GROUP 6

PHILIP GEORGEPARAG DHAKATE

DEBOJYOTI SARKARSUBHASREE SAHOO

Customers' Perception towards Mega Marts:

A Case Study of Ludhiana

The Icfai University Journal of Services Marketing, Vol. 6, No. 4, pp. 38-48,

17 December 2008

INTRODUCTION

The ultimate goal of an economic activity is the realization of cost, along with profit from commodities and services which can be materialized only in the market

The world wide market scenario has changed drastically particularly after the globalization of the economy

It has touched heights from from small shops with particular category of commmodities to multiple categories of commodities under one roof and singular management

OBJECTIVE OF THE CASE STUDY

To highlight the socio-economic characteristics of mega mart customers

To study the perception of customers towards various aspects of mega marts

To make some suggestions based on the study

RESEARCH METHODOLOGY

The study focuses on Ludhiana city, industrial capital of Punjab, which portrays cross-section of the society.

Five mega marts were randomly selected namely, Vishal Mega Mart, V-Mart, Reliance, Subhiksha and More for U mart

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.

SOCIOECONOMIC CHARACTERISTICS OF THE

CUSTOMER

(AGE)

50.4

28

11.2

4.85.6

percentage

16-2526-3536-45

(SEX)

63.6

36.4

PERCENTAGE

malefemale

(PLACE OF RESIDENCE)

28

69.2

2.8

PERCENTAGE

Ruralurbanforeign

(EDUCATION)

33.2

44.4

22.4

PERCENTAGE

Low(up to10/10+2)Medium(up to graduation)High(above gradua-tion)

(FAMILY INCOME)

71.2

24.4

4.4

PERCENTAGE

Low(up to Rs.25000)

Medium(Rs.25001-50000)

High(more than 50000)

REASONS FOR PREFERING A MEGA MART.

REASONS FOR PREFERRING A MEGA MART (5 Factors)

SAFETY CONVENIENCE UNIQUENESS LESS TIME CONSUMING LOCATION

Reasons for preferring a mega mart

Safe

ty

Conve

nien

ce

uniq

uene

ss

less

tim

e co

nsum

ing

loca

tion

0

50

100

150

200

250

143

210

111137

179

67

26

8771

5340

14

52 4218

agreeneutraldisagree

SAFETY AND PARKING

SAFETY

86

64

100

number of customers

satisfied neutral

dissatisfied

Utility of mega marts

UTILITY OF MEGA MARTS

Plac

e to

sho

p(%

)

Plac

e to

soc

ializ

e(%

)

Plac

e to

enj

oy(%

)

Plac

e to

exp

erie

nce(

%)

Plac

e to

com

pare

(%)

0102030405060708090

AGREENEUTRALDISAGREE

SPENDING ON DIFFERENT ITEMS

Groce

ry

Cosm

etics

jewel

ry

Cloth

ings

Eata

bles

Foot

wea

r

Consu

mer

Dur

able

s

Comm

unicat

ions

0

5

10

15

20

25

30

35

13.9811.28

3.08

31.9

16.5614.4

7.82

0.98

MEAN

MEAN

VIDEO

SYNOPSIS

Young male; Urban areas; Medium level of education; and Low level of family income.

Utility point of view

Customers were more oriented towards:-

Safety and parking facilities at first and

Place to shop and comparison (not to socialize)

Promotional point of view

quality and discount fixed price and need based products least bothered about guarantee &

warrantee Least importance to family pressure

& ambience at mega mart.

stop

ITM Survey The perception towards mega

mart.

WHICH MEGA MART DO YOU SHOP?1. R-MART 2. V-MART 3. MORE 4. MEGA MART 5. SPAR MART

R-MART V-MART MORE MEGA MART

SPAR MART

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

BOYS

Series 1

R-MART V-MART MORE MEGA MART

SPAR MART

0%

5%

10%

15%

20%

25%

GIRLS

Series 1

HOW DO YOU RATE THE PARKING FACILITIES AND THE SHELF PRODUCTS?1. 1 OUT OF 5 2. 2 OUT OF 5 3. 3 OUT OF 5 4. 4 OUT OF 5 5. 5 OUT OF 5

1 OUT OF 5

2 OUT OF 5

3 OUT OF 5

4 OUT OF 5

5 OUT OF 5

0%5%

10%15%20%25%30%35%40%45%50%

BOYS

Series 1

1 OUT OF 5

2 OUT OF 5

3 OUT OF 5

4 OUT OF 5

5 OUT OF 5

0%

10%

20%

30%

40%

50%

60%

70%

80%

GIRLS

Series 1

WHAT DO YOU SHOP AT MEGA MARTS?1. GROCERY 2. ELECTRONICS 3. CLOTHES 4. SHOES 5. COSMETICS6. SPORT WEAR 7. OTHERS

GROCERY

ELEC

TRONIC

S

CLOTH

ES

SHOES

COSMET

ICS

SPORT

WEA

R

OTHER

S0%5%

10%15%20%25%30%35%40%

GIRLS

Series 1

GROCERY

ELEC

TRONIC

S

CLOTH

ES

SHOES

COSMET

ICS

SPORT

WEA

R

OTHER

S0%5%

10%15%20%25%30%35%

BOYS

Series 1

DO YOU LIKE THE STRUCTURE OF INDIAN MEGA MARTS?1. BAD 2. AVERAGE 3. GOOD 4. VERY GOOD

BAD AVERAGE GOOD VERY GOOD

0%

10%

20%

30%

40%

50%

60%

BOYS

Series 1

BAD AVERAGE GOOD VERY GOOD

0%

10%

20%

30%

40%

50%

60%

70%

GIRLS

Series 1

DO YOU TRAVEL A LONG DISTANCE TO SHOP AT MEGA MART?1. YES 2. NO

YES NO0%

10%

20%

30%

40%

50%

60%

70%

BOYS

Series 1

YES NO0%

10%

20%

30%

40%

50%

60%

70%

GIRLS

Series 1

WHAT IS THE REASON TO SHOP AT MEGA MARTS THAN A NORMAL MART?1. PRICE 2. ONE STOP FOR ALL 3. ENVIORNMENT 4. OTHERS

PRIC

E

ONE ST

OP FO

R ALL

ENVI

RONMEN

T

OTHER

S0%

20%

40%

60%

GIRLS

Series 1

PRIC

E

ONE ST

OP FO

R ALL

ENVI

RONMEN

T

OTHER

S0%

20%

40%

60%

BOYS

Series 1

Conclusion and suggestions based on the case study and the survey

Suggestions

Could not attract older age and female

Develop some strategies for the above

Rural sector customer Awareness Extend advertisement Offering lower prices

Create a status symbol to attract high income customers

Open a separate Branded products counters

Develop SAFETY & PARKING Cash discounts & free gifts schemes to

attract the customers at a higher level (USP)

Focus on Quality, Discount and attractive display of products (factors of purchasing decision).

MUTE

Conclusion

The position of the mega marts will be improved to a great extent if

the above suggestions are implemented.

UNMUTE

video