gowtham final project

7/26/2019 Gowtham Final Project

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CHAPTER 1

INTRODUCTION

&

OBJECTIVES

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INTRODUCTION

The Indian retail industry is now beginning to evolve in the line with the

transformation that has swept other large economies. There is a change a foot inIndian retail too, the liberalization of the consumer goods industry initiated in the

mid-80s and accelerated through the !0s has begun to impact the structure and

conduct of the retail industry.

The Indian retail landscape is evolved from the bric"-and-mortar model to adopt

technology for connecting with consumers. The aim is to achieve a complete seamless

customer e#perience. The Indian retail sector accounts for over $0% of the countrys

gross domestic product &'()* and contributes 8% to total employment. The

cumulative foreign direct investment &+(I* inflows in single-brand retail trading,

during pril $000 to une $011, stood at !.$ million /(. The current estimated

value of the Indian retail sector is about 00 billion /( and is pegged to reach 1.2

trillion /( by $0$0.

India is the

th

largest retail mar"et in the world. The country ran"s fourth among thesurveyed 20 countries in terms of global retail development. The current mar"et size

of Indian retail industry is about /3 00 billion &ource4 I56+* and is e#pected to

grow at the rate of 1-$0% p.a. The retail industry is e#pected to increase to /3 70-

80 billion by $01 &according to a report by (eloitte*. etailing has played a ma9or

role the world over in increasing productivity across a wide range of consumer goods

and services. In the developed countries, the organized retail industry accounts for

almost 80% of the total retail trade. In contrast, in India organized retail trade

accounts for merely 8-10% of the total retail trade. This highlights a lot of scope for

further penetration of organized retail in India.

The sector can be broadly divided into two segments4 :alue retailing, which is

typically a low margin-high volume business &primarily food and groceries* and

;ifestyle retailing, a high margin-low volume business &apparel, footwear, etc.*. The

sector is further divided into various categories, depending on the types of products

offered. +ood dominates mar"et consumption with 0% share followed by fashion.

The relatively low contribution of other categories indicates opportunity for organized

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retail growth in these segments, especially with India being one of the worldonstore etailing as

the direct selling, direct mar"eting, automatic vending.

Therefore, this concept of retail mar"eting through organised retail stores, which is

coming up in a big way in India was decided to be studied in detail.

The ob9ective being to assess the various parameters that influences a buyer to shop at

organised retail food and grocery store thereby contributing to its turnover &in terms

of sales and profits* hence leading to its overall success.

The e#tensive research brought me to conclude that departmental stores are soon

emerging on the top priority lists, amongst the shopping spree in 5angalore, as they

seem to derive immense pleasure as shopping is considered as a e#perience now

rather than a tas" and e#posure to variety under one roof, in their e#tremely busy

lives, when they dont have time for things.

The organised retail food and grocery stores ma"e constant efforts to induce

customers to visit the store by discount offers.

?ost of these stores believe in creating not 9ust a mar"eting activity with its

customers, but rather favour relationship building with him so as to convert first time

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customers into a client. They provide better par"ing facilities to customers and the

facility to e#amine the product. They also offer a wide range of payment options to

customers.

=ence this document entails me through these aspects in great detail, helping me to

understand the concept of retail mar"eting through departmental stores in 5angalore.

1.1 PROBLE STATEENT

I(6>TI+I@TIA> A+ )A5;6?

etailing is the final stage of distribution process in which the retailer, as an

intermediary, collects an assortment of goods and services from various sources and

offers them to the customer. fter 0 years of unorganized retailing and fragmented

"irana stores, the Indian retail industry has finally begun to move towards

modernization, systematization and consolidation. Today, modernization is the catch

phrase and the "ey to understanding retail in the ne#t decade. The total retail trade in

India is estimated at about 3200 billion out of which organized business accounts for

only 3! billion.

Arganized retail is new format for Indian consumers and it is having only 2% share of

retailing in India. Be see tremendous increase in organized retail stores now but the

big Cuestion is that would these organised retail stores succeed. Bhat are the factors

that will ma"e them succeed if at all or the factors that could result in their failureD It

is very hard for organised retail store to attract customer from the "irana stores which

are decades of old compared to new organised retail store.

Bith the help of my study I would try to predict the success of organised retail in

India if at all which is dominated by Eirana shops. Bould the organised retail store be

able to attract customers also in future and succeedD

etail business is lin"ed to consumption patterns of the consumers and hence

dependent not only upon li"es and disli"es and changing preferences regarding goods

and services but also on availability of disposable income in their hands. Thus, the

growth of the sector is lin"ed to discretionary income in the hands of the people,

which is lin"ed to economic growth.

=ere is an attempt to simplify the analysis of a retailing company.

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'rowth in Indian retail industry has been driven by the country


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of products, if merchandise is given on credit or not and facility to e#amine the

product.

To study the impact of emerging trends of retailing on shopping behaviour.

Aur grandparents used to go to mandi to purchase merchandise. The ne#t generation

moved on to the neighbourhood G"irana stores, and couldnt do without delivery at

the doorstep. Todays shoppers have big spacious hypermar"ets to shop in or if thats

too far away, now, they have neighbourhood convenience stores li"e ubhi"sha.

To investigate how Indian organised retail has been customised according

shopping behaviour of Indian consumer.

The organised retail outlets in India are different from the 6uropean and merican

organised retail in a number of ways. This change was brought about because the

taste of Indian customer is different.

1." RESEARCH ETHODOLO#$

66@= ?6T=A(A;A'H

esearch methodology is a way to systematically solve a research problem. It

studies the various steps that are generally adopted by a researcher in studying the

research problem together with the logic behind them.

In the process of conducting such an important study, the researcher has

followed the following methodology to collect the necessary data and analyse and to

draw useful inference.

(6I'> A+ T=6 T/(H


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The research design adopted for the purpose of this study is (escriptive. The

purpose of choosing descriptive design is to achieve new insights into the

phenomenon of stress. dopting descriptive study aims at evolving new insights and

ideas to formulate a complete and comprehensive picture of stress affecting the

efficiency of e#ecutives.

TAA; A+ (T @A;;6@TIA>

The tools used for the purpose of collecting data for the study from the

respondents. The purpose of choosing Cuestionnaire as a tool for data collection is that

the Cuestionnaire is an important instrument in normative-survey research used togather information from widely scattered sources. It is a device securing answers to

Cuestions by using a form, which the respondents fill by him. This method is followed

because4

;ow cost

+ree from bias of the interviewer

ating is done based on the respondents own thin"ing

6nough time is available for filling the Cuestionnaire

@A?)A>6>T A+ T=6 TAA;

The Cuestionnaire is intended to find out the level of customer satisfaction towards

the online shopping. The data collection also finds the factors of influence towards the

customer satisfaction. The Cuestions are framed "eeping the following parameters,

1. Time

$. )rice

2. 5rand name

F. Technology

. ecurity

. 6asy to use

A/@6 A+ (T

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This refers to the source or sources to be tapped for relevant information that

fulfils the ob9ectives of the data. There are two sources of data4

)I?H (T

)rimary data is the data gathered by the researcher directly from the

respondents through Cuestionnaire as the tool for the fulfilment of the study.

6@A>(H (T

econdary data is the data gathered by the researcher from the e#perts in the

field and from other documentary sources such as magazines, 9ournals and published

documents.

?);I>' TT6'H

The sampling method adopted by the researcher for this study is andom

ampling. The ob9ect of choosing andom ampling is to enable the researcher to

choose the items of universe that are most suitable and convenient for the study.

>;HI >( I>T6)6TTIA>

The data collected was analyzed and interpreted using )ie @hart

1.F ;I?ITTIA>

It is a brief conducted during short span of time. In order to "now the depth

one reCuires a lot of information, money and involvement of manpower. s is

the case with every research effort, this study also leaves a lot of room for

further improvements. The ma9or ;imitations of this study are given below.

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(ue to non- corporate nature of some of the organizations, pro9ect could not

be underta"en at the e#ternal level.

5iases in the responses cannot be rules out as the Cuestionnaire were only

filled by the managers and wor"ers of the sample ta"en.

udden changes in the programme of some of the participants at the time of

interviews led to the problem in getting data.

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CHAPTER !

LITREATURE REVIE%

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LITERATURE REVIE%

ccording to )hilip Eotler4 etailing includes all the activities involved in selling

goods or services to the final consumers for personal, non-business use. retailer or

retail store is any business enterprise whose sale volume comes primarily from

retailing.

ny organization selling to final consumers whether it is a manufacturer, wholesaler

or retailer is doing retailing. It does not matter how the goods or services are sold &by

person, mail, telephone, vending machine or internet or where they are sold- in a

store, on the street or in the consumers home.*J

The word retail is derived from the +rench word retaillier, which means to cut off a

piece or to brea" bul". retailer may be defined, as a Gdealer or trader who sells

goods in small Cuantities or Gone who repeats or relates.

etailing thus may be understood as the final step in the distribution of merchandise,

for consumption by the end consumers. )ut simply, any firm that sells products to the

final consumer is performing the function of retailing. It thus consists of all activities

involved in the mar"eting of goods and services directly to the consumers for their

personal, family or household use.

etailing consists of the sale of goodsKmerchandise for personal or household

consumption either from a fi#ed location such as a department store or "ios", or away

from a fi#ed location and related subordinated services. In commerce, a retailer buys

goods or products in large Cuantities from manufacturers or importers, either directly

or through a wholesaler, and then sells individual items or small Cuantities to the

general public or end user customers, usually in a shop, also called store. etailers are

at the end of the supply chain. ?ar"eters see retailing as part of their overall

distribution strategy.

hops may be on residential streets, or in shopping streets with little or no houses, or

in a shopping centre. hopping streets may or may not be for pedestrians only.

ometimes a shopping street has a partial or full roof to protect customers from

precipitation.

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hopping is buying things, sometimes as a recreational activity. @heap versions of the

latter are window shopping &9ust loo"ing, not buying* and browsing.

etail is the final stage of any economic activity. 5y virtue of this fact, retail occupies

an important place in the world economy. In an attempt to understand the scope of the

term retail, various definitions of the term have been e#amined.

It is necessary to understand that in the comple# world of trade today, retail would

include not only goods but also services, which may be provided to the end consumer.

In an age where the customer is the "ing and mar"eters are focusing on customer

delight, retail may be redefined as the first point of customer contact.

There are three ma9or types of retailing. The first is counter service, now rare e#cept

for selected items. The second, and more widely used method of retail, is self-service.

Luic"ly increasing in importance are online shops, the third type, where products and

services can be ordered for physical delivery, downloading or virtual delivery.

6ven though most retailing is done through self-service, many shops offer counter

service items, e.g. controlled items li"e medicine and liCuor, and small e#pensive

items.

large shop is called a superstore. shop with many different "inds of articles is

called a department store.

?any shops are part of a chain4 a number of similar shops with the same name selling

the same products in different locations. The shops may be owned by one company, or

there may be a franchising company that has franchising agreements with the shop

owners.

$.1 A:6:I6B

A'>I6( 6TI; TA6

e'art(ent store is a retail establishment, which specializes in selling a wide

range of products without a single predominant merchandise line. (epartment stores

usually sell products including apparel, furniture, appliances, and additionally select

other lines of products such as paint, hardware, toiletries, cosmetics, photographic

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eCuipment, 9ewellery, toys, and sporting goods. @ertain department stores are further

classified as discount department stores. (iscount department stores commonly have

central customer chec"out areas, generally in the front area of the store. (epartment

stores are usually part of a retail chain of many stores situated around a country or

several countries

)or(at Des*ri'tion

@ategory

pecialist

Eiller

Affer a narrow variety with a very deep assortment of the

merchandise. ?erchandise may be sold at price lower than that

@onvenience /sually located near residential areas M open long hours. Affers an

assorted mi# of products including mil", brea" and eggs

(epartment

tore

;arge store selling several product lines, with each operating as a

department. )roduct mi# is largely non-food, li"e apparel,

accessories, boo"s, music, footwear, etc. level of service is very

high.

+actory Autlets tores which sell branded merchandise at discount. ;evels of service

are low. Typically, these are franchise outlets located away from the

main mar"ets.

=ypermar"et ;arge self service stores selling a mi# of products. these stores offerlarge depth in the product mi# which includes +ood non food items

li"e apparel, @('

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tore retailing provides consumers to shop for goods and services in a wide variety of

stores and it also helps the @onsumers to get all the needed goods and services from

one shop only. The different types of store retailing are given below4

S'e*ialt+ Stores, These stores focus on leisure tastes of different individuals. They

have a narrow product line with deep assortment such as apparel stores, sporting

goods stores, furniture stores, florists and boo"stores. These stores are usually

e#pensive and satisfy the needs of selected consumers who have li"ing or preference

for e#clusive things.

De'art(ental Store, These stores are usually build in large area and "eep variety of

goods under one shed. It is usually divided into different sections li"e clothing, "ids

section, home furnishings, electronic appliances and other household goods. In a

departmental store a consumer can buy variety of goods under one shed.

S-'er(aret, These stores are relatively large, low cost, low margin, high volume,

self service operations designed to serve total needs for food, laundry

and household maintenance products.

Con/enien*e Stores, These are relatively small stores located near residential

area, open for long hours seven days a wee", and carrying a

limited line of high turnover convenience products at slightly

higher prices than departmental stores. ?any such stores also

have added ta"eout sandwiches, coffee and pastries.

O00 Pri*e Retailer, These stores sell goods at low price with lower margins M

higher volumes. These stores sell goods with deteriorated Cuality. The defects are

normally minor. This target at the persons belonging to the lower income group,

though some have a collection of imported goods aimed to target the younger

generation. The company owned showroom selling the seconds products is a typical

e#ample of off - price retailer.

Dis*o-nt Store, These stores sell standard merchandise at lower prices by accepting

lower margins and selling higher volumes. The use of occasional discounts or specials

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does not ma"e a discount store. true discount store regularly sells its merchandise at

lower prices, offering mostly national brands, not inferior goods.

In recent years, many discount retailers have traded upJ. They have improved decor,

added new lines and services, and opened suburban branchesNall of which has led to

higher costs and prices. nd as some department stores have cut their prices to

compete with discounters.

>ot only that, discount stores have moved beyond general merchandise into specialty

merchandise stores, such as discount sporting goods stores, electronics stores, and

boo"stores.

Catalog S2o3roo(, @atalog showrooms generally sell a broad selection of high-

mar"-up, fast-moving, brand-name goods at discount prices. These include 9ewellery,

power tools, cameras, luggage small appliances, toys, and sporting goods. @atalog

showrooms ma"e their money by cutting costs and margins to provide low prices that

will attract a higher volume of sales. @atalog showrooms have been struggling in

recent years to hold their share of the retail mar"et.

>A>TA6 6TI;I>'

(ifferent types of non-store retailing are given below4

Dire*t Selling, (irect selling which started centuries ago with itinerant peddlers has

burgeoned into a 3! billion industry, with over 00 companies selling door to door,

office to office, or at home sales parties. variant of direct selling is called multilevel

mar"eting, whereby companies such as mway recruit independent businesspeople

who act as distributors for their products, who in turn recruit and sell to sub

distributors, who eventually recruit others to sell their products, usually in customer

homes.

Dire*t areting, (irect mar"eting has its roots in mail-order mar"eting but today

includes reaching people in other ways than visiting their homes or offices, including

telemar"eting, television direct response mar"eting, and electronic shopping.

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A-to(ati* Vening, utomatic vending has been applied to a considerable variety of

merchandise, including impulse goods with high convenience value &cigarettes, soft

drin"s, candy*.

Eirana tores

These stores are the small, friendly neighbourhood stores, which have been offering

customized services to their customers.

The product range varies from store to store due to the constraint of space, but all of

them stoc"ed the well-"nown brands, which had greater demand among customers.

-ll of them have a higher percentage of regular customers than wal"-in

customers. The regular customers are from the nearby areas. >ew customers are

usually generated through word-of-mouth.

- The owners decide on which brands to stoc" according to the preferences of their

customers and estimated the amount of goods to stoc" according to their periodic

sales figures.

-?ost of Eirana store desire to e#pand their stores if given the opportunity to do

soO however, they lac" finance and space to e#pand.

- Their regular customers chose to visit their store due to owner-customer

relationship as the primary reasons for their customers< loyalty.

- These stores usually provide free home delivery to their customers and had a

credit period ranging from 1 to 20 days.

!.! OR#ANI4ATION STRUCTURE )OR SALL STORES 5

SIN#LE STORES 5 INDEPENDENT RETAILERS OR 6IRAN

STORE

mall independent retailers are by far, the largest number of retailers e#isting in our

country today. 6#amples include the neighbourhood Eirana tore, the shoes store,

boutiCue, furniture and hardware stores, which e#ists all around us. In small

independent retail stores, one person is typically the owner or manager and is

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responsible for most of the aspects of the retail operation. few salespersons and

family members usually assist him. These retail outlets are owner managed

businesses, where the owner or the family member provides hands-on management of

the store. The structure of a typical small retail store is illustrated in +igure, given

below4

owner K ?anager

esponsibilities

5uying, )romotion,

ales, =, Aperational

@ontrol M 'eneral

?anagement

6#ternal advisors

;awyers, @hartered

ccounts, 5an"ers,

6tc.

5ac" Affice taff

esponsibilities

ccounting M ecord

"eeping, (ata 6ntry,

Inventory control,

)urchase Arders, Time

Eeeping M )ayroll,

+acilities ?anagement

ales taff

esponsibilities

customer ervice,

elling, toc" @ontrol,

(isplay M

=ouse"eeping

ll independent retailers however, do not need to be small. The size can range from

medium to large. ccording to the size, the number of persons employed may be more

and the duties and responsibilities may be delegated. The retailers would need outside

help in the form of advisors li"e lawyers and chartered accountants, who would ta"e

care of the specialized functions that the retailer needs.

The bac" office staff would ta"e care of functions li"e accounting, data entry, raising

purchase orders, time "eeping and payroll. The sales staff would handle specific

responsibilities of selling, customer service and other routine duties li"e displaying

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the merchandise and house"eeping. The owner manager would largely decide on the

advertising and sales promotions, the hiring of staff and the buying of merchandise.

6TI; )I@I>'

The pricing techniCue used by most retailers is cost-plus pricing. This involves adding

a mar"-up amount &or percentage* to the retailers cost. nother common techniCue is

suggested retail pricing. This simply involves charging the amount suggested by the

manufacturer and usually printed on the product by the manufacturer.

In Bestern countries, retail prices are often so-called psychological prices or odd

prices4 a little less than a round number, e.g. 3.!. In @hinese societies, prices are

generally either a round number or sometimes a luc"y number. This creates price

points.

Aften prices are fi#ed and displayed on signs or labels.

C2ain stores 7also *alle retail *2ains8are a range of retail outlets, which

share a brand and central management, usually with standardized business methods

and practices. They are a type of business chain. uch stores may be branches owned

by one company or franchises owned by local individuals or firms and operated under

contract with the parent corporation. +eatures common to all chains are centralized

mar"eting and purchasing, which often result in economies of scale, meaning lower

costs and presumably higher profits.

These characteristics also apply to chain restaurants and some service-oriented chain

businesses. ome argue that the standardized products which result from such

centralization are culturally detrimentalO for e#ample, chain music stores are frowned

upon by some for stoc"ing wor"s of more popular music if they e#clude less well

"nown, usually independent artists. @ritics of chains allege that they are economically

damaging to communities because they e#tract capital that otherwise would

recirculate in the local economy with independently owned businesses.

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The displacement of independent businesses by chains has generated controversy in

many nations and has spar"ed increased collaboration among independent businesses

and communities to prevent chain proliferation

:I/; ?6@=>(II>'

:isual ?erchandising &:?* is the art of presentation, which puts the merchandise in

focus. It educates the customers, creates desire and finally augments the selling

process.

:? helps in4

6ducating the customers about the productKservice in an effective and creative

way.

6stablishing a creative medium to present merchandise in 2( environment,

thereby enabling long lasting impact and recall value.

etting the company apart in an e#clusive position.

6stablishing lin"age between fashion, product design and mar"eting by

"eeping the product in prime focus.

@ombining the creative, technical and operational aspects of a product and the

business.

(rawing the attention of the customer to enable him to ta"e purchase decision

within shortest possible time, and thus augmenting the selling process.

:isual merchandising is all about persuasion through presentation, which puts the

merchandise in focus and in perspective too. It educates customers, creates desire and

finally augments the selling process. s seasons change, the merchandise collections

too change in a retail store. Bhen such changes ta"e place the store too undergoes a

transformation in terms of its visual presentation, appealing to the aesthetic faculties

of consumers.

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+reCuent changes encourages your customer visiting his normal section to wander

about to discover additional novelties.

=ighlight merchandise to sell it

Introduce and e#plain new products

'ive ideas on how to use it

6ncourage the customer to enter and shop

@reate ambiance and thus a positive image of the store

(isplay concepts can be based on4

o :isual merchandising seasons

o pecial occasions or holidays

o @olor

o Trends in activities

o Themes

o 6vents in @ommunity

There are many locations within a store where displays can be set up4

+ront Bindows

mall platform at the entrance

6nd @aps

(isplay or product cases &for particular types of merchandise

such as 9ewelry*

5ehind the chec"-out counter

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TA6 ;HA/T

Pharp showroom display is always money well spent.P

In developing an effective store design, a most critical element is how the store is

organized for a logical unfolding or discovery of merchandise by the browser. Is your

store easy to shopD

There are several approaches to retail store organization and merchandise display. The

first and most common are to display similar merchandise all in the same area. Hou

might, however, want to consider as an alternate presentation method, ;ifestyle

?erchandising. This is a more thematic interpretation of Gcross merchandising,

presenting products in this manner can also increase the perceived value of items that

normally would seem unconnected with any other merchandise. +inally, you may find

that a combination of the two merchandising styles may best be suited to your mar"et

area or target customer. @reating room settings in highly visible focal areas of your

store and positioning commodity products in convenient locations ma"e it easy for the

customer to stoc" up and help you achieve the best of both methods of display.

Store At(os'2eri*s

tore atmospherics include the e#teriors and interiors of the store and the manner in

which they are designed to create the ambience for a fashion boutiCue or a store.

E9teriors4 store


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layout creates an image in the shopper>I>'

)lanning a store is how to allocate scarce resources, pace. The retailer must create a

store layout, which shows the location of all the merchandise departments and the

placement of circulation aisles to allow customers to move through the store. The

merchandise presentation must be e#citing to catch and hold the customers attention,

be easy to understand, and encourage shoppers to browse, evaluate and buy.

Therefore, the presentation of the merchandise is a critical factor in the sales power of

a store and significant on the store image.

Bith pace )lanning, etailers can boost their return on inventory investment by

Cuic"ly analyzing inventory data to "eep the right amount of product on-hand and

reduce inventory costs and can gain the ability to measure return on selling space in

every store and in every location, and calculate suggested sCuare footage based onitemKclassKdepartment performance, to configure the stores in the most profitable

manner.

The selling area is the area used for the presenting the merchandise.

The >on-selling area is the area occupied by the4 -

@irculation space

The aisles

taircase

;ifts

+acilities

The bac" area

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T2e :a* area generall+ *o('rises s'a*e 0or sta00 0a*ilities; s'a*e 0or t2e :a*

o00i*e 'ersonnel an t2e (er*2anise storage s'a*e.

The areas mi# in a typical department store is- elling area about 0%, @irculation

area is 1% and the bac" area $%.

Area Mix

60%15%

25%

SellingCirculation

Back Area

)or Store Design or 'lanning; Retailer 2as to ee' 2is e+e on i00erent esigns

t2at (ae t2e a(:ien*e o0 t2e store an 0a*ilitate *-sto(er


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a dramatic change once a month. small change can consist of switching "ey

merchandise in a window or interior display. dramatic change can consist of moving

fi#tures within the store or redesigning the front display window.

A>-=6;+ ?6@=>(II>'

An-helf ?erchandising is the display of merchandise on counters, rac"s, shelves,

and fi#tures throughout the store.

?ethods of ?erchandise )resentation4

helving

=anging

)egging

+olding

tac"ing

(umping

!." CRITICAL ISSUES IN RETAIL STORE

The retail industry in India is in a phase of transition and hence is li"ely to face a

whole new set of challenges. +or one, generating large, free cash in flows for

e#pansion is not easy. etail margins are already wafer-inn, compared to those in

other mar"ets li"e the ?iddle 6ast.

etailers in India also face certain challenges in terms of the real estate, legal,

wor"force-related and certain other issues. They have an impact on the costs and

efficiency of operations of the retail business.

Real Estate

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;ocation is considered to be a "ey component of the retail strategy of the any store. It

also guides the direction and success of retailing industry in general. Indian retail

units have to struggle on account of the shortage of real estate for new pro9ects and

even retail space in central business districts is out of reach for retailers due to price

and high demand. ome of the new retail pro9ects initiated by private houses are

suffering on account of lac" of cooperation form the local bodies in respect of

security, hard infrastructure &power, roads*, and public transportation facilities. In

such conditions, retailers are ending up with incompatible retail property at high price.

)oor state of retail estate in India can be attributed to the following factors.

tamp duties on transfer of property are very high and inconsistent throughout

India. tamp duties are ta#ed payable of every conceivable documented

transaction. It is a form of revenue for a state, which is why it varies form state to

state.

The /rban ;and @eiling ct and ent @ontrol cts were repealed 9ust a few years

bac", but it has distorted property mar"ets in urban centres, leading to

e#ceptionally high property prices, particularly of retail property in central

business districts.

The presence of pro-tenancy laws ma"es it difficult to remove a tenant or tenants.

The problem is multiplied by tedious and long drawn procedures to clear titles of

ownership.

;and use conversion is time consuming and comple#, particularly in case of new

shopping centres, which are coming up on out of town agricultural land.

=uge costs are involved in terms of time and money in legal processes for

property disputes.

@ity urban planning pro9ects smaller commercial plots and this, together with rigid

building and uncertain zoning laws, hinders the procurement of retail property.

>on-residents are not allowed to own property e#cept if they are of Indian origin.

+oreign-owned Indian companies can own property for business purposes.

$


26/82

+oreign investment in real estate business is prohibited e#cept for integrated

township development, wherein 100% +(I is allowed with prior government

approval.

%or )or*e

The traditional independent retailers that practice child labour have come under

stringent provisions of the law forbidding child labour. Therefore, dependence on

adult and e#perienced wor"force will definitely increase their cost of operations. An

the other hand, the organized retailers are facing multiple challenges on this front,

such as limited supply of trained wor"force and labour laws hindering operations in

accordance with their business reCuirements. The labour laws that protect storewor"ers are not fle#ible enough to support the organized formats of retailing.

ome local government bodies, after a series of reCuest, recently e#tended permission

to shopping centres to operate up to !.20 p.m. on all days including national holiday.

+or e#ample, the >ew (elhi government provided such permission to nsal )laza.

5ut e#tended wor"ing hours stand contrary to e#isting labour laws. Ane of them is

that wor"force can only be employed for a specified number of hours and, therefore,

to operate stores for a longer interval of time the retails have to depend on multiple

shift duties. 5eing sub9ect to seasons demand cycle &festive and end of year*, these

stores prefer to have part-time arrangement, which is not permissible under the

e#isting laws. The increases of stores cost of operation

It is fact that the retailing industry is in its starting phase in our country. The benefits

of organized retailing will only be felt once an eCuitable scale is achieved. This, to a

large e#tent, depends on the store size, bills per customer per year, average bill size,and the revenue earned per sC. ft. 5ut, besides resources and bottom-line, a variety of

other aspect need to be in place for tasting success. The need for Cualified and trained

manpower is of utmost importance.

In order to survive in todays tough retail climate, companies must continually

innovate ways to create stronger, more direct lin"s with their customers. t the same

time, retailers must focus on the most demanding customers who want customization,

value, and service.

$


27/82

>ew store design must assault the consumers sense of sight, sound, taste, touch, and

smell- preferably all at the same time. In the environment merchandising and

especially displays are more important than ever as being on top-to-of-mind will "eep

the brand growing.

ccording to a ?cEinsey report, if appropriate reforms are carried out, this sector is

capable of creating eight million 9obs in the ne#t two years, and it can also provide 9ob

opportunities for people transitioning from agriculture. An the +(I &foreign direct

investment* front, although a number of retail players have been advocating +(I in

retail one should not e#pect the investments to pour into this sector in India. The +(I

policy needs to be framed in such a way that it attract foreign players to invest in

India. +(I will bring in not only the much needed capital to fuel growth but also

sophisticated systems and "now how and will shorten the learning curve.

In fact, the challenges of urban and rural retailing will "eep mar"eters, busy for much

of this millennium.

The retail industry in India is high unorganized and predominantly consists of small,

independent, owner-managed shops. etailing is Indias largest industry, accounting

for 12% of the '() &gross domestic product*. There are around million retail

outlets in India. +ood sales constitute a high proportion of total retail sales.

There are three aspects of Gboom in retail in India. &a* The emergence of newer,

specialized, and bigger retail formats in urban India with greater focus on

Ge#periential aspects of shopping. This has been promoted by a more demanding

consumer, higher disposable incomes, entry of foreign brands in the Indian mar"ets,

and entry of Indian business houses in the retail sector. &b* (eeper and wider

penetration of retail networ" in rural India promoted by greater recognition of the

potential of rural mar"ets especially in the +?@' and consumer durables sector. &c*

edesigning the retail mi# by the traditional retailers as a sign of greater maturity of

the sector and also the rub-off effect of the development in the organized sector.

The traditional retail formats refer to retail formats that have long been part of the

retail landscape of India. They include formats li"e "irana and independent stores that

are typical of the unorganized retail sector and also the most administratively

$7


28/82

organized form of Indian retailing Q co-operatives and government controlled retail

institutions.

+ormats that emerged or became popular in the 1!!0s are classified as modern retail

formats. In terms of professional management and efficiency of integration with the

value chain, these formats are classified as part of the organized retail sector in India.

They generally include franchised outlets and company Q owned stores.

!.= RETAIL TRENDS IN PAST )E% $EARS 7!>1! an

!>1"8

The total concept and idea of shopping has undergone a vast drawing change in terms

of format and consumer buying behaviour, ushering in a revolution in shopping in

India. ?odern retailing has entered into India as is observed in the form of sprawling

shopping centres, multi-storied malls and the huge comple#es that offer shopping,

entertainment and food all under one roof.

The Indian retail industry has e#perienced growth of 10.% between $010 and $01$

and is e#pected to increase to /( 70-80 billion by $01. The industry has long

way to go as there is a huge opportunity in streamlining the sector. Indian retail sector

is gradually inching its way towards becoming the ne#t boom industry .

$8


29/82

+ood and 'rocery is the largest category within the retail sector with 0 % followed

by pparel and ?obile segment.

Organi?e & Unorgani?e Retail se*tor in Inia

@urrently India constitutes only 8% of organized retail and remaining !$% is left

unorganized, which may grow much faster than traditional retail. It is e#pected to gain

a higher share in the growing pie of the retail mar"et in India. :arious estimates put

the share of organized retail as $0% by $0$0.

The growth pattern in organized retailing and in the consumption made by the Indian

population may follow a rising graph helping the newer businessmen to enter the

India etail Industry.

The country


30/82

Bithin the organized retail sector, pparel is the largest segment. +ood and 'roceryJ

and ?obile and telecomJ are the other ma9or contributors to this segment.

ccording to $01$ 'lobal etail (evelopment Inde# India has secured th ran" in

mar"et.

India remains a high-potential mar"et with accelerated retail growth of 1 to $0

percent e#pected over the ne#t five years. 'rowth is supported by strong

macroeconomic conditions, including a to 7 percent rise in '(), higher disposable

incomes, and rapid urbanization. Het, while the overall retail mar"et contributes to 1F

percent of India


31/82

fter a challenging +H1$, the retail sector recorded increase in sales volumes on y-o-

y basis in +H12. It also pared some losses through efficient cost and supply

management. (espite best efforts, operating margin of the retailers failed to improve

during +H12, primarily due to increase in input cost. lso, high interest rates and

scarcity of funds proved to be a ma9or constraint to the growth of the sector.

(uring +H12, the Indian government provided some impetus to the sector by

announcing +oreign (irect Investment &+(I* in retail. It allowed 100% +(I in single

brands and 1% in multi-brand. =owever, it continues to face strong opposition from

farmers, "irana shop owners and ?6s &small to medium enterprises* as entry of

foreign players will increase competition and may impact their businesses. The

government has now left the decision to the respective states to decide if and when

they would li"e to allow +(I in the sector.

etail industry has been on a growth tra9ectory over the past few years. The industry

is e#pected to be worth /3 1.2 billion by $0$0. Af this, organized retail is e#pected

to grow at a rate of $% p.a. significant new trend emerging in retail sector is the

increase in sales during discount seasons. It has been observed over the past few

months, that sales numbers in discount seasons are significantly higher than at other

times. This is prompting retailers to start discounts earlier and have longer than usual

sale season.

nother crucial structural change is e#pected to come in the form of implementation

of +(I in multi-brand retail. The industry players are strongly in favour of entry of

foreign retailers into the country. This will help them in funding their operations and

e#pansion plans. The e#pertise brought in by the foreign retailers will also improve

the way the Indian retailers operate. It is e#pected to bring in more efficiency in the

supply chain functions of retailers. =owever, fear of loss of business for "irana salas

is still a cause of concern and is posing hurdles in +(I implementation across

country. Ironically, it has been more than a year since the government opened the

door for +(I in multi-brand retail. 5ut no international retailer has shown interest incoming to India yet. =urdles such as reCuirement of clearance from individual states,

21


32/82

mandate of 20% local outsourcing of materials from micro and small enterprises are

"eeping the investors away from India.

The current mar"et size of Indian retail industry is about /3 00 billion &ource4I56+* and is e#pected to grow at the rate of 1-$0% p.a. The retail industry is

e#pected to increase to /3 70-80 billion by $01 &according to a report by

(eloitte*. etailing has played a ma9or role the world over in increasing productivity

across a wide range of consumer goods and services. In the developed countries, the

organized retail industry accounts for almost 80% of the total retail trade. In contrast,

in India organized retail trade accounts for merely 8-10% of the total retail trade. This

highlights a lot of scope for further penetration of organized retail in India.

+oreign foot print in Indian etail mar"et

In India the vast middle class and its almost untapped retail industry are the "ey

attractive forces for global retail giants wanting to enter into newer mar"ets

+oreign entrants in the Indian segment are as follows4

'ermany-based ?etro @ash M @arry opened si# wholesale centers in the country.

Balmart with 5harti etail, owner of 6asy day stores.

5ritish retailer Tesco )lc &T6@A* signed an agreement with Trent ;td &Trent*,

the retail arm of Tata 'roup to set up cash-and-carry stores. @arrefour opened its first cash-and carry store in >ew (elhi.

6R)6@T6( +/T/6 T6>(

)DI in s'e*ialt+ stores,?ulti-brand organized retail in specialty stores such as

@onsumer 6lectronics, +ootwear, +urniture and +urnishing etc. are e#pected to

e#pand and mature in the ne#t few years. =owever the policy condition on sourcing

will continue to be a ma9or bottlenec" for +(I in many of these segments

Do(inan*e o0 -norgani?e retail,+le#ible credit options and convenient shopping

locations may help traditional retail to continue its dominance in retail sector.

2$


33/82

#ro3t2 in s(all *ities an to3ns,tiff competition and saturation of urban mar"ets

is e#pected to drive domestic retail players to tap the potential in small cities

22


34/82

CHAPTER"

INTRODUCTION TO

THE STUD$

2F


35/82

SCOPE

The scope for the research was not very big. The area or say the premise of the

research was 5angalore.

RESEARCH DESI#N

research design is purely and simply the framewor" or plan for a study that guides

the collection and analysis of data. The s-r/e+ resear*2was used in this pro9ect,

because consumers feedbac" was necessary for obtaining the data.

SAPLIN# DESI#N

Si('le Rano( Sa('ling- sampling process where each element in the target

population has an eCual chance or probability of inclusion in the sample is "nown as

simple random sampling. In this case simple random sampling was done because a

huge number of responses had to be covered.

DATA SOURCES

Pri(ar+ atawas collected by the help or a Cuestionnaire. In this survey 100

respondent were interviewed.

RESEARCH INSTRUENT

+or doing the survey research, str-*t-re @-estionnairewith closed-ended Cuestions

was used.

ODE O) SURVE$

2


36/82

The mode of survey was 'ersonal inter/ie3with the respondents during the filling

up of the Cuestionnaires.

SAPLE SI4E

sample size of 100 respondents is used for the study.

SAPLIN# UNITS

@ustomers &visiting both organized retail and Eirana stores.*

PLACE O) STUD$

5angalore.

SHOPPIN# BEHAVIOR O) CONSUER )OR OR#ANISED

RETAIL AND UNOR#ANISED RETAIL

HO% INDIAN CONSUERS ARE DI))ERENT AND THEIR IPLICATION

ON OR#ANISED RETAIL )ORATS

Bhen ?r.Eishore 5iyani ?anaging director of )antaloon India ltd started with his

retail business he copied the same store model as that of the merican and 6uropean

type. 5ut when the organized retail store were not a success than ?r. 5iyani realized

that Indian customer is different from the west and so made changes to the retail

formats "eeping in mind the Indian taste.

5iyani often spends undays hanging about unobtrusively and watching shoppers at

his company


37/82

Bide lanes preferred by foreign >arrow lanes preferred by consumer

Indian consumers

?r. 5iyani also observed that Indian consumers do not li"e to e#amine orderly placed

merchandise. =e has the fear of spoiling the orderliness of the store if he e#amines the

merchandise opens from the pac"et &say a t-shirt* and then not buys it. o he

introduced some disorderliness into the store whereas merican and 6uropean

consumer prefer well orderly stores.

INDIAN CONSUER %ANT )OREI#N CONSUER DO

A?6 (IA(6;I>6 >AT TA;6T6 (IA(6;I>6

?r. 5iyani observed that Indian customer will spend more time if the lanes are in

zigzag fashion or obstruction was there in the lanes. The revenue of 5ig 5azaar grew

by 20% by implementing the following changes. Bhereas merican and 6uropean

consumers want obstruction free lanes.

27


38/82

shelf 9ust few meters behind the >o obstruction in lanes in

;ady causing obstruction in the lane. merica and 6urope.

?r. 5iyani said that Indian customers en9oy shopping in a noisy environment and

purchase more merchandise when in noisy environment. Thats why no one tells u to

tal" slowly or not to ma"e noise while in organized retail chain in India. Bhereas the

merican and 6uropean consumers prefer silent environment for shopping and

retailers focus on ma"ing the environment inside the retail store silent.

I>(I> @A>/?6 ;IE6 >AIH +A6I'> @A>/?6

6>:IA>?6>T +A =A))I>' )6+6 L/I6T

28


39/82

?r. 5iyani observed that an Indian shopper does not travel more than or 7 "m for

shopping on an average due to poor transport condition in India. This implies that

more number of retail stores have to be opened in a given area compared to merican

and 6uropean consumers who are ready to travel for long distances.

)oor transport facilities in India will mean that retail chains will have to open more

shop in a given area in compared to merica or 6urope where the consumer is ready

to travel.

2!


40/82

6;TIA>=I) 56TB66> =A))I>' /TI;ITH >(TA6 )6+A?>@6

F0

+i#ed5enefits

)erceived hopping/tility

+i#ed@osts

:ariable@osts

:ariable5enefits

tore@hoice

IncreasedTrip

?ore)urchase

;oyalty


41/82

)IED UTILIT$,

A8 )i9e Bene0its

=abitual shopping e#perience &familiarity, loyalty*

tore layout

ervice Cuality &par"ing, friendliness of employee*

ssortment of )roducts &breadth and depth*

B8 )i9e Cost

tore location &distance and time to reach the store*

Varia:le Utilit+,

A8 Varia:le Bene0its

tore specific price discount

- =abitual category purchase e#perience &category specific store loyalty due to price,

familiarity, and assortment*.

B8 Varia:le Cost

e#pected price of items on the shopping list.

F1


42/82

CHAPTER =

DATA ANAL$SIS AND INTERPRETATION

F$


43/82

)INDIN#S O) THE SURVE$

)A+I;6 A+ T=6 6)A>(6>T

18 A#E

15

20

1229

15

9

18-25 26-33 33-40 40-47 47-54 Above 54

Inter'retation, ?a#imum respondents &$!%* were between F0-F7 years. Anly !%

percent of the respondents were above F years which was the least percentage.

F2

A#E PERCENTA#E

18-$ 1

$-22 $0

22-F0 1$

F0-F7 $!

F7-F 1

5A:6

F

!


44/82

42

58%

MALE FEMALE

!. #ENDER

#ENDER PERCENTA#E

?;6 F$

+6?;6 8

Inter'retation, ?a#imum respondents &8%* were female and &F$%* were male

respondents.

FF


45/82

". AVERA#E ONTHL$ INCOE

28%

58%

14%

BELOW 10,000 10,000-20,000 ABOVE 20,000

Inter'retation, ?a#imum respondents &8%* had average monthly income between

s. 10,000 to $0,000 followed by &$8%* below rs.10, 000

F

AVERA#E PERCENTA#E

56;AB 10,000 $8

10,000-$0,000 8

5A:6 $0,000 1F


46/82

S2o''ing :e2a/io-r

RE#ULARIT$ O) SHOPPIN#

18%

82%

O!A"#$E E&A#L $&OE '#A"A $&OE

Inter'retation, ?a#imum respondents &8$%* were regular visitors to Eirana tore in

comparison with only 18% regular visitors to organised retail store.

F

RE#ULARIT$ PERCENTA#E

A'>I6(

6TI; TA6

18

EI> TA6 8$


47/82

VISITS PER ONTH )OR )OOD AND #ROCER$ IN OR#ANISED RETAIL

STORE

43

28

12

98

1 to 4 5 to 8 9 to 12 13 to 16 17 to 20

Inter'retation, ?a#imum respondents &F2%* visited the organised retail store 1-F

times in a month followed by &$8%* visited organised retail store -8 times in a

month. ;east consumers &8%* visited the store 17 to $0 times in a month.

F7

VISITS PER ONTH IN

OR#ANISED RETAIL

STORE

PERCENTA#E

1-F F2

-8 $8

!-1$ 1$

12-1 !

17-$0 8


48/82

VISITS PER ONTH )OR )OOD AND #ROCER$ IN 6IRANA STORE

8

10

23

43

16

1 (o 4 5 (o 8 9 (o 12 13 (o 16 17 (o 20

Inter'retation, ?a#imum respondents &F2%* visited the Eirana tore 12-1 times in

a month followed by &$2%* visited Eirana tore !-1$ times in a month. ;east

consumers &8%* visited the store 1 to F times in a month.

F8

VISITS PERONTH IN

6IRANA

STORE

PERCENTA#E

1-F 8

-8 10

!-1$ $2

12-1 F2

17-$0 1


49/82

AVERA#E PURCHASE PER VISIT 7Rs8 IN OR#ANISED RETAIL STORE

2

27

39

22

10

)100 100-400 400-700

700-900 1000*

Inter'retation, ?a#imum respondents average purchase per visit in organised retail

store &2!%* was between s. F00-700 followed by &$7%* in s 100-F00 range. ;east

respondents &$%* average purchase per visit was below rs.100.

F!

AVERA#E

PURCHASE PER

VISIT IN

OR#ANISED

RETAIL STORE

PERCENTA#E

S100 $

100-F00 $7

F00-700 2!

700-1000 $$

1000 10


50/82

AVERA#E PURCHASE PER VISIT 7Rs8 IN 6IRANA STORE

5821

11

8 2

)100 100-400 400-700

700-900 1000*

Inter'retation, ?a#imum respondents average purchase per visit in Eirana store

&8%* was below s. 100 followed by &$1%* in s 100-F00 range. ;east respondents

&$%* average purchase per visit was above s. 1000.

0

AVERA#E

PURCHASE

PER VISIT IN

6IRANA

STORE

PERCENTA#E

S100 8

100-F00 $1

F00-700 11

700-1000 8

1000 $


51/82

BETTER DISCOUNT ON )OODS AND #ROCERIES,

98%

2%

O!A"#$E

E&A#L $&OE

'#A"A $&OE

Inter'retation, ?a#imum respondents &!8%* believed that organised retail store

provide better discount on food on groceries whereas only $% respondents believed

that Eirana tores provide better discount on food and groceries.

1

BETTER PERCENTA#E

A'>I6(

6TI;

TA6

!8

EI>

TA6

$


52/82

SHOPPIN# ALONE

SHOPPIN# ALONE $ES NO

A'>I6( 6TI; TA6 $ !8

EI> TA6 82 17

OR#ANISED RETAIL STORE 6IRANA STORE

2%

98%

Y ES NO

83%

17%

YE S NO

Inter'retation, ?a#imum respondents &82%* shopped alone in Eirana store whereas

only $% respondents shopped alone in Arganised etail store.

$


53/82

ORE VARIET$ IN )OOD AND #ROCERIES

ORE PERCENTA#E

A'>I6(

6TI;

TA6

8F

EI>

TA6

1

84%

16%

O!A"#$E E&A#L $&OE

'#A"A $&OE

Inter'retation, ?a#imum respondents &8F%* said that they find more variety in an

organised retail store whereas only &1%* said that they find more variety in a Eirana

tore in food and grocery.

ORE EASIL$ ACCESSIBLE )OR )OOD AND #ROCER$

2


54/82

EASE O)

A

C

C

E

S

S

I

B

I

L

I

T

$

PERCENTA#E

A'>I6(

6TI; TA6

11

EI> TA6 8!

11%

89%

O!A"#$E E&A#L $&OE

'#A"A $&OE

F


55/82

Inter'retation, ?a#imum respondents &8!%* said Eirana tore were easilyaccessible to them whereas only &11%* respondents said organised retail store are

more easily accessible to them for food and grocery.


56/82

OPEN )OR LON#ER HOURS

OPEN )OR LON#ER

HOURS

PERCENTA#E

A'>I6( 6TI;

TA6

1

EI> TA6 !!

1%

99%

O!A"#$E E&A#L $&OE

'#A"A $&OE

Inter'retation, ?a#imum respondents &!!%* said Eirana tore were open were open

for longer hours whereas only &1%* of respondents said Arganised etail tore is

open for longer hours.


57/82

)ACILIT$ TO EAINE THE )OOD AND #ROCER$

)ACILIT$ TO EAINE )OOD AND #ROCER$ $ES NO

A'>I6( 6TI; TA6 100 0

EI> TA6 $ !8


100%

0%

+E$ "O

2%

98%

+E$ "O

Inter'retation, ll respondents &100%* said there was facilities to e#amine food and

grocery whereas only &$%* respondents said that Eirana store have facility to e#amine

food and grocery.

)OOD AND #ROCERIES ORE )RESH

7


58/82

)OOD AND

#

R

O

C

E

R

I

E

S

O

R

E

)

R

E

S

H

PERCENTA#E

A'>I6(

6TI; TA6

78

EI>

TA6

$$

8


59/82

78%

22%

O!A"#$E E&A#L $&OE

'#A"A $&OE

Inter'retation, ?a#imum respondents &78%* said Arganised etail tore has morefresh food and groceries whereas $$% of the respondents said that Eirana tore has

more fresh food and groceries

BEHAVIOUR O) SALES PERSONNEL

BEHAVIOUR O)

SALES

PERSONNEL

EREEL$

BAD

BAD #OOD ETREEL$

#OOD

A'>I6(

6TI; TA6

F 1$ 7!

EI> TA6 1 7 8 7

!


60/82


4%12%

79%

5%

E,&EMEL+ BA BA

!OO E&EMEL+ !OO

1% 7%

85%

7%

E& EMEL+ B A BA

!OO E&EMEL+ !OO

Inter'retation, ?a#imum respondents &8%* said Eirana tore has good behaviour

of sales personnel whereas 7!% said that organised retail store has good behaviour of

sales personnel.

#OOD PAR6IN# )ACILITIES

#OOD PAR6IN# )ACILITIES $ES NO

A'>I6( 6TI; TA6 7$ $8

EI> TA6 F$ 8


0


61/82

72%

28%

+E$ "O

42%

58%

+E$ "O

Inter'retation, ?a#imum respondents &7$%* said Arganised etail tore has good

par"ing facilities whereas $$% of the respondents said that Eirana tore has good

par"ing facilities.

ODE O) TRANSACTION

?A(6 A+ T>@TIA> CREDIT CARD CASH EBERSHIP CARD

A'>I6( 6TI; TA6 $2 2 F$

EI> TA6 0 100 0


1


62/82

23%

35%

42%

-E#& -A

-A$.

MEMBE$.#/ -A

0%

100%

0%

-E#& -A -A$. MEMBE$.#/ -A

Inter'retation, ll respondents &100%* said mode of transaction was cash in Eirana

tore whereas only 2% paid through cash in organised retail store as other modes of

transaction were available.

$


63/82

BU$ )OOD AND #ROCER$ NO% AND PA$ LATER

5/H >AB >( )H ;T6 $ES NO

A'>I6( 6TI; TA6 0 100

EI> TA6 !$ 8


0%

100%

+E$ "O

92%

8%

+E$ "O

Inter'retation, ?a#imum respondents &!$%* said they can purchase food and

grocery on credit in Eirana tore whereas no respondent said that they can purchase

food and grocery on credit.

2


64/82

LO$ALT$

LO$ALT$ AL%A$S SOETIES O)TE

N

SELDO

NEVER

A'>I6(

6TI; TA6

1$ 1$ 1 22 $8

EI> TA6 8 7 $ $ 2


12%

12%

15%

33%

28%

ALWA+$ $OMEME$ OF&E"

$ELOM "EVE

86%

7% 2%2% 3%

ALWA+$ $OMEME$ OF&E"

$ELOM "EVE

Inter'retation, ?a#imum respondents &8%* said they were loyal to a particular

Eirana tore whereas only 1$% respondent said that they were loyal to a particular

organised retail store.

F


65/82

CHAPTER

SUAR$ O) )INDIN#S


66/82

ANAL$SIS O) DATA COLLECTED

PREPOSITION, 1

CUSTOER %OULD NOT LI6E TO TRAVEL %HEN DECIDIN# THE

STORE

ORGANISED RETAIL STORE

Anly 11% of the respondents said that organised retail stores are more easily

accessible in compared to Eirana stores. ULV7W

Anly 18% of the respondents visited organised retail stores regularly. ULV1W

?a#imum respondents &F8%* visited the organised retail store 1-F times in a month.

ULV1W

KIRANA STORE

?a9ority of the respondents 8!% said that Eirana stores are more easily accessible.

ULV7W

?a9ority of the respondents 8$% visited the visited Eirana stores regularly. ULV1W

?a#imum respondents &F2%* visited the Eirana tore 12-1 times in a month. ULV$W

ince accessibility and the freCuency of visits in case of both organised retail store

&11, 18* and Eirana store &8!, 8$* are almost proportional so therefore our preposition

is correct that the customers do not to travel when deciding on the store. o Eirana

stores being closer to most of the respondents so there fore they are visited most oftenin compared to organised retail store.

PREPOSITION, !

T=6 )I@6 A+ T=6 ?6@=>(I6 >( ?A(6 A+ )H?6>T 6

I?)AT>T I> (6@I(I>' T=6 )/@=6 ?A/>T I> TA6.


67/82

OR#ANISED RETAIL STORE

?a9ority of the respondents !8% said that they get better discounts at organised retail

stores. ULVFW

The modes of payment available at organised retail store are cash, credit card and

membership card. The membership card &F$%* was used by most of the respondents

to pay for the merchandise. ULV12W

The average purchase of the respondents per visit was between rupees F00-700 for

most of the respondents &2!%* in the organised retail store. ULV2W

6IRANA STORE

Anly $% of the respondent said that they get better discounts at Eirana stores. ULVFW

The only mode of payment available at Eirana store is cash. ULV12W

The average purchase of the respondents per visit was below rupees 100 for most of

the respondents &8%* in the Eirana store. ULV2W

ince merchandise is available cheaper in organised retail store according to

respondents due to discounts and they can choose not to pay in cash which is

inconvenient to carry in large amount the average purchase in retail store per visit is

many times compared to a Eirana store.

PREPOSITION, "

EI> TA6 = 56TT6 6;TIA>=I) BIT= @A>/?6 I>

@A?)6( TA A'>I6( 6TI; TA6.


Anly 1$% of the respondents were loyal to a particular organised retail store. ULV1W

>o delayed payment &0%* was allowed in organised food and grocery retail store.

ULV1FW

7


68/82

The service provided by sales personnel was found to be very bad by F% of the

respondents at organised retail store. ULV11W

6IRANA STORE

?a9ority respondents 8% was loyal to a particular Eirana store. ULV1W

?a9ority of the respondents &!$%* said that they can buy merchandise now and ma"e

payment latter. ULV1FW

The service provided by sales personnel was found to be very bad by 1% of the

respondents at organised retail store. ULV11W

ince the owner and staff "new the consumer a relationship was developed between

the consumer and the Eirana store. The relationship resulted in loyalty, better service

by sales personal at Eirana store and delayed payment was allowed by owner to the

customer as he "new him well.

PREPOSITION, =

BIT= A'>I6( 6TI; TA6 =A))I>' I > 6R)6I6>@6 T=6

T=> TE.


?a9ority of the respondents &8F%* said that they find more variety of food and

grocery in organised retail store. ULVW

ll the respondents &100%* said that they get facility to e#amine the product due to

self service. ULV!W

?a9ority of the respondents &7$%* said they found good par"ing facilities outside

organised retail store. ULV1$W

Anly $% of the respondents went for shopping alone in organised retail store. ULVW

8


69/82

6IRANA STORE

Anly 1% respondents said that they find more variety in a Eirana store. ULVW

Anly $% of the respondents said that they get facility to e#amine the product. ULV!W

Anly F$% of respondents said that they found good par"ing facilities outside Eirana

store. ULV1$W.

?a9ority 82% of the respondents went for shopping alone in a Eirana store. ULVW

The ma9ority of shopping done with friends or relatives, ability to e#amine the food

and grocery due to self service, bac"ed with good par"ing facilities and more variety

has made shopping an e#perience rather than tas" in organised retail stores.

PREPOSITION,

@/TA?6 )6>( ?A6 ?A>6H I> A'>I6( 6TI; TA6 T=>

EI> TA6 I> ?A>T=.


?oney spent by customer in a month in organised retail storeX

$.YF2Z.Y$8Z10.Y1$Z1F.Y!Z8.Y8X!FK100X.!F

0Y$Z$0Y$7Z0Y2!Z80Y$$Z100Y10X2000K100X20

.!FY20Xrs F27$.$

6IRANA STORE

?oney spent by customer in a month in Eirana storeX

$.Y8Z.Y10Z10.Y$2Z1F.YF2Z8.Y1X1$FK100X1$.F

0Y8X$0Y$1Z0Y11Z80Y8Z1$00Y$X$0!00K100X$0!

1$.FY$0!X$0F.1F

!


70/82

o a consumer is spending s 178 more in organised store in comparison with

Eirana stores in a month.

70


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CHAPTER

CONCLUSION

71


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.1 CONCLUSION

Base on 'ri(ar+ ata

Hes, organised retail will succeed in India as it has various factors that outperform

Eirana stores.

5oth the formats that are organised food and grocery store as well as Eirana store will

co-e#ist because both of them have certain factors which favour one more than the

other.

The factors which 0a/o-r organise retail storemore in comparison to Eirana store

for food and grocery are

?ore amount of money is spent per visit in organised retail store in

comparison to Eirana store on food and groceries

?ore discounts or bargains are available at organised retail store in

comparison to Eirana store on food and groceries

hopping is an e#perience not a tas" in organised retail store.

Hou get more variety or assortment at organised retail store in comparison to

Eirana store

There is facility to e#amine the product in case of organised retail store which

is not available in Eirana store.

+ood and groceries are fresher in organised retail store due to Cuic" turnover.

Hou get better par"ing facilities in case of organised retail store.

There are more mode of transaction that include credit card, cash and

membership card compared to 9ust cash in case of Eirana store.

The factors which 0a/o-r 6irana storemore in comparison to food and grocery are

?ore freCuency of visit in comparison to organised retail store

Eirana store are more easily accessible and are there for convenient to

shop for a few items reCuired immediately in compared to organised retail

store.

7$


73/82

Eirana store are open for longer hours in compared to organised retail

store.

5etter personal service provided in comparison of organised retail store.

ince the buyer is "nown to the owner a delayed payment of 1-20 days isusually allowed in case of Eirana store whereas you have to pay

instantaneously in case of organised retail store.

There is greater loyalty shown to a particular Eirana tore in comparison

with organised retail store.

Base on Se*onar+ ata

S%OT Anal+sis o0 0oo an gro*er+ in organi?e retail stores

Strengt2s

)rime location

;arge floor space allowing for better visual merchandising

;arge area also allows to stoc" a large variety of products under one roof

+inancial bac"ing by the strong 'roup

6#perienced and competent management

=ighly trained and motivated sales force

5rand eCuity

;arge scale operations in various cities throughout the country allows them to

reap the benefits of economies of scaleJ

%eanesses

;arge scale of operations sometimes acts as a barrier to personalized customer

relations

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;arge scale operations lead to reduced fle#ibility by increasing the amount of

overheads and a huge commitment in terms of fi#ed costs

large organization structure leads to delayed decisions. esults in delayed

decisions in adapting to changing mar"et trends

O''ort-nities

.These stores are e#pected to show e#ponential growth in the ne#t few years. They

have less competition among themselves due to small numbers.

Increasing penetration of the internet into Indian homes has provided organised

food and grocery shops to brea" the geographical barriers and to increase their

customer base. The entry into online retailing, would, in fact, e#pand the product

categories available to the consumer. The choices open to the consumer would not

be restricted to those available in at the store

T2reats

Increased competition in the form of international retail chains that are ma"ing a

beeline towards the highly potential Indian mar"ets.

.! SU##ESTIONS

&a*>eed to maintain good relationship among customers to increase the profit

and as well as the customer loyalty.

&b*>eed to be fle#ible in terms of timing to increase foot fall.

&c*>eed to adopt mar"eting condition to sustain competition.

&d*6ntry into online retailing may e#pand the product categories available to

the consumer. The choices open to the consumer would not be restricted to

those available in at the store

7F


75/82

RE)ERENCES &

BIBLIO#RAPH$

7


76/82

RE)ERENCES & BIBLIO#RAPH$

BOO6S

etailing ?anagement, ;evy Beitz

?ar"eting ?anagementO Eotler &)hilip*

It happened in India, Eishore 5iyani

NE%SPAPER

?int

=industan Times

%EBSITES

www.google.com

www.businessworld.com

www.retailbiz.com

A#A4INE

5usiness India4 The ?agazine of the @orporate Borld.

7
http://www.businessworld.com/http://www.retailbiz.com/http://www.businessworld.com/http://www.retailbiz.com/


77/82

APPENDI

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APPENDI

UESTIONNAIRE )OR CUSTOER SURVE$

)ersonal details

a. >ame4 [[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[

b. ge4

18.$

$-22

22-F0

F0-F7

F7-F

bove

c. 'ender4

?ale

+emale

d. verage monthly income4

5elow 10,000

10,000-$0,000

bove $0,000

1. Bhere do you shop regularly for food and groceryD

Arganized etail tore

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Eirana tore

$. =ow many times in a month for food and grocery do you visit the

1-F -8 !- 1$ 12-1 17-$0

Arganized etail tore [[[ [[[ [[[ [[[ [[[

Eirana tore4 [[[ [[[ [[[ [[[ [[[

2. Bhat is the average purchase for food and grocery in each visit &in s.*D

S100 100-F00 F00-700 700-1000 1000

Arganized etail tore [[[ [[[ [[[ [[[ [[[

Eirana tore4 [[[ [[[ [[[ [[[ [[[

F. Bhere do feel you get a better discount on food and groceriesD


Eirana tore

. (o you shop aloneD

Arganized etail tore H6 >A

Eirana tore H6 >A

. Bhere do you find more variety in food and groceriesD


7!


80/82

Eirana tore

7. Bhich are more easily accessible for food and groceryD


Eirana tore

8. Bhich of the formats are opened for longer hoursD


Eirana tore

!. Is there facility to e#amine the food and groceriesD


Eirana tore H6 >A

10. Bhere do you thin" the food and groceries are more freshD


Eirana tore

11. 5ehaviour of sales personnel

6#tremely 5ad 'ood 6#tremely

'ood 5ad


Eirana tore

80


81/82

1$. Bhere do you find good par"ing facilitiesD

Arganized etail tore H6

>A

Eirana tore H6 >A

12. ?ode of Transaction for payment

@redit card @ash ?embership

@ard


Eirana tore

1F. @an you buy food and grocery now and pay latterD


Eirana tore H6 >A

1. re you\\\\\\\loyal to same store.

Arganized etail tore Eirana tore

lways

ometimes

Aften

eldom

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>ever

gowtham final project

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