ajeet pratap singh organized & unorganized consumer

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 Research Project Report On STUDY OF CHANGING CONSUMER PREFERENCE TOWARDS ORGANIZED RETAILING FROM UNORGANIZE D RETAILING CHANGING   Submitted for Partial Fulfillment Of “Master of Business Administration” (MBA -2010-2012) Under The Guidance of:- Submitted By:- Mrs. Neetu Singh Ajeet Pratap Singh Roll No. 1028770003 Naraina College of Engineering & Technology  Ratanpur, Kanpur-208020

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7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer

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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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httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 1985

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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httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 2085

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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httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 2685

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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httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 2785

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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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

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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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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

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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

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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

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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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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

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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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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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httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 1185

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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httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 1285

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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httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 1385

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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httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 1585

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

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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

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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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

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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

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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

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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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httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 2585

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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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

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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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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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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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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

7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer

httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7885

LIMITATIONS

OF

THE STUDY

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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

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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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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

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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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httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485

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

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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

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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

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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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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

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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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

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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

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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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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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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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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

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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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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

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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

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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

httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 7085

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

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

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

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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 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

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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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

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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

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httpslidepdfcomreaderfullajeet-pratap-singh-organized-unorganized-consumer 8485

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

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

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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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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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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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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

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

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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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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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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

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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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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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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

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

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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

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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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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

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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

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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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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

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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

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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

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

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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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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

7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer

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CONSUMER

BEHAVIOUR ANDRETAILINGDECISIONS

CONSUMER BEHAVIOUR AND RETAILING DECISIONS

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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

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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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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

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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

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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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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 ]

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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

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

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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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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

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

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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

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

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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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

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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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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

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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

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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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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

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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

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

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

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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

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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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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 ]

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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

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

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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

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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

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

7292019 Ajeet Pratap Singh Organized amp Unorganized Consumer

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LIMITATIONS

OF

THE STUDY

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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

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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

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

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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

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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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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

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

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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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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

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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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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

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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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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 ]

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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

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 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

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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

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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

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 ]

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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

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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

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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

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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

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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

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 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