2010

AMITAVA ROY

Manager – Hospitality & Retail

1/7/2010

CONSUMER BUYING BEHAVOUR

Towards Organized FMCG Retail Outlets in Ludhiana

CONSUMER BUYING BEHAVOUR

Towards Organized

By:

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CONSUMER BUYING BEHAVOUR

wards Organized FMCG Retail Outlets in Ludhiana

In reference with

&

By: Amitava Roy Manager – Hospitality & Retail

www.royamitava.blogspot.com

in Ludhiana

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TABLE OF CONTENTS

Abbreviations 3

Terminology 3-7

CHAPTER 1

Introduction 6-14

Executive summary [PREFECE] 15

Company Profile of the Catchment’s Study 16-27

Other Retailers in North India 28-31

Review of Literature 32-34

CHAPTER 2

Research Objectives 35-36

Makings of the of Project Report 37-40

CHAPTER 3

Research Methodology / Project Details 41-42

Finalizing Research instrument / Data Collection 42

CHAPTER 4

Analysis & Results /Finding and Analysis 43-79

Interpretation of Results 80-82

CHAPTER 5

Suggestions and Recommendation 83-85

CHAPTER 6

Limitations 86

CHAPTER 7

Conclusions 87

CHAPTER 8

References / Bibliography 88

Annexure / Questionnaire 89-96

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ABBREVIATION

� GDP: Gross domestic product

� (SEZ): Special Economic Zone

� FMCG: Fast Moving Consumer Goods

� SCM: Supply Chain Management

� CSA: Customer Service Associates

HYPOTHESIS

� Increasing income levels of consumers have a positive effect on the growth of

retail industry.

TERMINOLOGY

� Chain store Stores that have two or more retail out lets that are

commonly owned and monitored. These stores are have a centralized

buying, and merchandise system and sell similar lines of merchandise.

� Combination store A blend of super market and a general

merchandise contributes more than 40 percent of the sales.

� Consumer markets It consist of the individuals, households, which

are ultimate users of goods and services.

� Consumer buying behavior The response and reaction of the

ultimate consumer to various situations involved in purchasing and using

various goods and services.

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� Convenience goods Products that customers buy frequently, such as

fruits, vegetables, groceries.

� Convenience store Small stores that are located near residential

areas. It caters to customers who prefer convenience buying or shopping

to the price of the products.

� Conventional supermarket Stores that focus on food and household

maintenance products. These stores earn very limited revenues from the

sale of non food or general merchandise goods.

� Hyper market A large retail store that offers products at a low price.

It is a combination of discount store and a food based supermarket.

� Isolated store A freestanding retail outlet situated either on a street

or a highway. Stores of this kind do not have any retailers in their vicinity

with whom they have to share consumers.

� Market area analysis Analyzing regional and local markets to

determine the area that seems to offer the highest market potential. Such

an assessment is called market area analysis.

� Merchandise Mix The total range of products that a store offers to

its customers.

� Primary trade area The trade area that consist of fifty to eighty

percent of the store’s customers. This area is nearest to the store, has a

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highest density of customers to population, and contributes the highest

per capita sales.

� Regional shopping centre A planned shopping centre catering to a

geographically dispersed market. It consists of at least one big department

store and 50 or more small retailer.

� Retail entrepreneur A person who has the ability to organize, manage

and take on the responsibility of running a retailing activity/ business.

� Retail market A group of customers who have common or similar

needs which can be collectively addressed by retailer who choose to cater

to the same group or customer segment.

� Retailer The last entity of the distribution channel.

� Retailing A set of business activity that adds value to the products and

services sold to the final customers for their personal, family or house hold

use.

� Trade area Analysis Trade areas refer to the places from which most of

the customers are drawn. The process of selecting trade areas is known as

trade area analysis.

� Trade area A geographical area containing the customers of particular

firm or group of firms for specific goods or services.

� Warehouse store The store are discount food retailers with the size of 100,000

square feet. They cater to customers who look for low price deals.

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CHAPTER 1

INTRODUCTION

Every business conducted for the purpose of selling or offering for sale any goods, wares,

or merchandise, other than as a part of a "wholesale business" to the final consumer can

be defined as retail business

Retail is the second-largest industry in the United States both in number of

establishments and number of employees. The U.S. retail industry generates $3.8 trillion

in retail sales annually ($4.2 trillion if food service sales are included), approximately

$11,993 per capita. The retail sector is also one of the largest worldwide.

Wal-Mart is the world's largest retailer and the world's largest company with more than

$312 billion (USD) in sales annually. Wal-Mart employs 1.3 million associates in the

United States and more than 400,000 internationally. The second largest retailer in the

world is France's Carrefour.

WHAT IS RETAILING?

Retailing is all the activities involved in selling goods and services directly to final

consumers for their personal, non-business use.

The word retail is derived from the French word retailer, meaning to cut a piece off or to

break bulk. A retailer buys goods or products in large quantities from manufacturers or

importers, either directly or through a wholesaler, and then sells individual items or small

quantities to the general public or end user customers, usually in a shop, also called store.

Retailers are at the end of the supply chain. Marketers see retailing as part of their overall

distribution strategy.

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TYPES OF RETAILING

Retailing can be classified under two heads:

� Store Retailing

� Non-store Retailing

Store Retailing

Retail stores come in a variety of shapes and sizes, and new retail types keep emerging.

They can be classified by one or more of several characteristics:

� Amount of service

� Product line

� Relative prices

� Control of outlets

� Type of store cluster

1) AMOUNT OF SERVICE

Different products require different amounts of service, and customer service preferences

vary:

Self-service retailers

Customers are willing to perform their own "locate-compare-select" process to save

money. Today, self-service is the basis of all discount operations, and typically is used

by sellers of convenience goods (such as supermarkets) and nationally branded, fast

moving shopping goods (such as catalog showrooms).

Limited service retailers

Retailers such as Sears and J. C. Penney, provide more sales assistance because they

carry more shopping goods about which consumers need information. Their increased

operating costs result in higher prices.

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Full service retailers

Like specialty stores and first-class department stores, have salespeople to assist

customers in every phase of the shopping process. Full service stores usually carry more

specialty goods for which customers like to be waited on. They provide more liberal

return policies, various credit plans, free delivery, home servicing, and extras such as

lounges and restaurants.

2) PRODUCT LINE:

Retailers can also be classified by the depth and breadth of their product assortments.

The depth of a product assortment refers to the number of different versions of each

product that are offered for sale. The breadth of the assortment refers to the number of

different products that the store carries.

Specialty stores carry a narrow product line with a deep assortment within that line.

Examples include stores selling sporting goods, books, furniture, electronics, flowers, or

toys. Today, specialty stores are flourishing, due to the increasing use of market

segmentation, market targeting, and product specialization.

A department store carries a wide variety of product lines. Each line is operated as a

separate department managed by specialist buyers and merchandisers.

Supermarkets are large, low-cost, low-margin, high-volume, self-service stores that carry

a wide variety of food, laundry, and household products.

Convenience stores are small stores that carry a limited line of high-turnover

convenience goods. These stores located near residential areas and remain open long

hours, seven days a week. Convenience stores must charge high prices to make up for

higher operating costs and lower sales volume, but they satisfy an important consumer

need.

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Superstores, combination stores, and hypermarkets are all larger than the conventional

supermarket. Many leading chains are moving toward superstores because their wider

assortment allows prices to be 5-6% higher than conventional supermarkets'.

Combination stores are combined food and drug stores. Examples are A&P's Family

Marts and Wal-Mart's Super centers. Hypermarkets combine discount, supermarket, and

warehouse retailing, and operate like a warehouse

3) RELATIVE PRICES

Retailers can also be classified by the prices they charge. Most retailers charge regular

prices and offer normal quality goods and customer service. Some offer higher quality

goods and service at higher prices. Retailers that feature low prices include:

Discount stores sell standard merchandise at lower prices by accepting lower margins

and selling higher volume. Occasional discounts or specials do not make a store a

discount store. A true discount store regularly sells its merchandise at lower prices,

offering mostly national brands, not inferior goods.

4) CONTROL OF OUTLETS:

About 80% of all retail stores are independents, accounting for 2/3 of retail sales. Other

forms of ownership include the corporate chain, the voluntary chain and retailer

cooperative, the franchise organization, and the merchandising conglomerate.

The chain store is one of the most important retail developments of this century.

Corporate chains appear in all types of retailing, but they are strongest in department,

variety, food, drug, shoe, and women's clothing stores. The size of corporate chains

allows them to buy in large quantities at lower prices, and chains gain promotional

economies because their advertising costs are spread out over many stores and over a

large sales volume.

The voluntary chain is a wholesaler-sponsored group of independent retailers that

engages in-group buying and common merchandising.

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The retailer cooperative is a group of independent retailers that set up a jointly- owned

central wholesale operations and conduct joint merchandising and promotion efforts.

A franchise is a contractual association between a manufacturer, wholesaler, or service

organization (the franchiser) and independent businesspeople (the franchisees) who buy

the right to own and operate one or more units in the franchise system.

Merchandising conglomerates are corporations that combine several different retailing

forms under central ownership and share some distribution and management functions.

Examples include Dayton-Hudson and J. C. Penney.

5) TYPE OF STORE CLUSTER:

Most stores today cluster together to increase their customer pulling power and to give

consumers the convenience of one-stop shopping:

Central business districts A central business district comprises of banks, department

stores, specialty stores, and movie theatres.

A shopping center is a group of retail businesses planned, developed, owned, and

managed as a unit.

Non-Store Retailing

Although most goods and services are sold through stores, non-store retailing has been

growing much faster than store retailing.

Traditional store retailers are facing increasing sales competition from catalogs, direct

mail, telephone, home TV shopping shows, on-line computer shopping services, home

and office parties, and other direct retailing approaches.

Non-store retailing includes direct marketing, direct selling, and automatic vending.

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INDIAN RETAIL INDUSTRY

Retailing in India is one of the significant contributors to the Indian economy and

accounts for 35% of the GDP. However, this sector is in a fragmented state with over

12 million outlets operating in the country and only 4% of them being larger than

500 sq ft in size. This is in comparison to 0.9 million outlets in USA, catering to more

than 13 times of the total retail market size. Thus, India has the highest number of outlets

per capita in the world with a widely spread retail network but with the lowest per capita

retail space (@ 2 sq ft per person as compared to 16 sq ft per person for USA).

The Indian retailing industry is currently estimated at $205 b (Rs.930, 000 Crores) and is

expected to grow at 5% p.a. The current size of the organized retailing market is $6 b

(Rs.28,000 Crores), thereby, a mere 3% of the total retailing market with a projected

growth rate of 25 – 30% p.a. and is estimated to become $8 b (Rs.35,000 Crores) by 2005

and $24 b (Rs.100,000 Crores) by 2010, with its contribution to total retailing sales likely

to rise to 9% by decade end.

Emerging Trends in Indian Retail Industry

‘Tier-II’ Phenomenon

Small towns with a population of 0.5 – 1 million {like Surat, Lucknow, Dehra Dun,

Vijaywada, Bhopal, Indore, Vadodara, Coimbatore, Nasik, Bhubaneswar, Varanasi, and

Ludhiana etc}, are witnessing a defined increase in disposable income coupled with high

aspirational levels leading to enhanced spending on consumer goods along with lesser

aversion to credit. With consumption in metros already being exploited {85% of retail

sales as of now}, these Tier-II areas are fresh targets and are expected to contribute 20-

25% of organized retailing sales.

Retailers are introducing contemporary retail formats such as hypermarkets and

supermarkets in these new pockets of growth. Mall development activity in these small

towns is also picking up, creating quality space for retailers to fulfill their aggressive

expansion plans. Keeping in view the relatively smaller size of the market, the average

size of a retail mall in Tier-II cities ranges between 100,000 – 120,000 square feet in

comparison with the larger metros where a number of malls measure over 500,000 square

feet.

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Entry of International Players

The fight today is not between Big organized retail stores (3%) and Unorganized Kirana

Shops (97%), but its between global giants like Wal-Mart, Tesco and Shopper’s Stop,

Pantaloons. Entry of these global players will impact the way India Retailers operate, as

much as it will change the way Indian consumers live and do their shopping. They will

no longer be just dependent on their local Kirana shop for their everyday needs. They

could just shop once a week or once a month at comparatively cheaper rates and remain

hassle free. Indian retailer will also need to quickly come to terms with the market

realities. On one hand they will fight size factor and on the other hand great efficiencies

Emergence of New Retail Formats

Currently the retail sector in India is populated with the traditional mom-and-pop stores

and some 1000 odd supermarkets under organized retail chains. A daring few ventured

into the Hypermarket segment with successful results and this format is being fast

replicated by other players. This experience indicates that the Indian consumer has

matured to the next level of shopping experience. Given the Indian conditions and the

vast diversity a single format may not be possible for the national presence, but region

specific formats may evolve. An interesting observation is that of lack of presence of

organized retail chains in the rural/semi-urban centers as over 60% of Indian population

is still in these parts. An ideal “no frills” model to start with would be ideal for the rural

markets; this would help to take them to the next level of supermarket experience.

Specialty Malls

Keeping in mind the astonishing pace with which new supply is expected to enter the

market, many mall developers, in a bid to offer a distinctive value proposition, are

planning to develop ‘specialty malls’. These niche developments shall emerge as one-

stop destinations in their chosen product categories. The Delhi-based Aerens Group has

developed Gold Souk, an exclusive jewellery mall that is already operational in Gurgaon

and has ambitious plans to replicate the concept across the country. Further, a number of

analogous developments like a ‘Wedding Mall’ by Omaxe Group, ‘Automobile Mall’ etc

are also in the offing. In line with international trends, ‘Home Malls’ offering the entire

range of building and interior décor solutions are also coming up in various parts of the

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country including Pune (‘Ishanya’ promoted by Deepak Fertilizers and Petrochemicals

Corporation Ltd), Gurgaon & Kolkata.

Price Correction

Fallout of the surge in mall development activity shall be that developers will be forced

to offer retailers prime real estate spaces at costs lower than those prevailing today, as the

space required by retailers to fulfill their expansion plans is likely to be lesser than

offered. This correction could result in a more structured retail real estate market that

would allow retailers a higher margin on their real estate investments, thereby enabling

them to expand faster. Further, the relatively over-served cities could witness higher

activity, as real estate space becomes more affordable, thereby, reducing the break-even

period for retailers. Moreover, under-served markets could provide enough margins to

retailers to compensate for loss of margins in some of the over-served markets.

Traditional Retailers in Malls

The abundant supply of retail space has provided retailers with the leeway to experiment

with newer formats and product categories. Even traditional retailers like Benzer, Study

by Janak, Mehrason’s Jewellers etc are being pushed to modern retailing formats like

shopping malls. Mall developers shall have sufficient incentive to operate on a revenue-

sharing pricing model as many of these traditional retailers can generate higher sales per

square foot as compared to the larger-format department stores, which shall translate into

higher revenue realizations for developers.

Transformation & Innovations of Supply Chain and Transportation logistics

To counter the unbeatable advantages of convenience of a hop, skip and a jump access

and home delivery, organized retailers seem to have just one option - offer attractive

prices to the consumer. A successful retailer's winning edge will therefore come from

sourcing - how best it can leverage its scale to drive merchandise costs down, increase

stock turns and get better credit terms from vendors. Efficient supply chains can achieve

this objective and fuel demand. The supply chain in India is full of inefficiencies- a result

of inadequate infrastructure, too many middlemen, complicated laws and an indifferent

attitude.

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More use of Technology

Retailing, as discussed before, is at a nascent stage in India. The complicated information

systems and underlying technologies are in the process of being established. Most

grocery retailers like Food World have started tracking consumer purchases through

CRM. The lifestyle retailers through their `affinity clubs' and `reward clubs' are

establishing their processes. The traditional retailers will always continue to exist but

organized retailers are working towards revamping their business to obtain strategic

advantages at various levels - market, cost, knowledge and customer. With differentiating

strategies - value for money, shopping experience, variety, quality, discounts, advanced

technologies, change in the equilibrium with manufacturers and a thorough understanding

of the consumer behavior, the ground is all set for the organized retailers.

Community Involvement

Footfalls in most malls are observed to be significantly higher on weekends. To ensure

regular walk-ins on weekdays, mall developers have started to focus on involving the

local community. They have recognized that their centers need to be entertaining, and

that shoppers want their malls and town centers to blend with and reflect their own

communities. Their philosophy today is thus to create a center where people would want

to stay well beyond their shopping time to enact the rituals of urban life. Activities like

karate classes and painting competitions for children pull their salary-earning parents to

visit the mall. For example, South-dale Mall, USA contains a school, an auditorium, an

ice-skating rink and even a zoo for the same reason. Dandia and Navratre parties at Ansal

Plaza and Festival parties at other malls also have the same objective.

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EXECUTIVE SUMMARY

Retailing is the final step in the distribution of merchandise - the last link in

the Supply Chain - connecting the bulk producers of commodities to the final

consumers. Retailing covers diverse products such as foot apparels, consumer

goods, financial services and leisure. The organized retail sector is expected to

grow at 6% by 2010 and touch a retail business of $ 17 billion as against its

current growth level of 3%, which at present is estimated to be $ 6 billion. As

India moves towards the service oriented economy, a rise in this percentage is

expected. The number of the retail outlets is growing at about 8.5% annually in the

urban areas and in towns with population between 1,00,000 to 1 million; the

growth rate is about 4.5%. Organized retailing is witnessing a wave of players

entering the industry. These players are experimenting with various retail formats.

Yet, Indian retailing has still not been able to come up with many successful

formats that can be scaled up and applied across India. Some of the notable

exceptions like Reliance Retail & Vishal Mega Mart who scaled their Retail

format across the country.

This research project is undertaken with a view to analyse the trends in the

Indian organized Retail Industry with reference to changing trends in buying

behaviour of consumers. The aim is to understand the effect of increasing income

levels of consumers on the organized retail industry.

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COMPANY PROFILECOMPANY PROFILECOMPANY PROFILECOMPANY PROFILE of the Study of the Study of the Study of the Study

ConductedConductedConductedConducted

Reliance super Growth through Value Creation

With a vision to generate inclusive growth and prosperity for farmers, vendor partners,

small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL, was

set up to lead Reliance Group’s foray into organized retail. With a 27% share of world GDP,

retail is a significant contributor to overall economic activity across the world. Of this,

organized retailing contributes between 20% to 55% in various developing markets. The

Indian retail industry is pegged at $ 300 billion and growing at over 13% per year. Of this,

presently, organized retailing is about 5%. This is expected to grow to 10% by 2011. RRL has

embarked upon an implementation plan to build state-of-the-art retail infrastructure in

India, which includes a multi-format store strategy of opening neighborhood convenience

stores, hypermarkets, specialty and wholesale stores across India. RRL launched its first

store in November 2006 through its convenience store format ‘Reliance Fresh’. Since then

RRL has rapidly grown to operate 590 stores across 13 states at the end of FY 2007-08. RRL

launched its first ‘Reliance Digital’ store in April 2007 and its first and India’s largest

hypermarket ‘Reliance Mart’ in Ahmedabad in August 2007. This year, RRL has also

launched its first few specialty stores for apparel (Reliance Trends), footwear (Reliance

Footprints), jewellery (Reliance Jewels), books, music and other lifestyle products (Reliance

Timeout), auto accessories and service format (Reliance AutoZone) and also an initiative in

the health and wellness business through ‘Reliance Wellness’. In each of these store

formats, RRL is offering a unique set of products and services at a value price point that has

not been available so far to the Indian consumer. Overall, RRL is well positioned to rapidly

expand its existing network of 590 stores which operate in 57 cities.

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During the year, RRL also focused on building strong relationships in the agri-business value chain and has commenced marketing fruits, vegetables and staples that the company sources directly to wholesalers and institutional customers. RRL provides its customers with high quality produce that has better shelf life and more consistent quality than was available earlier. RRL has made significant progress in establishing state-of-the-art staples processing centres and expects to make them operational by May 2008. Through the year, RRL also expanded its supply chain infrastructure. The Company is fully geared to meet the requirements of its rapidly growing store network in an efficient manner. Recognizing that strategic alliances are going to be a key driver to its retail business, in FY 2007-08, RRL established key joint ventures with international partners in apparel, optical and office products businesses. Further, RRL will continue to seek synergistic opportunities with other international players as well. This year, RRL will continue its focus on rapid expansion of the existing and other new formats across India. Mukesh Ambani-promoted Reliance Retail has launched its first hypermarket – Reliance hypermart - in Ahmedabad that will sell farm produce to general merchandise at budget friendly prices even as the company mulls setting up 500 such superstores across India by 2010 Reliance has already established a big place for it in the booming retail market of India. Already, medium sized Reliance Fresh stores are offering good service to people across India. Punjab has emerged as a big market for these big retail players and therefore, these retail giants are targeting big cities of Punjab like Ludhiana, Jalandhar, and Amritsar etc. Newly opened Reliance Super store in the basement of Flamez Mall is presently a new attraction in Ludhiana . At Reliance Super store people can easily buy anything from electronics to vegetables, eatables to apparels etc. Hardly, there is anything which people cannot find in this store. Already, many people are finding this store an attractive option for buying important items. So far, this is the only big store available in Ludhiana where people can easily buy all items under the same roof. Moreover, at Reliance Super people can get many attractive deals and discounts from time to time for Reliance One card holders. In future, these kinds of stores will become big reality and mostly people will then like to buy essential items from these stores only. Reliance Super is also expanding its store on 3rd floor of Flamez Mall, which will take some time in completion. After completion, this will be biggest store available in Ludhiana where we can easily buy anything of our requirement. People of Ludhiana are really getting many world class facilities in their own city thanks to retail boom of India

SWOT Analysis of Reliance Retail ltd.

Strength:-

� India’s biggest conglomerate.

� First to start retail trend in India.

� Market value US$ 35 billion

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� Turnover of US$ 27 billion in 2007.

� Investing US$ 5 billion in pan-india retail including both small & super stores.

� Generating 1 million jobs

� Reaching annual sales of US$ 25 billion by 2011

� Free membership card to its customer.

� Firsthand knowledge of retail business.

� Small retailers are a powerful lobby that Made RIL to take on international retail giants.

� Latest software and technology used like, SAP, RETALIX(used by wall mat except reliance retail ltd.) Weakness:- � Lack of detailed region specific customer data.

� Less data on spending pattern.

� Lack of trained personnel at all level.

� Inefficient ERP, SCM.

� Insufficient stock.

� No proper system to solve customer complaints regarding products. Oppourtunities:- � India ranks 1st for top international destination for retail investment.

� U.S $ 350 billion retail market.

� 96% market share is held by 12 million family run shops.

� 4th largest economy in purchasing parity terms after US, china & Japan.

� Retail sector will grow 35% in 2008.

� Virgin territory for organized retail investment.

� 2-6% of total retail.

� Expected to increase to 15-18% by 2011.

� Food retailing is expected to grow to US$ 1.6 billion.

� Apparel to increase by 9.5% by 2010. Threats:- � Wall-Mart

� Vishal Mega Mart

� Future group- Big Bazaar, Food bazaar, pantaloons, brand factory, e-zone, central mall, furniture bazaar etc.

� Spencer

� Aditya Birla Group- petre england people store, more.

� TATA group- westside, tanishq store, titan store, star india bazaar, landmark, croma

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VISHAL MEGAMART is a retail house in India. As of April 30, 2007, it operates 50 retail stores, including two stores which are operated by their franchisees. These 50 stores are spread over about 1,282,000square feet and are located in 18 states across India. In its efforts to strengthen thier supply chain, it has set up seven regional distributions centres and an apparel manufacturing plant. It started as a retailer of ready-made apparels in Kolkata in 2001. At the time of incorporation, the registered office of thier Company was situated at 4, R. N. Mukherjee Road, Kolkata 700 001. In 2003, it acquired the manufacturing facilities from Vishal Fashions Private Limited and M/s Vishal Apparels. It follows the concept of value retail in India. In other words, their business approach is to sell quality goods at reasonable prices by either manufacturing themself or directly procuring from manufacturers (primarily from small and medium size vendors and manufacturers). It facilitate one-stop-shop convenience for their customers and to cater to the needs of the entire family. It believes this concept has helped them grow to thier current size within a short time frame of their years. Mr. Ram Chandra Agarwal has been ranked as the 28th most pitiful person in the Indian retail industry. This project report is the study of various activities and strategies of Vishal Mega Mart. It also helps us in understanding the different technologies being used by VRPL. MISSION STATEMENT:

We shall deliver everything, everywhere, every time for every Indian Consumer in the most profitable manner.

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VISION STATEMANT:

We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development Company Summery

“Future is thinking beyond horizon” & in order to keep its pace with the modern retail, Vishal Retail Limited is spreading its wings. Instead of resting on its laurels the Group are busy identifying new avenues of growth by venturing in other formats like cash & carry, convenios as well as specialty stores and inspiring local retailers to grow along with the big names. The group has tied up with HPCL to open corner stores at their petrol pumps and in addition to the above Vishal has come up with an institute to train manpower for the service industry.

As of April 30, 2007, it operates 50 retail stores, including two stores which are operated by their franchisees. These 50 stores are spread over about 1,282,000square feet and are located in 18 states across India. In its efforts to strengthen thier supply chain, it has set up seven regional distributions centres and an apparel manufacturing plant. Today Vishal Retail Limited, Flagship Company of Vishal Group, engaged in Hyper Market stores with an average area of 25,000 to 30,000 sq. ft. through an impressive chain of more than 100 fully integrated stores in spread of more than the area of around 22, 00,000 sq. ft. in 69 cities across India & has a plan to cross total retail area of 35 lakh sq. ft. in tier II and tier III cities by the end of 2009.

According to Mr. Ram Chandra Agarwal, CMD, Vishal Retail Limited, the group owes its origin to a small 50 sq ft shop in Kolkata's Lal Bazaar that started selling readymade garments. In tune with the pulse of the market, he envisioned a mega store that would sell garments at prices none other could match. . The first big store opened in Calcutta's Esplanade area in 1997, under the banner of Vishal Garments. He was involved in all the aspects of the business: right from sourcing the garments to interacting with customers. And this led to his greatest finding “The Vishal Group.” After identifying the immense market in fashion garment for the masses, He moved to Delhi in 2001 and opened his first store in Delhi’s Rajouri Garden by the name of Vishal Mega Mart (The jewel in Vishal Group’s crown) and then there was no looking back for Mr. Ram Chandra

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Agarwal. At present, in addition to garments, Vishal Mega Mart stores retail the entire range of household products, FMCG and electronic goods. Vishal's prices are roughly 15 to 20 per cent less than other mass market garment labels.

Mr. Ram Chandra Agarwal, CMD, Vishal Retail Limited believes that the shopping habits of Indians are changing due to their growing disposable income, higher aspirations, relative increase in the younger population, and the change in attitudes towards shopping. The emphasis has changed from price consideration to design, quality and trendy. Age is also a major factor that affects the spending decisions of an individual. Consumer spending is an important factor that affects the economic growth and development in a country. As a trend, consumer is more educated. He has access to all reforms taking place through various arrays of communication. He is becoming a “value shopper” everyday. Keeping this in mind, the group is now looking for franchisees to join hands with Vishal and grow under common banner. This partnership will help small retailers to survive the onslaught of organized retail as it will enhance their competitiveness. Small stores can avail of the benefits on account of the economies of scale, a key advantage for big retailers. As per the plans, Vishal Retail will completely take over the supply chain of its franchisees and provide them with technology, new practices, visual merchandising skill and special promotional schemes, besides its brand and costumer base.

The group’s prime focus is on retailing. The Vishal stores offer affordable family fashion at prices to suit every pocket. The group’s philosophy is integration and towards this end has initiated backward integration in the field of high fashion by setting up a state of the art manufacturing facility to support its retail endeavors. Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all price ranges. The showrooms have over 70,000 products range which fulfills all your household needs, and can be catered to under one roof. It is covering about 29, 90, 146 sq. ft. in 24 states across India. Each store gives you international quality goods and prices hard to match. The cost benefit that is derived from the large central purchase of goods and services is passed on to the consumer.

Wal-Mart, the US-based world’s largest retailer, is here! Of course, through Bharti Retail, its franchisee partner for frontBharti Enterprises– India’s largest mobile telecom playerthree convenience stores in Ludhiana (Punjab) on Wednesday, the 16th April, 2008. Ludhiana, incidentally, happens to be the home town of Mittals, who before their meteoric rise in telecom business, were engaged in the busines Despite the launch of retail chain being soft and without much fanfare, consumer response on the first day itself is believed to be huge and enthusiastic. The launch was kept low-key, perhaps, to avoid any adverse reaction from politicalof small traders. Also, ending months of speculation, the frontDay.” Thus, the brand is devoid of either party’s name, that is, Walagain appears to avoid the criticism of those opposed to entry of MNCs and big corporates in retail. It is noteworthy that both Walbeen symbols of protests by anti In order to ward off wrath of fruits and vegetable vendors, housewives, retirees, rural folks, and physicallypersons from local areas for its operations. It has also announced to to give preference to people from local communities for employment in its retail chain. It will also provide intensive and structured training in retail to such people at Bharti Academy of Retail, which has specifically been set up by the company. In fact, it has already provided such training to over 1,800 persons. “Easy Day” retail stores, typically measuring between 2,500 and 4,500 sq ft of space, apart from stocking food and grocery will among others also offer personal care products, stationery, household articles, processed foods, meabakery and dairy products. Although, Walworld over with its “Every Day Low Prices” concept, there has so far been no word about Easy Day’s pricing policy as yet. Bharti, having initially flirted with the UK’s Tesco, ultimately decided to tango with Wal-Mart for its retail foray, in the beginning of 2007. While, Bharti has inked a 50:50 joint venture agreement with Walthe government restrictions on foreign investment in multito make do with technical services agreement with the retail giant for its front

22

based world’s largest retailer, is here! Of course, through Bharti Retail, its franchisee partner for front-end retail in India. Bharti Retail, a part of Mittals owned

India’s largest mobile telecom player– rolled out first cluster of its three convenience stores in Ludhiana (Punjab) on Wednesday, the 16th April, 2008.

Ludhiana, incidentally, happens to be the home town of Mittals, who before their meteoric rise in telecom business, were engaged in the business of cycle parts.

Despite the launch of retail chain being soft and without much fanfare, consumer response on the first day itself is believed to be huge and enthusiastic. The launch was

key, perhaps, to avoid any adverse reaction from political activists and lobbies

Also, ending months of speculation, the front-end business has been branded as “Easy Day.” Thus, the brand is devoid of either party’s name, that is, Wal-Mart or Bhartiagain appears to avoid the criticism of those opposed to entry of MNCs and big corporates in retail. It is noteworthy that both Wal-Mart and Reliance, in the past, have been symbols of protests by anti-retail lobbies.

In order to ward off wrath of petty vendors and local communities, Bharti has hired meat, fruits and vegetable vendors, housewives, retirees, rural folks, and physicallypersons from local areas for its operations. It has also announced to to give preference to

ocal communities for employment in its retail chain. It will also provide intensive and structured training in retail to such people at Bharti Academy of Retail, which has specifically been set up by the company. In fact, it has already provided such

ing to over 1,800 persons.

“Easy Day” retail stores, typically measuring between 2,500 and 4,500 sq ft of space, apart from stocking food and grocery will among others also offer personal care products, stationery, household articles, processed foods, meat, poultry and fresh produce including bakery and dairy products. Although, Wal-Mart has revolutionised retail business the world over with its “Every Day Low Prices” concept, there has so far been no word about Easy Day’s pricing policy as yet.

aving initially flirted with the UK’s Tesco, ultimately decided to tango with Mart for its retail foray, in the beginning of 2007. While, Bharti has inked a 50:50

joint venture agreement with Wal-Mart for wholesale cash and carry business, in view of he government restrictions on foreign investment in multi-brand, front-end retail, it had

to make do with technical services agreement with the retail giant for its front

based world’s largest retailer, is here! Of course, through Bharti Retail, end retail in India. Bharti Retail, a part of Mittals owned

lled out first cluster of its three convenience stores in Ludhiana (Punjab) on Wednesday, the 16th April, 2008.

Ludhiana, incidentally, happens to be the home town of Mittals, who before their s of cycle parts.

Despite the launch of retail chain being soft and without much fanfare, consumer response on the first day itself is believed to be huge and enthusiastic. The launch was

activists and lobbies

end business has been branded as “Easy Mart or Bharti. This

again appears to avoid the criticism of those opposed to entry of MNCs and big Mart and Reliance, in the past, have

petty vendors and local communities, Bharti has hired meat, fruits and vegetable vendors, housewives, retirees, rural folks, and physically-challenged persons from local areas for its operations. It has also announced to to give preference to

ocal communities for employment in its retail chain. It will also provide intensive and structured training in retail to such people at Bharti Academy of Retail, which has specifically been set up by the company. In fact, it has already provided such

“Easy Day” retail stores, typically measuring between 2,500 and 4,500 sq ft of space, apart from stocking food and grocery will among others also offer personal care products,

t, poultry and fresh produce including Mart has revolutionised retail business the

world over with its “Every Day Low Prices” concept, there has so far been no word about

aving initially flirted with the UK’s Tesco, ultimately decided to tango with Mart for its retail foray, in the beginning of 2007. While, Bharti has inked a 50:50

Mart for wholesale cash and carry business, in view of end retail, it had

to make do with technical services agreement with the retail giant for its front-end

23

business. As part of this agreement, besides putting in place infrastructure for distribution, logistics and vendor management, Wal-Mart has agreed to provide its its globally adopted supply chain management and training standards to Bharti. Bharti, which in the next five years intends to invest US$ 2.5 billion, or around Rs. 10,000 crore, has plans to eventually occupy 10 million sq ft of retail space and offer employment to 60,000 people. Besides expanding “Every Day” convenience stores format, Bharti will soon roll out multi format retail stores including supermarkets measuring between 30,000 sq. ft and 50,000 sq. ft, and hypermarkets measuring between 75,000-125,000 sq. ft. Wal-Mart is known for its big box format stores, though, it has toyed in a small way with small format in countries like Mexico, outside the US. There is also speculation, however, about Wal-Mart setting up relatively small sized city centre style stores in the U S, as well. Bharti Retail is slated to also open the first cash-and-carry store in equal partnership with Wal-Mart before the end of this year with plans plans to set up around 15 stores by 2015.

The management of Bharti Wal-Mart may have suppressed the press from creating a big hype. However, our retail analyst [ Other bloggers didn't stop, OmRetail has Exclusive Photographs of Easy Day Retail Supermarket ] couldn't resist from visiting the store and filing this review. Each store is about 2,500 to 4,500 sft in size and is projected as one stop shop for day-to-day family requirements such as groceries, personal care and household products. The company is planning to setup these stores on PAN India basis and they refused to give any further details on the project. The first 3 stores are opened in Ludhiana, the hometown of Sunil Bharti Mittal. Product Range in Easy Day stores: Bakery products Food and Beverages Home & Personal Care Dairy Products Frozen - Vegetarian, Non-Vegetarian[Meat] and Chilled Non-Vegetarian Grains & Pulses Meat and Poultry Items All the three stores are single floor stores with cash counter and bakery section at the entrance. Each category of the product was marked separately. Products were effectively displayed with price tags. In Easy Day stores we found that Home & Personal Care [Toothpaste, Soap, etc] and Food & Beverages [Pepsi, Fruit Juice, Cereals] are sold at a discount between 1% to 5% only.

24

Great Value Private Label Brand: The company has introduced its own private label under the brand name Great Value. Most items are in the grains and pulses categories. With increasing number of retailers, discount is what most consumers look for. Each store has 12-15 employees including a store manager without any gender of age bias. The company has also established "Bharti Academy of Retail" in association with Global Retail School of Chandigarh for imparting training for the retail business. In its first phase of operations, Bharti Retail has opened 59 Easy Day stores in Punjab, Haryana, Rajasthan, Uttar Pradesh and New Delhi. In addition, it also has launched three compact hyper stores called Easy Day Market in Punjab. The company has deliberately focused on north India in its first phase of operations in an effort to consolidate presence in one market, before expanding to another region. The Easy Day stores source fresh fruits and vegetables from Bharti-Walmart. In an interesting HR innovation the stores plan to tap workforce from the likes of cart vendors, housewives and retired personnel, by offering flexi-hour work schedules. Such groups of persons will also be enrolled for structured training modules at the Bharti Retail Academy.

Big Bazaar is both big and a bazaar. It is unlike, say, a Walmart or even a Food world.

Big Bazaar is almost an air-conditioned version of any Indian bazaar. It is a slightly

orderly and organized version of, say Chickpet for Bangalore guys or Dadar for

Mumbaiites. There is a huge crowd which can move in almost any direction. You can

buy anything (pretty much everything is available at Big Bazaar). It is not a place where

you can browse through at leisure and pick up a few things here and there. This is a place

if you are serious about your shopping. And the worst part is at the checkout counter,

where the line can stretch as much as a line for a famous Ganpati Pandal or a cricket

match. Parking is a pain too.

But, the place ticks. In both Hyderabad and Bangalore, the outlets don’t have a place for

customers to stand esp. on weekends. Customers wait outside it some before it opens in

the morning. Bombay is slightly better. Big Bazaar offers good prices-Really good prices.

25

Prices that tempt. Apart from simple price chopping, there are deals (2 for the price of 1

or prices reduced on a combination etc). The perception of Big Bazaar is that it facilitates

some serious savings on grocery shopping. And it works. And make no mistake, it

attracts the well heeled as much as it attracts Raju from across the street. That has worked

for Big Bazaar is that it has been able to connect with the customers in the right manner.

They had filled a need gap which was there in the market. Apart from that, their

competence in providing products at lowest prices and great quality in an ambience much

better than what the customers were used to, has also contributed to their success.

The focus is on continuing to provide very high ‘value for money’ to customers by

providing exciting offers throughout the year. It will be facilitated by constantly working

on its buying and supply chain efficiencies. Having already achieved economies of scale

and size, they intend to better their gains by opening new stores regularly.

One of the key philosophies of Mr Biyani that is highly followed is ‘Rewrite rules, retain

values.’ In essence, it means they don’t take anything as fixed. They are constantly on the

lookout for finding new ways and means to improve the current state of affairs. Thus,

innovation is a very important aspect of their working strategy. The other very important

philosophy is that of Indian ness. All their concepts and formats as well as the way they

go about things are very Indian. The way Big Bazaar is designed and the way the whole

concept has developed reflects a sense of Indian ness.

This is a well articulated print advertisement campaign for Big Bazaar to highlight their

unique marketing strength, ‘extreme low price’. However, even before this idea has been

exercised to highlight a product by placing it in a stark different environment.

Nevertheless, this advertisement campaign is very well crafted out. Further, the ad is not

at all confusing and it straight way conveys the message without loosing focus.

Like the marketing strength of the company, this campaign is too cost effective. Further,

the ad has the capacity to attract immediate people’s attention. The tag line of the ad is

‘Surprisingly Inexpensive’. The ad has been created by Mudra DDB Communication.

The company recorded around one million foot fall from 26th to 28th January this year in

2007,which were termed as “SABSE SASTE 3 DIN”,”MAHA SAVING OFFER”, which

was 43 crore last year.

26

This was a special print advertisement of Big Bazaar prepared for women’s day sales

promotion, where through the advertisement it is shown that forget about the common

females even all Hindu goddesses are busy in shopping at BIG bazaar and celebrating

their day.

This was the print advertisement that Big Bazaar came out with which was regarding its

exchange offer sales promotion, where an old man is hiding himself behind sofa,because

now every old thing can be exchanged with new one at Big Bazaar.

More stores are owned by Aditya Birla Group and promise a world-class pleasurable shopping experience to Indian consumers in their very own neighborhood. More Quality More Variety More Convenience More Value

These are the four delivery cornerstones of the more chain of supermarket stores. There are nearly 14 stores of More in Ludhiana City and giving intense competition to Reliance Fresh Ltd and other organized Retailers in Ludhiana City. Aditya Birla Retail Limited is the retail arm of Aditya

Birla Group, a USD 28 billion Corporation. The Company ventured into food and grocery retail sector in 2007 with the acquisition of a south based supermarket chain. Subsequently Aditya Birla Retail Ltd. expanded its presence across the country under the brand "more." with 2 formats Supermarket & Hypermarket. Supermarket more. for you - Conveniently located in neighbourhoods, more. supermarkets cater to the daily, weekly and monthly shopping needs of consumers. The product offerings include a wide range of fresh fruits & vegetables,

27

groceries, personal care, home care, general merchandise & a basic range of apparels. Currently, there are over 600 more. supermarkets across the country. Hypermarket More.MEGASTORE - is a one-stop shopping destination for the entire family. Besides a large range of products across fruits & vegetables, groceries, FMCG products, More.MEGASTORE also has a strong emphasis on general merchandise, apparels & CDIT. Currently, five hypermarkets operate under the brand more. MEGASTORE in Mysore, Vadodara, Aurangabad, Indore and Bangalore. Club more. - Our loyalty program currently has a strong membership base of over 1 million members. Aditya Birla Retail Limited. Currently has employee strength of over 11,000. Key functions are headed by professionals with vast retail experience in India & globally. Quality & Value through own labels: Aditya Birla Retail Ltd provides customers a wide choice of products under its own

labels. The objective is to provide quality products at attractive price points to customers. Since quality of the products is of prime importance, stringent quality norms have been set and are followed. All manufacturing partners are the best in their class. Own label Food Brands more. Feasters, Kitchen's Promise, and Best of India Home & Personal care brands more., Enriche, 110%, Pestex, Paradise, and Germex Store in Ludhiana Ludhiana Address: Street No. 8, Evershine Furniture, New Janta Nagar. 141003 Tel: 0161-6454304 Address: Sahi Furniture, Krishna Nagar, Main Market, PAU Road. 141001 Tel: 0161-6454306 Address: 527-L, Model Town, Main Road. 141002 Tel: 0161-6455402

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OTHER RETAILERS IN NORTH INDIA

� Indiabulls mart

Indiabulls group, which began its business foray first as a capital market intermediary, delving into real estate business thereafter, entered the booming retail sector, by acquiring entire retail business of Piramal group being conducted under ‘Pyramid’ brand, has completed the process of rechristening Pyramid retail formats as Indiabulls Megastore and Indiabulls Mart. There are only few stores located in Ahmedabad City

� Spencer

Spencer’s Retail is one of India’s fastest growing retail stores with multiple formats and retailing food, apparel, fashion, electronics, lifestyle products, music and books. Established in 1996, Spencer’s has become a popular destination for shoppers in India with supermarkets, hypermarkets and dailies spread all over India. Spencer’s has retail footage of over 2 million square feet and over 400 Spencer’s stores in 65 cities. The company operates through the following formats:

• Spencer’s Hypermarkets

a fast growing retail network of hypermarkets with large format stores in Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Hyderabad, Vizag, Vijayawada, Aurangabad Durgapur and Kolkata.

• Spencer’s Super

one of the largest supermarket chains in the food and grocery segment in India.

29

• Spencer’s Daily

Small format stores conveniently located with a range of products to meet your daily household needs.

A. Spencer’s Express

Your food and grocery store next door. There were nearly 2 to 5 Spencer’s stores in Ludhiana city in different areas.

� 6Ten stores

Launched on March 27, 2007,neighbourhood convenience store chain

6Ten’s retail network has already spread to over 320 stores acrossNCR,

Chandigarh, Mohali, Panchkula, Amritsar,Ludhiana, Ambala, and Nagpur

with 3,10,000 sq.ft of retail space on investment of Rs.150 crore. The

Rs.1,085 crore listed company REI Agro Ltd plans to open 1,000 stores

covering an area of 10 lakh sq.ft by FY 2009 and 2,800 stores covering over

40 lakh sq.ft by FY 2011. There is only one store available in Ahmedabad

City and other stores are under construction in Ahmedabad and other parts

of Country

� Subhiksha

Subhiksha is India's largest supermarket, pharmacy and telecom chain.

Started in 1997 as a single store entity in South Chennai, it is now present

nationally across 1000 outlets and spread across more than 90 cities. You

can now locate the nearest Subhiksha store in your area with the Store

Locators. Subhiksha is India's largest supermarket, pharmacy and telecom

chain. Started in 1997 as a single store entity in South Chennai, it is now

present nationally with 1000 outlets and spread across more than 90 cities.

ICICI Venture Capital has a 24% stake in Subhiksha.

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� Future Group

Future Group is one of the country’s leading business groups present in

retail, asset management, consumer finance, insurance, retail media, retail

spaces and logistics. The group’s flagship company, Pantaloon Retail (India)

Limited operates over 7 million square feet of retail space, has over 1000

stores across 53 cities in India and employs over 25,000 people. Some of its

leading retail formats include, Pantaloons, Big Bazaar, Central, Food

Bazaar, Home Town, eZone, Depot, Future Money and online retail format,

futurebazaar.com.

The group's subsidiary companies include, Home Solutions Retail India Ltd,

Pantaloon Industries Ltd, Galaxy Entertainment and Indus League Clothing.

The group also has joint venture companies with a number of partners

including French retailer Etam group, Lee Cooper, Manipal Healthcare,

Talwalkar's, Gini & Jony and Liberty Shoes. Planet Retail, a group company

owns the franchisee of international brands like Marks & Spencer,

Debenhams, Next and Guess in India. Future Group companies also

includes, Future Capital Holdings, Future Generali India Indus League

Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and

Bowling Co. Future Capital Holdings, the group’s financial arm, focuses on

asset management and consumer credit. It manages assets worth over $1

billion that are being invested in developing retail real estate and consumer-

related brands and hotels.

The group’s joint venture partners include Italian insurance major, Generali,

French retailer ETAM group, US-based stationary products retailer, Staples

Inc and UK-based Lee Cooper and India-based Talwalkar’s, Blue Foods and

Liberty Shoes.

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� Partner Companies

� Pantaloon Industries Ltd

� Home Solutions Retail (India) Ltd

� Future Capital Holdings

� CovergeM Retail (India) Ltd

� Indus League Clothing Ltd

� Galaxy Entertainment Corporate Ltd

� Joint Ventures Companies

� Planet Retail Holdings Ltd

� Footmart Retail

� GJ Future Fashions

� CapitaLand Retail India

� ETAM Future Fashions India Pvt Ltd

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REVIEW OF LITERATURE

� Retail is India's largest industry. It accounts for over 10 per cent of the

India's GDP and around eight per cent of the employment. Retail

sector is one of India's fastest growing sectors with a 5 per cent

compounded annual growth rate. India's huge middle class base and

its untapped retail industry are key attractions for global retail giants

planning to enter newer markets. Driven by changing lifestyles, strong

income growth and favorable demographic patterns, Indian retail is

expected to grow 25 per cent annually. It is expected that retail in

India could be worth US$ 175-200 billion by 2016.

� As the nature of the study is survey. Nature of the data is primary by

questionnaire to customers. The same study particularly in Ludhiana

location and for the same retail outlet is difficult to find. General

information related to catchment analysis and retail store are available

but it is not appropriate to mention all those information here.

� Theoretical concept is taken from the different books as mention in

the references. The other information is taken from the different web

sites. Other data are taken from the different sources are mention in

references.

33

� The organized retail industry in India had not evolved till the early

1990s. Until then, the industry was dominated by the un-organized

sector. It was a seller’s market, with a limited number of brands, and

little choice available to customers. Lack of trained manpower, tax

laws and government regulations all discouraged the growth of

organized retailing in India during that period. Lack of consumer

awareness and restrictions over entry of foreign players into the sector

also contributed to the delay in the growth of organized retailing.

Foundation for organized retail in India was laid by Kishore Biyani of

Pantaloon Retails India Limited (PRIL). Following Pantaloon's

successful venture a host of Indian business giants such as Reliance,

Bharti, Birla and others are now entering into retail sector.

� A number of factors are driving India's retail market. These include:

increase in the young working population, hefty pay-packets, nuclear

families in urban areas, increasing working-women population,

increase in disposable income and customer aspiration, increase in

expenditure for luxury items, and low share of organized retailing.

India's retail boom is manifested in sprawling shopping centres,

multiplex- malls and huge complexes that offer shopping,

entertainment and food all under one roof.

34

� But there is a flip side to the boom in the retail sector. It is feared that

the entry of global business giants into organized retail would make

redundant the neighborhood Kirana stores resulting in dislocation in

traditional economic structure. Also, the growth path for organized

retail in India is not hurdle free. The taxation system still favors small

retail business.

� A perfect business model for retail is still in evolutionary stage.

Procurement is very vital cog in the retail wheel. The retailer has to

fight issues like fragmented sourcing, unpredictable availability,

unsorted food provisions and daily fluctuating prices as against

consumer expectations of round-the-year steady prices, sorted and

cleaned food and fresh stock at all times.

� Trained human resource for retail is another big challenge. The talent

base is limited and with the entry of big giants there is a cat fight

among them to retain this talent. This has resulted in big salary hikes

at the level of upper and middle management and thereby eroding the

profit margin of the business.

� But retail offers tremendous for the growth of Indian economy. If all

the above challenges are tackled prudently there is a great potential

that retail may offer employment opportunities to millions living in

small town and cities and in the process distributing the benefits of

economic boom and resulting in equitable growth.

35

CHAPTER 2

RESEARCH OBJECTIVES

1. To highlight the socio-economic characteristics of mega mart customers

2. To study the perception of customers towards various aspects of

mega marts 3. To make some suggestions based on the study 4. To study the different demographic, psychographics and situational

variables which are affecting of selection of retail outlets?

5. To know the Products knowledge & promotional Tools which adapted by Organized Retailers in Ludhiana.

6. Understanding the needs of the customer.

7. To study various determinants, this plays a major role in buying

decisions.

8. Identifying the choice and interest of the customers.

9. To understand the factors which influence consumers for buying?

10. To find out the effectiveness of Organized FMCG Retail in the Ludhiana city.

11. To study about the future prospects of Organized FMCG Retail in

the city .

12. To elicit customers views regarding Organized FMCG Retail .

36

13. To study satisfaction level of customers about Organized FMCG Retail being provided by Relaince Super, Easy Day,Vishal Mega Mart, Reliance Super & More

14. To study about the changes those customers wants in these

Organized FMCG Retail Outlets.

15. To know about the quality, services, product range provided by these Organized FMCG Retail Outlets.

16. To undertake a competitive analysis of all the Organized FMCG

Retail Outlets in the city.

17. To suggest improvements to these Organized FMCG Retail Outlets in the city.

After the whole project I can conclude my work as per the following

points.

1. The main factor that effect the retail business is Location

2. Indians are price sensitive they seek value for money so price also

matter for Indian customers

3. The purchasing pattern of the people in one location is totally different from other Location in Ludhiana city

4. Customer service is not so much important in grocery retail ,

Quality, and Price matter a lot

5. The reason for which people prefer to buy from organized retail store is variety of product available under one roof and customer has not to move from one shop to another shop for his/her daily needs

6. Most of the people in Ludhiana use to purchase their daily needs

whenever they require.

37

MAKINGS OF THE PROJECT REPORT

� PROJECT TITLE

“To Study the consumer attitude (Buying Behavior) towards

organized FMCG Retail Outlet with special reference to Reliance

Super , Biz Bazaar , Vishal Mega Mart , Easy Day & More”

� Consumer Attitude

Consumer attitude helps the organization to understand the purchasing pattern of consumer. For example customer wants to buy from local kirana store (Mom and Pop store) because of location is convenience for them. If the Retailer comes to know that what exactly is the reason of purchasing so the Retailer can change his store according store because the main reason for the existence of Retailer is customer and I have to change according to customer. Consumer Attitude is very important in Retail consumer attitude means the behavior which a consumer shows while purchasing. The consumer shows different consumer attitude because of different names

� Demographics � Psychographics � Situation

38

The main aim of this Project to find out the reason what exactly prefer a Retail outlet while purchasing this reason may be:

� Location � Ambiance of the store � Pricing � Quality � Variety � Customer Services

Or I can say that I came to know about the purchasing pattern of the customer then I as a retailer can change ourselves according to customer purchasing pattern.

KEY RESPONSIBILITIES

There are many FMCG stores in Ludhiana some of them are working good

means high sales and some of them are not working well means low sales.

So, I had been selecting 5 stores to do catchment study

� The study focuses on Ludhiana city, industrial capital of Punjab,

which portrays cross-section of the society.

� Five mega marts were randomly selected namely

� Reliance Super ( Flamze Mall, Ludhiana)

� Vishal Mega Mart ( Ferozepur Road , Ludhiana)

� Big Bazaar (Chandigarh Road , Ludhiana)

� Easy Day ( Railway Station , Ludhiana)

� More ( Model Town, Ludhiana)

� 50 visiting customers from each mega mart were personally

interviewed that make a sample size of 250 customers

39

CATCHMENT ANALYSIS

Catchment means to find out information of the customer, competitors etc.

and suitable location to open the store in a particular area means

� Income group of people ( Low income group , Middle income group , High income group)

� Purchasing pattern

� Number of households in that particular area

� Distance of residential area ( societies , flats , chawls) from the

store so that we can find out that how much far customer can travel to come inside the store

� Location of the store( Prime location , Subprime location )

� Number of grocery stores in that area

� Number of super value ( Hindustan liver product sale is more that

Rs. 1 lac monthly) stores in that store

� Number of organized Retailer ( Competitors) in that area

� Number of Apparels shop

� Number of banks in that area

� Awareness about the store

� Number of educational institute in that area

� Number of entertainment centre ( Cinemas) in that area

� The main occupation of the people in that are

� From this data I come to know about our customer and I can analysis the purchasing pattern of the customer

40

Catchment Analysis Format For The Stores Within 2 K.M Radius

Catchment Analysis

List of Residential

Societies / Flats List of Organized Retailer( competitor)

List of Organized

Retailer( Competitor)

Sr.

No. Name

No. of

Households Sr. No. Name Area in SFT Format Category

1 1 Staples

2 2 PF & Beverages

3 3 Pharmacy

4 4 Dairy

5 5 Consumer Durables

6 6 Apparel

7 7

Stationary/Toys/Gifts/Bo

oks/

8 8 Apparel

9 9 GM ADU,HF&EH

10 10 Florist

11 List of Govt./ Pvt .Offices/Banks

List of Restaurants/Eat

Outs

12 Sr. No. Name Approx Employee Names

13 1

14 2

15 3

16 4

17 5

18 6

19 List of Education Institutes

List of

Cinemas/Entertainmet

Centres

20

Sr.

No. Name Approx Students Names

21 1

22 2

23 3

41

CHAPTER 3

RESEARCH METHODOLOGY

In order to accomplish the objectives of the study, it is essential to articulate the

manner in which it is to be conducted, i.e., the research process is to be carried-out

in a certain framework. The Research Methodology, which follows, is the

backbone of the study.

Research Design

The research will be ‘descriptive’ in nature. The study is aimed at describing the

existing phenomenon. For that matter I will consult various magazines,

newspapers, books, reference materials and internet.

PRIMARY DATA

Questionnaire Survey: A questionnaire survey will be conducted for the purpose

of the study. I will be designing two questionnaires for the purpose of survey, the

first questionnaire will be prepared for the Retailers and the second questionnaire

will be designed for Customers. Collected information will be analyzed under the

light of the literature and survey.

SECONDARY DATA

Secondary data is the data, which already exists. I will use secondary data for the

purpose of study. Secondary data will be collected mainly through internet and

some help will be taken from books and articles.

42

SAMPLING DESIGN: - - Simple Random Method

Sampling Element: The basic elements to be studied are mainly the Customers

visiting the selected Malls and the in-charge of the Stores.

Sample Area- Since the research is on Retail Industry so the sample area that is covered

is as follows-

PRIMARY AREA – Areas near the malls.

SECONDARY AREA- Areas of Ferozepur Road.

Method: - The approach of convenience sampling will be used for survey.

Sample Size: 50 visiting customers from each mega mart were personally

interviewed that make a sample size of 250 customers

STATISTICAL TOOLS USED

� Specially structured questionnaire

� Customers’ perceptions towards different aspects of mega marts were

compared by using ANOVA (analysis of variance).Help of Likert

scale, ranking based model and multiple choice based questions were

also used.

FINALIZING RESEARCH INSTRUMENT / DATA

� Methodology of collecting the data

Personal interview are taken while doing catchment survey of FMCG

Stores.

� Data Collection

For Data collection I went to different area of Ludhiana while doing

catchment survey of FMCG Stores and approach respondents from the front.

43

CHAPTER 4

ANALYSIS AND RESULTS

I have divided my question in to three parts general information like

respondent’s age, sex, name etc. warm up questions family size, education

qualification, business types. And lastly main purpose questions. (All

questions were put in annexure - I

General Information

(A) Gender wise Distribution of respondents:

Female 62%

Male 38%

30%-45% 24%

45%-60% 12%

60%-75% 8%

More than 75% 6%

As FMCG organized retail is concerned more with home managers (women) so no. of female respondents are taken more as compared with male respondents. Out of total respondents 62% are female & 38% are male.

62%

38%

Gender wise Distribution

Female Male

44

(B) AGE GROUP ?

Results show out of 250, 155 respondents were female and 95 were male.

Out of 250, 160 respondents are under the age of 25-35.

(C) PLACE OF RESIDENCE) Rural / Urban

(D)What is your Family Size (No. of Member)?

FAMILY SIZE

2 Members

3 Members

4 Members

5 or Above

Most of the respondents having family size of 4 members, 3 members and

five and above. Around 10 percent people having family size

members. Family having less than five members having high disposable

income. “Newly wed” group also having high disposable income.

(D) Educational Qualification?

EDUCATIONAL QUALIFICATION

Others ,4%

10th Pass,4%

12th Pass,20%

Graduate,40%

Post Graduate

0

10

20

30

40

50

60

70

80

90

2

Members,10% Members,30%

25

45

What is your Family Size (No. of Member)?

LUDHIANA

25

75

87

63

Most of the respondents having family size of 4 members, 3 members and

five and above. Around 10 percent people having family size

members. Family having less than five members having high disposable

income. “Newly wed” group also having high disposable income.

Educational Qualification?

EDUCATIONAL QUALIFICATION LUDHIANA

,4% 10

,4% 10

,20% 50

,40% 100

Post Graduate,32% 80

3

Members,30%

4

Members,35%

5 or

Above,25%

75

87

63

LUDHIANA

Most of the respondents having family size of 4 members, 3 members and

five and above. Around 10 percent people having family size of two

members. Family having less than five members having high disposable

Result reveled that most of the respondents are educated generally graduate

and post graduate.

(E) Occupation/Profession of the Respondents

Result reveled that most of the respondents are doing privet job.

doing privet job having varied income and they are more sensitive towards

safety need. They are generally investing their money for future.

10th Pass,4% 12th Pass,20%

10

50

4%

26%

6%

2%

6%

8%

46

Result reveled that most of the respondents are educated generally graduate

Occupation/Profession of the Respondents

Result reveled that most of the respondents are doing privet job.

doing privet job having varied income and they are more sensitive towards

safety need. They are generally investing their money for future.

12th Pass,20% Graduate,40% Post

Graduate,32%

Others,4%

50

100

80

10

LUDHIANA

30%

18%4%

House Wife

Business

Doctor

Teacher

Private Job

Engg.

Govt.Employee

Any other

Result reveled that most of the respondents are educated generally graduate

Result reveled that most of the respondents are doing privet job. People

doing privet job having varied income and they are more sensitive towards

After dividing the respondents on the basis of gender, they are further divided according to their profession. In the profession wise distribution it is found that maximum respondents are housewives, because they are more related with FMCG goods. In this it is found that out of total respondents 30% are housewives, 26% are teachers, 18% belong to business background,4% are doctors,6% are from private job, 2% are engineers, 6% are govt. employees, 8% are from other backgrounds.

(F) .What is your monthly family income?

Ans. Income Level (monthly) � Analysis:-

Particular

Rs. 5000Rs. 15000Rs. 25000

More than Rs. 50000

Graph showing monthly family income of the c

Rs. 5000

15000(52%)

No. of People 130

0

20

40

60

80

100

120

140

Ax

is T

itle

47

After dividing the respondents on the basis of gender, they are further divided according ssion. In the profession wise distribution it is found that maximum

respondents are housewives, because they are more related with FMCG goods. In this it is found that out of total respondents 30% are housewives, 26% are teachers, 18% belong

ckground,4% are doctors,6% are from private job, 2% are engineers, 6% are govt. employees, 8% are from other backgrounds.

What is your monthly family income?

Income Level (monthly) - 5000-15000 15000

25000-50000 More than 50000

Particular No. of People

Rs. 5000-15000 130 Rs. 15000-25000 65

25000-50000 35

More than Rs. 50000 20

Graph showing monthly family income of the customers

Rs. 5000-

15000(52%)

Rs. 15000-

25000(26%)

Rs. 25000-

50000(14%)

Rs. 50000

plus(8%)

65 35 20

Income slab

After dividing the respondents on the basis of gender, they are further divided according ssion. In the profession wise distribution it is found that maximum

respondents are housewives, because they are more related with FMCG goods. In this it is found that out of total respondents 30% are housewives, 26% are teachers, 18% belong

ckground,4% are doctors,6% are from private job, 2% are engineers, 6%

15000 15000-25000

More than 50000

ustomers

Rs. 50000

plus(8%)

20

48

As per survey conducted

� 52% are those people whose family income is between 5000-15000 monthly

� 26% are those people whose family income is between 15000-25000

monthly

� 14% are those people whose family income is between 25000-50000 monthly

� 8% are those people whose family income is more than 50000-

monthly. We can conclude that here in Reliance fresh store is having every kind of Customers like Higher Class, Middle Class and Lower Class of People

WARM UP Questions

(i) Main purpose to visit retail store

Purpose No of respondents

Leisure time activity 50

Children’s demand 37

Purchase of special products 37

Purchase of general products 126

There are significant amount of people who visit the retail store as a leisure time activity and children’s demand. Significant amount of people come for purchasing general merchandise from the retail store.

(ii) Awareness of the

Awareness About Organized FMCG Outlets

This is the first question which is asked from the respondents in order to check the awareness of organized FMCG retail. In this question I tried to find out how many respondents are aware about organized FMCG retail. In this survey as I include the educated professionals (Through Exit Interview) from different backgrounds, so everyone is aware about organized FMCG Retail. Hence 100% respondents are aware about organized FMCG Retail.

0

50

100

150

Leisure time activityChildren’s demand

50

49

There are significant amount of people who visit the retail store as a leisure time activity and children’s demand. Significant amount of people come for purchasing general merchandise from the retail store.

Awareness of the Organized FMCG Retail Outlets in Ludhiana?

Awareness About Organized FMCG Outlets

Yes

No

This is the first question which is asked from the respondents in order to check the awareness of organized FMCG retail. In this question I tried to find out how many respondents are aware about organized FMCG retail. In this survey as I include the

ed professionals (Through Exit Interview) from different backgrounds, so everyone is aware about organized FMCG Retail. Hence 100% respondents are aware about

Leisure time activityChildren’s demandPurchase of special productsPurchase of general products

37 37

126

There are significant amount of people who visit the retail store as a leisure time activity and children’s demand. Significant amount of people come for

FMCG Retail Outlets in Ludhiana?

This is the first question which is asked from the respondents in order to check the awareness of organized FMCG retail. In this question I tried to find out how many respondents are aware about organized FMCG retail. In this survey as I include the

ed professionals (Through Exit Interview) from different backgrounds, so everyone is aware about organized FMCG Retail. Hence 100% respondents are aware about

Purchase of general products

(iii) Which Organized FMCG Retail outlets are you aware about?

Relaince Super

Vishal Mega Mart

Big Bazzar

Easy Day

More

This question was asked from the respondents to find out the individual awareness of the organized FMCG retail outlets. In this it is found that all the respondents arthe Reliance Super, Big Bazzar & Vishal Mega Mthe city as compare to another .Also most of the people were not aware about one of the bigger brand i.e. MORE, because it failed to gain the popularity percentage of awareness of different organized FMCG brands is shown in the above table.

Relaince Super Vishal Mega

Mart

100% 100%

0%

50

Which Organized FMCG Retail outlets are you aware about?

Aware Not Awarwe

Relaince Super 100% 0%

Vishal Mega Mart 100% 0%

82% 18%

70% 30%

54% 46%

This question was asked from the respondents to find out the individual awareness of the outlets. In this it is found that all the respondents are aware about

the Reliance Super, Big Bazzar & Vishal Mega Mart, because these are older outlets in the city as compare to another .Also most of the people were not aware about one of the

E, because it failed to gain the popularity in the city. The percentage of awareness of different organized FMCG brands is shown in the above

Vishal Mega

Mart

Big Bazzar Easy Day More

100%

82%

70%

54%

0%

18%

30%

46%

People Awareness

Aware Not Awarwe

Which Organized FMCG Retail outlets are you aware about?

This question was asked from the respondents to find out the individual awareness of the e aware about

art, because these are older outlets in the city as compare to another .Also most of the people were not aware about one of the

in the city. The percentage of awareness of different organized FMCG brands is shown in the above

46%

(iv) From where do you come to know about the above

store?

Ans. Family Friends Radio and TV

Other (Please Specify)

� Analysis:-

SourcesPrint Media,49%

Television,17%Family,12%Friends,19%

Others

Graph showing the communication channel for promotion

122

51

From where do you come to know about the above

Family Print media

Friends Radio and TV

Other (Please Specify)

Sources No. of People Print Media,49% 122

Television,17% 44 Family,12% 30 Friends,19% 48

Others,3% 6

Graph showing the communication channel for promotion

4430

48

6

No. of People

From where do you come to know about the above

Print media

Friends Radio and TV

Graph showing the communication channel for promotion

52

As per survey conducted

� Nearly 50 % of people come know about store from Print Media, Because it is

very popular source of advertisement among the people

� Others like Radio & TV, Friends and informed by family are following nearly

30 to 48 %

So, from the above data we can conclude that still print media is catching the eyes of consumer.

(v) Where were you shopping before buying from these organized

FMCG retail outlets?

This question was asked to study past purchase behavior of the respondents. In this they were asked that from where were they purchased before buying from these organized FMCG outlets. In this 52% respondents told that initially they purchased from wholesale market,34% respondents told that they purchased from nearer karyana store for their FMCG needs.

34%

52%

10%4%

NeighbourhoodKaryana store

Wholesale Market

Store which isconvenient

Any other

Main purpos

Q1 Out of these which you have visited?

Store Visited

Relaince Super

Vishal Mega Mart

Big Bazzar

More

Easy day

In this question I tried to find out that how many retail outlets and which outlet is mostly visited by respondents. In this it was found that almost all the respondents had visited Reliance Super, The percentage of respondents visited diff

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Relaince

Super

Vishal

Mega Mart

53

Main purpose questions

Out of these which you have visited?

Visited Not Visited

86% 14%

92% 8%

62% 38%

56% 44%

82% 28%

In this question I tried to find out that how many respondents visited all the organized retail outlets and which outlet is mostly visited by respondents. In this it was found that

dents had visited Reliance Super, Easy Day & Vishal Mega Mart. The percentage of respondents visited different retail outlets is shown in the above table.

Big Bazzar More Easy day

Visited

Not Visited

respondents visited all the organized retail outlets and which outlet is mostly visited by respondents. In this it was found that

& Vishal Mega Mart. erent retail outlets is shown in the above table.

Q2 Out of these retail outlets where do you generally purchase

from?

In this question it was asked from the respondents that from where they generally purchase. In this it is found that Big Bazaar & Vishal Mega Mart because these were the oldest in the market & had made good reputation in the Ludhiana market. In this question it was also found that

respondents purchased very less from

the People because they are lacking in awarenessrespondents explained in the below

� Analysis:-

Mom and Pop Store

Big Bazaar

Reliance Super

Vishal Mega Mart

Graph showing store selection for purchasing daily needs

14%9%

16%

18%

No. of People

54

retail outlets where do you generally purchase

In this question it was asked from the respondents that from where they generally purchase. In this it is found that most of the respondents purchased from Relaince Store,

& Vishal Mega Mart because these were the oldest in the market & had made good reputation in the Ludhiana market. In this question it was also found that

respondents purchased very less from MORE because it not so much Popular among the People because they are lacking in awareness. The purchase pattern of

ts explained in the below table

Retailers No. of People Easy Day 50

Mom and Pop Store 58

Big Bazaar 35 More 24

Reliance Super 39

Vishal Mega Mart 44

Graph showing store selection for purchasing daily needs

20%

23%

No. of People

Easy Day

Mom and Pop Store

Big Bazaar

More

Reliance Super

Vishal Mega Mart

In this question it was asked from the respondents that from where they generally ts purchased from Relaince Store,

& Vishal Mega Mart because these were the oldest in the market & had made good reputation in the Ludhiana market. In this question it was also found that

not so much Popular among . The purchase pattern of

Graph showing store selection for purchasing daily needs

55

As per survey conducted

� 23% of People are purchasing their daily needs from Mom and Pop

store because of convenience is the main factors for them. Some of

the Customers always prefer to buy their daily needs from Mom &

Pop store because they are situated very near to them.

� 20% of People are purchasing their daily needs from other Stores

like Easy Day.

� 16% of People are purchasing their daily needs from Reliance

Super, because it gives brand name to them and they feel proud

after purchasing from any of Reliance fresh stores from Ludhiana

� 14 % of People are purchasing their daily needs from Big Bazaar

because Big Bazaar has positioned itself “SABSE ACHCHA AUR

SABSE SASTA” Moreover Big Bazaar was the first one to enter

into the Organized Sector in India

� 09% of People are purchasing their daily needs from More, Well

More (Aditya Birla Group) is not so much Popular among the

People because they are lacking in awareness

� 18% of People are purchasing their daily needs from other Stores

like Vishal Mega Mart etc.

It shows that people still like to purchase from Mom and Pop store

and Street Vendors because they are situated very near to them.

Q 3. How frequently do you purchase?

Ans.

Category Daily Weekly

F&V Grocery Cosmetics

Beverages Ready to food

� Analysis:-

Categories Daily

F & V 117

Grocery 5

Cosmetics 3

Beverages 17

Ready to food 25

Graph showing purchasing pattern of different categorie

117

108

5128

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

F & V Grocery

Daily Weekly

56

. How frequently do you purchase?

Weekly Fortnightly Monthly More than a month

Weekly Fortnightly Monthly

108 5 12

40 38 125

8 28 171

66 57 60

77 28 82

purchasing pattern of different categorie

5 317

40

8

6638

28

57

125

171

60

42 40 50

Grocery Cosmetics Beverages

Weekly Fortnightly Monthly More than Month

More than a month

More than

Month

8

42

40

50

38

25

77

28

82

38

Ready to food

57

As per survey conducted

� It has been observed that people mostly prefer to buy fruits and vegetables daily or weekly as they are perishable product and they are too difficult to store without refrigerator and most of the surveyed people come under monthly family income slab of Rs. 5,000-15,0000

� While grocery and staples product are purchased at least once in a month, because they are not perishable like Fruits & Vegetable and this is people tendency to preserve grocery and staples once in week

� Some of the people prefer to preserve grocery and staples only once in a year

� While cosmetics and ready to eat food are meant to be bought at least once in a month because it has been clearly observed in the survey that people from Ahmedabad city especially women are not very fond of cosmetics product any how.

Q.4 How many time do you visit the organized FMCG retail outlets in a month? In this question I tried to find out the frequency of respondents to visit the organized retail outlets in a month. In this question most of the respondents visit the organized retail outlets 2-4 times in a month. The exact %age is shown in the above table.

Frequency Percentage

Once 14%

2-3 Times 46%

3-4 Times 32%

More than 5

Times 8%

Q 5. How far you have to travel to

Ans.

Less than 3 K.M

7 K.M –

� Analysis:- Particular

Less than 3 KM

3 KM to 6 KM

7 KM to 10 KM

More than 10 KM

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Once 2

No. of People

Less than 3 KM

58

. How far you have to travel to go for purchasing ?

Less than 3 K.M 3 K.M -6 K.M

– 10 K.M More than 10 K.M

Particular No. of People

Less than 3 KM 125

3 KM to 6 KM 70

7 KM to 10 KM 40

More than 10 KM 15

2-3 Times 3-4 Times More than 5 Times

50%

28%

16%

6%

3 KM to 6 KM 7 KM to 10 KM More than 10 KM

Percentage

More than 10 KM

59

� It has been observed that People always prefer to buy their daily needs

from the nearest store which is less than 3 K.M

� 50 % of people like to buy purchase within the radius of 3 K.M from their households because generally in area of Ludhiana they don’t get organized stores so they have to travel more to reach some of the organized stores like Reliance Super, Vishal Mega Mart and others

� While some people who don’t have Reliance Stores within their

locality they still prefer to go beyond 3 K.M to purchase their daily needs

So, we can conclude that majority of people always prefer to purchase from nearest place.

Q 6. When do you purchase more?

Ans. First week of month Mid of the month

End of the month When required

� Analysis:-

When they Purchase No. of People First of week of Month 58

Mid of the Month 48 End of Month 15

When Required 129

Graph showing purchasing nature and time of customers

As per survey conducted

� More than 52% of people purchase when they require means there is no fix time to buy their daily needs but, When they feel the need of product they immediately buy it

� 23% of people purchase their daily needs within the first week of the

month. Some of the survey people prefer to buy their daily needs in first week of the month because service class people get their salary in the first week of the starting month

� 19 % of people buy their daily needs during the mid of month

� Only 6% of people go for purchase at the end of the month.

So, we can conclude that people like to buy when they feel need of that particular product.

60

Graph showing purchasing nature and time of customers

As per survey conducted

% of people purchase when they require means there is no fix time to buy their daily needs but, When they feel the need of product they immediately buy it

23% of people purchase their daily needs within the first week of the month. Some of the survey people prefer to buy their daily needs in first week of the month because service class people get their salary in

ek of the starting month

19 % of people buy their daily needs during the mid of month

Only 6% of people go for purchase at the end of the month.

So, we can conclude that people like to buy when they feel need of that

First of

week of

Month

23%

Mid of the

Month

19%

End of Month

6%

When

Required

52%

Graph showing purchasing nature and time of customers

% of people purchase when they require means there is no fix time to buy their daily needs but, When they feel the need of

23% of people purchase their daily needs within the first week of the month. Some of the survey people prefer to buy their daily needs in first week of the month because service class people get their salary in

19 % of people buy their daily needs during the mid of month

Only 6% of people go for purchase at the end of the month.

So, we can conclude that people like to buy when they feel need of that

61

Q.7. How much of your monthly budget grocery products are you shopping from

these organized FMCG retail outlets?

This question was asked from the respondents to find out that how much out of their monthly budget were they shopping from these organized FMCG retail outlets. In this it is found that 42% of the respondents spend 40%-60% of their monthly budget. while only 6% respondents spend more than 80% of their monthly budget.

Q.8. What is your average one time purchase at FMCG retail outlets in rupees?

This question was asked to the respondents in order to find out their average one time purchase at the organized retail outlets. In this 44% of the respondents told that they purchase between 1000-1500 Rs. At one time.26% of the respondents told that they spent 1500-2000 at one time purchase at organized retail outlets.14% said that they spent more than 2000 at one purchase, while 16% said that they purchase below INR1000 on an average purchase at organized retail outlets.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0%-20%

20%-40%

40%-60%

60%-80%

More than 80%

0%-20% 12%

20%-40% 18%

40%-60% 42%

60%-80% 22%

More than

80%

6%

1

Q.9. Do you think by shopping at organized FMCG Retail outlets your monthly

Expenditure:

1. Increased 2.Remain same 3.Decreased

0%

5%

10%

15%

20%

25%

30%

35%

40%

Reduced

Remain same

Increased

62

Do you think by shopping at organized FMCG Retail outlets your monthly

1. Increased 2.Remain same 3.Decreased

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1

Below1000 16%

1000-1500 44%

1500-2000 26%

More than 2000 14%

Ax

is T

itle

1

28%

34%

38%

Reduced

Remain same

Increased

Do you think by shopping at organized FMCG Retail outlets your monthly

Reduced

Remain same

Increased

In this question the respondents were asked that by purchasing from organized retail outlets their monthly expenditures increased, decreased or remain same. In this 38% of the respondents replied that their total expenditure increased by purchasing from the organized retail outlets.34% of the respondents replied that their expenditure remaisame. While remaining 28% said that their expenditure were reduced by purchasing from organized retail outlets. Q.10. In future will you spend more at organized FMCG retail outlets?

This question is asked from the respondents to find out that in futuremore at organized retail outlets. In this 34% of the respondents told that they will spend more at organized more at organized retail outlets, 34% were not sure about it,12% said definitely purchase more from organized retail outlets. Onlythat they don’t want to spend more at organized retail outlets

0%

20%

40%

60%

80%

100%

Definitely No

No

Can't Say

Yes

Definitely Yes

63

In this question the respondents were asked that by purchasing from organized retail utlets their monthly expenditures increased, decreased or remain same. In this 38% of

the respondents replied that their total expenditure increased by purchasing from the organized retail outlets.34% of the respondents replied that their expenditure remaisame. While remaining 28% said that their expenditure were reduced by purchasing from

. In future will you spend more at organized FMCG retail outlets?

This question is asked from the respondents to find out that in future will they spend more at organized retail outlets. In this 34% of the respondents told that they will spend more at organized more at organized retail outlets, 34% were not sure about it,12% said definitely purchase more from organized retail outlets. Only 16% of the respondents said that they don’t want to spend more at organized retail outlets

1

4%

16%

34%

34%

12%

Definitely No

No

Can't Say

Yes

Definitely Yes

In this question the respondents were asked that by purchasing from organized retail utlets their monthly expenditures increased, decreased or remain same. In this 38% of

the respondents replied that their total expenditure increased by purchasing from the organized retail outlets.34% of the respondents replied that their expenditure remain same. While remaining 28% said that their expenditure were reduced by purchasing from

will they spend more at organized retail outlets. In this 34% of the respondents told that they will spend more at organized more at organized retail outlets, 34% were not sure about it,12% said

16% of the respondents said

Definitely No

Definitely Yes

Q 11. Do you find the pricing of Organized retail

other store?

Ans. Yes

� Analysis:-

Particular

Yes No Equal

Total

Graph showing consu

pricing comparing with Outside pricing

44%

64

nd the pricing of Organized retail stores is less than

Yes No

Particular No. of People

86 111

Equal 53

Total 250

Graph showing consumer’s experience with organized retail outlet

pricing comparing with Outside pricing

35%

21%

is less than

Equal

mer’s experience with organized retail outlet

Yes

No

Equal

As per survey conducted

� 44% of People think that the prices of daily needs are higher than outside means Local vendors and street vendors or other organized retail format

� While 35% of People find it lower than outside and other organized store� Only 21% of People think there no difference betwe

and other stores.

Q.12. What are the problems you faced when you shop from these organized FMCG

Retail Outlets?

This question was asked from the respondents in order to found the problems which they had faced while purchasing from the organized retail outlets. In this maximum number of respondents said that they faced the problems at billing counters due to long this 54% of the respondents told that billing counters are insufficient while 34% said that they need free home delivery, 6% need goods on credit, 4% told that sometimes vegetables were not fresh while remaining 2% said that the range is not complete.

Particular Long Queues

Need Free Home DeliveryNeed Credit FacilityVegetables not always fresh

Range in not complete

Need Free

Need Credit Facility

65

think that the prices of daily needs are higher than outside means Local vendors and street vendors or other organized retail format While 35% of People find it lower than outside and other organized storeOnly 21% of People think there no difference between prices of Reliance fresh

What are the problems you faced when you shop from these organized FMCG

This question was asked from the respondents in order to found the problems which they urchasing from the organized retail outlets. In this maximum number of

respondents said that they faced the problems at billing counters due to long queues. Inthis 54% of the respondents told that billing counters are insufficient while 34% said that

need free home delivery, 6% need goods on credit, 4% told that sometimes vegetables were not fresh while remaining 2% said that the range is not complete.

% of People 54%

Need Free Home Delivery 34% Need Credit Facility 6% Vegetables not always fresh 4%

Range in not complete 2%

Long Queues

54%Need Free

Home

Delivery

34%

Need Credit Facility

6%

Vegetables

not always

fresh

4%

Range in not

complete

2%

think that the prices of daily needs are higher than outside means

While 35% of People find it lower than outside and other organized store en prices of Reliance fresh

What are the problems you faced when you shop from these organized FMCG

This question was asked from the respondents in order to found the problems which they urchasing from the organized retail outlets. In this maximum number of

queues. In this 54% of the respondents told that billing counters are insufficient while 34% said that

need free home delivery, 6% need goods on credit, 4% told that sometimes vegetables were not fresh while remaining 2% said that the range is not complete.

66

Q.13. Do you think the market share of unorganized retail will:

1. Definitely Increase 2. Increase 3. Remain Same 4. Decrease 5. Definitely

Decrease

This question was asked from the respondents in order to check their perception about unorganized retail outlets in the city. They were asked that what they think market share of unorganized retail outlets in the city will fall down or will increase. In this most of the respondents replied that market share of unorganized retail will definitely decrease. In this 47% of the respondents said that market share of unorganized share will decrease while 22% said that it will increase and 15% said that it will remain same. Only 16% of the respondents said that it may increase.

Q 14. How do you find employees attitude in the Organized Retail

stores?

Ans. Co-Operative Rude They only help when they are asked

0%

16%

15%

47%

22%Definitely Increase

Increase

Remain Same

Decrease

Definitely Decreaese

67

� Analysis:-

Graph showing consumer’s experience with organized retail employees

As per survey conducted

� 63% of consumers who visited Organized retail stores they always find CSAs and other staff behavior very co-operative because they think that CSAs approach them from their front and always willing to help them any how

� Whereas 24% of People think that they have to always call CSAs to help them anyhow also Customers think that they are demotivated towards their works

� While only 13% of People think those CSAs and other staff behave very rudely with them.

So, we can conclude Consumers are much satisfied with service level of CSAs and other staffs of the organized retail store.

Particular No. of People Co-Operative 86 Rude 18

They only help when they are asked 32

Rude, 18, 13%

They only help when they are asked, 32, 24%

Co-Operative, 86, 63%

68

Good, 65, 48%

Average, 18,13% Poor, 6, 4%

Excellent, 47, 35%

Ans. Excellent Good

Average Poor

� Analysis:-

Particular No. of People

Excellent 47 Good 65 Average 18

Poor 6

Graph showing consumer’s experience with Reliance fresh customer

service

As per survey conducted

� Almost 35% of surveyed people find the Customer service offered by Reliance Fresh is excellent like When they visit MSR ( Member of Sales Representive ) within no time MSA inform them about their gather point and other facility like Recharge of Mobile

� While 48% of surveyed people find it good means they don’t have to wait for their turn

� Only 4% of People find it very poor service offered Customer Service

department in Reliance Fresh Stores. So, we can conclude that customer service level is very good by Reliance fresh towards its potential customers.

When respondents were asked to give feedback on the basis of service provided by the organized retail outlets then it was found that most of the respondents were satisfied. In this 52% of the respondents were highly satisfied while only 6% of the respondents were dissatisfied from the services provided by these retail outlets

69

While 48% of surveyed people find it good means they don’t have to

Only 4% of People find it very poor service offered Customer Service department in Reliance Fresh Stores.

So, we can conclude that customer service level is very good by Reliance fresh towards its potential customers.

e asked to give feedback on the basis of service provided by the organized retail outlets then it was found that most of the respondents were satisfied. In this 52% of the respondents were highly satisfied while only 6% of the respondents were

from the services provided by these retail outlets

32%

52%

10%6%

0%

Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Dissatisfied

While 48% of surveyed people find it good means they don’t have to

Only 4% of People find it very poor service offered Customer Service

So, we can conclude that customer service level is very good by Reliance

e asked to give feedback on the basis of service provided by the organized retail outlets then it was found that most of the respondents were satisfied. In this 52% of the respondents were highly satisfied while only 6% of the respondents were

Highly Satisfied

Satisfied

Dissatisfied

Highly Dissatisfied

Q 15. Rate the following factors on the basis of your experience?

Ans. 1. Excellent 2. Good 3. Average 4.Poor Factors Rating Convenience

Ambiance

Price

� Analysis:-

Factors

Convenience

Ambiance

Price

Quality

Service

Product Availability

49 51

155170

3415

12 14

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Convenience Ambiance

70

. Rate the following factors on the basis of your experience?

1. Excellent 2. Good 3. Average 4.Poor

Factors RatingQuality

Services

Product availability

Excellent Good Average

49 155 34

51 170 15

19 104 115

47 153 31

23 170 45

49 135 51

51

1947

23

170

104

153

170

15

115

31 45

14 12 16 12

Ambiance Price Quality Service

Excellent Good Average Poor

. Rate the following factors on the basis of your experience?

1. Excellent 2. Good 3. Average 4.Poor

Rating

Average Poor

12

14

12

16

12

15

49

135

51

15

Product

Availability

As per survey conducted

� More than 60% of people satisfied with the corganized retailLudhiana city with Prime Location

� 65% of people like thlike assortments of Fruits and Vegetables, Chillers are used for Dairy Products and Beverages

� Nearly 45% of people thiproduct are abetween Prices of organized retail in the city.

� 55% of people feel good about Quality, Service and Product Availability are offered by organized retail store

Q.16 A) Ranking on the basis of Quality

In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Quality. On the basis of quality most of the reranked Reliance as no. 1 as 32% of respondents favors it. The 2Easy Day as 25% respondents spoke in its favor. In case of quality the thirdoccupied by Big bazzar’s as 17respondents ranked MORE the big brand launched by Aditya Birla groupbecome so popular in the city yet.

Easy Day Big-Bazar

25%

17%

Ranking

71

As per survey conducted

0% of people satisfied with the convenience of the organized retail stores because now it is situated in every area of

city with Prime Location

% of people like the ambiance of the organized retail like assortments of Fruits and Vegetables, Chillers are used for Dairy Products and Beverages

% of people think that price of the organized retail product are average because they don’t find much diffebetween Prices of organized retail stores and other stores located

% of people feel good about Quality, Service and Product re offered by organized retail store in Ludhiana

A) Ranking on the basis of Quality:

In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Quality. On the basis of quality most of the re

2% of respondents favors it. The 2nd position is occupied by % respondents spoke in its favor. In case of quality the third position is

occupied by Big bazzar’s as 17% respondents speaks in its favor. A very less no. of respondents ranked MORE the big brand launched by Aditya Birla group because its not become so popular in the city yet.

Vishal Mega

Mart

More Reliance

Super

16%

10%

32%

Ranking-Quality Preference

onvenience of the uated in every area of

e ambiance of the organized retail store like assortments of Fruits and Vegetables, Chillers are used for

nk that price of the organized retail verage because they don’t find much difference

stores and other stores located

% of people feel good about Quality, Service and Product n Ludhiana city

In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Quality. On the basis of quality most of the respondents

is occupied by position is

% respondents speaks in its favor. A very less no. of because its not

Q.16 B) Ranking on the basis of Service

In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Service provided by them. On the basof the respondents ranked Easy Dayposition is occupied by Reliance as 3service the third position is occupied by Big Bazaarfavor. Q.16 C) Ranking on the basis of Product range:

In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Product Range provided by them. On the basis of Product Range most of the refavors it. The 2nd position is occupied by Easy Day as 26In case of Product range the third posspeaks in its favor.

Easy Day Big-Bazar

32%

16%

Easy DayBig-Bazar

26%

18%

72

B) Ranking on the basis of Service:

In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Service provided by them. On the basis of service most

the respondents ranked Easy Day as no. 1 as 32% of respondents favors it. The 2on is occupied by Reliance as 30% respondents spoke in its favor. In case of

position is occupied by Big Bazaar’s as 16% respondents speaks in its

C) Ranking on the basis of Product range:

In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Product Range provided by them. On the basis of

ange most of the respondents ranked Reliance as no. 1 as 30% of respondents osition is occupied by Easy Day as 26% respondents spoke in its favor.

In case of Product range the third position is occupied by Big Bazaar as 18% respondents

Bazar Vishal Mega

Mart

More Reliance

Super

16%12%

10%

30%

Ranking - Service

Vishal Mega

MartMore

Reliance Super

14%12%

30%

Ranking-Product Range

In this question the respondents were asked to rank the main organized FMCG retail is of service most

as no. 1 as 32% of respondents favors it. The 2nd 0% respondents spoke in its favor. In case of

dents speaks in its

In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Product Range provided by them. On the basis of

% of respondents % respondents spoke in its favor.

as 18% respondents

Reliance Super

Q.16 D) Ranking on the basis of Price:

In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Prices charged by them. On the basis of Price most of the respondents ranked Big Bazaarposition is occupied by Reliancethe third position is occupied by Vishal Mega Mart as 15% respondents speaks in favor Q.16 E) Ranking on the bases of Product Display:

In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Display of the outlets. On the basis of Display most othe respondents ranked Relianceposition is occupied by Easy Day the third position is occupied bby 17% of the respondents.

Easy Day Big-Bazar

22%26%

Ranking

0%

5%

10%

15%

20%

25%

Easy Day Big

22%

73

D) Ranking on the basis of Price:

In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Prices charged by them. On the basis of Price most of

ranked Big Bazaar as no. 1 as 26% of respondents favors it. The 2osition is occupied by Reliance as 24% respondents spoke in its favor. In case of Price

ird position is occupied by Vishal Mega Mart as 15% respondents speaks in favor

nking on the bases of Product Display:

In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Display of the outlets. On the basis of Display most othe respondents ranked Reliance’s as no. 1 as 20% of respondents favors it. The 2position is occupied by Easy Day was supported by 18% respondents. In case of Display the third position is occupied by Big Bazaar & Vishal Mega Mart as each was supported

Bazar Vishal Mega

Mart

More Reliance

Super

26%

15% 13%

24%

Ranking- Price Preferance

Big-Bazar Vishal Mega

Mart

More Reliance

Super

20%17% 16%

25%

Ranking- Product Disply

In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Prices charged by them. On the basis of Price most of

as no. 1 as 26% of respondents favors it. The 2nd as 24% respondents spoke in its favor. In case of Price

ird position is occupied by Vishal Mega Mart as 15% respondents speaks in favor.

In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Display of the outlets. On the basis of Display most of

no. 1 as 20% of respondents favors it. The 2nd was supported by 18% respondents. In case of Display

ega Mart as each was supported

Q.16 F) Ranking on the basis of Time saving:

In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Time saver. On this basis mosranked Reliance as no. 1 as 25easy Day as 22% respondents spoke in its favor. In case of Time saving the third pis occupied by Vishal Mega Mart & More both 19

Q 17. According to you what are important factors for you when you

go for shopping? (Rank 1 to 5)

Ans. Location Pricing & Discounts Analysis:

Rank Location

1 95

2 57

3 38

4 27

5 33

250

Easy Day Big-Bazar

22%

15%

74

anking on the basis of Time saving:

In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Time saver. On this basis most of the respondents ranked Reliance as no. 1 as 25% of respondents favors it. The 2nd position is occupied by

% respondents spoke in its favor. In case of Time saving the third pis occupied by Vishal Mega Mart & More both 19% respondents speaks in its favor.

. According to you what are important factors for you when you

(Rank 1 to 5)

Location Customer Services

Pricing & Discounts Variety Quality

Location Pricing & Discount Quality Variety

Customer Services

30 59 45 21

37 82 52 22

70 63 62 17

63 37 75 48

50 9 16 142

250 250 250 250

Bazar Vishal Mega

Mart

More Reliance Super

15%

19% 19%

25%

Ranking-preference in Time Saving

In this question the respondents were asked to rank the main organized FMCG retail t of the respondents

on is occupied by % respondents spoke in its favor. In case of Time saving the third position

% respondents speaks in its favor.

. According to you what are important factors for you when you

Customer Services

Quality

Customer Services

21 250

22 250

17 250

48 250

142 250

250

Graph showing customers preference for selection retail outlet

As per survey conducted

� 38% of people prefer location as their first priority to buy their daily needs because everybody in Ludhianaconvenience

� 33% of people prefer quality of the product as their second priority

for the daily needs, quality means freshness of vegetable, cleanliness of stores

� 28% of people prefer Pricing & Discount of the product as their

third priority for the are price sensitive

� 30% of people prefer Variety of the product as their forth priority

for the daily needs

� More than 56% of people look after customer service as their least priority for the daily

We can conclude that people look after nearest location and quality of product while purchasing daily needs

Location Pricing &

Discount

95

57

38

27

33

75

Graph showing customers preference for selection retail outlet

As per survey conducted

% of people prefer location as their first priority to buy their s because everybody in Ludhiana is looking for

33% of people prefer quality of the product as their second priority for the daily needs, quality means freshness of vegetable, cleanliness of stores

% of people prefer Pricing & Discount of the product as their rity for the daily needs because in Ludhiana city People

are price sensitive

30% of people prefer Variety of the product as their forth priority for the daily needs

% of people look after customer service as their least priority for the daily needs.

We can conclude that people look after nearest location and quality of product while purchasing daily needs

Pricing &

Discount

Quality Variety Customer

Services

3059 45

21

37

82

52

22

70

63

62

17

63

37

75

48

509 16

142

Factor considered while purchasing

Graph showing customers preference for selection retail outlet

% of people prefer location as their first priority to buy their is looking for

33% of people prefer quality of the product as their second priority for the daily needs, quality means freshness of vegetable,

% of people prefer Pricing & Discount of the product as their city People

30% of people prefer Variety of the product as their forth priority

% of people look after customer service as their least

We can conclude that people look after nearest location and quality of

Customer

Services

76

Q.18 What are your reasons for purchasing from these organized FMCG retail

Outlets

When the respondents were asked to specify the reasons which influence them to purchase from these organized FMCG retail outlets, then 26% of the respondents told that they purchased due to product range.18% purchased due to reasonable price,18% due to good quality, 14% purchased from organized retail outlets because it save time,12% liked the discounts & promotional schemes, 8% prefer the display of the products & remaining 4% liked the environment of the organized retail outlets.

Q.19. Out of the total shopping specify %age expenditure in the following categories

at Organized FMCG retail outlets?

18%

18%

26%

4%

14%

8%

12%Better Quality

Reasonable Price

Product Range

Good Enviournment

Time Saving

Display Of Products

Discounts&Promotional Schemes

77

22%

16%

24%

20%

10%

8%

0%-15%

15%-30%

30%-45%

45%-60%

60%-75%

More than75%

19A) Food Products

This question was asked from the respondents to find out that out of their total budget in food products, how much they spent to purchase food products from the organized retail outlets. In this it is found that 26% of the respondents spent 15%-30% on the food products, while only 6% respondents spent more than 75% to purchase food products from these organized retail outlets. 19B) Confectionery

This question was asked from the respondents to find out that out of their total budget in confectionery, how much they spent to purchase confectionery from the organized retail outlets. In this it is found that 24% of the respondents spent 30%-45% on confectionery, while only 8% respondents spent more than 75% to purchase confectionery from these organized retail outlets.

24%

26%24%

12%

8%6%

0-%15%

15%-30%

30%-45%

45%-60%

60%-75%

More than 75%

78

14%

26%

16%

28%

10%

6%

0%-15%

15%-30%

30%-45%

45%-60%

60%-75%

More than75%

22%

20%

18%

28%

12% 0%0%-15%

15%-30%

30%-45%

45%-60%

60%-75%

More than75%

19C)Detergents

This question was asked from the respondents to find out that out of their total budget in detergents, how much they spent to purchase detergents from the organized retail outlets. In this it is found that 28% of the respondents spent 45%-60% on confectionery, while only 6% respondents spent more than 75% to purchase detergents from these organized retail outlets.

19D) Vegetables &Fruits

This question was asked from the respondents to find out that out of their total budget in vegetables & fruits, how much they spent to purchase fruits & vegetables from the organized retail outlets. In this it is found that 28% of the respondents spent 45%-60% on confectionery, while only 12% respondents spent 60%-75% to purchase Fruits & detergents from these organized retail outlets.

79

19E) Soaps & Sanitary Products:

This question was asked from the respondents to find out that out of their total budget in Soaps & sanitary products, how much %age they spent to purchase sanitary products from the organized retail outlets. In this it is found that 24% of the respondents spent 45%-60% on confectionery, while only 4% respondents spent more than 75% to purchase sanitary products from these organized retail outlets.

24%

18%

22%

24%

8%4%

0%-15%

15%-30%

30%-45%

45%-60%

60%-75%

More than75%

80

INTERPRETATION OF RESULTS

• Most of the people prefer to purchase their daily needs products

from Mom and Pop stores and street vendors because of convenience

location

• 50% of people come to know about organized stores through print

media and other printing advertisement

• Consumers prefer to purchase from nearest organized stores

according to

� Location � Quality

� Variety

� Pricing and Discounts

� Customer Service

• It has been clearly observed that in Ludhiana city there no fix

time of purchasing daily needs products but, whenever they feel need of

the product they immediately purchase it

• In survey it has been seen that people prefer to buy

� Fruits and vegetables on daily basis as they are perishable

� Grocery and staples items on monthly basis

� Cosmetics products are purchased on monthly basis

� Beverages and snacks are preferred to buy weekly basis

81

• Ready to food like Maggie, Biscuits and Kharkharas are bought

on weekly basis

• In Ludhiana city People don’t prefer to eat Frozen foods and

readymade food like frozen vegetables, Frozen meat much

• Increase the number of female in purchasing the products

because of the demographic changes.

• The response for Reliance , Vishal , Easy Day , Big Bazaar from

the surveyed people is quite good about 70% of surveyed people

have at least once visited any of the above stores

• Customer find the Convenience, Quality ,Service ,Product

availability are good of the Organized Retail stores and pricing

of the products are average as per survey

• Most of the People always like to visit nearest organized retail

stores in their locality

• In the organized retail stores most of the consumers(63%) find

employees behavior very co-operative towards them

• While ¼ of the surveyed people find that CSA(Customer Service

Associates) only help when they are asked means the CSA staff

does not approach the customer from the front

• About 15% of the customer find that CSA staff behavior is rude

toward customer

82

• Most of the people found that customer services are good in

organized FMCG retail stores

• Most of the people found that pricing of the Organized Retail

store is higher than outside

• In survey we find most of the people are from lower income group

• About 14 % of the respondents are from middle income group

• About 8 % people are from high income group.

• According to size of four members, 3members and five and above. Around 10 percent people having family size of two member.

• Family having less than five members having high disposable income. “Newly wed” group also having high disposable income.

• Result reveled that most of the respondents are educated generally graduate and post graduate. Result reveled that most of the respondents are doing privet job. arm up questions it is seen that most of the respondents having family

• People doing privet job having varied income and they are more sensitive towards safety need. They are generally investing their money for future.

• There are significant amount of people who visit the retail store as a leisure time activity and children’s demand. Significant amount of people come for purchasing general merchandise from the retail store.

83

CHAPTER 5

Suggestions & Recommendations

CUSTOMER SUGGESTIONS

We have asked some of the customers to give suggestion to make it better

some of the valuable suggestions are as follows:-

• Pricing of products should be low inside the store than outside

• Most of the customer suggested that Fruits and vegetables must be

fresh in stores otherwise it’s no worth

• Credit facility must be provide to the customer just like local Mom

and Pop ( Kirana wala) provides

• Big Brands must improve service quality as it’s name

• More varieties of products should be available inside the store

• CSA’s service must be good

• There must be enough number of POS and all must be in working

condition during peak hours because customer has to wait in queue

• All items should be in enough quantity some time customer find

some items out of stock (butter milk, curd etc.)

• More discounts schemes should be available in the other store as like

Big Bazaar.

84

RECOMMENDATION

o As people prefer to buy from local kirana store because of

location so the company has to open its new store at very main

location in the city because the most important thing in Retail is

Location –Location – Location

o As per survey conducted most of the people came to know about

organized store because of print media so companies must put

more emphasis on this channel of communication and promotion

means print media

o As customer prefer to buy from organized store firstly due to

location so companies must open its store at convenience

location, then customer prefer quality so companies must put

only quality products inside the store

o As customer prefer to buy Fruits and Vegetables on daily basis ,

grocery items on monthly basis, cosmetics items on monthly

basis, Beverages and snacks on weekly basis and Ready to eat

food on monthly basis and people prefer to buy products

whenever they required so comanies must put all the items in

shelves every time

o People don’t prefer to buy frozen food and prefer to eat

homemade food so companies must not put frozen food in store

to save inventory cost

o As about 33 % customer found that CSA does not approach

customer from the front the CSA only help when they are asked to

help, so CSA staff must approach to customer from the front and

85

help the customer and try to sell more and more items to increase

the sale of the store

o As some the customer found the CSA behavior is rude toward the

customer so CSA must change their attitude toward customer

and feel the customer proud because customer is King and a

satisfied customer can bring 10 new customer by word of mouth

it just like a chain

o As most of the customer found that pricing of the items in the

organized stores are higher than outside and as Indians are price

sensitive so must keep pricing of our products less than outside

o As our most of the customer are from lower income group so we

must keep merchandise according to their needs.

o Many of the people visit the retail store as a leisure time activity

so retail store should use some strategy to generate some income

from such people like retail store should charge for vehicle

parking. Store also put some items to increase “impulse buying”

o As the increase of woman in purchasing and visiting the retail

store, store should carry such items which can increase the

attention of the woman.

86

CHAPTER 6

LIMITATION OF THE STUDY

1. Certain unavoidable errors will come into the study like non-response error,

hasty response, etc.

2. The tendencies among the respondents to amplify or filter their responses

under the testing conditions cannot be denied.

3. 'Drop in' or 'Go through' error might distort the findings of the research.

4. Time constraint is another limitation for the study.

Limitations

� Time was the major constraint, which prevented me to put in more effort.

� Some people left few questions unanswered.

� Some of the respondents were not ready to fill the questionnaire.

� Not all the respondents were cooperative thus it was difficult to convince them for

filling up the questionnaire.

� Some of the respondents might have got biased while filling up the questionnaire.

We made my best efforts in conducting the research but might have lacked somewhere

because of lack of expertise in conducting such survey based researches.

87

CHAPTER 7

CONCLUSION

� From above the survey we conclude that

� The main factor that effect the retail business is Location

� Indians are price sensitive they seek value for money so price also

matter for Indian customers

� The purchasing pattern of the people in one location is totally

different from other Location in Ludhiana city

� Customer service is not so much important in grocery retail , Quality,

and Price matter a lot

� The reason for which people prefer to buy from organized retail store

is variety of product available under one roof and customer has not to

move from one shop to another shop for his/her daily needs

� Most of the people in Ludhiana use to purchase their daily needs

whenever they require.

88

CHAPTER 8

BIBLIOGRAPHY

WEB LINKS-

� http://www.vishalmegamart.net

� http://www.thoughtsofanordinaryman.com/2008/06/review-reliance-super-

ludhiana.html

� http://www.indiainbusiness.nic.in/economy/retail.htm

� http://www.financialexpress.com/news/bharti-launches-easy-day-stores-in-

ludhiana/297827/

� http://www.indiaretailbiz.com/blog/2008/04/17/wal-mart-backed-bharti-enters-

retail-with-debut-of-every-day-chain-in-india-launches-3-convenience-stores-in-

ludhiana/

� http://www.economicstimes.com/

� http://www.bigbazaar.com/

� http://www.magportal.com/

� http://www.retailindustry.about.com/

� http://www.hindubusinessline.com/

� www.Google.com

� www.rai.com

� www.ril.com

� www.reliancefresh.info

BOOKS REFERED-

� Belch. E. George and Belch. A. Michael, “Advertising and Promotion “Sixth Edition,

Tata Mcgraw Hill.

� Kotler Philip,” Marketing Management “Eleventh Edition, Pearson Education.

� Beri G.C.,”Marketing Research” Third Edition, Tata Mcgraw Hill.

89

ANNEXURE I

QUESTIONNAIRE

� General questions:

Name : _________________________________________________ Gender: Age: Address : __________________________________________________ __________________________________________________ ___________________________________________________

Que.1: What is your Family Size (No. of Member)?

____________________

Que.2: What is your Educational Qualification?

Que.3: What is your Occupation?

Male Female Years

10th pass 12th pass

Graduate Post graduate

Other (Specify)

Professional Govt. Service

Business (Firm/Company) Private Job

Self Employed (Small Business) Others ( Specify )

90

PROFESSION/OCCUPATION:-

� HouseWife � Business � Doctor � Teacher

� Private job � Engg. � Govt. employee � Any other

Q.4: Income Level (monthly)

5000-15000 15000-25000

25000-50000 More than 50000

� Warm up questions:

Que. 1: Main purpose to visit retail store:

Leisure time activity �

Children’s demand �

Purchase of special products �

Purchase of general product � Que.2: Are you aware about the organized Retail Outlets in Ludhiana?

���� Yes ���� No

Que.3: Which organized FMCG Retail outlets are you aware about?

���� Big Bazzar ���� Reliance Super ���� More

���� Easy Day ���� Vishal Mega Mart ���� Others

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Que.4. from where do you come to know about the above store?

Ans.

Family Print media

Friends Other (Please Specify)

Radio and TV

Que.5. where were you shopping before buying from these organized

FMCG Retail Outlets

���� Neighborhood Karyana Store ���� Wholesale Mkt.

���� Store which is convenient to you ���� Any Other

Que.6. Have you ever visited Organized Retail Store? (If yes than only

go ahead)

Ans.

Yes No

� Main purpose questions:

� Q.1. Out of these which you have visited?

���� Easy Day ���� Reliance Super ���� More

���� Big Bazzar ���� Vishal Mega Mart ���� Others

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� Q.2 Out of these organized FMCG Retail Outlets where do you

generally purchase from?

���� Easy Day ���� Reliance Supe ���� More

���� Big Bazzar ���� Vishal Mega Mart ���� Others

� Q3. How frequently do you purchase?

Ans.

Category Daily Weekly Fortnightly Monthly More than a

month

F&V

Grocery

Cosmetics

Beverages

& Snacks

Ready to

eat food

� Q.4. How many time do you visit the organized FMCG Retail

Outlets in a month?

���� Once ���� 2-3 times ���� 3-5 times ���� more than 5 times

� Q5. How far you have to travel to go for purchase ?

Ans.

Less than 3 K.M 3K.M -6 K.M

7 K.M – 10 K.M More than 10 K.M

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� Q6. When do you purchase more?

Ans.

First week of month mid of the month

End of the month whenever required

� Q.7. How much of your monthly budget grocery products are you

shopping from these Organized FMCG Retail Outlet?

���� 10-20% ���� 20-30% ���� 30-40%

���� 40-50% ���� 50-60% ���� 60-70%

���� More than 70%

� Q.8. what’s your average one time purchase at FMCG Retail

Outlets in Rupees?

���� Below 1000 ���� 1,000-1500

���� 1,500-2000 ���� 2,000-2500

� Q.09. Do you think by shopping at organized FMCG Retail

Outlets, Yours monthly expenditure:

���� Reduced ���� Remain Same ���� Increased

� Q.10. In future will you spend more at organized FMCG retail

outlets?

Definitely Yes Probably Yes Can’t Say Probably Not Definitely No

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� Q11. Do you find the pricing of the above stores is less than

traditional store?

Ans.

Yes No Equal

� Q.12. what are the problems you face when you shop from these

organized FMCG retail outlets? (Specify)

���� Range is not complete ���� Vegetables/Fruits are not fresh

���� Home delivery is not provided ���� Do not grant credit

���� Insufficient Billing Counters

� Q.13. Do you think the market share of unorganized retail will: Definitely increase Increase Remain same Decrease Definitely decrease

� Q14. How do you find employees attitude in the organized Retail

store in compare to traditional store ?

Ans.

Co-Operative Rude

They only help when they are asked

Excellent Good Average Poor Very Poor

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� Q15. Rate the following on the basis of your experience?

Ans.

1. Excellent 2. Good 3. Average 4.Poor

Factors Rating Factors Rating

Convenience Quality

Ambiance Services

Price Product availability

� Q.16. On the basis of your perception, please rank players in

organized retail in the city on the following parameters (Rank

only top 3)

Parameters Reliance Super

Big Bazzar

More Easy Day

Vishal Mega Mart

Quality

Service

Product Range

Price

Display

Time Saving

� Q17. According to you what is important thing for you when you

go for shopping? (Rank 1 to 5)

Ans.

Location Pricing & Discounts

Quality Customer Services

Variety

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� Q.18.What is your reasons for purchasing from these organized

FMCG Retail Outlets? (Mark only 3)

���� Better Quality ���� Reasonable price ���� Product range

���� Good environment ���� Time Saving ���� Display of products

���� Discounts and Promotional schemes

� Q.19. Out of the total shopping specify %age expenditure in the

following categories at organized FMCG retail outlets?

0%-15% 15%-30% 30%-45% 45%-60%

60%-75%

75%-100%

Food Products

Confectionery

Detergents

Vegetables & fruits

Soaps &Sanitary products

� Q.20. What kind of improvements required in these organized FMCG

retail outlets, please Mention:

1) ________________________________________________________

2) ________________________________________________________

3) ________________________________________________________

THANKS A LOT FOR VALUABLE INFORMATION