A

Research Project Report

ON

“CONSUMER BEHAVIOR AND ITS IMPACT ON

MARKETING DECISIONS.”

TO BE SUBMITTED TO DR. APJ ABDUL KALAM TECHNICAL

UNIVERSITY, LUCKNOW
IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR
THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
Session - 2023-2025

Submitted By: Under the Guidance of:

HARSH KAUSHIK Ms. PRIYANKA SHARMA
Roll Number:2300680700076 Asst. Professor
MBA- IV Sem

MEERUT INSTITUTE OF ENGINEERING AND

TECHNOLOGY
 STUDENT DECLARATION
My self HARSH KAUSHIK student of MBA – IV Sem here by declared that the research

report entitled “CONSUMER BEHAVIOR AND ITS IMPACT ON MARKETING

DECISIONS ” is completed and submitted under the guidance of Ms.PRIYANKA

SHARMA Assistant Professor MBA Department MIET, Meerut is my original work.

The imperial finding in this report is based on the data collected by me. I have not

submitted this project report to Dr. APJ Abdul Kalam Technical University, Lucknow

or any other University for the purpose of compliance of any requirement of any

examination or degree.

Signature

HARSH KAUSHIK
Roll Number: 2300680700076
MBA- IV Sem
 ACKNOWLEDGEMENT

First and foremost, I thank the Almighty God.

I express my sincere thanks to the managers of banks for granting permission to conduct
my project work in his esteemed concern and for helping and providing various
information and data.

I wish to convey my sincere gratitude to Dr. Madhubala Sharma H.O.D. & Mr. SACHIN
KLUMAR Assistant Professor MBA Department MIET, Meerut for showing proper
direction and giving valuable advice and suggestions for varying and completing this
project work.

My sincere thanks are due to all the respondents who have helped and cooperated with me
during the course of my survey.

I am also remembering with deep appreciation and gratitude the encouragement and help
received during the preparation and completion of this project work from my beloved
family members and friends.

HARSH KAUSHIK
 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 thecountry.

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.
 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

▪ Chainstore- 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.

▪ Hypermarket- 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, hasa

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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
inretailsalesannually($4.2trillioniffoodservicesalesareincluded),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 aware house

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 salesvolume.

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 STORECLUSTER:

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 40% 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 forUSA).

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
India 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

12
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-servedmarkets.

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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COMPANY PROFIL

15
COMPANY PROFILE OF THE STUDY

ON DUCTED

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 57cities.

16
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 India, Jalandhar, and Amritsar etc.
Newly opened Reliance Super store in the basement of Flamez Mall is presently a new
attractioninIndia .

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 India 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 India where we can easily buy anything of our
requirement. People of India are really getting many world class facilities in their own
city thanks to retail boom ofIndia

SWOT Analysis of Reliance Retail ltd.

Strength:-
➢ India’s biggest conglomerate.
➢ First to start retail trend inIndia.
➢ Market value US$ 35billion

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➢ Turnover of US$ 27 billion in2007.
➢ Investing US$ 5 billion in pan-india retail including both small & superstores.
➢ Generating 1 million jobs
➢ Reaching annual sales of US$ 25 billion by2011
➢ 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 matexcept
reliance retailed.)

Weakness:-
➢ Lack of detailed region specific customer data.
➢ Less data on spending pattern.
➢ Lack of trained personnel at alllevel.
➢ Inefficient ERP,SCM.
➢ Insufficient stock.
➢ No proper system to solve customer complaints regarding products.

Opportunities:-
➢ 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% in2008.
➢ Virgin territory for organized retail investment.
➢ 2-6% of total retail.
➢ Expected to increase to 15-18% by2011.
➢ Food retailing is expected to grow to US$ 1.6billion.
➢ Apparel to increase by 9.5% by2010.

Threats:-
➢ Wall-Mart
➢ Vishal Mega Mart
➢ Future group- Big Bazaar, Food bazaar, pantaloons, brand factory, e-zone, central
mall, furniture bazaaretc.
➢ Spencer
➢ Aditya Birla Group- petre England people store, more.
➢ TATA group- west side, tanishq store, titan store, star india bazaar, landmark,croma

18
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 their supply
chain, it has set up seven regional distributions centers 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 them self 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 VishalGroup.”
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

20
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
garmentlabels.

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
theconsumer.

21
Wal-Mart, the US-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
Bharti Enterprises– India‟s largest mobile telecom player– rolled out first cluster of its
three convenience stores in India (Punjab) on Wednesday, the 16th April, 2008.

India, 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
kept low-key, perhaps, to avoid any adverse reaction from political activists and lobbies
of smalltraders.

Also, ending months of speculation, the front-end business has been branded as “Easy
Day.”Thus,thebrandisdevoidofeitherparty‟sname,thatis,Wal-MartorBharti.This
again 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 physically-challenged
persons 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, 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.

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 Wal-Mart for wholesale cash and carry business, in view of the
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 itsfront-end

22
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 toBharti.

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, aswell.

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 India, the hometown of
Sunil BhartiMittal.

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.

23
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 paintoo.

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.

24
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 theirsuccess.

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.

25
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.

MoreQuality More Variety

MoreConvenience More Value

These are the four delivery cornerstones of the

more chain of supermarket stores. There are
nearly 14 stores of More in India City and giving
intense competition to Reliance Fresh Ltd and
other organized Retailers in IndiaCity.

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. expandedits
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,

26
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 India

India
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

27
 OTHER RETAILERS IN 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.

28
  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 India 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,India, 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 ofCountry

➢ 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.

29
 ➢ FutureGroup

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 andhotels.

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.

30
❖ PartnerCompanies

➢ 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

➢ Foot mart Retail

➢ GJ Future Fashions

➢ CapitaLand Retail India

➢ ETAM Future Fashions India Pvt Ltd

31
 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 by2016.

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

questionnaire to customers. The same study particularly in India
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 informationhere.

❖ 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.

32
❖ 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 oneroof.

33
❖ 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
retailbusiness.

❖ 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 alltimes.

❖ 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 thebusiness.

❖ 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 equitablegrowth.

34
 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 India.

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

India city.

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

the city.

12. To elicit customers views regarding Organized FMCG Retail.

35
 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 India city

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

Quality, and Price matter alot

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 dailyneeds

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

whenever they require.

36
 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”

❖ ConsumerAttitude

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

37
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 India 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 India city, industrial capital of Punjab, which

portrays cross-section of the society.

▪ Five mega marts were randomly selected namely

❖ Reliance Super ( Flamze Mall,India)

❖ Vishal Mega Mart ( Ferozepur Road ,India)
❖ Big Bazaar (Chandigarh Road ,India)
❖ Easy Day ( Railway Station ,India)
❖ More ( Model Town,India)

▪ 50 visiting customers from each mega mart were personally

interviewed that make a sample size of 250customers

38
 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 particulararea

❖ 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

39
 Catchment Analysis Format For The Stores Within 2 K.M Radius

Catchment Analysis
List of Residential List of Organized
Societies / Flats List of Organized Retailer( competitor) Retailer( Competitor)
Sr. No.of
Name Sr.No. Name AreainSFT Format Category
No. Households
1 1 Staples
2 2 PF & Beverages
3 3 Pharmacy
4 4 Dairy
5 5 Consumer Durables
6 6 Apparel
Stationary/Toys/Gifts/Bo
7 7 oks/
8 8 Apparel
9 9 GM ADU,HF&EH
10 10 Florist
List of Restaurants/Eat
11 List of Govt./ Pvt .Offices/Banks Outs
12 Sr.No. Name ApproxEmployee Names
13 1
14 2
15 3
16 4
17 5
18 6
List of
Cinemas/Entertainmet
19 List of Education Institutes Centres
Sr.
20 No. Name Approx Students Names
21 1
22 2
23 3

40
 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.

41
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 250customers

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
alsoused.
FINALIZING RESEARCH INSTRUMENT / DATA

❖ Methodology of collecting thedata

Personal interview are taken while doing catchment survey of FMCG

Stores.

❖ Data Collection

For Data collection I went to different area of India while doing catchment
survey of FMCG Stores and approach respondents from the front.

42
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 ofrespondents:

Female 62%
Male 38%
30%-45% 24%
45%-60% 12%
60%-75% 8%
More than 75% 6%

Gender wise Distribution

38% Female Male

62%

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.

43
 (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

44
 (D) What is your Family Size (No. ofMember)?
FAMILY SIZE INDIA
2 Members 25
3 Members 75
4 Members 87
5 or Above 63

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

87
90 75 63
80
70
60
50
40 25
30
20
10
0
2 3 4 5 or
Members,10% Members,30% Members,35% Above,25%

INDIA

(D) EducationalQualification?

EDUCATIONAL QUALIFICATION INDIA

Others ,4% 10
10th Pass,4% 10
12th Pass,20% 50
Graduate,40% 100
Post Graduate,32% 80

45
 INDIA

100

80

50

10 10

10thPass,4% 12th Pass,20%Graduate,40% Post Others,4%

Graduate,32%

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

House Wife

8% Business

6%
Doctor
2% 30%
6% Teacher

Private Job

26% Engg.
18%
4%
Govt.
Employee
Any other

46
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 familyincome?

Ans.

Income Level (monthly) - 5000-15000 15000-25000

25000-50000 More than 50000

➢ Analysis:-

Particular No. of People

Rs. 5000-15000 130
Rs. 15000-25000 65
Rs. 25000-50000 35
More than Rs. 50000 20

Graph showing monthly family income of the customers

Incomeslab
140
120
100
Axis Title

80
60
40
20
0
Rs. 500 - Rs. 15000- Rs. 25000- Rs. 5 000
15000(52%) 25000(26%) 50000(14%) plus(8%)
No.ofPeople 130 65 35 20

47
 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 retailstore

Purpose No of respondents
Leisure time activity 50
Children‟s demand 37
Purchase of special products 37
Purchase of general products 126

48
 150 126

100
5050 37 37

0
Leisuretimeactivityhildren’sdePmuarnchdaseofspeciPaluprcrhoadsuectosfgeneralproducts

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 Organized FMCG Retail Outlets inIndia?

Awareness About Organized FMCG Outlets

Yes
No

Thisisthefirstquestionwhichisaskedfromtherespondentsinordertocheckthe
awareness of organized FMCG retail. In this question I tried to find out howmany
respondents are aware about organized FMCG retail. In this survey as I includethe
educated professionals (Through Exit Interview) from different backgrounds, soeveryone
is aware about organized FMCG Retail. Hence 100% respondents are aware about
organized FMCG Retail.

49
 (iii) Which Organized FMCG Retail outlets are you awareabout?

PeopleAwareness

Aware Not Awarwe

100% 100%
82%
70%
54%
46%
30%
18%

0% 0%

Relaince Super VishalMega Big Bazzar Easy Day More

Mart

Aware Not Awarwe

Relaince Super 100% 0%
Vishal Mega Mart 100% 0%
Big Bazzar 82% 18%
Easy Day 70% 30%
More 54% 46%

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 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
bigger brand i.e. MORE, because it failed to gain the popularity in the city. The
percentage of awareness of different organized FMCG brands is shown in the above
table.

50
 (iv) From where do you come to know about the above
store?

Ans.
Family Printmedia

Friends Radio andTV

Other (Please Specify)

➢ Analysis:-

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

No. ofPeople
122

44 48
30
6

51
 As per survey conducted
❖ Nearly 50 % of people come know about store from Print Media, Because it is
very popular source of advertisement among thepeople

❖ 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 theseorganized

FMCG retailoutlets?

4%
10%
Neighbourhood
34% Karyana store
Wholesale Market

Store which is
convenient
Any other

52%

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.

52
 Main purpose questions

Q1 Out of these which you havevisited?

Visited
Not Visited

BigBazzar More Easyday

Store Visited Not Visited

Relaince Super 86% 14%
Vishal Mega Mart 92% 8%
Big Bazzar 62% 38%
More 56% 44%
Easy day 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
almost all the respondents had visited Reliance Super, Easy Day & Vishal Mega Mart.
The percentage of respondents visited different retail outlets is shown in the above table.

53
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 most of the respondents purchased from Relaince Store,
Big Bazaar & Vishal Mega Mart because these were the oldest in the market & had made
good reputation in the India 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
respondents explained in the below table

➢ Analysis:-

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

No. of People

18% 20% Easy Day

Mom and Pop Store
16%
Big Bazaar
23%
9% More
14%
Reliance Super
Vishal Mega Mart

54
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 India

❖ 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 Martetc.

It shows that people still like to purchase from Mom and Pop store
and Street Vendors because they are situated very near tothem.

55
 Q 3. How frequently do you purchase?
Ans.

Category Daily Weekly Fortnightly Monthly More than a month

F&V
Grocery
Cosmetics
Beverages
Ready to food

➢ Analysis:-
More than
Categories Daily Weekly Fortnightly Monthly Month
F&V 117 108 5 12 8
Grocery 5 40 38 125 42
Cosmetics 3 8 28 171 40
Beverages 17 66 57 60 50
Ready to food 25 77 28 82 38

Graph showing purchasing pattern of different categorie

100% 8
12
90% 5 42 40 50 38

80%
70% 108 82
60
60% 125
50% 171
57 28
40%
30%
117 38 77
20% 66
10% 40 28
83 17 25
0% 5
F&V Grocery Cosmetics Beverages Ready to food

Daily Weekly Fortnightly Monthly More thanMonth

56
 As per surveyconducted

❖ 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 inweek
❖ Some of the people prefer to preserve grocery and staples only once in
ayear
❖ 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 anyhow.

How many time do you visit the organized FMCG retail outlets in amonth?

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 organizedretail
outlets 2-4 times in a month. The exact %age is shown in the abovetable.

Frequency Percentage
Once 14%
2-3 Times 46%
3-4 Times 32%
More than 5
Times 8%

57
 50% Percentage
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Once 2-3Times 3-4Times More than 5Times

Q 5. How far you have to travel to go for purchasing ?

Ans.
Less than3 K.M 3 K.M -6K.M

7 K.M – 10 K.M More than 10 K.M

➢ Analysis:-
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

Less than3KM 3 KM to6KM 7 KM to10KM More than 10KM

6%

16%
50%
28%

No. ofPeople

58
 ❖ It has been observed that People always prefer to buy their daily needs
from the nearest store which is less than 3K.M

❖ 50 % of people like to buy purchase within the radius of 3 K.M from

their households because generally in area of India 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 andothers

❖ 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 weekofmonth Mid of themonth

End ofthe 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

59
 Graph showing purchasing nature and time of customers

First of
week of
Month
23%
When
Required
52% Mid of the
Month
19%

End of Month
6%

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
 How much of your monthly budget grocery products are you shoppingfrom
these organized FMCG retailoutlets?

45%
40%
35%
30%
25%
20%
0%-20%
15%
20%-40%
10%
40%-60%
5% 60%-80%
0% More than 80%
1
0%-20% 12%
20%-40% 18%
40%-60% 42%
60%-80% 22%
More than 6%
80%

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.

What is your average one time purchase at FMCG retail outlets inrupees?

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.

61
 45%
40%
35%

30%

25%
20%

15%
10%

5%

0%
1
Below1000 16%
1000-1500 44%
1500-2000 26%
More than 2000 14%

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

Expenditure:
1. Increased 2.Remainsame 3.Decreased

40%
35%
30%
25%
20%
15% Reduced

10% Rem ain same

Increased
5%
0%
1
Reduced 28%
Remain same 34%
Increased 38%

62
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 remain
same. While remaining 28% said that their expenditure were reduced by purchasing from
organized retail outlets.

In future will you spend more at organized FMCG retailoutlets?

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

100%

80%

60%

40% Definitely No
No
Can't Say
20% Yes
DefinitelyYes

0%
1
Definitely No 4%
No 16%
Can't Say 34%
Yes 34%
Definitely Yes 12%

63
Q 11. Do you find the pricing of Organized retail stores is less
thanotherstore?

Ans.
Yes No Equal

➢ Analysis:-

Particular No. of People

Yes 86
No 111
Equal 53
Total 250

Graph showing consumer’s experience with organized retail outlet

pricing comparing with Outside pricing

21%

35% Yes
No
44%
Equal

64
 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 between prices of Reliance fresh
and other stores.

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 queues. In
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 % of People
Long Queues 54%
Need Free Home Delivery 34%
Need Credit Facility 6%
Vegetables not always fresh 4%
Range in not complete 2%

Need CreditFacility Range in not Vegetables

6% complete not always
2% fresh
4%

Need Free Long Queues

Home 54%
Delivery
34%

65
 Do you think the market share of unorganized retailwill:

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

Decrease

0%

16%
22%
Definitely Increase

Increase

15% Remain Same

Decrease

Definitely Decreaese

47%

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

Retailstores?

Ans.
Co-Operative Rude

They only help when they are asked

66
 ➢ Analysis:-

Particular No. of People

Co-Operative 86
Rude 18
They only help when they are asked 32

Graph showing consumer’s experience with organized retail employees

They only help when they are asked, 32,

24%

Co-Operative,
86, 63%
Rude, 18, 13%

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 anyhow
❖ Whereas 24% of People think that they have to always call CSAs to
help them anyhow also Customers think that they are demotivated
towards theirworks
❖ While only 13% of People think those CSAs and other staff behave
very rudely withthem.

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

67
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

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

Excellent, 47,
35%

Good, 65, 48%

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 Reprehensive ) within no time MSA inform them about their
gather point and other facility like Recharge of Mobile

68
 ❖ 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.

0%
6% Highly Satisfied
10% 32%
Satisfied

Neutral
52%
Dissatisfied

Highly Dissatisfied

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
Q 15. Rate the following factors 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

➢ Analysis:-

Factors Excellent Good Average Poor

Convenience 49 155 34 12
Ambiance 51 170 15 14
Price 19 104 115 12
Quality 47 153 31 16
Service 23 170 45 12
Product Availability 49 135 51 15

100% 12 14 12 16 12 15
90% 15 31
34
45 51
80%
70% 115
60%
10
50% 155 153
135
170
40%
30% 104
20%
10% 49 51 47 49
19 23
0%
Convenience Ambiance Price Quality Service Product
Availability

Excellent Good Average Poor

70
 As per survey conducted

❖ More than 60% of people satisfied with the convenience of the

organized retail stores because now it is situated in every area of
India city with Prime Location
❖ 65% of people like the ambiance of the organized retail store
like assortments of Fruits and Vegetables, Chillers are used for
Dairy Products and Beverages
❖ Nearly 45% of people think that price of the organized retail
product are average because they don‟t find much difference
between Prices of organized retail stores and other stores located
in the city.
❖ 55% of people feel good about Quality, Service and Product
Availability are offered by organized retail store in Indiacity

Q.16 A) Ranking on the basis of Quality:

Ranking-Quality Preference
32%

16%
10%

Vishal Mega More Reliance

Mart Super

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
ranked Reliance as no. 1 as 32% of respondents favors it. The 2nd position is occupied by
Easy Day as 25% 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.

71
Q.16 B) Ranking on the basis of Service:

Ranking - Service
32% 30%

16%
12% 10%

EasyDay Big- Bazar Vishal Mega More Reliance

Mart Super

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
of the respondents ranked Easy Day as no. 1 as 32% of respondents favors it. The 2nd
position is occupied by Reliance as 30% respondents spoke in its favor. In case of
service the third position is occupied by Big Bazaar‟s as 16% respondents speaks in its
favor.

Q.16 C) Ranking on the basis of Product range:

Ranking-Product Range

26%
30%
18%
14% 12%

Easy Day Big-Bazar Vishal Mega More Reliance Super

Mart

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 respondents ranked Reliance as no. 1 as 30% of respondents
favors it. The 2nd position 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
speaks in its favor.

72
Q.16 D) Ranking on the basis of Price:

Ranking- Price Preferance

26% 24%
22%
15% 13%

Easy Day Big-Bazar VishalMega More Reliance

Mart Super

In this question the respondents were asked to rank the mainor ganized FMCG retail out
let sin the city on the basis of Prices charged by them. On the basis of Price most of
the respondents ranked Big Bazaar as no. 1 as 26% of respondents favors it. The 2nd
position is occupied by Reliance as 24% respondents spoke in its favor. In case of Price
the third position is occupied by Vishal Mega Mart as 15% respondents speaks in favor.

Q.16 E) Ranking on the bases of Product Display:

25%
22%
25% 20%
17% 16%
20%
15%
10%
5%
0%
Easy Day Big-Bazar VishalMega More Reliance
Mart Super

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 Display of the outlets. On the basis of Display most of
the respondents ranked Reliance‟s as no. 1 as 20% of respondents favors it. The 2nd
position 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
by 17% of the respondents.

73
 F) Ranking on the basis of Timesaving:

Ranking-preference in Time Saving

25%
22%
19% 19%
1%

Easy Day Big-Bazar Vishal Mega More Reliance Super

Mart

In this question the respondents were asked to rank the main organized FMCGretail outlet
sinthecity on the basis of Timesaver. On this basis most of there pendants
ranked Reliance as no. 1 as 25% of respondents favors it. The 2nd position is occupied by
easy Day as 22% respondents spoke in its favor. In case of Time saving the third position
is occupied by Vishal Mega Mart & More both 19% respondents speaks in its favor.

Q 17. According to you what are important factors for you when
yougo for shopping? (Rank 1 to 5)

Ans.
Location Customer Services

Pricing & Discounts Variety Quality

Analysis:
Pricing& Customer
Rank Location Discount Quality Variety Services
1 95 30 59 45 21 250
2 57 37 82 52 22 250
3 38 70 63 62 17 250
4 27 63 37 75 48 250
5 33 50 9 16 142 250
250 250 250 250 250

74
Graph showing customers preference for selection retail outlet

Factor considered while purchasing

33 50 9 16
27 37
75
38
63 63 142

57 62
70 82
48
52
37 17
95 22
59 45
30 21

Location Pricing& Quality Variety Custom r

Discount Services

As per survey conducted

❖ 38% of people prefer location as their first priority to buy their

daily needs because everybody in India is looking for
convenience

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

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

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

third priority for the daily needs because in India city People
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 needs.
We can conclude that people look after nearest location and quality
of product while purchasing daily needs

75
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 retailoutlets.

Better Quality
12%
18%
Reasonable Price
8%
Product Range

Good Enviournment
14% 18%
Time Saving

Display OfProducts

4% Discounts&Promotional
26% Schemes

Out of the total shopping specify %age expenditure in the following categories at
Organized FMCG retail outlets?

76
 19A) Food Products

0-%15%
6%
8% 15%-30%
24% 30%-45%

12% 45%-60%
60%-75%
More than75%

24% 26%

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
8%
22%
much they spent to
10%
0%-15%
purchase confectionery
15%-30% from the organized
30%-45% retail outlets. In this it
20%
45%-60% is found that 24% of
16% 60%-75%
the respondents spent
More than75%
30%-45% on
24% confectionery, while
only 8% respondents
spent more than 75% to
purchase confectionery
from these organized
retail outlets.

77
 19C)Detergents

This question was asked

from the respondents to
find out that out of their
total budget in
detergents, how much
6% they spent to purchase
14%
10% detergents from the
organized retail outlets.
0%-15%
In this it is found that
15%-30% 28% of the respondents
30%-45% spent 45%-60% on
26% 45%-60% confectionery, while
28% 60%-75% only 6% respondents
More than75% spent more than 75% to
purchase detergents
from these organized
16%
retailoutlets.

19D) Vegetables&Fruits

This question was asked

from the respondents to
find out that out of their
total budget in
vegetables & fruits, how
0%-15% much they spent to
12% 0% 22% purchase fruits &
15%-30%
vegetables from the
30%-45% organized retail outlets.
28% In this it is found that
45%-60%
20% 28% of the respondents
60%-75% spent 45%-60% on
18% confectionery, while
More than75% only 12% respondents
spent 60%-75% to
purchase Fruits &
detergents from these
organized retail outlets.

78
19E) Soaps & Sanitary Products:

4%
8%
24%
0%-15%
15%-30%
24% 30%-45%
45%-60%
60%-75%
18% More than75%

22%

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.

79
 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 India 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

80
 Ready to food like Maggie, Biscuits and Khar kharas are bought
on weekly basis

 In India 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

81
 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.

82
 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.

83
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 printmedia

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 companies 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

84
 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 achain

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.

85
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.

86
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 India city
✓ Customer service is not so much important in grocery retail , Quality,
and Price matter alot
✓ 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 India use to purchase their daily needs whenever
they require.

87
CHAPTER 8

BIBLIOGRAPHY
WEB LINKS-

➢ http://www.vishalmegamart.net
➢ http://www.thoughtsofanordinaryman.com/2008/06/review-reliance-super-
india.html
➢ http://www.indiainbusiness.nic.in/economy/retail.htm
➢ http://www.financialexpress.com/news/bharti-launches-easy-day-stores-in-
india/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-
india/
➢ 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

BOOKSREFERED-

➢ Belch. E. George and Belch. A. Michael, “Advertising and Promotion “Sixth Edition,
Tata McgrawHill.

➢ Kotler Philip,” Marketing Management “Eleventh Edition, PearsonEducation.

➢ Beri G.C.,”Marketing Research” Third Edition, Tata McgrawHill.

88
 ANNEXURE I
QUESTIONNAIRE

❖ General questions:

Name : Gender:

M
Agaele: Female Years

Address :

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

Que.2: What is your Educational Qualification?

10thpass 12thpass
Graduate Post graduate
Other (Specify)

Que.3: What is your Occupation?

Professional Govt. Service

Business (Firm/Company) Private Job
Self Employed (Small Business) Others ( Specify )

89
PROFESSION/OCCUPATION:-

House Wife 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 India?

Yes No

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

Big Bazzar Reliance Super More

Easy Day Vishal Mega Mart Others

90
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

Neigh borhoodKaryana Store Whole sale Mkt.

Store which is convenienttoyou 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

91
 ➢ 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 2-3times 3-5times more than 5times

➢ Q5. How far you have to travel to go for purchase?

Ans.
Less than3 K.M 3K.M -6K.M

7 K.M – 10K.M More than 10K.M

92
 ➢ Q6. When do you purchase more?

Ans.
First weekofmonth mid of the month

End ofthe month wheneverrequired

➢ 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?

Below1000 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?

DefinitelyYes ProbablyYes Can’tSay Probably Not DefinitelyNo

93
 ➢ Q11. Do you find the pricing of theabove 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 isnotcomplete Vegetables/Fruits are not

fresh Home delivery isnotprovided Do not grant credit

Insufficient Billing Counters

➢ Q.13. Do you think the market share of unorganized retailwill:

Definitelyincrease Increase Remainsame 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 VeryPoor

94
 ➢ Q15. Rate the following on the basis of yourexperience?

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 top3)

Parameters Reliance Big More Easy Vishal

Super Bazzar Day 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 to5)

Ans.
Location Pricing &Discounts

Quality CustomerServices

Variety

95
 ➢ Q.18.What is your reasons for purchasing from these organized
FMCG Retail Outlets? (Mark only3)

BetterQuality Reasonableprice Productrange

Goodenvironment TimeSaving Display ofproducts

Discounts and Promotional schemes

➢ Q.19.Outofthetotalshoppingspecify%ageexpenditureinthe
followingcategoriesatorganizedFMCGretailoutlets?

0%- 60%- 75%-

15% 15%-30% 30%-45% 45%-60% 75% 100%
Food Products
Confectionery
Detergents
Vegetables & fruits
Soaps &Sanitary
products

➢ Q.20.WhatkindofimprovementsrequiredintheseorganizedFMCG
retail outlets, pleaseMention:

1)

2)

3)

THANKS A LOT FOR VALUABLE INFORMATION

96