Aravali Institute of Management

Literature Review on Branded Retail Store

Submitted to:- Submitted by:-

Mr. Amlan Bhattacharya Dunger SinghPradeep RathiSanjay SinghMamta Gaurav RathiPGP-II (PGDM)

Date: March 2, 2010

Topic: Customer Attitude towards Branded Retail Store

Objective:to analysis how the brand effects the customer

purchasing decision in branded apparel store

Introduction

What is Retail?

“Retailing consists of those business activities, which are involved, in the sale of goods or services or consumer for their personal, family or house hold use.”

Activities of retailers1. Arranging an assortment of offerings2. Breaking quantity3. Holding stock4. Extending services

What is Brand?

A brand is a collection of images and ideas representing an economic producer; more specifically, it refers to the descriptive verbal attributes and concrete symbols such as a name, logo, slogan, and design scheme that convey the essence of a company, product or service. Brand recognition and other reactions are created by the accumulation of experiences with the specific product or service, both directly relating to its use, and through the influence of advertising, design, and media commentary. A brand is a symbolic embodiment of all the information connected to a company, product or service. A brand serves to create associations and expectations among products made by a producer. A brand often includes an explicit logo, fonts, color schemes, symbols and sound which may be developed to represent implicit values, ideas, and even personality. The key objective is to create a relationship of trust.

What Brand does Can command a premium price Makes marketing more efficient Decision-making & avoiding risks Lets Marketers relax

Manufacturer Distributor Retailers Final Consumer

Consumer Attitude

Consumer attitude understanding of how consumers make decision to use their resources such as time, money, and effort for buying, using and disposing goods and service.In the retail context, marketers would specifically be more interested to know about consumers’ shopping behaviour, which involves an understanding of decision variables regarding when, where and what to shop (shopping timing, choice of retail format and store, etc.). Such decision variables are the factors to be considered by the retailer while taking decisions regarding the above criteria.Many a time consumers’ patronize more than one retail outlet for and extrinsic factors. Intrinsically, his needs, motives perceptions, and attitudes tend influence what he purchases and where he purchases a. However, extrinsic influences such as family, social class the culture, and economic factors will also affect his behavior. With the understanding of these elements retailers or marketers would be well placed to devise their retail marketing mix in accordance with their respective target segments.

Consumer’s purchase decision tends to be affected by the following four factors:1. Demographic2. Psychological3. Environmental4. Life Style

Demographic Psychological factorsGender MotivesAge PerceptionOccupation LearningEducation AttitudeFamily size PersonalityIncome

Environmental Factors LifestylePhysical Environment Activities and interestsSocial Environment- culture, Nature of occupationSub-culture, social class Availability of leisure

Literature Review

Global Retail Industry:-

Worldwide retail sales are estimated at US $ 7 trillion The top 200 largest retailers accounts for 30% of the worldwide demand The Asian economic having 7.8% growth rate.

Retail Industry in India:-1

Retail is second largest employer after agriculture There are 12 million retail outlets in India. India’s largest unorganized industry. India ranked 2nd after Vietnam as the most attractive emerging market for

investment in retail sector. Contribution to GDP was 12 percent currently and likely to reach 22

percentage by 2010. India’s retail market is currently valued at US$ 511 billion, and is poised to

grow to US$ 833 billion by 2013 The total retail market size in India in 2008 was estimated at US$ 353 billion. The annual growth of the retail market in India is expected to be around 8

percent. The total retail market size in India is likely to touch US$ 416 billion by

2010. The present share of organized retail sector is estimated at 7 percent. The estimated annual growth of organized retail sector is 40 percent. The size of organized retail sector by 2010 is estimated to reach US$ 51

billion. The estimated share of organized retail in total retail by 2010 is 12 percent.

India: After the recession gloom it is time for a good run for the branded retail sector 2

1 Retail Management {Chetan Bajaj, Rajnish Tuli and Nidhi V Srivastava}2 The Hindu 27 oct, 2009 by Nirmal Bang

In India ‘retail’ is not a new word. But there is still something very new about the sector today in terms of the shift from roadside pavement retail to small shops, from departmental stores to the huge state-of-the-art malls.

Today two businessmen might be producing similar goods and have same-sized balance sheets, but if one does a lot of advertising and publicity and the other doesn’t, it is the former who emerges with a ‘brand’.

Yes, we are certainly living in the age of branding. Whether you buy Lux soap from a kirana shop or a supermarket – you are ultimately buying the brand. Branding has today transformed into multi-faceted stores in shopping malls, exclusive standalone stores as well as high-end boutiques, which burn a hole in your pocket.

 

The Indian retail market saw a slump following the global recession and is now recovering,

emerging as one of the top attractive investment destinations. Currently, the share of retail

to the country’s GDP is about 12%, which is estimated to rise to 22% by 2010. Within this

market, apparels form the second largest segment in terms of value, growing annually at

the rate of 10%. With the opening up of the economy and globalization, India’s retail

industry has witnessed a huge change over the years and with FDI now allowing up to 51%

in single brand retail, the demographics of this industry have substantially improved and

are further expected to shine.