from hair cutting to air
travel and computer education Sales of goods to intermediaries who resell to retailers or
sales to manufacturers are not considered a retail activity
The Indian retail story couldnt have been more different India has approx 12 million
retail stores more than rest of the world put together But the per capita square feet area
under retail is just 2 sqft or 02 sq meters with fragmented kirana stores being the
predominant players
Retailing in India has remained in the unorganized sector and largely untouched by
corporate The first decade of modern retail in India has been characterized by a shift
from traditional channels to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories
Modern retail formats have mushroomed in metros and mini-metros in the last few years
modern retail has also established its presence in the second rung cities Thus exposing
the residents of these cities to shopping options they have never experienced before It
has been forecasted that the share of modern retail will increase from 2 per cent currently
to about 15-20 per cent over the next decade
To begin with retailers today will have to support the large retail infrastructure in terms
of Malls and Superstores that are being created The challenge for leading retailers shall
therefore shift from diverting demand to creating demand
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With all the modern stores offering convenience in terms of an assortment of products
ambience service and innovative products the paradigm shall shift from competing with
the kirana stores to an in-house demand creation Relevant experiences from consumer
goods companies which have successfully crafted an explosion in demand in their
sectors through innovation consumer driven strategies will be head runner Times are
changing With the GDP at an all time high and income levels shooting through the roof
the average Indian consumer has never had it so good
The propensity to consume has reached peaks that had never been scaled before Credit
cards are flashed with disdain and shopping baskets are getting bigger all the time
Here are some factors that indicate the potential of retail in India
At 271 million one of the largest consuming base in the world forming 27 of
the total population
A high spending community below 45 years comprises 81 percent of the
population
A young population with 54 population below 25 years
Increased literacy from 44 in 1965 to 70 in 2003
Increase in working women from 13 million in 1961 to 48 million in 1998
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The first decade of modern retail in India has been characterized by a shift from
traditional kirana shops to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories Modern retail formats
have mushroomed in metros and minimetros
In the last few years modern retail has also established its presence in the second-rung
cities exposing residents to shopping options like never before However even as
modern retailers garner share from traditional channels there is a larger role they would
be required to play in boosting consumption levelsFigures suggest that the total turnover
of the sector is around Rs 10 lakh crores of which 4 percent is contributed by the
organised sector
The retail sector in India is highly fragmented with organized retail contributing to only
2 of total retail sales The retail sector in developed countries was also highly
fragmented at the beginning of the last century but emergence of large
chains like Wall Mart Sears and McDonald‟s led to rapid growth of organized retail
and growing consolidation of the retail industry in the developed countries
Organized retail is growing rapidly and we see the emergence of large organized retailchains like Shopper‟s Stop Lifestyle and Westside We also find retail malls
mushrooming all over the country The opportunities in retail industry in India will
increase since Indian retailing is on the threshold of a major change
India retail industry is the largest industry in India with an employment of around 8
and contributing to over 10 of the countrys GDP Retail industry in India is expected to
rise 25 yearly being driven by strong income growth changing lifestyles and favorable
demographic patterns It is expected that by 2016 modern retail industry in India will be
worth US$ 175- 200 billion India retail industry is one of the fastest growing industries
with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of
5 yearly A further increase of 7-8 is expected in the industry of retail in India by
growth in consumerism in urban areas rising incomes and a steep rise in rural
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consumption It has further been predicted that the retailing industry in India will amount
to US$ 215 billion by 2010 from the current size of US$ 75 billion
Shopping in India have witnessed a revolution with the change in the consumer buying
behavior and the whole format of shopping also altering Industry of retail in India which
have become modern can be seen from the fact that there are multi- stored malls huge
shopping centers and sprawling complexes which offer food shopping and
entertainment all under the same roof India retail industry is expanding itself most
aggressively as a result a great demand for real estate is being created
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TRADITIONAL CONVENIENCE STORES
Traditional convenience stores are too well established in India than to be wiped out and
besides there is uniqueness in the traditional items that represent the sub-continent
The retail stores in India are essentially dominated by the unorganized sector or
traditional stores Infact the traditional stores have taken up 98 percent of the Indian retail
market Now stores run by families are primarily food based and the set up is as Kirana or
the corner grocer stores Basically they provide high service with low prices If the
stores are not food based then the type of retail items available are local in nature
The traditional family run convenience stores can take pride in the fact that the Kirana isthe most common outlet forms for the consumers
The tough competition for convenience stores are coming from organized retail stores
dealing in food items like
Apna Bazaar
Canteen stores
Food World
Subhiksha
Food Bazaar
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Convenience Stores are open for long hours and is one of the formats of the Indian retail
stores that cater to basic needs of the consumer A good example of such would be
Convenio These stores are found in both residential as well as commercial markets The
food products of traditional family run convenience stores are comprised of branded as
well as non-branded items The benefits of family run convenience stores is that they give
importance to
Personal touch
Facilities of credit
Quick home delivery
Non-food based stock comprises of multiple and varieties of local brands
The future of such stores as they face competition from organized sector would dependon the following particulars
Place and capacity
Diligent area coverage
Disciplined work schedule
Managing turnover
Revenue from assets
Customer service and satisfaction
The traditional family run convenience stores serves the purpose of the housewives who
definitely wants to avoid traveling long distances to purchase daily needs The
convenience factor in terms of items among people in general can be highlighted as
below
Groceries
Fruits
Drug Store
Necessary stationery
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INDIAN ORGANIZED RETAIL MARKET
Indian organized retail market is growing at a fast pace due to the boom in the India retail
industry In 2005 the retail industry in India amounted to Rs 10000 billion accounting
for about 10 to the countrys GDP The organized retail market in India out of this total
market accounted for Rs 350 billion which is about 35 of the total revenues
Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010
Traditionally the retail industry in India was largely unorganized comprising of drug
stores medium and small grocery stores Most of the organized retailing in India have
started recently and is concentrating mainly in metropolitan cities The growth in the
Indian organized retail market is mainly due to the change in the consumers behavior
This change has come in the consumer due to increased income changing lifestyles and
patterns of demography which are favorable Now the consumer wants to shop at a place
where he can get food entertainment and shopping all under one roof This has given
Indian organized retail market a major boost
Retail market in the organized sector in India is growing can be seen from the fact that
1500 supermarkets 325 departmental stores and 300 new malls are being built Many
Indian companies are entering the Indian retail market which is giving Indian organized
retail market a boost One such company is the Reliance Industries Limited It plans to
invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500
supermarkets Pantaloons is another Indian company which plans to increase its retail
space to 30 million square feet with an investment of US$ 1 billion Bharti Telecoms an
Indian company is in talks with Tesco a global giant for a pound 750 million joint venture A
number of global retail giants such as Walmart Carrefour and Metro AG are also
planning to set up shop in India Indian organized retail market will definitely grow as a
result of all this investments
Classifying Indian retail
(A)Modern Format retailers
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1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (Shoppers Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated (BP)
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(B)Traditional Format Retailers
1) Kiranas Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets
4) Exclusive Multiple Brand Outlets
(C)Large Indian retailers
1 Hypermarket
1) Big Bazaar2) Giants
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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INTRODUCTION TO INDIAN RETAIL INDUSTRY
The sea of change can pull customers in many directions It is our responsibility to light
the way and take care of themhellip before the competition does
Retailing Means ldquoRe-tailingrdquo to the customers so that they comeback
Retailing consists of all activities involved in selling goods and services to consumers for
their personal family or household use It covers sales of goods ranging from
automobiles to apparel and food products and services ranging from hair cutting to air
travel and computer education Sales of goods to intermediaries who resell to retailers or
sales to manufacturers are not considered a retail activity
The Indian retail story couldnt have been more different India has approx 12 million
retail stores more than rest of the world put together But the per capita square feet area
under retail is just 2 sqft or 02 sq meters with fragmented kirana stores being the
predominant players
Retailing in India has remained in the unorganized sector and largely untouched by
corporate The first decade of modern retail in India has been characterized by a shift
from traditional channels to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories
Modern retail formats have mushroomed in metros and mini-metros in the last few years
modern retail has also established its presence in the second rung cities Thus exposing
the residents of these cities to shopping options they have never experienced before It
has been forecasted that the share of modern retail will increase from 2 per cent currently
to about 15-20 per cent over the next decade
To begin with retailers today will have to support the large retail infrastructure in terms
of Malls and Superstores that are being created The challenge for leading retailers shall
therefore shift from diverting demand to creating demand
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With all the modern stores offering convenience in terms of an assortment of products
ambience service and innovative products the paradigm shall shift from competing with
the kirana stores to an in-house demand creation Relevant experiences from consumer
goods companies which have successfully crafted an explosion in demand in their
sectors through innovation consumer driven strategies will be head runner Times are
changing With the GDP at an all time high and income levels shooting through the roof
the average Indian consumer has never had it so good
The propensity to consume has reached peaks that had never been scaled before Credit
cards are flashed with disdain and shopping baskets are getting bigger all the time
Here are some factors that indicate the potential of retail in India
At 271 million one of the largest consuming base in the world forming 27 of
the total population
A high spending community below 45 years comprises 81 percent of the
population
A young population with 54 population below 25 years
Increased literacy from 44 in 1965 to 70 in 2003
Increase in working women from 13 million in 1961 to 48 million in 1998
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The first decade of modern retail in India has been characterized by a shift from
traditional kirana shops to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories Modern retail formats
have mushroomed in metros and minimetros
In the last few years modern retail has also established its presence in the second-rung
cities exposing residents to shopping options like never before However even as
modern retailers garner share from traditional channels there is a larger role they would
be required to play in boosting consumption levelsFigures suggest that the total turnover
of the sector is around Rs 10 lakh crores of which 4 percent is contributed by the
organised sector
The retail sector in India is highly fragmented with organized retail contributing to only
2 of total retail sales The retail sector in developed countries was also highly
fragmented at the beginning of the last century but emergence of large
chains like Wall Mart Sears and McDonald‟s led to rapid growth of organized retail
and growing consolidation of the retail industry in the developed countries
Organized retail is growing rapidly and we see the emergence of large organized retailchains like Shopper‟s Stop Lifestyle and Westside We also find retail malls
mushrooming all over the country The opportunities in retail industry in India will
increase since Indian retailing is on the threshold of a major change
India retail industry is the largest industry in India with an employment of around 8
and contributing to over 10 of the countrys GDP Retail industry in India is expected to
rise 25 yearly being driven by strong income growth changing lifestyles and favorable
demographic patterns It is expected that by 2016 modern retail industry in India will be
worth US$ 175- 200 billion India retail industry is one of the fastest growing industries
with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of
5 yearly A further increase of 7-8 is expected in the industry of retail in India by
growth in consumerism in urban areas rising incomes and a steep rise in rural
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consumption It has further been predicted that the retailing industry in India will amount
to US$ 215 billion by 2010 from the current size of US$ 75 billion
Shopping in India have witnessed a revolution with the change in the consumer buying
behavior and the whole format of shopping also altering Industry of retail in India which
have become modern can be seen from the fact that there are multi- stored malls huge
shopping centers and sprawling complexes which offer food shopping and
entertainment all under the same roof India retail industry is expanding itself most
aggressively as a result a great demand for real estate is being created
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TRADITIONAL CONVENIENCE STORES
Traditional convenience stores are too well established in India than to be wiped out and
besides there is uniqueness in the traditional items that represent the sub-continent
The retail stores in India are essentially dominated by the unorganized sector or
traditional stores Infact the traditional stores have taken up 98 percent of the Indian retail
market Now stores run by families are primarily food based and the set up is as Kirana or
the corner grocer stores Basically they provide high service with low prices If the
stores are not food based then the type of retail items available are local in nature
The traditional family run convenience stores can take pride in the fact that the Kirana isthe most common outlet forms for the consumers
The tough competition for convenience stores are coming from organized retail stores
dealing in food items like
Apna Bazaar
Canteen stores
Food World
Subhiksha
Food Bazaar
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Convenience Stores are open for long hours and is one of the formats of the Indian retail
stores that cater to basic needs of the consumer A good example of such would be
Convenio These stores are found in both residential as well as commercial markets The
food products of traditional family run convenience stores are comprised of branded as
well as non-branded items The benefits of family run convenience stores is that they give
importance to
Personal touch
Facilities of credit
Quick home delivery
Non-food based stock comprises of multiple and varieties of local brands
The future of such stores as they face competition from organized sector would dependon the following particulars
Place and capacity
Diligent area coverage
Disciplined work schedule
Managing turnover
Revenue from assets
Customer service and satisfaction
The traditional family run convenience stores serves the purpose of the housewives who
definitely wants to avoid traveling long distances to purchase daily needs The
convenience factor in terms of items among people in general can be highlighted as
below
Groceries
Fruits
Drug Store
Necessary stationery
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INDIAN ORGANIZED RETAIL MARKET
Indian organized retail market is growing at a fast pace due to the boom in the India retail
industry In 2005 the retail industry in India amounted to Rs 10000 billion accounting
for about 10 to the countrys GDP The organized retail market in India out of this total
market accounted for Rs 350 billion which is about 35 of the total revenues
Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010
Traditionally the retail industry in India was largely unorganized comprising of drug
stores medium and small grocery stores Most of the organized retailing in India have
started recently and is concentrating mainly in metropolitan cities The growth in the
Indian organized retail market is mainly due to the change in the consumers behavior
This change has come in the consumer due to increased income changing lifestyles and
patterns of demography which are favorable Now the consumer wants to shop at a place
where he can get food entertainment and shopping all under one roof This has given
Indian organized retail market a major boost
Retail market in the organized sector in India is growing can be seen from the fact that
1500 supermarkets 325 departmental stores and 300 new malls are being built Many
Indian companies are entering the Indian retail market which is giving Indian organized
retail market a boost One such company is the Reliance Industries Limited It plans to
invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500
supermarkets Pantaloons is another Indian company which plans to increase its retail
space to 30 million square feet with an investment of US$ 1 billion Bharti Telecoms an
Indian company is in talks with Tesco a global giant for a pound 750 million joint venture A
number of global retail giants such as Walmart Carrefour and Metro AG are also
planning to set up shop in India Indian organized retail market will definitely grow as a
result of all this investments
Classifying Indian retail
(A)Modern Format retailers
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1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (Shoppers Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated (BP)
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(B)Traditional Format Retailers
1) Kiranas Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets
4) Exclusive Multiple Brand Outlets
(C)Large Indian retailers
1 Hypermarket
1) Big Bazaar2) Giants
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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With all the modern stores offering convenience in terms of an assortment of products
ambience service and innovative products the paradigm shall shift from competing with
the kirana stores to an in-house demand creation Relevant experiences from consumer
goods companies which have successfully crafted an explosion in demand in their
sectors through innovation consumer driven strategies will be head runner Times are
changing With the GDP at an all time high and income levels shooting through the roof
the average Indian consumer has never had it so good
The propensity to consume has reached peaks that had never been scaled before Credit
cards are flashed with disdain and shopping baskets are getting bigger all the time
Here are some factors that indicate the potential of retail in India
At 271 million one of the largest consuming base in the world forming 27 of
the total population
A high spending community below 45 years comprises 81 percent of the
population
A young population with 54 population below 25 years
Increased literacy from 44 in 1965 to 70 in 2003
Increase in working women from 13 million in 1961 to 48 million in 1998
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The first decade of modern retail in India has been characterized by a shift from
traditional kirana shops to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories Modern retail formats
have mushroomed in metros and minimetros
In the last few years modern retail has also established its presence in the second-rung
cities exposing residents to shopping options like never before However even as
modern retailers garner share from traditional channels there is a larger role they would
be required to play in boosting consumption levelsFigures suggest that the total turnover
of the sector is around Rs 10 lakh crores of which 4 percent is contributed by the
organised sector
The retail sector in India is highly fragmented with organized retail contributing to only
2 of total retail sales The retail sector in developed countries was also highly
fragmented at the beginning of the last century but emergence of large
chains like Wall Mart Sears and McDonald‟s led to rapid growth of organized retail
and growing consolidation of the retail industry in the developed countries
Organized retail is growing rapidly and we see the emergence of large organized retailchains like Shopper‟s Stop Lifestyle and Westside We also find retail malls
mushrooming all over the country The opportunities in retail industry in India will
increase since Indian retailing is on the threshold of a major change
India retail industry is the largest industry in India with an employment of around 8
and contributing to over 10 of the countrys GDP Retail industry in India is expected to
rise 25 yearly being driven by strong income growth changing lifestyles and favorable
demographic patterns It is expected that by 2016 modern retail industry in India will be
worth US$ 175- 200 billion India retail industry is one of the fastest growing industries
with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of
5 yearly A further increase of 7-8 is expected in the industry of retail in India by
growth in consumerism in urban areas rising incomes and a steep rise in rural
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consumption It has further been predicted that the retailing industry in India will amount
to US$ 215 billion by 2010 from the current size of US$ 75 billion
Shopping in India have witnessed a revolution with the change in the consumer buying
behavior and the whole format of shopping also altering Industry of retail in India which
have become modern can be seen from the fact that there are multi- stored malls huge
shopping centers and sprawling complexes which offer food shopping and
entertainment all under the same roof India retail industry is expanding itself most
aggressively as a result a great demand for real estate is being created
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TRADITIONAL CONVENIENCE STORES
Traditional convenience stores are too well established in India than to be wiped out and
besides there is uniqueness in the traditional items that represent the sub-continent
The retail stores in India are essentially dominated by the unorganized sector or
traditional stores Infact the traditional stores have taken up 98 percent of the Indian retail
market Now stores run by families are primarily food based and the set up is as Kirana or
the corner grocer stores Basically they provide high service with low prices If the
stores are not food based then the type of retail items available are local in nature
The traditional family run convenience stores can take pride in the fact that the Kirana isthe most common outlet forms for the consumers
The tough competition for convenience stores are coming from organized retail stores
dealing in food items like
Apna Bazaar
Canteen stores
Food World
Subhiksha
Food Bazaar
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Convenience Stores are open for long hours and is one of the formats of the Indian retail
stores that cater to basic needs of the consumer A good example of such would be
Convenio These stores are found in both residential as well as commercial markets The
food products of traditional family run convenience stores are comprised of branded as
well as non-branded items The benefits of family run convenience stores is that they give
importance to
Personal touch
Facilities of credit
Quick home delivery
Non-food based stock comprises of multiple and varieties of local brands
The future of such stores as they face competition from organized sector would dependon the following particulars
Place and capacity
Diligent area coverage
Disciplined work schedule
Managing turnover
Revenue from assets
Customer service and satisfaction
The traditional family run convenience stores serves the purpose of the housewives who
definitely wants to avoid traveling long distances to purchase daily needs The
convenience factor in terms of items among people in general can be highlighted as
below
Groceries
Fruits
Drug Store
Necessary stationery
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INDIAN ORGANIZED RETAIL MARKET
Indian organized retail market is growing at a fast pace due to the boom in the India retail
industry In 2005 the retail industry in India amounted to Rs 10000 billion accounting
for about 10 to the countrys GDP The organized retail market in India out of this total
market accounted for Rs 350 billion which is about 35 of the total revenues
Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010
Traditionally the retail industry in India was largely unorganized comprising of drug
stores medium and small grocery stores Most of the organized retailing in India have
started recently and is concentrating mainly in metropolitan cities The growth in the
Indian organized retail market is mainly due to the change in the consumers behavior
This change has come in the consumer due to increased income changing lifestyles and
patterns of demography which are favorable Now the consumer wants to shop at a place
where he can get food entertainment and shopping all under one roof This has given
Indian organized retail market a major boost
Retail market in the organized sector in India is growing can be seen from the fact that
1500 supermarkets 325 departmental stores and 300 new malls are being built Many
Indian companies are entering the Indian retail market which is giving Indian organized
retail market a boost One such company is the Reliance Industries Limited It plans to
invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500
supermarkets Pantaloons is another Indian company which plans to increase its retail
space to 30 million square feet with an investment of US$ 1 billion Bharti Telecoms an
Indian company is in talks with Tesco a global giant for a pound 750 million joint venture A
number of global retail giants such as Walmart Carrefour and Metro AG are also
planning to set up shop in India Indian organized retail market will definitely grow as a
result of all this investments
Classifying Indian retail
(A)Modern Format retailers
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1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (Shoppers Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated (BP)
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(B)Traditional Format Retailers
1) Kiranas Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets
4) Exclusive Multiple Brand Outlets
(C)Large Indian retailers
1 Hypermarket
1) Big Bazaar2) Giants
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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The first decade of modern retail in India has been characterized by a shift from
traditional kirana shops to new formats including department stores hypermarkets
supermarkets and specialty stores across a range of categories Modern retail formats
have mushroomed in metros and minimetros
In the last few years modern retail has also established its presence in the second-rung
cities exposing residents to shopping options like never before However even as
modern retailers garner share from traditional channels there is a larger role they would
be required to play in boosting consumption levelsFigures suggest that the total turnover
of the sector is around Rs 10 lakh crores of which 4 percent is contributed by the
organised sector
The retail sector in India is highly fragmented with organized retail contributing to only
2 of total retail sales The retail sector in developed countries was also highly
fragmented at the beginning of the last century but emergence of large
chains like Wall Mart Sears and McDonald‟s led to rapid growth of organized retail
and growing consolidation of the retail industry in the developed countries
Organized retail is growing rapidly and we see the emergence of large organized retailchains like Shopper‟s Stop Lifestyle and Westside We also find retail malls
mushrooming all over the country The opportunities in retail industry in India will
increase since Indian retailing is on the threshold of a major change
India retail industry is the largest industry in India with an employment of around 8
and contributing to over 10 of the countrys GDP Retail industry in India is expected to
rise 25 yearly being driven by strong income growth changing lifestyles and favorable
demographic patterns It is expected that by 2016 modern retail industry in India will be
worth US$ 175- 200 billion India retail industry is one of the fastest growing industries
with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of
5 yearly A further increase of 7-8 is expected in the industry of retail in India by
growth in consumerism in urban areas rising incomes and a steep rise in rural
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consumption It has further been predicted that the retailing industry in India will amount
to US$ 215 billion by 2010 from the current size of US$ 75 billion
Shopping in India have witnessed a revolution with the change in the consumer buying
behavior and the whole format of shopping also altering Industry of retail in India which
have become modern can be seen from the fact that there are multi- stored malls huge
shopping centers and sprawling complexes which offer food shopping and
entertainment all under the same roof India retail industry is expanding itself most
aggressively as a result a great demand for real estate is being created
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TRADITIONAL CONVENIENCE STORES
Traditional convenience stores are too well established in India than to be wiped out and
besides there is uniqueness in the traditional items that represent the sub-continent
The retail stores in India are essentially dominated by the unorganized sector or
traditional stores Infact the traditional stores have taken up 98 percent of the Indian retail
market Now stores run by families are primarily food based and the set up is as Kirana or
the corner grocer stores Basically they provide high service with low prices If the
stores are not food based then the type of retail items available are local in nature
The traditional family run convenience stores can take pride in the fact that the Kirana isthe most common outlet forms for the consumers
The tough competition for convenience stores are coming from organized retail stores
dealing in food items like
Apna Bazaar
Canteen stores
Food World
Subhiksha
Food Bazaar
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Convenience Stores are open for long hours and is one of the formats of the Indian retail
stores that cater to basic needs of the consumer A good example of such would be
Convenio These stores are found in both residential as well as commercial markets The
food products of traditional family run convenience stores are comprised of branded as
well as non-branded items The benefits of family run convenience stores is that they give
importance to
Personal touch
Facilities of credit
Quick home delivery
Non-food based stock comprises of multiple and varieties of local brands
The future of such stores as they face competition from organized sector would dependon the following particulars
Place and capacity
Diligent area coverage
Disciplined work schedule
Managing turnover
Revenue from assets
Customer service and satisfaction
The traditional family run convenience stores serves the purpose of the housewives who
definitely wants to avoid traveling long distances to purchase daily needs The
convenience factor in terms of items among people in general can be highlighted as
below
Groceries
Fruits
Drug Store
Necessary stationery
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INDIAN ORGANIZED RETAIL MARKET
Indian organized retail market is growing at a fast pace due to the boom in the India retail
industry In 2005 the retail industry in India amounted to Rs 10000 billion accounting
for about 10 to the countrys GDP The organized retail market in India out of this total
market accounted for Rs 350 billion which is about 35 of the total revenues
Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010
Traditionally the retail industry in India was largely unorganized comprising of drug
stores medium and small grocery stores Most of the organized retailing in India have
started recently and is concentrating mainly in metropolitan cities The growth in the
Indian organized retail market is mainly due to the change in the consumers behavior
This change has come in the consumer due to increased income changing lifestyles and
patterns of demography which are favorable Now the consumer wants to shop at a place
where he can get food entertainment and shopping all under one roof This has given
Indian organized retail market a major boost
Retail market in the organized sector in India is growing can be seen from the fact that
1500 supermarkets 325 departmental stores and 300 new malls are being built Many
Indian companies are entering the Indian retail market which is giving Indian organized
retail market a boost One such company is the Reliance Industries Limited It plans to
invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500
supermarkets Pantaloons is another Indian company which plans to increase its retail
space to 30 million square feet with an investment of US$ 1 billion Bharti Telecoms an
Indian company is in talks with Tesco a global giant for a pound 750 million joint venture A
number of global retail giants such as Walmart Carrefour and Metro AG are also
planning to set up shop in India Indian organized retail market will definitely grow as a
result of all this investments
Classifying Indian retail
(A)Modern Format retailers
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1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (Shoppers Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated (BP)
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(B)Traditional Format Retailers
1) Kiranas Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets
4) Exclusive Multiple Brand Outlets
(C)Large Indian retailers
1 Hypermarket
1) Big Bazaar2) Giants
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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consumption It has further been predicted that the retailing industry in India will amount
to US$ 215 billion by 2010 from the current size of US$ 75 billion
Shopping in India have witnessed a revolution with the change in the consumer buying
behavior and the whole format of shopping also altering Industry of retail in India which
have become modern can be seen from the fact that there are multi- stored malls huge
shopping centers and sprawling complexes which offer food shopping and
entertainment all under the same roof India retail industry is expanding itself most
aggressively as a result a great demand for real estate is being created
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TRADITIONAL CONVENIENCE STORES
Traditional convenience stores are too well established in India than to be wiped out and
besides there is uniqueness in the traditional items that represent the sub-continent
The retail stores in India are essentially dominated by the unorganized sector or
traditional stores Infact the traditional stores have taken up 98 percent of the Indian retail
market Now stores run by families are primarily food based and the set up is as Kirana or
the corner grocer stores Basically they provide high service with low prices If the
stores are not food based then the type of retail items available are local in nature
The traditional family run convenience stores can take pride in the fact that the Kirana isthe most common outlet forms for the consumers
The tough competition for convenience stores are coming from organized retail stores
dealing in food items like
Apna Bazaar
Canteen stores
Food World
Subhiksha
Food Bazaar
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Convenience Stores are open for long hours and is one of the formats of the Indian retail
stores that cater to basic needs of the consumer A good example of such would be
Convenio These stores are found in both residential as well as commercial markets The
food products of traditional family run convenience stores are comprised of branded as
well as non-branded items The benefits of family run convenience stores is that they give
importance to
Personal touch
Facilities of credit
Quick home delivery
Non-food based stock comprises of multiple and varieties of local brands
The future of such stores as they face competition from organized sector would dependon the following particulars
Place and capacity
Diligent area coverage
Disciplined work schedule
Managing turnover
Revenue from assets
Customer service and satisfaction
The traditional family run convenience stores serves the purpose of the housewives who
definitely wants to avoid traveling long distances to purchase daily needs The
convenience factor in terms of items among people in general can be highlighted as
below
Groceries
Fruits
Drug Store
Necessary stationery
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INDIAN ORGANIZED RETAIL MARKET
Indian organized retail market is growing at a fast pace due to the boom in the India retail
industry In 2005 the retail industry in India amounted to Rs 10000 billion accounting
for about 10 to the countrys GDP The organized retail market in India out of this total
market accounted for Rs 350 billion which is about 35 of the total revenues
Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010
Traditionally the retail industry in India was largely unorganized comprising of drug
stores medium and small grocery stores Most of the organized retailing in India have
started recently and is concentrating mainly in metropolitan cities The growth in the
Indian organized retail market is mainly due to the change in the consumers behavior
This change has come in the consumer due to increased income changing lifestyles and
patterns of demography which are favorable Now the consumer wants to shop at a place
where he can get food entertainment and shopping all under one roof This has given
Indian organized retail market a major boost
Retail market in the organized sector in India is growing can be seen from the fact that
1500 supermarkets 325 departmental stores and 300 new malls are being built Many
Indian companies are entering the Indian retail market which is giving Indian organized
retail market a boost One such company is the Reliance Industries Limited It plans to
invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500
supermarkets Pantaloons is another Indian company which plans to increase its retail
space to 30 million square feet with an investment of US$ 1 billion Bharti Telecoms an
Indian company is in talks with Tesco a global giant for a pound 750 million joint venture A
number of global retail giants such as Walmart Carrefour and Metro AG are also
planning to set up shop in India Indian organized retail market will definitely grow as a
result of all this investments
Classifying Indian retail
(A)Modern Format retailers
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1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (Shoppers Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated (BP)
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(B)Traditional Format Retailers
1) Kiranas Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets
4) Exclusive Multiple Brand Outlets
(C)Large Indian retailers
1 Hypermarket
1) Big Bazaar2) Giants
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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TRADITIONAL CONVENIENCE STORES
Traditional convenience stores are too well established in India than to be wiped out and
besides there is uniqueness in the traditional items that represent the sub-continent
The retail stores in India are essentially dominated by the unorganized sector or
traditional stores Infact the traditional stores have taken up 98 percent of the Indian retail
market Now stores run by families are primarily food based and the set up is as Kirana or
the corner grocer stores Basically they provide high service with low prices If the
stores are not food based then the type of retail items available are local in nature
The traditional family run convenience stores can take pride in the fact that the Kirana isthe most common outlet forms for the consumers
The tough competition for convenience stores are coming from organized retail stores
dealing in food items like
Apna Bazaar
Canteen stores
Food World
Subhiksha
Food Bazaar
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Convenience Stores are open for long hours and is one of the formats of the Indian retail
stores that cater to basic needs of the consumer A good example of such would be
Convenio These stores are found in both residential as well as commercial markets The
food products of traditional family run convenience stores are comprised of branded as
well as non-branded items The benefits of family run convenience stores is that they give
importance to
Personal touch
Facilities of credit
Quick home delivery
Non-food based stock comprises of multiple and varieties of local brands
The future of such stores as they face competition from organized sector would dependon the following particulars
Place and capacity
Diligent area coverage
Disciplined work schedule
Managing turnover
Revenue from assets
Customer service and satisfaction
The traditional family run convenience stores serves the purpose of the housewives who
definitely wants to avoid traveling long distances to purchase daily needs The
convenience factor in terms of items among people in general can be highlighted as
below
Groceries
Fruits
Drug Store
Necessary stationery
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INDIAN ORGANIZED RETAIL MARKET
Indian organized retail market is growing at a fast pace due to the boom in the India retail
industry In 2005 the retail industry in India amounted to Rs 10000 billion accounting
for about 10 to the countrys GDP The organized retail market in India out of this total
market accounted for Rs 350 billion which is about 35 of the total revenues
Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010
Traditionally the retail industry in India was largely unorganized comprising of drug
stores medium and small grocery stores Most of the organized retailing in India have
started recently and is concentrating mainly in metropolitan cities The growth in the
Indian organized retail market is mainly due to the change in the consumers behavior
This change has come in the consumer due to increased income changing lifestyles and
patterns of demography which are favorable Now the consumer wants to shop at a place
where he can get food entertainment and shopping all under one roof This has given
Indian organized retail market a major boost
Retail market in the organized sector in India is growing can be seen from the fact that
1500 supermarkets 325 departmental stores and 300 new malls are being built Many
Indian companies are entering the Indian retail market which is giving Indian organized
retail market a boost One such company is the Reliance Industries Limited It plans to
invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500
supermarkets Pantaloons is another Indian company which plans to increase its retail
space to 30 million square feet with an investment of US$ 1 billion Bharti Telecoms an
Indian company is in talks with Tesco a global giant for a pound 750 million joint venture A
number of global retail giants such as Walmart Carrefour and Metro AG are also
planning to set up shop in India Indian organized retail market will definitely grow as a
result of all this investments
Classifying Indian retail
(A)Modern Format retailers
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1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (Shoppers Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated (BP)
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(B)Traditional Format Retailers
1) Kiranas Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets
4) Exclusive Multiple Brand Outlets
(C)Large Indian retailers
1 Hypermarket
1) Big Bazaar2) Giants
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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Convenience Stores are open for long hours and is one of the formats of the Indian retail
stores that cater to basic needs of the consumer A good example of such would be
Convenio These stores are found in both residential as well as commercial markets The
food products of traditional family run convenience stores are comprised of branded as
well as non-branded items The benefits of family run convenience stores is that they give
importance to
Personal touch
Facilities of credit
Quick home delivery
Non-food based stock comprises of multiple and varieties of local brands
The future of such stores as they face competition from organized sector would dependon the following particulars
Place and capacity
Diligent area coverage
Disciplined work schedule
Managing turnover
Revenue from assets
Customer service and satisfaction
The traditional family run convenience stores serves the purpose of the housewives who
definitely wants to avoid traveling long distances to purchase daily needs The
convenience factor in terms of items among people in general can be highlighted as
below
Groceries
Fruits
Drug Store
Necessary stationery
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INDIAN ORGANIZED RETAIL MARKET
Indian organized retail market is growing at a fast pace due to the boom in the India retail
industry In 2005 the retail industry in India amounted to Rs 10000 billion accounting
for about 10 to the countrys GDP The organized retail market in India out of this total
market accounted for Rs 350 billion which is about 35 of the total revenues
Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010
Traditionally the retail industry in India was largely unorganized comprising of drug
stores medium and small grocery stores Most of the organized retailing in India have
started recently and is concentrating mainly in metropolitan cities The growth in the
Indian organized retail market is mainly due to the change in the consumers behavior
This change has come in the consumer due to increased income changing lifestyles and
patterns of demography which are favorable Now the consumer wants to shop at a place
where he can get food entertainment and shopping all under one roof This has given
Indian organized retail market a major boost
Retail market in the organized sector in India is growing can be seen from the fact that
1500 supermarkets 325 departmental stores and 300 new malls are being built Many
Indian companies are entering the Indian retail market which is giving Indian organized
retail market a boost One such company is the Reliance Industries Limited It plans to
invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500
supermarkets Pantaloons is another Indian company which plans to increase its retail
space to 30 million square feet with an investment of US$ 1 billion Bharti Telecoms an
Indian company is in talks with Tesco a global giant for a pound 750 million joint venture A
number of global retail giants such as Walmart Carrefour and Metro AG are also
planning to set up shop in India Indian organized retail market will definitely grow as a
result of all this investments
Classifying Indian retail
(A)Modern Format retailers
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1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (Shoppers Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated (BP)
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(B)Traditional Format Retailers
1) Kiranas Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets
4) Exclusive Multiple Brand Outlets
(C)Large Indian retailers
1 Hypermarket
1) Big Bazaar2) Giants
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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INDIAN ORGANIZED RETAIL MARKET
Indian organized retail market is growing at a fast pace due to the boom in the India retail
industry In 2005 the retail industry in India amounted to Rs 10000 billion accounting
for about 10 to the countrys GDP The organized retail market in India out of this total
market accounted for Rs 350 billion which is about 35 of the total revenues
Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010
Traditionally the retail industry in India was largely unorganized comprising of drug
stores medium and small grocery stores Most of the organized retailing in India have
started recently and is concentrating mainly in metropolitan cities The growth in the
Indian organized retail market is mainly due to the change in the consumers behavior
This change has come in the consumer due to increased income changing lifestyles and
patterns of demography which are favorable Now the consumer wants to shop at a place
where he can get food entertainment and shopping all under one roof This has given
Indian organized retail market a major boost
Retail market in the organized sector in India is growing can be seen from the fact that
1500 supermarkets 325 departmental stores and 300 new malls are being built Many
Indian companies are entering the Indian retail market which is giving Indian organized
retail market a boost One such company is the Reliance Industries Limited It plans to
invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500
supermarkets Pantaloons is another Indian company which plans to increase its retail
space to 30 million square feet with an investment of US$ 1 billion Bharti Telecoms an
Indian company is in talks with Tesco a global giant for a pound 750 million joint venture A
number of global retail giants such as Walmart Carrefour and Metro AG are also
planning to set up shop in India Indian organized retail market will definitely grow as a
result of all this investments
Classifying Indian retail
(A)Modern Format retailers
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1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (Shoppers Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated (BP)
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(B)Traditional Format Retailers
1) Kiranas Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets
4) Exclusive Multiple Brand Outlets
(C)Large Indian retailers
1 Hypermarket
1) Big Bazaar2) Giants
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (Shoppers Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated (BP)
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(B)Traditional Format Retailers
1) Kiranas Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets
4) Exclusive Multiple Brand Outlets
(C)Large Indian retailers
1 Hypermarket
1) Big Bazaar2) Giants
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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(B)Traditional Format Retailers
1) Kiranas Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets
4) Exclusive Multiple Brand Outlets
(C)Large Indian retailers
1 Hypermarket
1) Big Bazaar2) Giants
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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OBJECTIVES OF THE STUDY
Objective of the Study
To know the consumer satisfaction
Financial performance in Retail industry
Market performance
Market position
Economic and the industry environment
Cost saving initiatives
To find out the satisfaction level of people
To find out the awareness level of customer
To find the satisfaction amongst the customers
SIGNIFICATION OF THE STUDY
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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By This Study The Company Will Come To Know -
Through this study company can know about its growth
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities
Through this study company will know about the availability of its products in the
market
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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LITERATURE
REVIEW
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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LITERATURE REVIEW
Mathew Joseph and Manisha Gupta_September 2008 The Indian retail sector is
booming and modernizing rapidly in line with India‟s economic growth In this review
the author talked about the impact of organized retailing on traditional retailing With the
increase in number of various formats for shopping like malls departmental stores
hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the
reason foreign investors like the king of retail Wal-Mart also came into the Indian retail
ground in collaboration with Bharti There is a huge untapped market is present in India
right now which contains a number of opportunities for retailers
Sen-2000 Store Image and Consumer Shopping Habits Indian Context In India some
empirical studies provide important information about consumer behavior and its
responses to the development of organized retail Economical and social changes are
major contributors for a growing fragmentation of consumers into multiple segments with
different values and buying priorities Consumers have become more pragmatic educated
and demanding learning how to manage money and time more efficiently
The focus on low prices was gradually replaced by a value for money perspective The
study developed by ETIG (Economic Times Intelligence Group 2002) confirms these
tendencies Concerning food the most important attribute mentioned was quality
followed by price Indian consumer has different reasons for preferring different store
formats either modern or traditional Sen (2000) confirms this in the study undertaken in
Indian context He confirms that in the case of hypermarkets the main motives for
preferences in decreasing order are low prices the possibility of buying everything in the
same place and the general appearance of the store Several investigations emphasize the
possible coexistence of different store formats (Chandrasekhar 2001) and others point
out the relationship between the type of store and the type of products
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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These studies show that while specialized and traditional stores are preferred for fresh
products hypermarkets are preferred for shopping in general and also for frozen food
groceries and beverages The purchase of perishables in hypermarkets is reduced
Radhakrishnan 2003 Traditional Retailers Perceptions about Organized Retail
As already mentioned organized retail has deeply changed the Indian commercial
structure However it is not exclusively responsible as other changes (economical social
and cultural ones) have occurred simultaneously
Concerning the more direct effects of organized retail on different types of commerce it
is possible to verify that the major impact is felt on traditional retail and in particular on
the food sector The impact of organized retail is also significant on other types of retail
namely toys stationery goods and household appliances moreover it is probable that
competition gets more intense in other sectors such as clothing and furniture
RNCOS (March 15 200924-7 press releases) Increasing trend of organized retailing
will drive the growth of convenience-store industry in the world By 2011 Asia remains
the fastest growing convenience store market in the world as the major Asian retail
markets registered explosive growth in opening up of new convenience store Changing
consumer preferences lifestyle and rising income level which is heavily influenced by
economic growth remains the major driving force for c-store industry in the Asian
region as per Global Convenience Store Market Analysis
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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INDUSTRY
OVERVIEW
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers who operate small single-outlet businesses mainly using family labour
dominate this sector In comparison super markets account for a small proportion of food
sales in India However the growth rate of super market sales has being significant in
recent years because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience
b) HEALTH amp BEAUTY PRODUCTS
With growth in income levels Indians have started spending more on health and beauty
products Here also small single-outlet retailers dominate the market However in recent
years a few retail chains specializing in these products have come into the market
Although these retail chains account for only a small share of the total market their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products
C) CLOTHING amp FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over
India Traditional outlets stock a limited range of cheap and popular items in contrast
modern clothing and footwear stores have modern products and attractive displays to lure
customers However with rapid urbanization and changing patterns of consumer tastes
and preferences it is unlikely that the traditional outlets will survive the test of time
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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D) HOME FURNITURE amp HOUSEHOLD GOODS
Small retailers again dominate this sector Despite the large size of this market very few
large and modern retailers have established specialized stores for these products
However there is considerable potential for the entry or expansion of specialized retail
chains in the country
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period A greater variety of consumer electronic
items and household appliances became available to the Indian customer Intense
competition among companies to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector
F) LEISURE amp PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country There are specialized
retailers for each category of products (books music products etc) in this sector
Another prominent feature of this sector is popularity of franchising agreements between
established manufacturers and retailers
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls An increasing number of retailers are focusing on malls now as opposed
to stand-alone developments
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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While the number of shopping malls has seen a massive surge in the recent past in the
metros and their suburbs the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes facilities for kids entertainment eateries
etc within the mall premises Customer less the time consumes and more entertainment
with his family in malls because they within shopping mall number of retail shop and
variety of products and selected the product they want
Good environment in mall Less crowed and These are enclosed air-conditioned multi-
level malls of at least 10000 sq ft Critical to these malls is the concept of the anchor the
key outlet or store around which other outlets cluster The most popular Indian anchors
include Shoppers Stop Globus Pantaloon Lifestyle and hypermarkets like Big Bazaar
and Giant Cinemas also often anchor malls Driven by the lucrative tax breaks the old
single screen theatres are being divided into three-five smaller screens as was done in the
US years ago Example for wave and PVR
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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RETAIL SCENE IN INDIA
With organized retail in India pegged at Rs 25000 crore (Rs 250 billion) -- out of a total
of Rs 800000 crore (Rs 8000 billion -- and a double digit growth rate marketing
companies are setting up shops to provide differentiated services to clients Till now salespeople were the link between the retailer and the producer But sales personnel are busy
selling a product and do not have a fair idea of what retailing is about
The focus is to priorities retail That is not only to sell a product to a consumer but to get
the consumer to interact with the product Gone are the days when retailing meant mere
availability of a product With competition becoming stiffer companies are looking at
experiential marketing Also the lack of proper metrics to measure marketing spends is a
serious issue
In todays swiftly changing business environment there is no option but to be in the know
- to be constantly on the move keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough
Super smart shoppers know all the rules of the game They can instantly sense a good
buy and lap it up or sniff out a bad product and dismiss it Their expectations are tough to
meet but for retailers aiming to make a big sale there is not much of a choice but to find
ways to win customers over and keep them permanently happy
In an environment which is still restrictive in many ways and lacks adequate
infrastructure this becomes a formidable task So how are Indian retailers coping up and
how long will it be before organised retail becomes the primary way of selling
As the corporate ndash the Piramals the Tatas the Rahejas ITC SKumars RPG
Enterprises and mega retailers- Crosswords Shoppers Stop and Pantaloons race to
revolutionize the retailing sector retail as an industry in India is coming alive
Retail sales in India amounted to about Rs7400 billion in 2002 expanded at an average
annual rate of 7 during 1999-2002 With the upturn in economic growth during 2003
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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retail sales are also expected to expand at a higher pace of nearly 10 Across the
country retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08 The forecast growth in real retail sales during 2003- 2008 is
83 per year compared with 71 for consumer expenditure Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets
departmental stores and hyper marts
Sales from these large-format stores are to expand at growth rates ranging from 24 to
49 per year during 2003-2008 according to a latest report by Euro monitor
International a leading provider of global consumer-market intelligence
A T Kearney Inc places India 6th on a global retail development index The country has
the highest per capita outlets in the world - 55 outlets per 1000 population Around 7
of the population in India is engaged in retailing as compared to 20 in the USA
In a developing country like India a large chunk of consumer expenditure is on basic
necessities especially food-related items Hence it is not surprising that food beverages
and tobacco accounted for as much as 71 of retail sales in 2002 The share of food
related items had however declined over the review period down from 73 in 1999
This is not unexpected because with income growth Indians like consumers elsewhere
have started spending more on non-food items compared with food products Sales
through supermarkets and department stores are small compared with overall retail sales
Nevertheless their sales have grown much more rapidly at almost a triple rate (about
30 per year during the review period) This high acceleration in sales through modern
retail formats is expected to continue during the next few years with the rapid growth in
numbers of such outlets due to consumer demand and business potential
The factors responsible for the development of the retail sector in India can be broadly
summarized as follows-
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes
Looking at income classification the National Council of Applied Economic Research
(NCAER) classified approximately 50 of the Indian population as low income in 1994-
95 this is expected to decline to 178 by 2006-07
Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kelloggs Unilever Nestle etc to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers
Shift in consumer demand to foreign brands like McDonalds Sony Panasonic etc
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains Reach of satellite TV channels is
helping in creating awareness about global products for local markets About 47 of
Indias population is under the age of 20 and this will increase to 55 by 2015 This
young population which is technology-savvy watch more than 50 TV satellite channels
and display the highest propensity to spend will immensely contribute to the growth of
the retail sector in the country
As India continues to get strongly integrated with the world economy riding the waves of
globalization the retail sector is bound to take big leaps in the years to come
The Indian retail sector is estimated to have a market size of about $ 180 billion but the
organised sector represents only 2 share of this market Most of the organised retailing
in the country has just started recently and has been concentrated mainly in the metro
cities India is the last large Asian economy to liberalize its retail sector In Thailand
more than 40 of all consumer goods are sold through the super markets and
departmental stores A similar phenomenon has swept through all other Asian countries
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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Organised retailing in India has a huge scope because of the vast market and the growing
consciousness of the Consumer about product quality and services
A study conducted by Fitch expects the organized retail industry to continue to grow
rapidly especially through increased levels of penetration in larger towns and metros and
also as it begins to spread to smaller cities and B class towns Fuelling this growth is the
growth in development of the retail-specific properties and malls According to the
estimates available with Fitch close to 25mn sq ft of retail space is being developed and
will be available for occupation over the next 36-48 months Fitch expects organized
retail to capture 15-20 market share by 2010
A McKinsey report on India says organised retailing would increase the efficiency and
productivity of entire gamut of economic activities and would help in achieving higher
GDP growth At 6 the share of employment of retail in India is low even when
compared to Brazil (14) and Poland (12)
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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CURRENT STATUS OF RETAIL MARKETING IN INDIA
Winds of change sweeping through Retail Industry
What is it that has made the Piramals the Tatas the Rahejas ITC and scores of others
take a plunge into mega retailing Why is market research space management ERP
promotions etc now a necessary tool in this industry
Retail Economics in India
Traditionally retailing has not been a structurally organized industry in India Organized
retail network was seen only in fabrics with large mills building their own exclusive
stores eg Raymonds Bombay Dyeing etc
Currently there are about 5130000 retail outlets selling about Rs4790bn worth of
products Retail universe in India comprises large medium general stores chemists and
pan-bidi (apart from accessories stores) Of these ndash thanks to unemployment the number
of pan-bidi outlets are steadily rising On account of the fragmented nature of Indian
retail industry the inhabitants to stores ratio in India is about 1501 ie there is a store
catering to every 150 people This ratio varies from country to country
In china the ratio is similar to that of India where as incase of more developed countries
the ratio would be higher For instance in Europe the inhabitant to stores ratio is
20001As markets mature consumer expectations rise it would be a necessity for small
retailers to come together and form innovative and strong supply chain that will cut
through distribution and increase margins
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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TURNAROUND TIME
In last couple of years this industry has made agile move from its nascent stages
Organized retailing started picking up in Southern India Availability of land at prime
locations coupled with cheaper real estate prices (compared to Mumbai amp Delhi) made itpossible to have multi stored shopping complexes here
It took two years of recession to get this concept of shopping to major cities like Mumbai
amp Delhi Recession brought property prices down in these cities It was during this period
of industry slump that big business houses took notice of the potential in retailing A
classic example being- Lakme Ltd
The company after selling off its cosmetic division to HLL made an aggressive forayinto retailing Its retail chain branded Westside already comprises 4 stores- one each in
Bangalore
Hyderabad Chennai and Mumbai A cash hoard of Rs107bn will enable Lakme to roll
out stores aggressively
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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WHAT MAKES IT ATTRACTIVE
Today the number of smaller retailers ($500pa) has shot up from 40 in 1990 to 54 in
1996 whereas the number of large stores (turnover of $3000pa) increased from 28 to
65 Thus though large retailers are growing the smaller outlets are growing even faster
However changing shopping attitudes of an average customer will make future growth
increasingly difficult for unorganized retail sector
Currently in India organized retailing accounts for 6 of the industry turnover
comprising value-added foods (Rs770bn) music amp entertainment (Rs40bn) colour
cosmetics (Rs12bn) etc By 2005 organized retailing will account for 20 the total
retailing industry turnover (Rs8300bn)
Big business houses today are in a position to provide Indian masses with shopping
satisfaction entertainment quality product polite salesperson product information and
discounts Though margins currently are low due to high property cost and poor
infrastructure this is the only business where one buys in credit and sells for cash
Further the number of households earning more than Rs150000 per annum amounts to
30mn today and is expected to grow to 80mn by 2007Additionally financial institutions
are encouraging such ventures ICICI has recently sanctioned term loans to Vivek amp co a
mega-retailer in Chennai to meet their expansion plans Very shortly the market will also
witness IPOs for some of these Retail Ventures
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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RESEARCH
METHODOLOGY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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Proven success
In early 90s K Raheja Group started a mega Apparels stores in Mumbai- Shoppers
Stop Initially the group was averse to start outlets at South Mumbai for various reasons
like low walk-ins space constraints narrowed target audience etc However the success
of Crossroads an ardent rival has prompted them to start one at South Mumbai in near
future The group has more of such stores one each at Bangalore Hyderabad and Jaipur
Within seven years of operations it has a yearly turnover of Rs130bn The group has
plans of opening about 20 mega apparel stores in next 2 years For this the company
plans to sell 251 stake for Rs559mn to Singapore based investor Warburg Pincus The
success story of Shoppers Stop has convinced other business houses to take a leap
Retailing considered a sunrise industry today after InfoTech is the most happening
industry with almost all the big players vying for a share of the coveted pie Buoyed by a
strong increase in private consumption (see graph) retailing is one industry that is
waiting to explode
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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COMPANYPROFILE
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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COMPANY PROFILE
Organized retailing in India started picking up in South India in cities like Chennai and
Hyderabad where real estate at prime locations was available at cheaper rates than in
cities like Mumbai and Delhi In the early 1990s leading Indian business houses started
taking a keen interest in the retailing sector
Pantaloon Retail India Limited (PRIL)
Headed by Kishore Biyani (Biyani) Pantaloon Retail India Limited (PRIL) is one of the
leading retail outlets in India The retail chains which are a part of PRIL include
Pantaloons Big Bazaar Food Bazaar Gold Bazaar and the Central Mall
PRIL was incorporated in October 1987 as Manz Wear Private Limited It became a
public limited company in September 1991 The company sold products under the Bare
Pantaloons and John Miller brand names The first menswear Pantaloons Shoppe outlet
was set up in 1993
RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs 84 billion in the
fiscal 2004-05 The group has more than 20 companies in seven different industries -
Power Tyres Retail Transmission Entertainment Technology and the Specialties
sectors (Refer Exhibit XIII for contribution of business sectors to Group‟sturnover)
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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Tata Group
The Tata group is one of Indias largest business houses In 2005 the group owned 93
companies in seven business sectors namely information systems and communications
engineering materials services energy consumer products and chemicals and employs
nearly 220000 people
In 1997 the Tatas sold their Lakme business to Hindustan Lever Limited (HLL) The
group started its retail business in 1998 with the purchase of the Littlewoods retail stores
originally owned by a UK-based firm in Bangalore
Raheja Group
The K Raheja group of companies is among Indias largest real estate players They
launched Shoppers Stop way back in October 1991 This was the first mega apparel retail
outlet to be established in India Shoppers Stop is projected as a Fashion amp Lifestyle
store for the family From a single store in 1991 Shoppers Stop has today grown into a
16 store retail chain in major metropolitan cities across India
Reliance
Reliance is one of the biggest players in Indian retail industry More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market Its expecting
its sales to reach Rs 90000 crores by 2010
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing The brands like Louis
Phillipe Allen Solly Van Heusen Peter England are quite popular Its also investing in
other segments of retail It will invest Rs 8000-9000 crores by 2010
BIG BAZAR
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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Big Bazaar comes under the Pantaloon Retail India Limited (PRIL) PRIL was
early to realize the potential of the huge middle-class population in India We started the
operations with a trouser brand Pantaloon
In the initial stages we had small format outlets branded Pantaloon Shopee which
were franchise operations realizing the problems associated with franchise model we
decided to have our own retail outlets They launched the own retail store ldquoPantaloon‟srdquo
In 1997 they launched Big-Bazaar a hypermarket with over 1 70000 products as the
first offering in value retailing segment They have introduced the concept of seamless
malls in India through the new format Central We have wide network of Pantaloons
stores spread across the country
Hence apart from retailing lifestyle products it ventured into value retailing by
launching the hypermarket chain Big Bazaar is a chain that stocks all home need
products under one roof spread over 30000 square feet of land across different cities in
India It has been positioned as bdquoIs se sasta aur acha kahin nahi‟ (Nothing cheaper and
better anywhere) indicating the value of stores Big Bazaar stocks over 200000 products
that include apparel food products home appliances and cosmetics Products are cheaper
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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than the market price by as much as 5 to 60 Apparels are cheaper by 25 to 60while
the price difference on the other products varies between 5 to 20
On Oct 12 2001 we launched bdquoBig-Bazaar‟ as offering in the value retailing
segment By removing inefficiencies from the distribution chain we are able to unleash
attractive savings which are passed on to the consumer Big-Bazaar is India‟s first
hypermarket in the discount store format Big-Bazaar provides more than 200000 items-
food grocery utensils kitchen needs home needs bath needs toys stationary
electronics amp white goods which are sold at a discount to the maximum retail price Price
is the principal value proposition at these stores
A big driver of the Big Bazaar is the product variety This is achieved by selling
wide range of products amp through the ldquoShop-in-Shoprdquo format As a result a typical Big-
Bazaar comprises shops that stocks medicines optical accessories camera rolls bakery
products dry fruits crockery glassware health amp beauty products ladies accessories
electronics infant necessities watches clocks computer accessories food amp beverages
stationary readymade garments household appliances home furnishings baggage We
believe this is a win-win situation as the customer is assured of product availability the
shop owner can benefit of the in structure amp we enjoy assured income without needing to
stock inventory
Also the shop-in-shop offering is able to increase the customer traffic in to the
stores The Big-Bazaar has been positioned to the customer as a place where the customer
can shop for each amp everything for which if goes to a market The number of Big-Bazaar
stores has increased from 4 in 2002 to 21 Oct 24 2005
They have also launched private label initiative in Big-Bazaar Understanding of
the apparel industrial decades of experienceamp a vertically integrated structure provides
with more compelling reasons to expand the number of private labels We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery sunglasses watches mobile phones etchellip
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost Pantaloons sourced its products through bdquoConsolidators‟ There was a
consolidator for each product category These consolidators were responsible for
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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procuring quality goods at the cheapest possible price and were paid commissions on
their sale at the store The consolidator directly dealt with manufacturers and as a result
the distribution cost could be slashed as no intermediates were involved In addition to
discounts on products through the year Big Bazaar also held events such as bdquoKitchen
Mela‟ bdquoTrouser Mela‟ etc to attract customers
MANAGEMENT OF BIG BAZAAR
Mr Kishore Biyani Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group To know more click here
Mr Gopikishan Biyani Wholetime Director
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
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Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business
Mr Rakesh Biyani Wholetime Director
Rakesh Biyani is a commerce graduate and has been actively involved in categorymanagement retail stores operations IT and exports He has been instrumental in the
implementation of the various new retail formats
Mr Ved Prakash Arya Director
Ved Prakash Arya is an engineer by training and is a graduate of the Indian Institute of
Management Ahmedabad Prior to joining Pantaloon Retail he was the CEO of
Globus
Mr Shailesh Haribhakti Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant Cost Accountant and a Certified
Internal Auditor He is the Deputy Managing Partner of Haribhakti amp Co Chartered
Accountants and past president of Indian merchant Chambers He is on the Board of
several Public Limited Companies including Indian Petrochemicals Corporation LtdAmbuja Cement Eastern Ltd etc He is on the Board of Company since June 1 1999
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class Itwas started as a hypermarket format in Mumbai with approx 50000 sqft of space Its
values and missions are to be the best in Value Retailing by providing the cheapest prices
and hence go the tag-line
ldquoIs se sasta aur achcha kahin nahinrdquo
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
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Consumer Attribute affecting choice of format between organized and unorganized Retail
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
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55
45
Organized Unorganized
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FINDINGS
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
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SUGGESTIONS
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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It sells variety of merchandise at affordable rates the prices of which it claims are lowest in
the city but the level of services offered is also very low
The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage
OBSERVATION
There were various observations made from the time I entered the store They can be
summed up as follows
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaaro Furniture Bazaar Footwear Bazaar
Trolleys are not easily available especially on other than ground floor
Little attention to cleanliness Dust on shelves as well as some product items
In-house packaging not efficiently done
Introduction
Growth
Maturity
Decline
Time
Cash flow
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Consumer Attribute affecting choice of format between organized and unorganized Retail
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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RESEARCH
METHODOLOGY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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CONCLUSION
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
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LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Crowded store interiors Items are arranged in a cluttered way Tried to stock
maximum number in limited area
Sign boards are not prominent Lack of direction creates confusion
Family crowd is evident Youth comprises of only around 10 of the crowd
Food Bazaar very efficiently managed It is a bit over-staffed but layout is very
good Shelf space is used very well to stock products with clear distinction
POSITIONING STRATEGY
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COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Consumer Attribute affecting choice of format between organized and unorganized Retail
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5285
RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
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ORGANIZED
VS
UNORGANIZED
RETAIL
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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RESEARCH
METHODOLOGY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4485
COMPANY VISION MISSION AND CORE VALUES
ldquoFuturerdquo ndash the word that signifies optimism growth achievement strength
beauty rewards and perfection Future encourages us to explore areas yet unexplored
write rules yet unwritten create new opportunities and new successes To strive for a
glorious future brings to us our strength our ability to learn unlearn and re-learn our
ability to evolve
They in Future Group will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development Thereby we will effect socio-economic development for our customers
employees shareholders associates and partners
Their customers will not just get what they need but also get them where how
and when they need They will not just post satisfactory results They will write success
stories They will not just operate efficiently in the Indian economy we will evolve it
They will not just spot trends They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow
It is this understanding that has helped us succeed And it is this that will help us
succeed in the Future They shall keep relearning And in this process do just one thing
Rewrite Rules Retain Values
Group Vision
Future Group shall deliver Everything Everywhere Every time for Every Indian
Consumer in the most profitable manner
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4585
Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4685
Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4785
CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4885
Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4985
B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5085
Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5185
Consumer Attribute affecting choice of format between organized and unorganized Retail
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5285
RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5385
ORGANIZED
VS
UNORGANIZED
RETAIL
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5485
Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5585
RESEARCH
METHODOLOGY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5685
RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5785
Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5885
ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5985
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6085
On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4585
Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development
They will be the trendsetters in evolving delivery formats creating retail realty
making consumption affordable for all customer segments ndash for classes and for
masses
They shall infuse Indian brands with confidence and renewed ambition
They shall be efficient cost- conscious and committed to quality in whatever we
do
They shall ensure that our positive attitude sincerity humility and united
determination shall be the driving force to make us successful
Core Values
Indian ness confidence in ourselves
Leadership to be a leader both in thought and business
Respect amp Humility to respect every individual and be humble in our conduct
Introspection leading to purposeful thinking
Openness to be open and receptive to new ideas knowledge and information
Valuing and Nurturing Relationships to build long-term relationships
Simplicity amp Positivity Simplicity and Positivity in our thought business Action
Adaptability to be flexible and adaptable to meet challenges
Flow to respect and understand the universal laws of nature
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4685
Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4785
CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4885
Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4985
B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5085
Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5185
Consumer Attribute affecting choice of format between organized and unorganized Retail
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5285
RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5385
ORGANIZED
VS
UNORGANIZED
RETAIL
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5585
RESEARCH
METHODOLOGY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5685
RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5785
Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5885
ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5985
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6085
On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4685
Various Strategies
After big bazaar coming to India it will be at its introduction stage so it is quite
obvious that it will adopt some strategy for attracting the customers The strategy which
they would adopt is that they will have low price high advertisements it would offer
different kind of schemes offers discounts scratch cards coupons They would also give
stress on providing the prompt services like home delivery after sales services
guarantees and warrantees so as to sustain in the market and to create a good reputation
Following are some additional strategies they require to adopt
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment
Gaming zone and restaurant
Promotional activities like advertisement seasonal discounts festival offers etc
While formulating strategies we should keep in mind that strategies should be flexible
This is helpful to change or revival of strategy
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4785
CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4885
Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4985
B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5085
Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5185
Consumer Attribute affecting choice of format between organized and unorganized Retail
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5285
RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5385
ORGANIZED
VS
UNORGANIZED
RETAIL
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5485
Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5585
RESEARCH
METHODOLOGY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5685
RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5785
Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5885
ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5985
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6085
On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4785
CONSUMER
BEHAVIOUR ANDRETAILINGDECISIONS
CONSUMER BEHAVIOUR AND RETAILING DECISIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4885
Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4985
B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5085
Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5185
Consumer Attribute affecting choice of format between organized and unorganized Retail
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5285
RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5385
ORGANIZED
VS
UNORGANIZED
RETAIL
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5485
Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5585
RESEARCH
METHODOLOGY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5685
RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5785
Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5885
ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5985
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6085
On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4885
Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching purchasing and post consumption of a product
or service Consumer behavior involves study of how people buy what they buy when
they buy and why they buy It blends the elements from psychology sociology
sociopsychology anthropology and economics It also tries to assess the influence on the
consumer from groups such as family friends reference groups and society in general
Buyer behavior has two aspects the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone
Factors Affecting Consumer Buying Behaviour
Consumer buying behavior is influenced by the major three factors
Social Factors
Psychological Factors
Personal Factors
A Social Factors
Social factors refer to forces that other people exert and which affect consumers‟
purchase behavior These social factors can include culture and subculture roles and
family social class and reference groups
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4985
B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5085
Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5185
Consumer Attribute affecting choice of format between organized and unorganized Retail
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5285
RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5385
ORGANIZED
VS
UNORGANIZED
RETAIL
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5485
Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5585
RESEARCH
METHODOLOGY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5685
RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5785
Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5885
ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5985
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6085
On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 4985
B Psychological Factors
These are internal to an individual and generate forces within that influence herhis
purchase behavior The major forces include motives perception learning attitude and
personality
C Personal Factors
These include those aspects that are unique to a person and influence purchase behavior
These factors include demographic factors lifestyle and situational factors
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5085
Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5185
Consumer Attribute affecting choice of format between organized and unorganized Retail
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5285
RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5385
ORGANIZED
VS
UNORGANIZED
RETAIL
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5485
Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5585
RESEARCH
METHODOLOGY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5685
RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5785
Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5885
ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5985
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6085
On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5085
Consumer decision-making process generally involves five stages
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5185
Consumer Attribute affecting choice of format between organized and unorganized Retail
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5285
RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5385
ORGANIZED
VS
UNORGANIZED
RETAIL
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5485
Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5585
RESEARCH
METHODOLOGY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5685
RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5785
Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5885
ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5985
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6085
On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
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CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5185
Consumer Attribute affecting choice of format between organized and unorganized Retail
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5285
RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5385
ORGANIZED
VS
UNORGANIZED
RETAIL
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5485
Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5585
RESEARCH
METHODOLOGY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5685
RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5785
Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5885
ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5985
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6085
On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5285
RETAIL OUTLET SELECTION AND BRAND SELECTION
There are three fundamental patterns which a consumer can follow and they
could be
(I) Brand first retail outlet second
(ii) Retail outlet first brand second
(iii) Brand and retail outlet simultaneously
A consumer wanting to buy a car may collect information on brands and purchase it from
a retail outlet based on his perception of price offered or after sales service provided by
the outlet (typically search for information on brands is followed by retail outlet
selection in durables) In certain product categories especially where `category killers
exist consumers may think of the retail outlet initially and then the brands (televisionrefrigerator and audio products retailed through outlets like Vivek and Co in the South
could be an example)
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own This is highly possible especially in the Indian
context where dealers develop a social relationship with consumers especially in semi-
urban and rural areas Primary research could be used to discover the specific sequence
involved in a situation of this kind A `brand first dimension may need feature-based
advertising and a `retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs of
consumers
Brand first and outlet second The brand was probably thought of by the consumers
because-
(i) the consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set or
(ii) the brand has got into the evoked set because of advertising or positive word of
mouth Local advertising with the mention of brand names which have already got into
the evoked set would enable consumers to be `pulled to the outlet Primary research may
be required to identify the brands in the evoked set
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5385
ORGANIZED
VS
UNORGANIZED
RETAIL
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5485
Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5585
RESEARCH
METHODOLOGY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5685
RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5785
Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5885
ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5985
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6085
On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5385
ORGANIZED
VS
UNORGANIZED
RETAIL
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5485
Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5585
RESEARCH
METHODOLOGY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5685
RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5785
Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5885
ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5985
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6085
On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5485
Organized vs Unorganized Retail
In the developed economies organized retail is in the range of 75-80 per cent of total
retail whereas in developing economies the unorganized sector dominates the retail
business The share of organized retail varies widely from just one per cent in Pakistan
and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 22)
Modern retail formats such as hypermarkets superstores supermarkets discount and
convenience stores are widely present in the developed world whereas such forms of
retail outlets have only just begun to spread to developing countries in recent years In
developing countries the retailing business continues to be dominated by family-run
neighbourhood shops and open markets As a consequence wholesalers and distributors
who carry products from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a critical part of the supply
chain in these countries
Table 22 Share of Organized Retail in Selected Countries 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail ()
USA 2983 85
Japan 1182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source Planet Retail and Technopak Advisers Pvt Ltd
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5585
RESEARCH
METHODOLOGY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5685
RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5785
Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5885
ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5985
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6085
On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5585
RESEARCH
METHODOLOGY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5685
RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5785
Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5885
ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5985
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6085
On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5685
RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work This
includes the overall research design data collection method the field survey and the
analysis of data
Research is a common parlance refresh to a search for knowledge One can also define
research as a scientific amp systematic search for pertinent information on a specific topic
In fact research is an art of scientific investigation The advance learner‟s dictionary of
current English lay down the meaning research as a careful investigation amp inquiry
specially search for new facts in any branch knowledge
Research Design
Research Design is the arrangement for conditioned for data collection amp analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure
A research design is a master plan or model for the conduct of formal investigation It is
blue print that is followed in completing study
The research conducted by me is a descriptive research This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on
primary data
RESEARCH PLAN
middot Type of study For completing my study I have gone for sample study because looking
at
the size of population amp the time limitation it was not convenient for me to cover entire
population Hence I have gone for sample study rather than census study
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5785
Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5885
ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5985
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6085
On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5785
Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population It
refers to the technique or the procedure that researcher would adopt in selecting items to
be inched in the sample ie the size of sample Sampling plan is determined before data
are collected
Steps in Sampling
Sampling Frame
The list of sampling units from which sample is taken is called sampling frame
SAMPLING SIZE
Total sample size is 25
SAMPLING PROCEDURE
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure evaluate and co-operative It was a randomly
area sampling method that attempts to obtain the sample of convenient
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5885
ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5985
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6085
On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5885
ANALYSIS
OF
DATA
ANALYSIS OF DATA
Data collected through questionnaire is being processed This processed data is
a Age wise distribution
A) lt20 [ 12 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5985
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6085
On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 5985
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) gt40 [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents
ie 45 out of 100 are young age people It means maximum no of customers
belongs to young age group
b Gender wise distribution
A) MALE [ 58 RESPONDENTS ]
B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 58 out of 100 are males It means maximum no of customers are male in malls
due to family responsibility
c Education wise distribution
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
C) GRADUATION [ 32 RESPONDENTS ]
D) POST GRADUATION [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6085
On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6085
On the basis of above respondents the figures shows that maximum respondents
ie 32 out of 100 are graduates and 32 out of 100 are post graduate It means
maximum no of customers are educated and aware about retail store
d Income wise distribution
A) LESS THAN Rs 20000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30000 TO 40000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40001 TO 50000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50000 [ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents
ie 48 out of 100 are having monthly income between Rs 30000 to 40000 It
means maximum no of customers are belonging to upper middle class
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6185
Q1What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
Q2 If organized then what type of organized stores
Both
10
Organized
60
Unorganized
30
Chart Title
Organized Unorganized Both
60 30 10
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6285
A) Branded Showrooms
B) Malls
Q3 If Unorganized then what type of unorganized stores
A) Kirana Shops
B) Small society shops
Branded
Showrooms
49Malls
51
00
Organized Stores
Branded Showrooms Malls51 49
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6385
Q4 Do you think is there any price difference between products of organized and
unorganized stores
A) Yes
B) No
65
35
0 00
10
20
30
40
50
60
70
Kirana shops Small society shops
Unorganized Stores
Unorganized Stores
Kirana Shops Small Society Shops65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6485
Q5 Do you think organized stores provide more facilities then unorganized stores
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Pricing
Pricing
Yes No
60 40
Yes No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6585
Q6 Do you find any quality difference between the products of both the stores
A) Yes
B) No
75
25
0 00
10
20
30
40
50
60
70
80
Yes No
Facilities Provided
Facilities Provided
25 25
Yes No
45 55
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6685
Q7 Do you think that the price difference is due to the extra facilities provided by the
organized stores
D) Yes
E) No
45
55
0 00
10
20
30
40
50
60
Yes No
Quality difference
Quality difference
Yes No
80 20
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6785
Q8 Is the method of payment in organized stores is better then unorganized stores
A) Yes
B) No
80
20
0 00
10
20
30
40
50
60
70
80
90
Yes No
Charge for facilities
Charge for facilities
Yes No
60 40
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6885
Q9 Do the facilities provided by organized stores attract you
A) Yes
B) No
60
40
0 00
10
20
30
40
50
60
70
Yes No
Method Of payment
Method Of payment
Yes No
65 35
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 6985
Q10 Which store do you find more comfortable for shopping
A) Organized
B) Unorganized
65
35
0 00
10
20
30
40
50
60
70
Yes No
Attracted by facilities
Attracted by facilities
Organized Unorganized
55 45
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085
55
45
Organized Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7185
FINDINGS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7285
FINDINGS
Customer‟s preferences for grocery shopping are gradually shifting from local
kirana stores to organized convenience stores
Age is one of the most important factors responsible for the changing preference
of customers
Payment through credit cards is increasing purchases from convenience store
Brand Choice of customers is changing and this is also influencing shift from
kirana to convenience store
Maximum no of customers belongs to young age group
Maximum no of customers are male in malls due to family responsibility
It means maximum no of customers having nucleur family
Maximum no of customers are educated and aware about retail store
Maximum no of customers are belonging to upper middle class
Maximum no of customer are preferred Shopping Malls for purchasing
Maximum no of customers are time conscious and desire for many brand under
one roof
Maximum no of customers are price conscious so maximum customers belongs to
middle class
Maximum no of customers did not compromise quality with discount and offers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7385
SUGGESTIONS
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7485
SUGGESTIONS
1 The organized retail outlets should improve the quality of
Vegetables amp fruits they provide to customers
2 The organized FMCG retail outlets should provide the free
home delivery facility
3 The organized FMCG retail outlets should increase the no
of billing counters in their outlets
4 The organized FMCG retail outlets should also provide the
credit facility to the lower class customers so that they
can increase their market share
5 The organized FMCG retail outlets should also provide the
mobile van facility in the areas which are far away from
the stores
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7585
CONCLUSION
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7685
CONCLUSION
The past 4-5 years have seen increasing activity in retailing And various business
houses have already planned for few investments in the coming 2-3
years And though the retailers will have to face increasingly demanding customers and
intensely competitive rivals more investments will keep flow in And the share of
organized sector will grow rapidly retailing in India is surely poised for a takeoff and
will provide many opportunities both to existing players as well as new entrants
The country is witnessing a period of boom in retail trade mainly on account of a gradual
increase in the disposable incomes of the middle and upper-middle class households
More and more corporate houses including large real estate companies are coming into
the retail business directly or indirectly in the form of mall and shopping center builders
and managers
New formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores furnishing stores and chemist shops The
retail revolution apart from bringing in sweeping positive changes in the quality of life
in the metros and bigger towns is also bringing in slow changes in lifestyle in the smaller
towns of India Increase in literacy exposure to media greater availability and
penetration of a variety of consumer goods into the interiors of the country have all
resulted in narrowing down the spending differences between the consumers of larger
metros and those of smaller towns
Lastly I want to conclude my project in some points-
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7785
The customers are attracting towards shopping malls amp retail outlets
The shopping malls amp retail outlets are targeting to middle class customers
because the purchasing power of this class is rapidly growing as well as the class
is also growing
The young generation is fashion amp show-off conscious so retail outlets are
mainly focused on them
Most of the family wants to purchase from big showrooms and malls because
there are no bargaining system so the have a trust that there is no cheating
The main strength of most of the retail outlets are providing attractive offers to
attract customers
Big retail stores are running customer loyalty programmes which has increased
profits and no of customers
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885
LIMITATIONS
OF
THE STUDY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7985
LIMITATIONS
1 While conducting the survey the biggest problem faced was the very wide and vast
geographical area of the city and resources were limited Hence the respondents of some
localities could not be covered
2 Another problem was that some people were suspicious about the survey and they
refused to disclose their identity and answering the questions
3 The biasness and hesitation of the respondents in giving the answers to certain
questions
4 Few respondents were not available at the time of taking the feedback
5 Time and money constraint was the limiting factor for the research
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8085
QUESTIONNAIRE
QUESTIONNAIRE
Questionnaire on Consumer‟s changing Buying Behavior
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8185
a Age wise distribution
A) lt20
B) 20-29
C) 30-39
D) gt40
b Gender wise distribution
A) MALE
B) FEMALE
c Education wise distribution
A) HIGH SCHOOL
B) LESS THAN GRADUATION
C) GRADUATION
D) POST GRADUATION
d Income wise distribution
A) LESS THAN Rs 20000
B) BETWEEN Rs 30000 TO 40000
C) BETWEEN Rs 40001 TO 50000
D) MORE THAN Rs 50000
Q1 What type of retail stores you prefer
A) Organized
B) Unorganized
C) Both
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8285
Q2 If organized then what type of organized stores
C) Branded Showrooms
D) Malls
Q3 If Unorganized then what type of unorganized stores
C) Kirana Shops
D) Small society shops
Q4Do you think is there any price difference between products of organized and
unorganized stores
C) Yes
D) No
Q5 Do you think organized stores provide more facilities then unorganized stores
C) Yes
D) No
Q6 Do you find any quality difference between the products of both the stores
C) Yes
D) No
Q7) Do you think that the price difference is due to the extra facilities provided by the
organized stores
F) Yes
G) No
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8385
Q8 Is the method of payment in organized stores is better then unorganized stores
C) Yes
D) No
Q9 Do the facilities provided by organized stores attract you
C) Yes
D) No
Q10 Which store do you find more comfortable for shopping
C) Organized
D) Unorganized
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485
BIBLIOGRAPHY
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin
7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer
httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8585
BIBLIOGRAPHY
Goswami P and Mishra M 2009 Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries Asia Pacific Journal of Marketing and
Logistics Vol 20 No 1
ICRIER journal paper September 2008
httpssrncomabstract=994238
BOOKS-
Marketing Management ----Kotler amp Keller
Marketing Management in Indian Perspective
----V S Ramaswamy amp S Namakumari
Retail management ---Levy amp Weitzs
WEBSITES-
wwwemraldinsight1355-5855htm
wwwFibre2fashioncomindustry-article
wwwtataretailcom
wwwretailindianet
wwwretailyatracom
wwwretailbizcom
wwwaboutuscom
wwwbusinessworldin