Gourmet Report MAIN

8/8/2019 Gourmet Report MAIN

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PROJECT REPORT

|CONSUMER PERCEPTION TOWARDS GOURMET RETAILING}

Submitted on August 26, 2010

In Partial Fulfillment of the Requirement for the

Retail Marketing

In the

MBA (FT): 2009-11

Submitted to:

Prof. SapnaParashar

Submitted by:

Ankit Gupta (091304)


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ACKNOWLEDGEMENT

Retail is one of the most important and core subject of marketing which covers every aspect of

backend operations and front end services. After learning theoretical concepts of Retail

marketing, it was time for utilizing those concepts in practical applications which will enhance

learning and experience to many folds.

I am grateful to Prof. SapnaParashar for giving me this golden opportunity in the form of retail

marketing project titled Consumer perception towards Gourmet retailing. I am thankful for

providing guidance to me and also valuable insights of retail marketing and consumer behavior.

I am grateful to all the respondents who gave their precious time to fill this survey. Without their

unbiased response this survey wouldnt have been possible.

I am thankful to bakery shop owners of Ahmedabad who allowed me to visit their shops and

helped in analyzing the scenario.

I am grateful to all those who helped me directly and indirectly in successfully completing

this endeavor.

Ankit Gupta (091304)

Institute of Management, Nirma University


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EXECUTIVE SUMMARY

Gourmet retailing is one of the booming sector in India and caters to person who are greatconnoisseurs of food and persons having great desire to relish delicious products. Target group

of this segment is price-insensitive but the only condition is presence of top most quality as well

as taste.

This research paper deals with the consumer perception towards gourmet retailing. Study of

consumer behavior and attitude is very important for the retailers as well as advertiser and

marketer. For success of any retail format the offering of promotion and services should be based

on the consumer behavior. Respondents of this survey have sampled by simple random sampling

method and data was collected through the e-mail questionnaires.

There are certain parameters which were ranked by the customers and those parameters are

Quality, Taste, Hygiene, Price, Variety, Service, Availability, Brand name, Location and

Environment. These were ranked after analyzing the data in SPSS and then general ranking were

given to all the parameters.

There were some characteristics of a retail store which impacts a customer visiting that store.

These characteristics are Taste, Smell, Service, Experience, Design, Theme, Music and Color.

Based upon the intensity of impact of these attributes of store, a retailer can change the layout

and format of a gourmet retail shop. Analysis done in SPSS helps to generate the most impactful

characteristics on the basis of the response of respondents.

Recommendations were also made for the marketers and advertisers as consumer behavior will

help them in proper formulation of brand message and then effectively and efficiently

communicating the same to the target group.


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TABLE OF CONTENTS

1. INTRODUCTION GOURMET RETAILING.. 05

2. PROBLEM STATEMENT .. 06

3. RESEARCH OBJECTIVE .. 06

4. METHODOLOGY . . 07

4.1Sampling Design 07

4.2Research Design .084.2.1 Classification of design ..09

4.3Data Collection 09

5. ANALYSIS ... 11

6. RECOMMENDATION .... 35

6.1Recommendation for Retailers ..35

6.2Recommendation for Marketers/Advertisers . 37

7. LIMITATIONS .38

APPENDIX I 39

APPENDIX II .. 41

REFERENCES .42


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1. Introduction Gourmet Retailing

The gourmet food retailing industry is a continuously evolving selection of gourmet and fine

foods that cater to the needs of an up-scale audience. The segment caters to those who

understand the finer tastes, are widely travelled or are willing to explore new and alternate

cuisines and ingredients. While trends keep changing, there has been a constant demand for

wines, cheeses and meats. Gourmet retailing is the new wave in the Indian retail industry.

Modern retailers are adding menus, wine lists and dining tables to their old standbys like the

produce aisle, deli and express cashier line. Revolution is taking place across the nation in the

eating habits of consumers, and also the growing popularity of gourmet food in India is largely

due to the increasing number of people venturing abroad to exotic places for vacations and

business reasons.

Retail and business consulting firm Technopak Advisors estimate the current market size of

gourmet food market in India at Rs 4,500 crore (SEC A), with the NCR, Mumbai and

Bangalore combined accounting for more than half the total market. Whether its Turkish

hazelnuts, Italian gelato or French cheese and wine vinegars, or fine breads, the time could well

have come for high-end brands in the country.

The growth of the retail sector in India is also a huge boost to the gourmet food sector and the

growing cadres of food importers bears testimony to the popularity and demand for access to

global gourmet specialties at equally enticing retail environments. Gourmet is like any

conventional food and grocery product, but carries upscale packaging and is premium-priced and

positioned for the elite consumers. The concept of gourmet retailing may be new in India, but

experimentation with food is an age old practice. So while technically, gourmet retailing is still

in its nascent stage in India, there is reasonably a large section of consumers who love and use

such products and are willing to experiment with food from around the globe.

The gourmet retailing market in India is still small and niche. It caters to 2% - 5% of the

consumers. Few organized chains like Godrej Natures Basket are striving to cater to the needs

of this market. The good news is that this segment has massive buying power, is relatively price

insensitive and is a segment that is growing fast and furiously.


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2. Problem Statement:

Gourmet means A person who knows a lot about food and cooking, and who enjoys eating

high-quality food and thus it is clear that gourmet retailing is high involvement service. If a

connoisseur of food doesnt like the food once then he will never come back at same store. Thus

fulfilling the expectation of customers consistently is very necessary. But customer satisfaction

will be achieved by knowing customers preferences and perception.

Gourmet retailing is the new revolution in the field of retail industry in India. So the awareness

level of Gourmet retailing is very less among the customer. Also consumer behavior towards

Gourmet retailing which playsa very important role in designing the strategies by retailers is

blurred and not clear. The Research deals with consumer perception towards the difference

between the perceived values towards branded and unbranded products and retail value

proposition of gourmet retailers.

3. Research Objective:

Objectives of this Research paper are:

Impact of parameters like Service, Theme, Color, Design, Music, Smell, Taste and

Experience which plays important role in attracting and retaining customers.

Ranking of parameters such as Quality, Price, Taste, Brand name, Service, Environment,

Availability, Location, Variety and Hygiene.

Main purpose of the visit or purchase of Gourmet items.

Type of service which is required by a customer in any Gourmet retail shop.


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4. Methodology:

The system of collecting data for research projects is known as research methodology. The data

may be collected for either theoretical or practical research. Methodology comprises of the

complete process of the research which will generate required information and findings from the

data. It comprises of selection of sampling method and sampling population, research design,

data collection methods, data analysis and limitations of the research conducted. Thus we can

divide our research methodology as:

4.1 Sampling design:

When organizations require data they either use data collected by somebody else (secondary

data), or collect it themselves (primary data). This is usually done by sampling that is collecting

data from a representative sampleof the population they are interested in.

Apopulation need not be human. In statistics we define a populationas the collection of ALL the

items about which we want to know some characteristics. As the whole population cannot be

traced and also the research process should be fast and cost-effective thus sampling is done to

represent a sample from the population. Also the sample should be done without any bias and

also the sample should represent the target segment which a researcher wants to focus out of

whole population.

Probability sampling was conducted in this research as a probability sampling method is any

method of sampling that utilizes some form of random selection. In order to have a random

selection method, we have to set up some process or procedure that assures that the different

units in your population have equal probabilities of being chosen. Thus simple random sampling

was the most effective sampling method which was devised.

In this research sample was chosen based upon the target customers who represent the population

and chances or probability of their selection is equal in every case. This sampling method is the

most cost-efficient way of collecting data and also effective in Gourmet retailing research. Steps

in sampling design are:


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Target Population:Gourmet food items are those items which are premium in their

category and it is liked by connoisseurs of food and bakery products. Thus our target

population is person having liking of bakery products and also those who have high

disposable income.

Thus our sampling target population will be mostly single Software professionals who

have high disposable incomes and households or families which visits bakery shops

regularly.

Sampling Frame: Sampling frame (synonyms: "sample frame", "survey frame") is the

actual set of units from which a sample has been drawn: in the case of a simple random

sample, all units from the sampling frame have an equal chance to be drawn and to occur

in the sample. In the ideal case, the sampling frame should coincide with the population

of interest. It is a listing that should include all those in the population to be sampled and

exclude all those who are not in the population is the sampling frame. Sampling frame is

also very important part of a research as it helps in the elimination and duplicity and

redundancy of the data.

In this research, all those respondents who were not in the target population of the

sampling were eliminated from the analysis as the conclusion drawn after analysis shouldrepresent the behavior of whole population.

4.2 Research Design:

Research design is a plan outlining how information is to be gathered for an assessment or

evaluation that includes identifying the data gathering method(s), the instruments to be

used/created, how the instruments will be administered, and how the information will be

organized and analyzed.

Classification of the design is based on the attributes and type of the research being conducted.

In the gourmet retailing research, the design is based upon following classifications.


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4.2.1 Classification of Designs:

This research is based upon exploratory studies as it is dedicated towards the immediate

exploration of consumer behavior, attitude and perception towards gourmet retailing.

Future research projects may be based upon the hypothesis developed on these findings.

Method of data collection will be based on communication Study.Data or response is

collected by filling of questionnaires.

As in this research the researcher has no control over the external environment and

variables hence the study is ex post facto design.

Perception study is a Descriptive study.

Cross-sectional study is carried out in this case as this study represents a snapshot of

time.

The topical scope of this research extends to Statistical studies.

Design of this research is also based on the actual environment conditions i.e field

conditions.

4.3 Data Collection:

Data collection is a term used to describe a process of preparing and collecting data. The

purpose of data collection is to obtain information to keep on record, to make decisions about

important issues, to pass information on to others. Primarily, data is collected to provide

information regarding a specific topic. In general marketers can select from two basic

approaches to data collections using primary methods:

y Qualitative Data Collection

y Quantitative Data Collection

Research is based upon the primary research and quantitative data collection methods. In primary

data collection, you collect the data yourself using methods such as interviews and

questionnaires. The key point here is that the data collected is unique for researcher as well as for

the objective of research.


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There are many methods of collecting primary data and the main methods include:

Questionnaires

Interviews

Focus group interviews

Observation

Critical incidents

Portfolios.

Out of these data collection tools, for qualitative data collection questionnaires is the most

powerful tool. Questionnaires were mailed to the respondents who were in the target groupand

their responses were collected in the excel sheet. Advantages of sending questionnaires are:

y Basis for interviewing or a telephone survey.

y Delivery of Questionnaires is very quick.

y Can cover a large number of individuals or organizations.

y Wide geographic coverage.

y Relatively cheap.

y No prior arrangements are needed.

y Avoids embarrassment on the part of the respondent.

y Possible anonymity of respondent.

y No interviewer bias.


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5. Analysis:

FREQUENCY OF PURCHASE:

Freq_1

Frequency Percent Valid Percent

Cumulative

Percent

Valid 0 2 2.1 2.1 2.1

1 37 38.1 38.1 40.2

2 13 13.4 13.4 53.6

3 45 46.4 46.4 100.0

Total 97 100.0 100.0

This graph shows that most of the people in India visit gourmet retail either on daily basis

or they visit very seldom. As the gourmet retail is for premium segment thus we can

deduce from the frequency of visits in a gourmet shop. Demographics of person who visit

gourmet retail are those who have high disposable income.


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RANKING GIVEN TO EACH PARAMETER

1) Ranking of Quality by respondents:

Quality_2

Frequency Percent Valid PercentCumulative

Percent

Valid 1 47 48.5 48.5 48.5

10 2 2.1 2.1 50.5

2 23 23.7 23.7 74.2

3 8 8.2 8.2 82.5

4 7 7.2 7.2 89.7

5 6 6.2 6.2 95.9

6 1 1.0 1.0 96.9

7 1 1.0 1.0 97.9

9 2 2.1 2.1 100.0

Total 97 100.0 100.0

2) Ranking of price by respondents:

Price_2


Cumulative

Percent

Valid 9 6 6.2 6.2 6.2

8 13 13.4 13.4 19.6

7 8 8.2 8.2 27.8

6 3 3.1 3.1 30.9

5 9 9.3 9.3 40.24 18 18.6 18.6 58.8

3 23 23.7 23.7 82.5

2 11 11.3 11.3 93.8

10 6 6.2 6.2 100.0

Total 97 100.0 100.0


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3) Ranking of Taste by respondents:

Taste_2


Cumulative

PercentValid 9 1 1.0 1.0 1.0

7 1 1.0 1.0 2.1

6 4 4.1 4.1 6.2

5 2 2.1 2.1 8.2

4 8 8.2 8.2 16.5

3 20 20.6 20.6 37.1

2 28 28.9 28.9 66.0

10 1 1.0 1.0 67.01 32 33.0 33.0 100.0

Total 97 100.0 100.0

4) Ranking of Brand Name by respondents:

Brand_2


Percent

Valid 9 16 16.5 16.5 16.5

8 21 21.6 21.6 38.1

7 13 13.4 13.4 51.5

6 14 14.4 14.4 66.0

5 7 7.2 7.2 73.2

4 6 6.2 6.2 79.4

3 3 3.1 3.1 82.5

10 14 14.4 14.4 96.9

1 3 3.1 3.1 100.0

Total 97 100.0 100.0


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5) Ranking of Service by respondents:

Service_2


Percent

Valid 9 16 16.5 16.5 16.5

8 6 6.2 6.2 22.7

7 18 18.6 18.6 41.2

6 10 10.3 10.3 51.5

5 19 19.6 19.6 71.1

4 12 12.4 12.4 83.5

3 3 3.1 3.1 86.6

2 5 5.2 5.2 91.8

10 8 8.2 8.2 100.0

Total 97 100.0 100.0

6) Ranking of Environment by respondents:

Environment_2


Cumulative

Percent

Valid 9 19 19.6 19.6 19.6

8 12 12.4 12.4 32.0

7 19 19.6 19.6 51.5

6 6 6.2 6.2 57.7

5 7 7.2 7.2 64.9

4 6 6.2 6.2 71.1

3 2 2.1 2.1 73.22 1 1.0 1.0 74.2

10 23 23.7 23.7 97.9

1 2 2.1 2.1 100.0

Total 97 100.0 100.0


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7) Ranking of Availability by respondents:

Availability_2


Cumulative

Percent

Valid 9 6 6.2 6.2 6.2

8 11 11.3 11.3 17.5

7 15 15.5 15.5 33.0

6 22 22.7 22.7 55.7

5 11 11.3 11.3 67.0

4 8 8.2 8.2 75.3

3 7 7.2 7.2 82.5

10 16 16.5 16.5 99.0

1 1 1.0 1.0 100.0

Total 97 100.0 100.0

8) Ranking of Location by respondents:

Location_2


Cumulative

Percent

Valid 9 13 13.4 13.4 13.4

8 14 14.4 14.4 27.8

7 2 2.1 2.1 29.9

6 16 16.5 16.5 46.4

5 10 10.3 10.3 56.7

4 6 6.2 6.2 62.9

3 9 9.3 9.3 72.2

2 8 8.2 8.2 80.4

10 17 17.5 17.5 97.9

1 2 2.1 2.1 100.0

Total 97 100.0 100.0


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9) Ranking of Variety by respondents:

Variety_2


Cumulative

PercentValid 9 14 14.4 14.4 14.4

8 12 12.4 12.4 26.8

7 12 12.4 12.4 39.2

6 12 12.4 12.4 51.5

5 12 12.4 12.4 63.9

4 19 19.6 19.6 83.5

3 2 2.1 2.1 85.6

2 7 7.2 7.2 92.810 5 5.2 5.2 97.9

1 2 2.1 2.1 100.0

Total 97 100.0 100.0

10)Ranking of Hygiene by respondents:

Hygiene_2


Cumulative

Percent

Valid 9 4 4.1 4.1 4.1

8 8 8.2 8.2 12.4

7 8 8.2 8.2 20.6

6 9 9.3 9.3 29.9

5 14 14.4 14.4 44.3

4 7 7.2 7.2 51.5

3 20 20.6 20.6 72.2

2 14 14.4 14.4 86.6

10 5 5.2 5.2 91.8

1 8 8.2 8.2 100.0

Total 97 100.0 100.0


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DISTRIBUTION OF PARAMETERS W.R.T RANKING

1) Parameters which were ranked 1 by 97 respondents:

This graph shows that main priority by customer is given to Quality, Taste and hygiene

whenever they choose any Gourmet retail.


According to this graph it can be concluded that taste, Quality, Hygiene plays 2nd

most important

role for any shop. Location as well as variety has similar influence on customer.

47

0

32

3 0 2 1 2 28

Rank 1

Rank 1

23

11

28

05

1 0

8 7

14

Rank 2

Rank 2


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For rank 3 the main parameter is hygiene. price and taste factor plays same role for rank 3. Rest

parameters are within range 2-7 so it has less importance in analysis for rank 3.


For rank 4, variety and price comes into consideration. Both have almost same importance in the

analysis for the rank4. But prior rank analysis shows price to be ranked 4.

8

2320

3 3 27 9

2

20

Rank 3

Rank 3

7

18

86

12

68

6

19

7

Rank 4

Rank 4


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Rank 5 has Variety as the main parameter which has prime importance and it can also be

concluded if we take reference from the rank 4 and rank 3 graphs. Thus it can be observed that

variety of products has also importance in a gourmet shop.


Service is ranked 6 in the importance parameter list because it is ranked above availability and

location in above graphs.

69

2

7

19

7

11 1012

14

Rank 5

Rank 5

1 34

1410

6

22

1612

9

Rank 6

Rank 6


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Availability is ranked number 7 in the parameter importance list. There is tie in between

availability and environment but using the prior rank graphs it can be concluded that Availability

should be ranked 7.


Brand name is ranked 8 in the gourmet retail shop. Hence a retailer should focus less on the

ambience part but it should not be neglected.

1

8

1

13

18 1915

2

128

Rank 7

Rank 7

0

13

0

21

6

12 1114 12

8

Rank 8

Rank 8


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Location is ranked 9th in this list because if above 8 ranks are fully satisfied then customers will

definitely come to their retail irrespective of location and distance.

10)Parameters which were ranked 10 by 97 respondents:

Ambience plays a very important role in any shop but not in the case of Gourmet shop. Hence it

is ranked 10. But it should not be concluded that it has no importance. This importance list is a

relative list.

2 1

6

16 1619

6

13 14

4

Rank 9

Rank 9

26

1

14

8

23

16 17

5 5

Rank 10Rank 10


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REASON OF VISIT:

Reason of visit_3


Cumulative

Percent

Valid 0 16 16.5 16.5 16.5

1 6 6.2 6.2 22.7

2 51 52.6 52.6 75.3

4 19 19.6 19.6 94.8

5 5 5.2 5.2 100.0

Total 97 100.0 100.0

Out of 97 respondents, 51 respondents visited shop because of their past experience and 35 were

influenced by advice of their friends and relatives.

REASON OF PURCHASE:

Reason of Purchase_4


Cumulative

Percent

Valid 0 4 4.1 4.1 4.1

1 10 10.3 10.3 14.4

2 8 8.2 8.2 22.7

3 39 40.2 40.2 62.9

4 7 7.2 7.2 70.1

5 2 2.1 2.1 72.2

6 3 3.1 3.1 75.3

7 10 10.3 10.3 85.6

8 3 3.1 3.1 88.7

9 9 9.3 9.3 97.9

10 2 2.1 2.1 100.0

Total 97 100.0 100.0

71 had gourmet items because they wanted to have something delicious and 36 forbirthdays.


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REASON OF VISIT_3 * REASON OF PURCHASE_4 CROSSTABULATION


0 1 2 3 4 5

Reason of visit_3 0 1 4 3 4 3 0

1 2 2 1 0 0 0

2 1 4 4 28 3 1

4 0 0 0 7 1 1

5 0 0 0 0 0 0

Total 4 10 8 39 7 2

REASON OF VISIT_3 * REASON OF PURCHASE_4 CROSSTABULATION


6 7 8 9 10 Total

Reason of visit_3 0 0 0 0 1 0 16

1 0 0 0 1 0 6

2 3 5 0 2 0 51

4 0 4 2 2 2 19

5 0 1 1 3 0 5

Total 3 10 3 9 2 97

According to this cross tabulation table it can be observed that the respondents who have past

experience come to retail shop for having something delicious. These are loyal customers who

drive the sales of any shop.


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IMPACT OF PARAMETERS ON THE CUSTOMERS WHEN THEY VISIT GOURMET

RETAIL:

1) Service:

Service_5


Cumulative

Percent

Valid 0 2 2.1 2.1 2.1

1 5 5.2 5.2 7.3

2 52 53.6 54.2 61.5

3 37 38.1 38.5 100.0

Total 96 99.0 100.0

Missing System 1 1.0

Total 97 100.0

Impact of services is moderate on the respondents as 52 out of 97 respondents have shown that

services have moderateinfluence.

High Impact Moderate

Impact

Least Impact Not Bothered

Service 37 52 5 2

37

52

5 2

Service

Service


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2) Theme:

Theme_5


Cumulative

Percent

Valid 0 29 29.9 29.9 29.9

1 22 22.7 22.7 52.6

2 32 33.0 33.0 85.6

3 14 14.4 14.4 100.0

Total 97 100.0 100.0

Impact has also very moderate type of impact on the respondents. Also many respondents were

not even bothered of the theme of the shop. This shows that why customers gave least ranking to

environment factor.


Impact


Theme 14 32 22 29

14

32

22

29

Theme

Theme


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3) Color:

Color_5


Cumulative

Percent

Valid 0 30 30.9 30.9 30.9

1 23 23.7 23.7 54.6

2 31 32.0 32.0 86.6

3 13 13.4 13.4 100.0

Total 97 100.0 100.0

Color in the shop also doesnt play much importance role for the customers. Because only 13

have said that color has high impact. here also not bothered are very much and also least

important is 23. This shows that environment and ambience factor is not much important in the

gourmet retail.


Impact


Color 13 31 23 30

13

31

23

30

Color

Color


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4) Design:

Design_5


Cumulative

Percent

Valid 0 16 16.5 16.5 16.5

1 32 33.0 33.0 49.5

2 35 36.1 36.1 85.6

3 14 14.4 14.4 100.0

Total 97 100.0 100.0

Design has moderate as well as least impact on the customers. This shows that layout has some

impact on the customers when they enter the retail shop.


Impact


Design 14 35 32 16

14

3532

16

Design

Design


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5) Music:

Music_5


Cumulative

Percent

Valid 0 13 13.4 13.4 13.4

1 40 41.2 41.2 54.6

2 30 30.9 30.9 85.6

3 14 14.4 14.4 100.0

Total 97 100.0 100.0

Respondents are least bothered of the music playing in the shop. But then also the music should

be in synchronization with the ambience and theme of the store.


Impact


Music 14 30 40 13

14

30

40

13

Music

Music


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6) Smell:

Smell_5


Cumulative

Percent

Valid 0 1 1.0 1.0 1.0

1 4 4.1 4.1 5.2

2 42 43.3 43.3 48.5

3 50 51.5 51.5 100.0

Total 97 100.0 100.0

Respondents have high impact because of the prevalent smell and fragrance in the shop. This

excites and attracts a customer to purchase a product and also the perceived quality of store

increases.


Impact


Smell 50 42 4 1

50

42

41

Smell

Smell


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7) Taste:

Taste_5


Cumulative

Percent

Valid 1 3 3.1 3.1 3.1

2 9 9.3 9.3 12.4

3 85 87.6 87.6 100.0

Total 97 100.0 100.0

Taste has the highest impact on the customers. This proves the result that quality is 1 st ranked in

all the parameters. Thus every retailer should mainly emphasize on the taste and quality factor.


Impact


Taste 85 9 3 0

85

93 0

Taste

Taste


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8) Experience:

Experience_5


Cumulative

Percent

Valid 0 5 5.2 5.2 5.2

1 11 11.3 11.3 16.5

2 51 52.6 52.6 69.1

3 30 30.9 30.9 100.0

Total 97 100.0 100.0

Experience and feel in the store has also very high importance. These are the intangibles factors

which have to be consistently maintained in the gourmet retail shop.


Impact


Experience 30 51 11 5

30

51

115

Experience

Experience


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High Impact and Moderate impact parameters comparison:

We can compare all the parameters on the basis of their intensity of impact on the customers.

Front bars are high impact and rear bars are moderate impacts.

From the above graph it can be concluded that most important and impactful parameters are

taste, smell, service and experience.

37

14 13 14 14

50 85

30

5232 31 35

30 42

9

51

Service Theme Color Design Music Smell TasteExperien

ce

High Impact 37 14 13 14 14 50 85 30

Moderate Impact 52 32 31 35 30 42 9 51

Parametrsimpact

High Impact Moderate Impact


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TYPE OF SERVICE:

There is a clear confusion whether any retailer should have self-service format or the retailer

should provide the service in their stores as in the restaurants.

We can also analyze from the above graph that 50% of the respondents have opted for self-

service whereas 50% have opted for retailers service.

BRAND NAME V/S TYPE OF SERVICE REQD. (CROSS TABULATION):

Type of service_7

Total0 1

Brand_6 0 19 22 41

1 22 17 39

2 8 8 16

Total 49 47 96

From this correlation it can be analyzed that customers who have opted for local brands want

retailers service while others who have opted for national brands want self-service.

Thus it can be concluded that depending upon the shop or franchise a retailer should take the

decision for type of service to be rendered.

self service Retailer service

ServiceReqd 49 48

49 48

Service Reqd

ServiceReqd


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QUALITY AND TASTE EXCELLENCE OVER MONEY:

Quality and taste V/SMoney_8


Cumulative

Percent

Valid 0 91 93.8 93.8 93.8

1 6 6.2 6.2 100.0

Total 97 100.0 100.0

From the above graph it can be deduced that customers of gourmet retail or target group of

gourmet food are not price sensitive.

They value quality and taste of the product more than the price of that product.

Yes No

Qualtiy& taste over money 91 6

91

6

Qualtiy & tasteovermoney

Qualtiy & taste over money


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Page | 35

6. Recommendations:

Recommendations based on the above findings can be made useful for the retailers as well as

marketers and advertisers. Different recommendations are made for both the group.

6.1 Recommendations for Retailers:

a) Ranking of the parameters which are important for the gourmet retailer to attract

customers are ranked as follows:

1. Quality

2. Taste

3. Hygiene

4. Price

5. Variety

6. Service

7. Availability

8. Brand name

9. Location

10.Environment

This ranking has been done according to the generalized analysis of the response of the97 respondents. Based on above ranking a retailer has to take its decisions while

operating a gourmet retail shop.

b) A customer visits a gourmet retail shop because of the past experience and also based on

the advice by his/her friends and relatives. Thus for attracting new customers and

customer retention, a retailer should provide best service consistently

c) Purchase of gourmet items are generally based on the eating habit of individual. Thus

most of the respondents purchase gourmet food to have something delicious. Birthday

celebration also helps in increase in sales.

d) Respondents who have past experience come to retail shop for having something

delicious. These are loyal customers who drive the sales of any shop. Thus proper

relationship should be maintained with loyal customers by having some loyalty

programs and promotions focused towards loyal customers.


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Page | 36

e) A customer whenever enters a shop, he should feel a difference in the atmosphere of the

store. For this a retailer should create impact by attracting all the 5 senses of the

customers. Impact of the store characteristics on the customers when they enter a gourmet

shop are (descending order of their impact on customers):

1. Taste

2. Smell

3. Service

4. Experience

5. Design

6. Theme

7. Music

8. Color

Thus a retailer should maintain the atmosphere in the Retail shop by emphasizing on

the uniqueness and differentiating factors so that the customer visit the shop not

only for purchase but also for having mood change and fun in daily routine life.

f) Customers who have opted for local brands want retailers service while others who have

opted for national brands want self-service. Thus do-it-yourself concept would be

profitable for the local Gourmet retailers.

g) Customers of gourmet retail or target group of gourmet food are not price sensitive. They

value quality and taste of the product more than the price of that product. Thus main

target group are connoisseurs who have great desire for taste and persons having high

standard of living as well as high disposable income. Hence retail shop should provide

the best of all quality for the connoisseurs and they should also keep innovating there

menu list.


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Page | 37

6.2 Recommendation for Marketers/Advertisers:

Marketers and advertisers are also stakeholders of a retail shop thus they should also

formulate their strategies depending upon the consumer behavior. Their communication

should be directed towards the proper target group and the brand message should be

communicated effectively and efficiently.Some of the recommendations are:

a) Customers purchase Gourmet items on the basis of advice of their friends or

relatives thus word of mouth advertising would be the best tool for marketing.

b) Brand message should be such that it should communicate some facts of a retail

shop very clearly like:

y Best quality

y Unique experience

y Delicious food products

y Customer friendly service

y Innovation in product variety

c) Loyal customers should be empowered by involving them in some sort of activity

like send your unique recipe and that recipe will be included in the menu list of

that Retail shop.

d) Presently customers visit very seldom to a gourmet retail shop so marketer shouldmake promotions very attractive to attract new customers and increase consumer

base.

e) During the introduction of a retail shop, Retailer should provide free samples to

the customers to increase brand awareness and visibility.

f) Direct marketing can be utilized for the retaining customers by sending e-mails or

monthly newsletter. Topics which can be covered would be healthy diets, health

tips, recipes, new items added in menu list etc.

g) 5 sensory organs of the customers should be involved by the marketer to convert a

browser into purchaser, a purchaser into big purchaser and then finally into loyal

customer.


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Page | 38

7.Limitations:

There are several limitations attached to the use of questionnaires for collection of data and same

was observed in the collecting data for this research also. Some of the limitations are:

y Design problems.

y Questions have to be relatively simple.

y Historically low response rate.

y Several reminders may be required.

y Assumption of no literacy problems.

y

No control over successful completion.

y Not possible to give assistance if required.

y Replies not spontaneous and independent of each other.

But because of so many advantages and benefits irrespective of limitations, questionnaires were

used. The questionnaire was very short having questions focusing on consumer perception and

attitude while they make choice of Gourmet Retail among many. This perception is evaluated by

utilizing interval data, Ordinal data and Nominal data. Ranking question was used to rank

the parameters which affect the consumer perception and interval data was used for measuring

the impact of characteristics of a gourmet retail shop on the consumers when they visit shop.

Questionnaire of consumer perception towards Gourmet retailing is Appendix I.

The most important limitation of study of consumer perception is that Consumer behavior

changes with time


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Page | 39

APPENDIX I

Research Questionnaire

Name:

Age:

Q1 : How often you visit the bakery in a month:

y Daily

y Twice a week

y Once a week

y Very Seldom

Q2 : Why do you prefer a particular bakery? (Rank 1 for highest priority and 10 for lowest)

y

Qualityy Price

y Taste

y Brand

y Service

y Environment

y Availability of Products

y Location

y Variety

y

Hygiene

Q3 : You visit a bakery shop because: ( Multiple choice)

y A friend or relative advised

y Advertisement

y Past experience

y Others ..

Q4 : You purchase Gourmet items to:

y Gift someone special

y Birthday

y Occasional

y Just to have something delicious

y Others ..


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Page | 40

Q5 : What is the impact of following parameters on you during a bakery shop visit ? (Tick)

PARAMETER HIGH IMPACT MODERATE

IMPACT

LEAST

IMPACT

NOT AT ALL

BOTHERED

Service

Theme

Color

Design

Music

Smell

Taste

Experience

Q6 : What would you prefer:

y Local Brand (like Rasranjan, Caf upper crust )

y National Brand ( like Caf coffee day, barista)

y International Brand ( like Monginis )

Q7 : Service you prefer at Gourmet retailer:

y Self Service

y

Service offered by retailer

Q8 : Will you prefer Quality and taste over money:

y Yes

y No


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Page | 41

APPENDIX II

Code Book

Question CodeDescription Variable Name

Frequencyofvisit

1

Daily 0

Freq_1

Once a week 1

Twice a week 2

Very seldom 3

Reason ofvisit

3

A friend or relative advised 0

Reason ofvisit_3

Advertisement 1

Past experience 2

A friend or relative advised Past experience 3A friend or relative advised Advertisement Past experience 4

Reason ofpurchase

4

Birthday 1

Reason of

Purchase_4

Just to have something delicious 3

Gift someone special 0

Occasional 2

Occasional + Just to have something delicious 4

Gift someone special + Birthday 5

Occasional + Just to have something delicious + Birthday 6

Birthday + Just to have something delicious 7

Occasional + Just to have something delicious + gift 8Gift someone special +Birthday + delicious 9

Birthday + Occasional 10

Impactofparameters

High Impact 3

Impact_55

Moderate Impact 2

Least impact 1

Not at all bothered about it 0

Brand name

6

National Brand like CCD, Barista 1

Brand_6

International Brand like Monginis 2

Local/City brand 0Typeofservice

7

Self-service like in McDonalds 0

Typeofservice_7Service Offered by retailer like in Restaurant 1

Quality andtastev/smoney

8

Yes 0 Quality andtaste

V/SMoney_8No 1


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REFERENCES

Webliography

http://www.gourmetretailer.com

http://www.indiainfoline.com/Research/LeaderSpeak/Mohit-Khattar-Managing-Director-

Godrej-Natures-Basket/18555922

http://www.thehindubusinessline.com/catalyst/2007/06/28/stories/2007062850080100.htm

http://www.imagesfood.com/CategoryWatch_Details.aspx?Id=16

http://foodbizdaily.com/articles/92799-food-retail-in-india-an-overview.aspx

http://www.statpac.com/surveys/sampling.htm

http://www.stats.gla.ac.uk/steps/glossary/sampling.html

http://www.lboro.ac.uk/library/skills/Advice/QuestionnaireDesign.pdf

http://www.tardis.ed.ac.uk/~kate/qmcweb/qcont.htm

http://www.spsstools.net/spss.htm

http://courses2.cit.cornell.edu/statslab/documents/spss.pdf

http://www.languages.ait.ac.th/el21meth.htm

http://media.routledgeweb.com/pdf/9780415467490/5designing_your_research_methodolo

gy.pdf

http://www.nyu.edu/classes/bkg/methods/005847ch1.pdf

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