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[R Swathi, Pooja Udaikumar, Snigdha Kapoor, Syed Hyder]

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CONTENTS

S.No TOPIC Page No.

1. OBJECTIVE OF THE RESEARCH 2 2. INTRODUCTION – FABINDIA 3 3. SURVEY QUESTIONNAIRE 4 4. SURVEY ANALYSIS 6 5. INDIVIDUAL OBSERVATIONS – R Swathi 46 6. INDIVIDUAL OBSERVATIONS – Snigdha K 48 7. INDIVIDUAL OBSERVATIONS – Syed Hyder 49 8. INDIVIDUAL OBSERVATIONS – Pooja U 50

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Objective of the Research:

AimedtoobservetheconsumerbehaviorinretailoutletFabindia,withthehelpofdemographicsandpsychographicsanalysis.

Understandingbehavioralpatternsofconsumersthroughthisresearchisourmotive.

Research Design: Quantitative data was collected through survey questionnaires. Individual interviews were carried out to obtain qualitative data. Defining the Population: Based on demographics elements like sex, race, age, income, occupation, educational attainment, home ownership, employment status, location and based on psychographics attributes like interests, activities, opinions, behavioral patterns, habits, lifestyle, hobbies, etc., the population was defined. Data Collection tools: Tools used for this research are Survey Questionnaires. Defining the sample: The respondents were majorly from Pune, few from Mumbai and had a sample from Spain.

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INTRODUCTION – FABINDIA

Fabindia was founded with the belief that there was a need for a vehicle for marketing the vast and diverse craft traditions of India and thereby help fulfill the need to provide and sustain employment. The major portion of Fabindia’s product range is textile based. Non- textile introductions to this range are Home Products (introduced in October 2000), Organic Food Products (introduced in July 2004) & Fabindia’s range of authentic Personal care products (introduced in March 2006). The textile-based product range includes ready-to-wear garments and accessories for men, women, teenagers and children; bed, bath, table and kitchen linen; floor coverings, upholstery fabric and curtains. Cotton, silk, wool, grass, linen and jute are the basic fibre used. The Home Products range carries furniture, lighting, stationery, tableware, cane baskets and a selection of handcrafted utility items. Fabindia Organics carries several types of cereals, grains, pulses, spices, sugar, tea, coffee, honey, fruit preserves and herbs. Fabindia’s range of authentic Personal care products includes soaps, shampoos, hair oils, pure oils; moisturizers, body scrubs, face packs, hair conditioners & special skin care products. The core idea behind the Fabindia marketing is blending indigenous craft techniques with contemporary designs to bring aesthetic products to today’s consumers.

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Survey Questionnaire

1. How frequently do you shop for apparels? a. More than once a month b. Once in 2 months b. Once/twice in 6 months d. Once in a year

2. Whattypeofclothesdoyouusuallyprefertowear?

a. Formals b. Casuals c. Denims d. Traditional e. Others, please specify ______________________

3. What kind of fabric do you prefer?

a. Cotton b. Silk c. Polyester d. Synthetic e. Others, ________________

4. On what occasion do you buy apparels/clothes?

a. Festivals b. Discount season c. Birthdays / Special occasions d. Based on need

5. WhichareyourpreferredBrand/Store?___________________________________

6. IsthisyourfirstvisittoFabindia?

a. Yesb.Noi. Ifyes,howdidyougettoknowaboutFabindia?

o Interneto Wordofmoutho PrintAds/Hoardingso GiftVoucherso Others,specify_____________________

ii. Ifno,howoftendoyouvisitFabindia?

o Oncein15dayso Once/Morethanonceinamontho Onceinsixmonthso Onceinayear

7. HowmuchdoyouspendgenerallyspendonclothesinFabindia?

a. 400–1000b. 1000–1600c. 1600–3000d. 3000andabove

8. Rankthefollowingfactorsonthescaleof1–5basedonyourdecisiontovisitFabindiaorbuy

theirproducts?(1beingthelowestto5beingthehighest)

a. Rangeofproductsmadeavailable_____b. Pricerangeoffered_____c. Serviceprovidedbythestaff_____d. Displayofgoods_____e. Ambienceandcleanlinessinthestore_____

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9. Rate your experience at Fabindia in terms of your satisfaction level for the following:

[5 - Highly satisfactory, 4 – Satisfactory, 3 – Average, 2 – Unsatisfactory, 1 – Highly unsatisfactory]

Products

range/variety Service

provided by the sales

staff

Price range

offered

Ambience and

Cleanliness of the store

Display of goods in the store

Apparels (Men)

Apparels (Women)

Home furnishing &

decor

Organic products

Jewelry and Accessories

10. WhichproductswouldyouwantFabindiatolaunch?

Gender: Male / Female

Age: ________________ years

Place: _____________________

Occupation: _________________

Income:

a. Less than 2.5 lakhs per annum b. Between 2.5 lakhs and 4 lakhs c. Between 4 lakhs and 6 lakhs d. More than 6 lakhs

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SURVEY ANALYSIS

1. How frequently do you shop for apparels?

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2. What type of Clothes do you usually prefer to wear?

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3. What kind of fabric do you prefer?

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4. On what occasion do you buy apparels/clothes?

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5. Which are your preferred brand/store?

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6. Is this your first visit to Fab India?

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7. If yes, how did you get to know about Fabindia?

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8. If no, how often do you visit Fabindia?

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9. How much do you spend generally spend on clothes in Fabindia?

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10. What products would you want Fabindia to launch?

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11. How much do you rate range of products made available in Fabindia on a scale of 5? (1 being the lowest and 5 being the highest)

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12. How much do you rate the price range offered in Fabindia on a scale of 5? (1 being the lowest and 5 being the highest)

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13. How much do you rate service provided by the staff in Fabindia on a scale of 5? (1 being the lowest and 5 being the highest)

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14. How much do you rate display of goods in Fabindia on a scale of 5? (1 being the lowest and 5 being the highest)

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15. How much do you rate ambience and cleanliness in Fabindia store on a scale of 5? (1 being the lowest and 5 being the highest)

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16. Rate your experience at Fabindia in terms of your satisfaction level for the following : Products range/variety (Apparels Men)

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16. Rate your experience at Fabindia in terms of your satisfaction level for the following: Service provided by sales staff (Apparels Men)

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16. Rate your experience at Fabindia in terms of your satisfaction level for the following: Price range offered (Apparels Men)

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16. Rate your experience at Fabindia in terms of your satisfaction level for the following: Ambience and cleanliness of the store (Apparels Men)

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16. Rate your experience at Fabindia in terms of your satisfaction level for the following: Display of goods in the store (Apparels Men)

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17. Rate your experience at Fabindia in terms of your satisfaction level for the following: Products range/variety (Apparels Women)

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17. Rate your experience at Fabindia in terms of your satisfaction level for the following: Service provided by sales staff (Apparels Women)

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17. Rate your experience at Fabindia in terms of your satisfaction level for the following: Price range offered (Apparels Women)

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17. Rate your experience at Fabindia in terms of your satisfaction level for the following: Ambience and cleanliness of the store (Apparels Women)

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17. Rate your experience at Fabindia in terms of your satisfaction level for the following: Display of goods in the store (Apparels Women)

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18. Rate your experience at Fabindia in terms of your satisfaction level for the following: Products range/variety (Home furnishing & décor)

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18. Rate your experience at Fabindia in terms of your satisfaction level for the following: Service provided by sales staff (Home furnishing & décor)

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18. Rate your experience at Fabindia in terms of your satisfaction level for the following: Price range offered (Home furnishing & décor)

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18. Rate your experience at Fabindia in terms of your satisfaction level for the following: Ambience and cleanliness of the store (Home furnishing & décor)

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18. Rate your experience at Fabindia in terms of your satisfaction level for the following: Display of goods in the store (Home furnishing & décor)

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19. Rate your experience at Fabindia in terms of your satisfaction level for the following: Products range/variety (Organic products)

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19. Rate your experience at Fabindia in terms of your satisfaction level for the following: Service provided by sales staff (Organic products)

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19. Rate your experience at Fabindia in terms of your satisfaction level for the following: Price range offered (Organic products)

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19. Rate your experience at Fabindia in terms of your satisfaction level for the following: Ambience and cleanliness of the store (Organic products)

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19. Rate your experience at Fabindia in terms of your satisfaction level for the following: Display of goods in the store (Organic products)

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20. Rate your experience at Fabindia in terms of your satisfaction level for the following: Products range/variety (Jewelry and Accessories)

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20. Rate your experience at Fabindia in terms of your satisfaction level for the following: Service provided by sales staff (Jewelry and Accessories)

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20. Rate your experience at Fabindia in terms of your satisfaction level for the following: Price range offered (Jewelry and Accessories)

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20. Rate your experience at Fabindia in terms of your satisfaction level for the following: Ambience and cleanliness of the store (Jewelry and Accessories)

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20. Rate your experience at Fabindia in terms of your satisfaction level for the following: Display of goods in the store (Jewelry and Accessories)

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MY OBSERVATIONS R Swathi – Roll number 187

The frequency to shop for apparels from the survey shows that a good number of people shop frequently, say, once in two months’ period. Out of total 25 people, 16 people shop at least once in two months. Out of 16 people, 6 people said that they shop for more than once in a month. Three people shop once in 6 months and 9 people shop once in a year. 64% of people shopping at least once in two months from the sample reveal that shopping for apparels is showing increasing trend. One more interesting aspect of the survey is that all men who said, they shop once in a year belong to the age group of 20-25 years. Also, Formal and traditional attires are giving way to casual clothing and the same number of people prefer cotton. The need based shopping is on the increase compared to shopping on special occasions, which is a shift from the earlier decades’ trend. Fabindia is the leading preferred brand followed by Levis. However, out of sample population of 25, only 7 had opted for this brand. This shows tough competition among the branded apparels. People have many more choices in the modern apparel world; it is only the quality of the product and sales promotion measures that would clinch the customers towards the brand. Fabindia is quite popular with the whole sample though many preferred other brands during the Survey. Only 5 people said that this was their first visit. Here you see both positive and negative aspects. Though 20 people said that they had earlier visited Fabindia, only 7 people gave Fabindia as their first choice. Therefore, besides the Sales promotion measures, there is a need to devise methods for customer retention and satisfaction. The above point is confirmed with the next question of Survey – When they (20 persons who were not the first time visitors) were asked how often they shop at Fabindia, exactly the same number of persons, 7, said that they used to visit once in 15 days or in a month; 9 persons said that they would visit once in 6 months. The remaining opted for once in a year. Therefore, there exists a co-relation: The number of persons frequently visiting Fabindia and the number of persons preferred Fabindia Brand. There is a Brand Value created for Fabindia, which can be enhanced. The study aims towards this idea and the following questions pattern was designed to determine the customer’s preferences and the deciders that influence their decision of buying.

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The disposable income for apparels is a major factor. Out of 25 – 8 persons spending 400-1000 every visit 9 persons spending 1000-1600 every visit There is no clear winner about the products that they look for from Fabindia. The ratings on a scale of 1 to 5 for Fabindia awarded by the people surveyed are given hereunder under various criterions:

1. Availability of products - Rating 4 is given by 14 people; 4 & 5 by 15 people 2. Price range offered - Rating 4 is given by 5 people: 4 & 5 by 7 people 3. Service provided by Staff - Rating 4 is given by 7 people: 4 & 5 by 12 people 4. Display of goods/products - Rating 4 is given by 10 people: 4 & 5 by 19 people 5. Ambience - Rating 4 is given by 10 people: 4 & 5 by 20 people

The price range and service provided by Staff are lowly rated and hence there is scope for improvement in this area. This shows clearly that the customers –

1. Recognize Price range as a problem. 2. Service provided by Staff though not viewed as a problem, indicate that they are

not very much satisfied, which is still regarded as a minor issue. 3. The information search of other brands, price comparison and evaluating the

alternatives by the consumers are very visible. 4. There could be a perception in the minds of the consumers (the survey had not

clearly brought it out – though could be inferred) that Fabindia caters to the Premium Segment.

5. Also, there is a demand from their customers to have brand extension into various other domains such as home products, range of accessories and jewelry, footwear, etc.

Now – Fabindia can focus on Premium Segment as they cannot bring in reduction in prices given the cost of the inputs, but can improve Service and availability of products. They can target this segment through aggressive sales promotion measures. With Ambience and display of products are well received by the respondents, and there are good number of people in the age group above 25, opting Fabindia as a lead brand there is good marketing potential. This Survey concludes that given the pricing constraints, Fabindia can concentrate more on the Premium Segment and India growing with GDP of 8% and above, the disposable income for apparels is likely to witness good increase and the consumers for this Segment are expected to increase.

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MY OBSERVATIONS Snigdha Kapoor – Roll number 145

Quintessential Indianness in fabric through the years, Fabindia is popular for authenticity of hand-woven fabric. During the visit, I observed the segment that comes to the place belongs to a niche and upper middle and middle class category, mainly dominated by women, women who are independent and have a powerful personality. Large chunk of buyers are repeat purchasers. People who come to purchase clothing are supporters of craft. They perceive Fabindia to be good on quality and have a fixed price which is generally on a higher side as compared to the local market but affordable for the upper middle class since they crave for quality, design, and durability. There were people who looked for more colors and prints on their clothing, who did not like Fabindia, as they found it dull and boring. Fabindia clothes can be recognized easily as they are unique in their own way. They have a typical texture, material and print. Young girls visiting the place said that they love Fabindia, as one can put together, mix and match, Salwar, Kameez, Dupatta, and also shirts, skirts, pants jackets, etc. It is generally a hit or miss situation, but the store is fun, and one can try on everything. The clothes give them the comfort, the style, the variety and the sizes they wish for. The most interesting fact about the brand is that even though the color of the cloth fades away in a wash or two, that even though the designs or prints are monotonous beyond a point, people still are loyal to the brand. That is why they have repeat customers. It’s the trust that the brand has built over a period of 50 years that people look at the positives of the brand and ignore certain shortcomings by understanding them. People come for an experience, and not just to buy something. It’s the emotional connect that they achieve by visiting the place. They get a sense of belongingness and Indianness, the feeling of staying connected to the roots of the ‘Indian’ culture.

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MY OBSERVATIONS Syed Hyder – Roll number 189

Fabindia is a well-established brand with branches all over India and even abroad. We visited Fabindia, DP Road branch, Pune in the afternoon between 11am-3 pm. A few personal observations regarding the store were that the ambience was very enriching. Gave an ethnic feel and also the sales people were warm and friendly. Consumer behavior: The footfall during that span between 11am-3 pm was less but continuous in the store. There was an eclectic mix of people. The layout of the store was such that there was a single entry cum exit point and there were cash counters near the entry/exit. Just next to that portion was the furniture and accessories section, also there were smaller goods, edible items etc next to that section. Further, there was an imitation jewelry section, a few more of furniture and furniture accessories and then finally the garments and apparels section. In my observation, majority of the people who came to the store just glanced through all the aforementioned sections and went straight to the garments and apparels section. They made their first tryouts or purchases in the garments, apparels section and then moved on to other sections. Many of the customers were repeat customers and quite satisfied by the available items. The sales persons knew their regular customers well and coordinated quite well. After making their purchases at the garments section, these customers then went on to other sections in the order of the layout of the store. Few went on to buy the upholstery, linen, mats, jewelry etc. There was a group of foreigners as well who seemed quite at ease with Fabindia and looked like repeat customers as they were dressed in Fabindia products. There were a few first time visitors as well who seemed to be students. They didn’t make any significant purchases but went about scanning the place and seemed bemused by the overall ambience of the store. They could convert into potential repeat customers, as they seemed satisfied with the Fabindia experience. A major observation is that Fabindia has a huge appeal in garments and apparels sector. They have also been smart in planning the layout well so that the customers actually glance over other products as well on the way to the garments section.

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MY OBSERVATIONS Pooja Udaikumar – Roll number 200

Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. On visiting the Fabindia store there were a few observations regarding consumer behavior that I inferred: Culture: The products offered at Fabindia are intrinsically Indian in nature and their strongest advantage is probably playing the culture card. Aligning themselves in terms of textile, design and colors to appeal to the Indian sensibilities, they have positioned themselves as the premium one-stop shop for people looking for good quality ‘Indian’ products. Another point of interest was that the store is quite popular with tourists who view it as a brand to get Indian products with the quality assurance of an internationally renowned brand name. Ambience: It is understood that consumers benefit form stores that are designed effectively to promote efficient shopping. The ambience of the store was airy, open and inviting. Harmonious and earthy, it is designed to appeal to the senses. The very décor was true to the Fabindia look and feel. Service: Perhaps standout bone of contention with the store was in terms of the service personnel. The attire of the service personnel clashed inconsistently with the store look and feel and brand identity as a whole. I observed that the personnel could connect with the consumers more if they were aligned to the brand identity themselves. I noticed that the service personnel found it difficult to communicate with the foreign nationals that walked into the store. Being the brand that they are, Fabindia could benefit from working on the communication skills of their service staff, eliniating potential miscommunication because of language barriers. Demographics: Most of the consumers could be could be categorized into middle class and upper middle class, middle aged who have advanced in their career hence being highly earning women or students with meager income but with aspirational purpose to visit the store. Factors such as income, nature of one’s profession and level of education are important factors to compute such a complex variable. I also realized that there were second-generation loyalists of the brand. While the final decision of the product to be purchased lay in the hands of the user, the choice of the brand was usually a family decision.

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Decision Making: Purchase patterns of the consumers were mostly need based. Consumer involvement was relatively high at the point of purchase, when it came to apparel and home products. The personal care and organic products were more impulsive purchases in nature, being positioned near the cash counter at the exit point of the store. At times consumers seemed to wrestle with clash between the quality versus price issue especially when it came to the jewelry and accessories. Attitudes: A composite of consumer beliefs about, feelings about, and behavioral intentions within the context of marketing, towards the brand that is Fabindia. It was observed that the general attitude was positive. Although it was a common understanding that the quality of the goods was waning, there were brand loyalists who maintained their positive stand towards the brand. Discussed above was the operant framework within which the interpretation of consumer behavior was taken into account.