rajat's synopsis

8/3/2019 Rajat's Synopsis

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A SYNOPSIS

ON

CONSUMER BEHAVIOUR IN THE INDIAN RETAIL SECTOR

(BIG BAZAAR) DELHI/NCR

Supervisor: Submitted by

Prof. Mahendra Srivastava Rajat Srivastava

Lecturer: Marketing 09061148101

Marketing

Remarks of Evaluator:

Approved/Disapproved Approved/Disapproved

(I Evaluation) (II Evaluation)

Session 2009-2011

Directorate of Distance Education

GJUS & T, Hisar


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DIRECTORATE OF DISTANCE EDUCATION

GURU JAMBHESHWAR UNIVERSITY OF SC. & TECH. HISAR

SUPERVISOR DETAIL

1. NAME : Mr.Mahendra Srivastava

2. DESIGNATION : Professor

3. QUALIFICATION : Double MBA, MPhil (Management)

4. AREA OF SPECIALIZATION : Marketing

5. EXPERINECE : 30 Years in Corporate & 6 Years Acedemics

6. OFFICIAL ADDRESS : NSB School of Business B-II/1, MCIE, DelhiMathura Road

New Delhi 110044

7. MOBILE : 011 4167 6794/ Extn 227

8. E-MAIL : [email protected]

I am willing to supervise : Mr. Rajat Srivastava

Enrollment No. : 09061148101

On the topic : CONSUMER BEHAVIOUR IN THE INDIAN RETAIL

SECTOR (BIG BAZAR) DELHI/NCR

(Signature) with seal

Countersigned by Director of Study Centre with SEAL


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CONSUMER BEHAVIOUR IN THE INDIAN RETAIL SECTOR

(BIG BAZAAR) DELHI/NCR

REVIEW OF LITERATURE

RETAILING IN INDIA

Retailing is the most active and attractive sector of the last decade. While the retailing industryitself has been present since ages in our country, it is only the recent past that it has witnessed somuch dynamism. The emergence of retailing in India has more to do with the increasedpurchasing power of buyers, especially post-liberalization, increase in product variety, andincrease in economies of scale, with the aid of modern supply and distributions solution.

Indian retailing today is at an interesting crossroads. The retail sales are at the topmost point inhistory and new technologies are improving retail productivity. Though there are manyopportunities to start a new retail business, retailers are facing numerous challenges.

India has witnessed a frenetic pace of retail growth over the past five years. Goldman Sachs hasestimated that the Indian Economic growth could actually exceed that of China by 2015. It isbelieved that the Country has potential to deliver the faster growth over the next 50 years. As weall know that India has been a nation of Dukandars, having around 12 million retailers.Obviously retailing is in our blood either as a shopkeeper or as a shopper. The Indian Retailmarket is estimated to grow from the current US $ 330 billion to US $ 427 billion by 2010 & U.

S. $ 637 by 2015. Retail which contributes 10% of our GDP is the largest source of employmentafter agriculture. In the year 2004, ratio of organized-Unorganized retail was 3:97 which isexpected to be 9:91 by 2010. (Annexure: 9 It is not just the global players like Wal-Mart, Tescoand Metro group are eying to capture a pie of this galloping market but also the domesticcorporate behemoths like Reliance, NeelKamal, KK Modi, Aditya Birla group, and Bharti grouptoo are at the same stage of retail development.

There is augmented sophistication in the shopping pattern of customers, which has resulted to theemergence of big retail chains in most metros; mini metros and towns being the next target.Customer taste and preferences are changing leading to radical transformation in lifestyles andspending patterns which in turn is giving rise to new business opportunities. The generic growthis likely to be driven by changing lifestyles and by strong surge in income, which in turn will be

supported by favorable demographic patterns. Development of mega malls in India is addingnew dimensions to the booming retail sector. There is significant development in retail landscapenot only in the metros but also in the smaller cities. Even ITC went one step ahead torevolutionize rural retail by developing Choupal Sagar; a rural mall, for the Rural India. Onone hand there are groups of visionary corporate working constantly to improve upon urbanshopping experience and on the other hand some companies are trying to infuse innovative retailexperience into the rural Set up. Given the situation we can say that Indian Retailing is at boom.


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India has sometimes also been called a nation of shopkeepers. This epithet has its roots in thelarge number of retail enterprises in India, which totaled over 12 million in 2003. About 78% ofthese are small family businesses utilizing only household labor. Even among retail enterprisesthat employ hired workers, the bulk of them use less than three workers.

India's retail sector appears backward not only by the standards of industrialized countries butalso in comparison with several other emerging markets in Asia and elsewhere. There are only

14 companies that run department stores and two with hypermarkets. While the number ofbusinesses operating supermarkets is higher (385 in 2003), most of these had only one outlet.The number of companies with supermarket chains was less than 10.

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 tobaccoaccounted for as much as 71% of retail sales in 2002. The remaining 29% of retail sales are non-food items. The share of food related items fell over the review period, down from 73% in 1999.This is to be expected as, with income growth, Indians, like consumers elsewheref, spent moreon non-food items compared with food products. Sales through supermarkets and departmentstores are small compared with overall retail sales. However, their sales grew much more rapidly(about 30% per year during the review period). As a result, their sales almost tripled during thistime. This high acceleration in sales through modern retail formats is expected to continue duringthe next few years with the rapid growth in numbers of such outlets in response to consumerdemand and business potential.

The retail sector in India is witnessing a massive revamping exercise as traditional markets makeway for new formats such as departmental stores, hypermarkets, supermarkets and specialtystores. Rated the fifth most attractive emerging retail market, India is being seen as a potentialgoldmine. A recent McKinsey study titled Indias Retailing Comes of Age has predicted aretail revolution in India. While India is the last among the large Asian economies to liberalizeits retail sector, the licensing raj has well and truly passed. Hence, focusing on two aspects ofretail marketing i.e. Store Retailing and Non-store Retailing. Store Retailing as the departmental

store, which is a store or multi brand outlet, offering an array of products in various categoriesunder one roof, trying to cater to not one or two but many segments of the society and NonstoreRetailing as the direct selling, direct marketing, automatic vending. Most of these stores believein creating not just a marketing activity with its customers, but rather favour relationshipbuilding with him so as to convert first time customers into a client.

A number of Indian and international retailers are entering this nascent, though dynamic market.Market liberalization and increasingly assertive consumers are sowing the seeds of a retailtransformation that will bring bigger Indian and multinational players on to the scene. Buoyed bya strong increase in private consumption, retailing is one industry that is waiting to explode.Though retail may well be our next sunrise industry after Information Technology, capitalizing

on the opportunities is still a formidable task for retailers. We may have made several forays intothe world of international retailing, but success has only been moderate. At about 2 per cent ofthe total global retail market, we are still only scraping the surface. (Economic Times KnowledgeSeries Changing Gears: Retailing in India, 2003).

Says B S Nagesh, CEO of Shoppers Stop, Indian retailing is on the threshold of growth earlyleaders have to take their technology and current learning into much larger scales. Companieslike us will lead in creating retail experiences and retail brands, whereas mall developers will


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lead in providing retail space. But it is for the government to make India a great shopping andtravel destination through right policy decisions and direction.

Retail industry is the largest industry in India, with an employment of around 8% andcontributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25%yearly being driven by strong income growth, changing lifestyles, and favorable demographicpatterns.

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 toamount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% isexpected in the industry of retail in India by growth in consumerism in urban areas, risingincomes, and a steep rise in rural consumption. It has further been predicted that the retailingindustry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5billion.

Shopping in India have witnessed a revolution with the change in the consumer buying behaviorand 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, andsprawling 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 realestate is being created. Indian retailers preferred means of expansion is to expand to otherregions and to increase the number of their outlets in a city. It is expected that by 2010, Indiamay have 600 new shopping centers.

In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9%annually. The branded food industry is trying to enter the India retail industry and convert Indianconsumers to branded food. Since at present 60% of the Indian grocery basket consists of non-

branded items.

India retail industry is progressing well and for this to continue retailers as well as the Indiangovernment will have to make a combined effort.

Retailing in India can be categorized as:

Unorganized Retailing

Organized Retailing


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Problem Statement

1. The first problem faced in Big Bazaar is the delivery system i.e. there is a delay in

sending the product to the appropriate customers.

2. Another problem is that customers queries are not handled properly.

3. Product ranging from food items to other groceries cannot be found in small packages.

4. Quality of green groceries is below standards.

5. Another major problem is that immediately after billing the product is not replaced.

OBJECTIVES

To study the buying behaviour of Delhi/NCR customers.

Understanding the present Indian Retail scenario with respect to emergence of big retailchains in most metros, mini metros and towns according to change in customer taste,preferences, lifestyle and spending patterns.

To study the reasons for buying from a particular retail store.

Understanding the various factors such as price, quality, service, offers etc. whichinfluence the customers for buying from a particular retail store.

To study the nature and trends in buying patterns of customers.

Understanding the demographic segmentation and the respective buying patterns of thecustomers according to the latest trends in the market.

Understanding the needs of customers.

In a diverse culture of a country like India, it is important to understand that the needs ofthe customers may differ from person to person and culture to culture.

To provide recommendations to serve customers quickly, efficiently and

conveniently.

Due to the highly competitive and nearly saturated market, only those retail stores willsurvive in the long run which will provide better services quickly, efficiently andconveniently.


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SCOPE OF STUDY

The scope of the study involved getting knowledge about the retail industry. The majorpart of the study focused on understanding the buying behavior and patterns of Indiancustomers.

My approach was to get a deep insight into the sector through a study which included acomprehensive analysis of the following:

Present retail scenario

Retail formats

Retail and plans of retailers

Retail as an employment generator

Emerging trends in the retail sector

NCR/ Delhi current retail scenario

Factors responsible for the development of the retail sector

Challenges for the retail sector

RESEARCH METHODOLOGY

Research Methodology adopted

The research methodology consisted of the following steps:

1. Familiarization with the retail concepts and retail industry in India2. Collection of database from individuals through a questionnaire.3. Analysis and interpretation of data.4. Reaching at conclusions and suggestions based on analysis.

Sources of Data Collection

1. Primary Source

QUESTIONNAIRE

2. Secondary sources


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INTERNET

BOOKS

REPORTS

Sample Size

100 people

Demographic Profile of Sample

22 years and above

Randomly selected people.

QUESTIONNAIRE

Q1. Which outlets do you consider while shopping?

Visit Visit Rarely Never

Frequently Sometime

Big Bazaar ----------- ---------- ---------- ------ Kirana Store ----------- ---------- ---------- ------ Others ----------- ---------- ---------- ------

Q2. Why do you prefer to shop in Retail Outlet?

Brand Variety Ambience Location Time Saving Services

Q3. Are you a member of any Retail Outlet?

___Yes ___No

Q4. If yes, then why to chose to be its member?

Free parking facility Extra services Special discounts


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Others..

Q5. When do you prefer the most to visit Retail Outlet?

When there is fresh stock When there are discounts Weekend outings

Anytime

Q6. How many times in a month you visit a Retail Outlet?

Once Twice Thrice More than this

Q7. Do you have any planned list before moving in to Retail Outlet?

Definitely Mostly Rarely Never

Q8. Rank the following factors of retail shopping on a scale of 1 to 10 where 10

denotes the most important and 1 denotes the least important.

Quality __________

Prices __________

Brand availability __________

Services __________

Advertisements __________

Member facilities __________

Ambience __________

Sales promotion offers __________

Q9. Does the recommendation of your family & friends influence your decision to

visit Retail Outlet?

Yes No


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REFERENCES

WEBSITES:

http://www.managementparadise.com/forums/articles/42292-retail-industry-india-overview.html

http://www.articlesbase.com/career-management-articles/an-introduction-to-indian-retail-industry-729290.html

BOOKS:

Retail marketing, Philip Kotler

In Search of Excellence,Peters & Waterman (Pg.107 -172)

Retailing Management,Levy Weitz
http://www.managementparadise.com/forums/articles/42292-retail-industry-india-overview.htmlhttp://www.managementparadise.com/forums/articles/42292-retail-industry-india-overview.htmlhttp://www.articlesbase.com/career-management-articles/an-introduction-to-indian-retail-industry-729290.htmlhttp://www.articlesbase.com/career-management-articles/an-introduction-to-indian-retail-industry-729290.htmlhttp://www.managementparadise.com/forums/articles/42292-retail-industry-india-overview.htmlhttp://www.managementparadise.com/forums/articles/42292-retail-industry-india-overview.htmlhttp://www.articlesbase.com/career-management-articles/an-introduction-to-indian-retail-industry-729290.htmlhttp://www.articlesbase.com/career-management-articles/an-introduction-to-indian-retail-industry-729290.html

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