29311391 project study of changing consumer behavior from unorganised to organised retailing

8/3/2019 29311391 Project Study of Changing Consumer Behavior From Unorganised to Organised Retailing

1/53

Table of Content

SERIAL No. TITLE PAGE No.

CHAPTER-1 5-14

1. Introduction to Indian Retail

Industry

CHAPTER-2 15-18

2. Classification

CHAPTER-3 19-23

3. Consumer Buying

Behaviour

CHAPTER- 4 24-25

4. Organized vs Unorganized

Retail

CHAPTER- 5 26-275. Selection of the topic

CHAPTER-6 28-30

6. Purpose and Significance of

the study

CHAPTER -7 31-34

7. Literature Review

CHAPTER -8 35-36

8. Sampling design

CHAPTER-9 37-43

9. Data analysis &

Interpretation

CHAPTER-10 44-45

10. Finding

CHAPTER-11 46-47

11 Limitation

CHAPTER-12 48-50

12 Conclusion

CHAPTER- 13 51-54

13 Appendices

CHAPTER-14 55-56

14 Bibliography

1


2/53

CHAPTER 1

Introduction to Indian retail industry

1. Introduction to Indian retail industry:

2


3/53

The sea of change can pull customers in many directions. It is our

responsibility to light the way and take care of them before the

competition does.

RETAILING Means Re-tailing 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 couldn't 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 sq.ft or 0.2 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

3


4/53

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.

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 1.3 million in 1961 to 4.8 million in

1998.

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

4


5/53

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

levels.Figures 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 McDonalds 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 retail chains like Shoppers 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 country's 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

5


6/53

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 consumption. It has further been predicted that the

retailing industry in India will amount to US$ 21.5 billion by 2010 from the

current size of US$ 7.5 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.

1.1 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 lowprices. 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 is the most common outlet forms for the consumers. The tough

6


7/53

competition for convenience stores are coming from organized retail stores

dealing in food items, like:

Apna Bazaar

Canteen stores

Food World

Subhiksha

Food Bazaar

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 depend on the following particulars:

Place and capacity

Diligent area coverage

Disciplined work schedule

7


8/53

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

As such traditional family run convenience stores are here to stay and cannot

be oversized by the organized retail sector besides, it represents the variety

of India.

1.2 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

10,000 billion accounting for about 10% to the country's GDP. The

organized retail market in India out of this total market accounted for Rs 350

billion which is about 3.5% of the total revenues.

8


9/53

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

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:

9


10/53

(A)Modern Format retailers

1) Supermarkets (Foodworld)

2) Hypermarkets (Big Bazaar)

3) Department Stores (Shoppers Stop)

4) Specialty Chains (Ikea)

5) Company Owned Company Operated (BP)

(B)Traditional Format Retailers:

1) Kiranas: Traditional Mom and Pop Stores

2) Kiosks

3) Street Markets

4) Exclusive /Multiple Brand Outlets

10


11/53

(C)Large Indian retailers

1. Hypermarket

1) Big Bazaar

2) Giants

4) Star

II Department store

1) Lifestyle

2) Pantaloons

3) Piramyds

III Entertainment

1) Fame Adlabs

2) Fun Republic

4) PVR

11


12/53

Chapter 2

Classification of Indian retail sector

12


13/53

2. 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 & 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 & 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.

13


14/53

D) HOME FURNITURE & 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 & 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. While the number of

shopping malls has seen a massive surge in the recent past in the metros and

14


15/53

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 100,00 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.

15


16/53

Chapter 3

Consumer behavior and retailing decisions

16


17/53

3. Consumer behavior and retailing decisions:

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 Behavior

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.

17


18/53

B. Psychological Factors

These are internal to an individual and generate forces within that influence

her/his 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.

Consumer decision-making process generally involves five stages:

Information Search

Problem Recognition

Purchase Action

Alternative Evaluation

Post purchase Actions

consumer Attribute affecting choice of format between organized and unorganized Retail

18


19/53

3.1 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

19


20/53

(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 (television, refrigerator

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.

20


21/53

Chapter 4

Organized vs Unorganized Retail

4. Organized vs Unorganized Retail:

21


22/53

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 widelyfrom 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 2.2). 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 2.2: Share of Organized Retail in Selected Countries, 2006

CountryTotal Retail Sales (US$ bn) Share of Organized Retail (%)

USA 2,983 85

Japan 1,182 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

22


23/53

Chapter - 5

Selection of Topic

5. Selection of Topic

23


24/53

This research project Study on changing consumer preferences towards

Organised retailing from un-organised retailing (Delhi /Noida) is an

attempt to find out the change in consumers purchasing behavior, which is

shifting towards organized retailing like malls, shopping complexes etc from

traditional kirana stores.

Why Delhi and Noida: The malls and shopping complexes are building here

at a high rate and a large number of population shifted towards this format of

retailing so for my project Delhi and Noida are the appropriate places to gofor the research analysis.

24


25/53

Chapter 6

Purpose and Significance of the study

6. Purpose and Significance of the study:

25


26/53

Organized retail has started to spread its roots in the Indian market since past

one decade and is gradually making mark among all sections of the society.

This project report tries to explore the way organized retail has dramaticallychanged not only the Indian traditional retailing structure by also the

consumption behavior. The consumption behavior was examined with the

help of a structured questionnaire. The results show that, for consumers, the

shopping mall or variant of organized retail format is the preferred type of

retail store, due to convenience and variety.

The Indian market has seen vast changes in political, economical and social

environment, which has a great impact on consumption. With the Indian as

well as international corporate entering into the Indian retail scenario the

market has been divided between the traditional and the organized sector.

The Indian retail scenario is presently facing the similar situations as the

mom and pop stores in the developing nations faced at the emergence big

box retailers. There are various issues that need to be addressed, like what

would be future patterns of consumption, which formats of retail would be

preferred by consumers and will the rise of organized retail affect the

traditional retailers.

This study will contributes to the understanding that consumers and retailers

in most cases have different perceptions in relation to store image and

shopping habits, justifying the need for consumer marketing research, whichis important in helping retailers, implement in a real marketing orientation.

The study will examines the choice of format the consumer has when he or

she decides to buy a particular product and also describes the development

of organized retail in the future, focusing on aspects with potential effect on

26


27/53

purchasing behavior among the consumers. The focus is on consumer

expectations. The questions were formulated to capture the overall behavior

of the consumers and with the help of the survey questionnaire the analyses

was done. An attempt has been made to explore the way organized retail has

dramatically changed not only the Indian traditional retailing structure but

also the consumption behavior.

To understand the impact and choice of retail format by the consumers a

questionnaire will be used. Three questions were formulated in order to

capture the overall purpose or objective of this section of the research:

1. What are the most favored retail attributes by consumers and how will

they change in future?

2. How are the conventional and organized retailers perceived?

3. What external forces influence the choice of consumers and how can

these forces be accounted for in future?

27


28/53

Chapter 7

Literature Review

7. Literature Review:

28


29/53

Mathew Joseph and Manisha Gupta_September 2008: The Indian retail

sector is booming and modernizing rapidly in line with Indias economic

growth. In this review the author talked about the impact of organizedretailing on traditional retailing. With the increase in number of various

formats for shopping like malls, departmental stores, hypermarkets etc the

Indian consumers preferences are changing towards and thats 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 mostimportant 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

29


30/53

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. 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, 2009/24-7 press releases): Increasing trend of

organized retailing will drive the growth of convenience-store industry in the

30


31/53

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".

31


32/53

Chapter-8

Sampling Design

8. Sampling Design:

32


33/53

1. Sampling unit Respondents of (few malls)

2. Size of sample 100 respondents

3. Sample Method Random Sampling

4. Types of questionnaire Close ended

8.1 Type of Data:

Data type collected for analysis is PRIMARY i.e. data has been observed

and recorded by the researchers for the first time to their knowledge. Data

collected through journals, newspapers & internet is SECONDARY type.

8.2 Method of data collection:

This study is a research which utilizes interrogation and observation method

for data collection. Secondary data was obtained from intensive analysis &

observation. The primary data are those, which are collected afresh and for

the first time, and thus happen to be original in character. The secondary

data, on the other hand, are those which have already been collected by some

one else and which have already been passed through the statistical process.

Method employed to collect data is Questionnaire. This is a simple survey

conducted by filling in questionnaire from the people who visit malls.

8.3 Collection of the Primary data:

As this study is of descriptive type, the primary data has been collected

through Questionnaire.

33


34/53

Chapter-9

Analysis of Data

34


35/53

9. Analysis of Data:

Data collected through questionnaire is being processed .This processed data

is:

a. Age wise distribution:

A) 40 [18 RESPONDENTS]

On the basis of above respondents the figures shows that maximum

respondents i.e. 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 ]


respondents i.e. 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 ]

35


36/53

E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]


respondents i.e. 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 20,000 [ 28 RESPONDENTS ]

B) BETWEEN Rs 30,000 TO 40,000 [ 48 RESPONDENTS ]

C) BETWEEN Rs 40,001 TO 50,000 [ 20 RESPONDENTS ]

D) MORE THAN Rs 50,000 [ 12 RESPONDENTS ]


respondents i.e. 48 out of 100 are having monthly income between Rs

30,000 to 40,000. It means maximum no of customers are belonging

to upper middle class.

1) Which type of place do you visit frequently for your shopping needs?

a) Supermarket [ 80 Respondents]

b) Wholesaler [ 8 Respondents]

c) Local Stores [ 12 Respondents]


respondents i.e. 80 out of 100 are agree that they frequently visit

36


37/53

shopping mall for their shopping needs. It means maximum no of

customer are preferred Shopping Malls for purchasing.

2) From where would you prefer to buy products?

a) Single brand store [ 24 Respondents]

b) Multi brand store [ 60 Respondents]

c) Factory outlets [ 4 Respondents]

d) Local Big Retail Store [ 12 Respondents]

i.e. 60 out of 100 are preferred multi branded store for shopping. It

means maximum no of customers are time conscious and desire for

many brand under one roof.

3) Which one from malls/ Local Stores (kirana store) is more convenient for

all your shopping needs?

a) Malls [ 72 Respondents]

b) Local stores [ 28 Respondents]

i.e. 72 out of 100 are preferred shopping in malls for all their shopping

needs. It means maximum no of customers are feels good in shopping

for their needs in malls because they can get everything from there

under one roof.

4) What are the prime factors for shopping in malls?

a) Variety in product.

37


38/53

b) Serviceability

c) Discounts

d) Mode of payment

e) All [ 100 Respondents]

i.e. 100 out of 100 are preferred shopping in malls because of the

various factors which make the whole shopping experience good.

5) What are the prime factors for shopping in kirana stores?

a) Emergency buying [ 65 Respondants]

b) For grocery items only [35 Respondants]

c) Discounts

d) Serviceability

i.e. People preferred shopping from kirana stores just when they need

something urgent and grocery items only. It shows the limited

shopping experience one customer have with these stores.

6) What influences your buying selections?

a) Availability of range b) Reasonable price

c) Availability of size e) Customer service

f) Brand name

1st OPTION 30 20 30 8 10

2nd OPTION 22 32 25 10 13

3rd OPTION 20 18 15 14 33

4th OPTION 16 17 19 32 16

38


39/53

5th OPTION 12 13 11 36 28


respondents are attracted towards the Store due to this ranking-

CUSTOMER SERVICE, BRAND, PRICE, RANGE, SIZE

It means maximum no of customers are prefer to the Malls for customer

service.

7) What do you look for in a product during your purchase?

a) Price [60 Respondents] b) Brand Name [ 12 Respondents]

c) Customer Service [ 16 Respondents]

d) Variety available [12 Respondents]

i.e. 60 out of 100 preferred price during their purchasing. It means

maximum no of customers are price conscious so maximum

customers belongs to middle class.

8) When do you prefer to shop Most in Store?

a) During Sale [ 18 Respondents]

b) During Fresh season stock [54 Respondents]

c) During Discount [ 24 Respondents]

d) When required [4 Respondents]


respondents i.e. 60 out of 100 are prefer shopping during fresh season

39


40/53

stock. It means maximum no of customers did not compromise quality

with discount and offers.

9) How frequently you visit the Store (wherever you go for the shopping)?

a)


41/53

Chapter-10

Findings

41


42/53

10. Findings

Customers 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.

42


43/53

Chapter-11

Limitation

43


44/53

11. Limitation

Every report has its pros and cons so mine also have some limitations.

They can be pointed as:

Sample size restricted to 100 only which was very less according total

population.

The responses given by respondents were not always accurate because

the respondents gave the response according to their understanding.

Survey is a time consuming process but the time to collect the data for

research was very less.

Sometimes the respondents are not willing to fill the questionnaire

and hence the resultant may not be correct.

44


45/53

Chapter-12

Conclusion

12. Conclusion

45


46/53

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-

The customers are attracting towards shopping malls & retail outlets.

46


47/53

The shopping malls & 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 & 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.

47


48/53

Chapter-13

Appendix

13. Appendix

48


49/53

Questionnaire

Questionnaire on Consumers changing Buying Behavior.

I am a student of Apeejay School of Management and am working on a project

Study on changing consumer preferences towards Organised retailing from un-

organised retailing. I request you to spare a while to help fill, this questionnaire,

needed for the project assigned to me as a part of my curriculum.

a. Age wise distribution:

A) 40

b. Gender wise distribution:

A) MALE

B) FEMALE

c. Education wise distribution:

A) HIGH SCHOOL

B) LESS THAN GRADUATION

C) GRADUATION

D) POST GRADUATION

E) PROFESIONAL QUALIFICATION

d. Income wise distribution:

A) LESS THAN Rs 20,000B) BETWEEN Rs 30,000 TO 40,000

49


50/53

C) BETWEEN Rs 40,001 TO 50,000D) MORE THAN Rs 50,000

1) Which type of place do you visit frequently for your shopping needs?

a) Supermarketb) Wholesaler

c) Local Stores

2) From where would you prefer to buy products?

a) Single brand store

b) Multi brand store

c) Factory outlets

d) Local Big Retail Store

3) Which one from malls/ Local Stores (kirana store) is more convenient for all your

shopping needs ?

a) Malls

b) Local stores

4) What are the prime factors for shopping in malls?

d) Variety in product.

e) Serviceability

f) Discounts

g) Mode of payment

h) All

5) What are the prime factors for shopping in kirana stores?

a) Emergency buying

b) For grocery items only

c) Discounts

d) Serviceability

50


51/53

6) What influences your buying selections?

a) Availability of range b) Reasonable price

c) Availability of size e) Customer service

f) Brand name

7) What do you look for in a product during your purchase?

a) Price

b) Brand Name

c) Customer Service

d) Variety available

8) When do you prefer to shop Most in Store?

a) During Sale

b) During Fresh season stock

c) During Discount

d) When required

9) How frequently you visit the Store (wherever you go for the shopping)?

a)


52/53

Chapter-14

Bibliography

14. Bibliography:

52


53/53

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

http://ssrn.com/abstract=994238

BOOKS:-

Marketing Management. ----Kotler & Keller

Marketing Management in Indian Perspective

----V. S. Ramaswamy & S. Namakumari

Retail management ---Levy & Weitzs

WEBSITES:-

www.emraldinsight/1355-5855.htm

www.Fibre2fashion.com/industry-article

www.tataretail.com

www.retailindia.net

www.retailyatra.com

www.retailbiz.com

www.aboutus.com

www.businessworld.in
http://www.emraldinsight/1355-5855.htmhttp://www.fibre2fashion.com/industry-articlehttp://www.businessworld.in/http://www.emraldinsight/1355-5855.htmhttp://www.fibre2fashion.com/industry-articlehttp://www.businessworld.in/

29311391 project study of changing consumer behavior from unorganised to organised retailing

Documents