Professional Documents
Culture Documents
AMITAVA ROY
Manager – Hospitality & Retail
1/7/2010
CONSUMER BUYING BEHAVOUR
Towards
wards Organized FMCG Retail Outlets in Ludhiana
In reference with
&
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TABLE OF CONTENTS
Abbreviations 3
Terminology 3-7
CHAPTER 1
Introduction 6-14
Executive summary [PREFECE] 15
Company Profile of the Catchment’s Study 16-27
Other Retailers in North India 28-31
Review of Literature 32-34
CHAPTER 2
Research Objectives 35-36
Makings of the of Project Report 37-40
CHAPTER 3
Research Methodology / Project Details 41-42
Finalizing Research instrument / Data Collection 42
CHAPTER 4
Analysis & Results /Finding and Analysis 43-79
Interpretation of Results 80-82
CHAPTER 5
Suggestions and Recommendation 83-85
CHAPTER 6
Limitations 86
CHAPTER 7
Conclusions 87
CHAPTER 8
References / Bibliography 88
Annexure / Questionnaire 89-96
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ABBREVIATION
GDP: Gross domestic product
HYPOTHESIS
TERMINOLOGY
Chain store Stores that have two or more retail out lets that are
commonly owned and monitored. These stores are have a centralized
buying, and merchandise system and sell similar lines of merchandise.
Combination store A blend of super market and a general
merchandise contributes more than 40 percent of the sales.
Consumer markets It consist of the individuals, households, which
are ultimate users of goods and services.
Consumer buying behavior The response and reaction of the
ultimate consumer to various situations involved in purchasing and using
various goods and services.
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Convenience goods Products that customers buy frequently, such as
fruits, vegetables, groceries.
Hyper market A large retail store that offers products at a low price.
It is a combination of discount store and a food based supermarket.
Primary trade area The trade area that consist of fifty to eighty
percent of the store’s customers. This area is nearest to the store, has a
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highest density of customers to population, and contributes the highest
per capita sales.
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.
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
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
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
1) AMOUNT OF SERVICE
Different products require different amounts of service, and customer service preferences
vary:
Self-service retailers
Retailers such as Sears and J. C. Penney, provide more sales assistance because they
carry more shopping goods about which consumers need information. Their increased
operating costs result in higher prices.
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Full service retailers
Like specialty stores and first-class department stores, have salespeople to assist
customers in every phase of the shopping process. Full service stores usually carry more
specialty goods for which customers like to be waited on. They provide more liberal
return policies, various credit plans, free delivery, home servicing, and extras such as
lounges and restaurants.
2) PRODUCT LINE:
Retailers can also be classified by the depth and breadth of their product assortments.
The depth of a product assortment refers to the number of different versions of each
product that are offered for sale. The breadth of the assortment refers to the number of
different products that the store carries.
Specialty stores carry a narrow product line with a deep assortment within that line.
Examples include stores selling sporting goods, books, furniture, electronics, flowers, or
toys. Today, specialty stores are flourishing, due to the increasing use of market
segmentation, market targeting, and product specialization.
A department store carries a wide variety of product lines. Each line is operated as a
separate department managed by specialist buyers and merchandisers.
Supermarkets are large, low-cost, low-margin, high-volume, self-service stores that carry
a wide variety of food, laundry, and household products.
Convenience stores are small stores that carry a limited line of high-turnover
convenience goods. These stores located near residential areas and remain open long
hours, seven days a week. Convenience stores must charge high prices to make up for
higher operating costs and lower sales volume, but they satisfy an important consumer
need.
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Superstores, combination stores, and hypermarkets are all larger than the conventional
supermarket. Many leading chains are moving toward superstores because their wider
assortment allows prices to be 5-6% higher than conventional supermarkets'.
Combination stores are combined food and drug stores. Examples are A&P's Family
Marts and Wal-Mart's Super centers. Hypermarkets combine discount, supermarket, and
warehouse retailing, and operate like a warehouse
3) RELATIVE PRICES
Retailers can also be classified by the prices they charge. Most retailers charge regular
prices and offer normal quality goods and customer service. Some offer higher quality
goods and service at higher prices. Retailers that feature low prices include:
Discount stores sell standard merchandise at lower prices by accepting lower margins
and selling higher volume. Occasional discounts or specials do not make a store a
discount store. A true discount store regularly sells its merchandise at lower prices,
offering mostly national brands, not inferior goods.
4) CONTROL OF OUTLETS:
About 80% of all retail stores are independents, accounting for 2/3 of retail sales. Other
forms of ownership include the corporate chain, the voluntary chain and retailer
cooperative, the franchise organization, and the merchandising conglomerate.
The chain store is one of the most important retail developments of this century.
Corporate chains appear in all types of retailing, but they are strongest in department,
variety, food, drug, shoe, and women's clothing stores. The size of corporate chains
allows them to buy in large quantities at lower prices, and chains gain promotional
economies because their advertising costs are spread out over many stores and over a
large sales volume.
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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.
Most stores today cluster together to increase their customer pulling power and to give
consumers the convenience of one-stop shopping:
Non-Store Retailing
Although most goods and services are sold through stores, non-store retailing has been
growing much faster than store retailing.
Traditional store retailers are facing increasing sales competition from catalogs, direct
mail, telephone, home TV shopping shows, on-line computer shopping services, home
and office parties, and other direct retailing approaches.
Non-store retailing includes direct marketing, direct selling, and automatic vending.
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INDIAN RETAIL INDUSTRY
Retailing in India is one of the significant contributors to the Indian economy and
accounts for 35% of the GDP. However, this sector is in a fragmented state with over
12 million outlets operating in the country and only 4% of them being larger than
500 sq ft in size. This is in comparison to 0.9 million outlets in USA, catering to more
than 13 times of the total retail market size. Thus, India has the highest number of outlets
per capita in the world with a widely spread retail network but with the lowest per capita
retail space (@ 2 sq ft per person as compared to 16 sq ft per person for USA).
The Indian retailing industry is currently estimated at $205 b (Rs.930, 000 Crores) and is
expected to grow at 5% p.a. The current size of the organized retailing market is $6 b
(Rs.28,000 Crores), thereby, a mere 3% of the total retailing market with a projected
growth rate of 25 – 30% p.a. and is estimated to become $8 b (Rs.35,000 Crores) by 2005
and $24 b (Rs.100,000 Crores) by 2010, with its contribution to total retailing sales likely
to rise to 9% by decade end.
Small towns with a population of 0.5 – 1 million {like Surat, Lucknow, Dehra Dun,
Vijaywada, Bhopal, Indore, Vadodara, Coimbatore, Nasik, Bhubaneswar, Varanasi, and
Ludhiana etc}, are witnessing a defined increase in disposable income coupled with high
aspirational levels leading to enhanced spending on consumer goods along with lesser
aversion to credit. With consumption in metros already being exploited {85% of retail
sales as of now}, these Tier-II areas are fresh targets and are expected to contribute 20-
25% of organized retailing sales.
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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
Currently the retail sector in India is populated with the traditional mom-and-pop stores
and some 1000 odd supermarkets under organized retail chains. A daring few ventured
into the Hypermarket segment with successful results and this format is being fast
replicated by other players. This experience indicates that the Indian consumer has
matured to the next level of shopping experience. Given the Indian conditions and the
vast diversity a single format may not be possible for the national presence, but region
specific formats may evolve. An interesting observation is that of lack of presence of
organized retail chains in the rural/semi-urban centers as over 60% of Indian population
is still in these parts. An ideal “no frills” model to start with would be ideal for the rural
markets; this would help to take them to the next level of supermarket experience.
Specialty Malls
Keeping in mind the astonishing pace with which new supply is expected to enter the
market, many mall developers, in a bid to offer a distinctive value proposition, are
planning to develop ‘specialty malls’. These niche developments shall emerge as one-
stop destinations in their chosen product categories. The Delhi-based Aerens Group has
developed Gold Souk, an exclusive jewellery mall that is already operational in Gurgaon
and has ambitious plans to replicate the concept across the country. Further, a number of
analogous developments like a ‘Wedding Mall’ by Omaxe Group, ‘Automobile Mall’ etc
are also in the offing. In line with international trends, ‘Home Malls’ offering the entire
range of building and interior décor solutions are also coming up in various parts of the
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country including Pune (‘Ishanya’ promoted by Deepak Fertilizers and Petrochemicals
Corporation Ltd), Gurgaon & Kolkata.
Price Correction
Fallout of the surge in mall development activity shall be that developers will be forced
to offer retailers prime real estate spaces at costs lower than those prevailing today, as the
space required by retailers to fulfill their expansion plans is likely to be lesser than
offered. This correction could result in a more structured retail real estate market that
would allow retailers a higher margin on their real estate investments, thereby enabling
them to expand faster. Further, the relatively over-served cities could witness higher
activity, as real estate space becomes more affordable, thereby, reducing the break-even
period for retailers. Moreover, under-served markets could provide enough margins to
retailers to compensate for loss of margins in some of the over-served markets.
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.
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
Community Involvement
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EXECUTIVE SUMMARY
Retailing is the final step in the distribution of merchandise - the last link in
the Supply Chain - connecting the bulk producers of commodities to the final
consumers. Retailing covers diverse products such as foot apparels, consumer
goods, financial services and leisure. The organized retail sector is expected to
grow at 6% by 2010 and touch a retail business of $ 17 billion as against its
current growth level of 3%, which at present is estimated to be $ 6 billion. As
India moves towards the service oriented economy, a rise in this percentage is
expected. The number of the retail outlets is growing at about 8.5% annually in the
urban areas and in towns with population between 1,00,000 to 1 million; the
growth rate is about 4.5%. Organized retailing is witnessing a wave of players
entering the industry. These players are experimenting with various retail formats.
Yet, Indian retailing has still not been able to come up with many successful
formats that can be scaled up and applied across India. Some of the notable
exceptions like Reliance Retail & Vishal Mega Mart who scaled their Retail
format across the country.
This research project is undertaken with a view to analyse the trends in the
Indian organized Retail Industry with reference to changing trends in buying
behaviour of consumers. The aim is to understand the effect of increasing income
levels of consumers on the organized retail industry.
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COMPANY PROFILE of the Study
Conducted
Reliance super
Growth through Value Creation
With a vision to generate inclusive growth and prosperity for farmers, vendor partners,
small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL, was
set up to lead Reliance Group’s foray into organized retail. With a 27% share of world GDP,
retail is a significant contributor to overall economic activity across the world. Of this,
organized retailing contributes between 20% to 55% in various developing markets. The
Indian retail industry is pegged at $ 300 billion and growing at over 13% per year. Of this,
presently, organized retailing is about 5%. This is expected to grow to 10% by 2011. RRL has
embarked upon an implementation plan to build state-of-the-art retail infrastructure in
India, which includes a multi-format store strategy of opening neighborhood convenience
stores, hypermarkets, specialty and wholesale stores across India. RRL launched its first
store in November 2006 through its convenience store format ‘Reliance Fresh’. Since then
RRL has rapidly grown to operate 590 stores across 13 states at the end of FY 2007-08. RRL
launched its first ‘Reliance Digital’ store in April 2007 and its first and India’s largest
hypermarket ‘Reliance Mart’ in Ahmedabad in August 2007. This year, RRL has also
launched its first few specialty stores for apparel (Reliance Trends), footwear (Reliance
Footprints), jewellery (Reliance Jewels), books, music and other lifestyle products (Reliance
Timeout), auto accessories and service format (Reliance AutoZone) and also an initiative in
the health and wellness business through ‘Reliance Wellness’. In each of these store
formats, RRL is offering a unique set of products and services at a value price point that has
not been available so far to the Indian consumer. Overall, RRL is well positioned to rapidly
expand its existing network of 590 stores which operate in 57 cities.
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During the year, RRL also focused on building strong relationships in the agri-business
value chain and has commenced marketing fruits, vegetables and staples that the
company sources directly to wholesalers and institutional customers. RRL provides its
customers with high quality produce that has better shelf life and more consistent quality
than was available earlier. RRL has made significant progress in establishing state-of-the-
art staples processing centres and expects to make them operational by May 2008.
Through the year, RRL also expanded its supply chain infrastructure. The Company is
fully geared to meet the requirements of its rapidly growing store network in an efficient
manner. Recognizing that strategic alliances are going to be a key driver to its retail
business, in FY 2007-08, RRL established key joint ventures with international partners
in apparel, optical and office products businesses. Further, RRL will continue to seek
synergistic opportunities with other international players as well. This year, RRL will
continue its focus on rapid expansion of the existing and other new formats across India.
Mukesh Ambani-promoted Reliance Retail has launched its first hypermarket – Reliance
hypermart - in Ahmedabad that will sell farm produce to general merchandise at budget
friendly prices even as the company mulls setting up 500 such superstores across India by
2010
Reliance has already established a big place for it in the booming retail market of India.
Already, medium sized Reliance Fresh stores are offering good service to people across
India. Punjab has emerged as a big market for these big retail players and therefore, these
retail giants are targeting big cities of Punjab like Ludhiana, Jalandhar, and Amritsar etc.
Newly opened Reliance Super store in the basement of Flamez Mall is presently a new
attraction in Ludhiana .
At Reliance Super store people can easily buy anything from electronics to vegetables,
eatables to apparels etc. Hardly, there is anything which people cannot find in this store.
Already, many people are finding this store an attractive option for buying important
items. So far, this is the only big store available in Ludhiana where people can easily buy
all items under the same roof. Moreover, at Reliance Super people can get many
attractive deals and discounts from time to time for Reliance One card holders.
In future, these kinds of stores will become big reality and mostly people will then like to
buy essential items from these stores only. Reliance Super is also expanding its store on
3rd floor of Flamez Mall, which will take some time in completion. After completion,
this will be biggest store available in Ludhiana where we can easily buy anything of our
requirement. People of Ludhiana are really getting many world class facilities in their
own city thanks to retail boom of India
Strength:-
India’s biggest conglomerate.
First to start retail trend in India.
Market value US$ 35 billion
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Turnover of US$ 27 billion in 2007.
Investing US$ 5 billion in pan-india retail including both small & super stores.
Generating 1 million jobs
Reaching annual sales of US$ 25 billion by 2011
Free membership card to its customer.
Firsthand knowledge of retail business.
Small retailers are a powerful lobby that Made RIL to take on international retail
giants.
Latest software and technology used like, SAP, RETALIX(used by wall mat except
reliance retail ltd.)
Weakness:-
Lack of detailed region specific customer data.
Less data on spending pattern.
Lack of trained personnel at all level.
Inefficient ERP, SCM.
Insufficient stock.
No proper system to solve customer complaints regarding products.
Oppourtunities:-
India ranks 1st for top international destination for retail investment.
U.S $ 350 billion retail market.
96% market share is held by 12 million family run shops.
4th largest economy in purchasing parity terms after US, china & Japan.
Retail sector will grow 35% in 2008.
Virgin territory for organized retail investment.
2-6% of total retail.
Expected to increase to 15-18% by 2011.
Food retailing is expected to grow to US$ 1.6 billion.
Apparel to increase by 9.5% by 2010.
Threats:-
Wall-Mart
Vishal Mega Mart
Future group- Big Bazaar, Food bazaar, pantaloons, brand factory, e-zone, central
mall, furniture bazaar etc.
Spencer
Aditya Birla Group- petre england people store, more.
TATA group- westside, tanishq store, titan store, star india bazaar, landmark, croma
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VISHAL MEGAMART is a retail house in India. As of April 30, 2007, it
operates 50 retail stores, including two stores which are operated by their
franchisees. These 50 stores are spread over about 1,282,000square feet and
are located in 18 states across India. In its efforts to strengthen thier supply
chain, it has set up seven regional distributions centres and an apparel
manufacturing plant.
It follows the concept of value retail in India. In other words, their business
approach is to sell quality goods at reasonable prices by either
manufacturing themself or directly procuring from manufacturers
MISSION STATEMENT:
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VISION STATEMANT:
We share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption
space leading to economic development
Company Summery
“Future is thinking beyond horizon” & in order to keep its pace with
the modern retail, Vishal Retail Limited is spreading its wings. Instead of
resting on its laurels the Group are busy identifying new avenues of growth
by venturing in other formats like cash & carry, convenios as well as
specialty stores and inspiring local retailers to grow along with the big
names. The group has tied up with HPCL to open corner stores at their petrol
pumps and in addition to the above Vishal has come up with an institute to
train manpower for the service industry.
As of April 30, 2007, it operates 50 retail stores, including two stores
which are operated by their franchisees. These 50 stores are spread over
about 1,282,000square feet and are located in 18 states across India. In its
efforts to strengthen thier supply chain, it has set up seven regional
distributions centres and an apparel manufacturing plant.
Today Vishal Retail Limited, Flagship Company of Vishal Group, engaged
in Hyper Market stores with an average area of 25,000 to 30,000 sq. ft.
through an impressive chain of more than 100 fully integrated stores in
spread of more than the area of around 22, 00,000 sq. ft. in 69 cities across
India & has a plan to cross total retail area of 35 lakh sq. ft. in tier II and tier
III cities by the end of 2009.
According to Mr. Ram Chandra Agarwal, CMD, Vishal Retail
Limited, the group owes its origin to a small 50 sq ft shop in Kolkata's Lal
Bazaar that started selling readymade garments. In tune with the pulse of the
market, he envisioned a mega store that would sell garments at prices none
other could match. . The first big store opened in Calcutta's Esplanade area
in 1997, under the banner of Vishal Garments. He was involved in all the
aspects of the business: right from sourcing the garments to interacting with
customers. And this led to his greatest finding “The Vishal Group.”
After identifying the immense market in fashion garment for the
masses, He moved to Delhi in 2001 and opened his first store in Delhi’s
Rajouri Garden by the name of Vishal Mega Mart (The jewel in Vishal
Group’s crown) and then there was no looking back for Mr. Ram Chandra
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Agarwal. At present, in addition to garments, Vishal Mega Mart stores retail
the entire range of household products, FMCG and electronic goods.
Vishal's prices are roughly 15 to 20 per cent less than other mass market
garment labels.
Mr. Ram Chandra Agarwal, CMD, Vishal Retail Limited believes that
the shopping habits of Indians are changing due to their growing disposable
income, higher aspirations, relative increase in the younger population, and
the change in attitudes towards shopping. The emphasis has changed from
price consideration to design, quality and trendy. Age is also a major factor
that affects the spending decisions of an individual. Consumer spending is
an important factor that affects the economic growth and development in a
country. As a trend, consumer is more educated. He has access to all reforms
taking place through various arrays of communication. He is becoming a
“value shopper” everyday.
Keeping this in mind, the group is now looking for franchisees to join
hands with Vishal and grow under common banner. This partnership will
help small retailers to survive the onslaught of organized retail as it will
enhance their competitiveness. Small stores can avail of the benefits on
account of the economies of scale, a key advantage for big retailers.
As per the plans, Vishal Retail will completely take over the supply
chain of its franchisees and provide them with technology, new practices,
visual merchandising skill and special promotional schemes, besides its
brand and costumer base.
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Wal-Mart, the US-based
based world’s largest retailer, is here! Of course, through Bharti Retail,
its franchisee partner for front
front-end
end retail in India. Bharti Retail, a part of Mittals owned
Bharti Enterprises– India’s largest mobile telecom player
player– rolled
lled out first cluster of its
three convenience stores in Ludhiana (Punjab) on Wednesday, the 16th April, 2008.
Ludhiana, incidentally, happens to be the home town of Mittals, who before their
meteoric rise in telecom business, were engaged in the busines
businesss 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,
key, perhaps, to avoid any adverse reaction from political activists and lobbies
of small traders.
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
physically-challenged
persons from local areas for its operations. It has also announced to to give preference to
people from local
ocal communities for employment in its retail chain. It will also provide
intensive and structured training in retail to such people at Bharti Academy of Retail,
which has specifically been set up by the company. In fact, it has already provided such
training
ing to over 1,800 persons.
“Easy Day” retail stores, typically measuring between 2,500 and 4,500 sq ft of space,
apart from stocking food and grocery will among others also offer personal care products,
stationery, household articles, processed foods, mea
meat,
t, poultry and fresh produce including
bakery and dairy products. Although, Wal Wal-Mart
Mart has revolutionised retail business the
world over with its “Every Day Low Prices” concept, there has so far been no word about
Easy Day’s pricing policy as yet.
aving initially flirted with the UK’s Tesco, ultimately decided to tango with
Bharti, having
Wal-Mart
Mart for its retail foray, in the beginning of 2007. While, Bharti has inked a 50:50
joint venture agreement with WalWal-Mart
Mart for wholesale cash and carry business, in view of
the
he government restrictions on foreign investment in multi
multi-brand, front-end
end retail, it had
to make do with technical services agreement with the retail giant for its front front-end
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business. As part of this agreement, besides putting in place infrastructure for
distribution, logistics and vendor management, Wal-Mart has agreed to provide its its
globally adopted supply chain management and training standards to Bharti.
Bharti, which in the next five years intends to invest US$ 2.5 billion, or around Rs.
10,000 crore, has plans to eventually occupy 10 million sq ft of retail space and offer
employment to 60,000 people. Besides expanding “Every Day” convenience stores
format, Bharti will soon roll out multi format retail stores including supermarkets
measuring between 30,000 sq. ft and 50,000 sq. ft, and hypermarkets measuring between
75,000-125,000 sq. ft.
Wal-Mart is known for its big box format stores, though, it has toyed in a small way with
small format in countries like Mexico, outside the US. There is also speculation,
however, about Wal-Mart setting up relatively small sized city centre style stores in the U
S, as well.
Bharti Retail is slated to also open the first cash-and-carry store in equal partnership with
Wal-Mart before the end of this year with plans plans to set up around 15 stores by 2015.
The management of Bharti Wal-Mart may have suppressed the press from creating a big
hype. However, our retail analyst [ Other bloggers didn't stop, OmRetail has Exclusive
Photographs of Easy Day Retail Supermarket ] couldn't resist from visiting the store and
filing this review.
Each store is about 2,500 to 4,500 sft in size and is projected as one stop shop for day-to-
day family requirements such as groceries, personal care and household products. The
company is planning to setup these stores on PAN India basis and they refused to give
any further details on the project. The first 3 stores are opened in Ludhiana, the
hometown of Sunil Bharti Mittal.
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Great Value Private Label Brand:
The company has introduced its own private label under the brand name Great Value.
Most items are in the grains and pulses categories. With increasing number of retailers,
discount is what most consumers look for.
Each store has 12-15 employees including a store manager without any gender of age
bias. The company has also established "Bharti Academy of Retail" in association with
Global Retail School of Chandigarh for imparting training for the retail business.
In its first phase of operations, Bharti Retail has opened 59 Easy Day stores in Punjab,
Haryana, Rajasthan, Uttar Pradesh and New Delhi. In addition, it also has launched three
compact hyper stores called Easy Day Market in Punjab. The company has deliberately
focused on north India in its first phase of operations in an effort to consolidate presence
in one market, before expanding to another region. The Easy Day stores source fresh
fruits and vegetables from Bharti-Walmart. In an interesting HR innovation the stores
plan to tap workforce from the likes of cart vendors, housewives and retired personnel, by
offering flexi-hour work schedules. Such groups of persons will also be enrolled for
structured training modules at the Bharti Retail Academy.
Big Bazaar is both big and a bazaar. It is unlike, say, a Walmart or even a Food world.
Big Bazaar is almost an air-conditioned version of any Indian bazaar. It is a slightly
orderly and organized version of, say Chickpet for Bangalore guys or Dadar for
Mumbaiites. There is a huge crowd which can move in almost any direction. You can
buy anything (pretty much everything is available at Big Bazaar). It is not a place where
you can browse through at leisure and pick up a few things here and there. This is a place
if you are serious about your shopping. And the worst part is at the checkout counter,
where the line can stretch as much as a line for a famous Ganpati Pandal or a cricket
match. Parking is a pain too.
But, the place ticks. In both Hyderabad and Bangalore, the outlets don’t have a place for
customers to stand esp. on weekends. Customers wait outside it some before it opens in
the morning. Bombay is slightly better. Big Bazaar offers good prices-Really good prices.
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 their success.
The focus is on continuing to provide very high ‘value for money’ to customers by
providing exciting offers throughout the year. It will be facilitated by constantly working
on its buying and supply chain efficiencies. Having already achieved economies of scale
and size, they intend to better their gains by opening new stores regularly.
One of the key philosophies of Mr Biyani that is highly followed is ‘Rewrite rules, retain
values.’ In essence, it means they don’t take anything as fixed. They are constantly on the
lookout for finding new ways and means to improve the current state of affairs. Thus,
innovation is a very important aspect of their working strategy. The other very important
philosophy is that of Indian ness. All their concepts and formats as well as the way they
go about things are very Indian. The way Big Bazaar is designed and the way the whole
concept has developed reflects a sense of Indian ness.
This is a well articulated print advertisement campaign for Big Bazaar to highlight their
unique marketing strength, ‘extreme low price’. However, even before this idea has been
exercised to highlight a product by placing it in a stark different environment.
Nevertheless, this advertisement campaign is very well crafted out. Further, the ad is not
at all confusing and it straight way conveys the message without loosing focus.
Like the marketing strength of the company, this campaign is too cost effective. Further,
the ad has the capacity to attract immediate people’s attention. The tag line of the ad is
‘Surprisingly Inexpensive’. The ad has been created by Mudra DDB Communication.
The company recorded around one million foot fall from 26th to 28th January this year in
2007,which were termed as “SABSE SASTE 3 DIN”,”MAHA SAVING OFFER”, which
was 43 crore last year.
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.
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.
Store in Ludhiana
Ludhiana
Address:
Street No. 8, Evershine Furniture, New Janta Nagar. 141003
Tel: 0161-6454304
Address:
Sahi Furniture, Krishna Nagar, Main Market, PAU Road. 141001
Tel: 0161-6454306
Address:
527-L, Model Town, Main Road. 141002
Tel: 0161-6455402
27
OTHER RETAILERS IN NORTH INDIA
Indiabulls mart
Indiabulls group, which began its business foray first as a capital market
intermediary, delving into real estate business thereafter, entered the
booming retail sector, by acquiring entire retail business of Piramal group
being conducted under ‘Pyramid’ brand, has completed the process of
rechristening Pyramid retail formats as Indiabulls Megastore and Indiabulls
Mart. There are only few stores located in Ahmedabad City
Spencer
Spencer’s Retail is one of India’s fastest growing retail stores with multiple
formats and retailing food, apparel, fashion, electronics, lifestyle products,
music and books. Established in 1996,
• Spencer’s Hypermarkets
• Spencer’s Super
one of the largest supermarket chains in the food and grocery segment in
India.
28
• Spencer’s Daily
A. Spencer’s Express
6Ten stores
Subhiksha
29
Future Group
The group's subsidiary companies include, Home Solutions Retail India Ltd,
Pantaloon Industries Ltd, Galaxy Entertainment and Indus League Clothing.
The group also has joint venture companies with a number of partners
including French retailer Etam group, Lee Cooper, Manipal Healthcare,
Talwalkar's, Gini & Jony and Liberty Shoes. Planet Retail, a group company
owns the franchisee of international brands like Marks & Spencer,
Debenhams, Next and Guess in India. Future Group companies also
includes, Future Capital Holdings, Future Generali India Indus League
Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and
Bowling Co. Future Capital Holdings, the group’s financial arm, focuses on
asset management and consumer credit. It manages assets worth over $1
billion that are being invested in developing retail real estate and consumer-
related brands and hotels.
The group’s joint venture partners include Italian insurance major, Generali,
French retailer ETAM group, US-based stationary products retailer, Staples
Inc and UK-based Lee Cooper and India-based Talwalkar’s, Blue Foods and
Liberty Shoes.
30
Partner Companies
Footmart Retail
GJ Future Fashions
31
REVIEW OF LITERATURE
Retail is India's largest industry. It accounts for over 10 per cent of the
India's GDP and around eight per cent of the employment. Retail
sector is one of India's fastest growing sectors with a 5 per cent
compounded annual growth rate. India's huge middle class base and
its untapped retail industry are key attractions for global retail giants
planning to enter newer markets. Driven by changing lifestyles, strong
income growth and favorable demographic patterns, Indian retail is
expected to grow 25 per cent annually. It is expected that retail in
India could be worth US$ 175-200 billion by 2016.
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.
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
retail business.
Trained human resource for retail is another big challenge. The talent
base is limited and with the entry of big giants there is a cat fight
among them to retain this talent. This has resulted in big salary hikes
at the level of upper and middle management and thereby eroding the
profit margin of the business.
But retail offers tremendous for the growth of Indian economy. If all
the above challenges are tackled prudently there is a great potential
that retail may offer employment opportunities to millions living in
small town and cities and in the process distributing the benefits of
economic boom and resulting in equitable growth.
34
CHAPTER 2
RESEARCH OBJECTIVES
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
After the whole project I can conclude my work as per the following
points.
2. Indians are price sensitive they seek value for money so price also
matter for Indian customers
5. The reason for which people prefer to buy from organized retail
store is variety of product available under one roof and customer has
not to move from one shop to another shop for his/her daily needs
36
MAKINGS OF THE PROJECT REPORT
PROJECT TITLE
Consumer Attitude
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 Ludhiana some of them are working good
means high sales and some of them are not working well means low sales.
So, I had been selecting 5 stores to do catchment study
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
Purchasing pattern
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 Area in SFT 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 Approx Employee 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
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
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.
Sample Size: 50 visiting customers from each mega mart were personally
interviewed that make a sample size of 250 customers
Data Collection
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
Female 62%
Male 38%
30%-45% 24%
45%-60% 12%
60%-75% 8%
More than 75% 6%
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.
44
(D)What
What is your Family Size (No. of Member)?
FAMILY SIZE LUDHIANA
2 Members 25
3 Members 75
4 Members 87
5 or Above 63
87
90 75
80 63
70
60
50
40 25
30
20
10
0
2 3 4 5 or
Members,10% Members,30% Members,35% Above,25%
LUDHIANA
45
LUDHIANA
100
80
50
10 10
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. 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%
18% Engg.
4%
Govt.
Employee
Any other
46
After dividing the respondents on the basis of gender, they are further divided according
to their profession.
ssion. In the profession wise distribution it is found that maximum
respondents are housewives, because they are more related with FMCG goods. In this it
is found that out of total respondents 30% are housewives, 26% are teachers, 18% belong
to business background,4%
ckground,4% are doctors,6% are from private job, 2% are engineers, 6%
are govt. employees, 8% are from other backgrounds.
(F) .What
What is your monthly family income?
Ans.
Income slab
140
120
100
Axis Title
80
60
40
20
0
Rs. 5000
5000- Rs. 15000- Rs. 25000- Rs. 50000
15000(52%) 25000(26%) 50000(14%) plus(8%)
No. of People 130 65 35 20
47
As per survey conducted
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
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
50
37 37
50
0
Leisure time activity
Children’s demand
Purchase of special
Purchase
products
of general products
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.
Yes
No
This is the first question which is asked from the respondents in order to check the
awareness of organized FMCG retail. In this question I tried to find out how many
respondents are aware about organized FMCG retail. In this survey as I include the
educated
ed professionals (Through Exit Interview) from different backgrounds, so everyone
is aware about organized FMCG Retail. Hence 100% respondents are aware about
organized FMCG Retail.
49
(iii) Which Organized FMCG Retail outlets are you aware about?
People Awareness
100% 100%
82%
70%
54%
46%
30%
18%
0% 0%
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 ar
aree aware about
the Reliance Super, Big Bazzar & Vishal Mega M Mart,
art, because these are older outlets in
the city as compare to another .Also most of the people were not aware about one of the
bigger brand i.e. MORE, E, because it failed to gain the popularity in the city. The
percentage of awareness of different organized FMCG brands is shown in the above
table.
50
(iv) From where do you come to know about the above
store?
Ans.
Family Print media
Analysis:-
No. of People
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 the people
Others like Radio & TV, Friends and informed by family are following nearly
30 to 48 %
So, from the above data we can conclude that still print media is catching the
eyes of consumer.
(v) Where were you shopping before buying from these organized
FMCG retail outlets?
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 purpos
purpose questions
100%
90%
80%
70%
60%
50%
Visited
40%
Not Visited
30%
20%
10%
0%
Relaince Vishal Big Bazzar More Easy day
Super Mega Mart
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
dents had visited Reliance Super, Easy Day & Vishal Mega Mart.
The percentage of respondents visited diffdifferent
erent 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
ts purchased from Relaince Store,
Big Bazaar & Vishal Mega Mart because these were the oldest in the market & had made
good reputation in the Ludhiana market. In this question it was also found that
respondents purchased very less from MORE because it not so much Popular among
the People because they are lacking in awareness. The purchase pattern of
respondentsts explained in the below table
Analysis:-
No. of People
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.
09% of People are purchasing their daily needs from More, Well
More (Aditya Birla Group) is not so much Popular among the
People because they are lacking in awareness
18% of People are purchasing their daily needs from other Stores
like Vishal Mega Mart etc.
It shows that people still like to purchase from Mom and Pop store
and Street Vendors because they are situated very near to them.
55
Q 3.. How frequently do you purchase?
Ans.
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
100% 8
12 40 38
90% 5 42 50
80%
70% 108 60 82
60% 125
50% 171
57 28
40%
30%
117 38 77
20% 66
10% 40 28
8 17 25
0% 5 3
F&V Grocery Cosmetics Beverages Ready to food
56
As per survey conducted
It has been observed that people mostly prefer to buy fruits and
vegetables daily or weekly as they are perishable product and they are
too difficult to store without refrigerator and most of the surveyed
people come under monthly family income slab of Rs. 5,000-15,0000
While grocery and staples product are purchased at least once in a
month, because they are not perishable like Fruits & Vegetable and
this is people tendency to preserve grocery and staples once in week
Some of the people prefer to preserve grocery and staples only once in
a year
While cosmetics and ready to eat food are meant to be bought at least
once in a month because it has been clearly observed in the survey
that people from Ahmedabad city especially women are not very fond
of cosmetics product any how.
Q.4 How many time do you visit the organized FMCG retail outlets in a month?
In this question I tried to find out the frequency of respondents to visit the organized
retail outlets in a month. In this question most of the respondents visit the organized retail
outlets 2-4 times in a month. The exact %age is shown in the above table.
Frequency Percentage
Once 14%
2-3 Times 46%
3-4 Times 32%
More than 5
Times 8%
57
50%
45%
40%
35%
30%
25%
Percentage
20%
15%
10%
5%
0%
Once 22-3 Times 3-4 Times More than 5 Times
Ans.
Less than 3 K.M 3 K.M -6 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
6%
16%
50%
28%
No. of People
58
It has been observed that People always prefer to buy their daily needs
from the nearest store which is less than 3 K.M
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.
Ans.
First week of month Mid of the month
Analysis:-
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%
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
ek of the starting month
So, we can conclude that people like to buy when they feel need of that
particular product.
60
Q.7. How much of your monthly budget grocery products are you shopping from
these organized FMCG retail outlets?
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.
Q.8. What is your average one time purchase at FMCG retail outlets in rupees?
This question was asked to the respondents in order to find out their average one time
purchase at the organized retail outlets. In this 44% of the respondents told that they
purchase between 1000-1500 Rs. At one time.26% of the respondents told that they spent
1500-2000 at one time purchase at organized retail outlets.14% said that they spent more
than 2000 at one purchase, while 16% said that they purchase below INR1000 on an
average purchase at organized retail outlets.
61
45%
40%
35%
30%
Axis Title
25%
20%
15%
10%
5%
0%
1
Below1000 16%
1000-1500 44%
1500-2000 26%
More than 2000 14%
Q.9. Do you think by shopping at organized FMCG Retail outlets your monthly
Expenditure:
1. Increased 2.Remain same 3.Decreased
40%
35%
30%
25%
20%
15% Reduced
Remain same
10%
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
utlets their monthly expenditures increased, decreased or remain same. In this 38% of
the respondents replied that their total expenditure increased by purchasing from the
organized retail outlets.34% of the respondents replied that their expenditure remai
remain
same. While remaining 28% said that their expenditure were reduced by purchasing from
organized retail outlets.
Q.10.. In future will you spend more at organized FMCG retail outlets?
This question is asked from the respondents to find out that in 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
Definitely Yes
0%
1
Definitely No 4%
No 16%
Can't Say 34%
Yes 34%
Definitely Yes 12%
63
Q 11. Do you find
nd the pricing of Organized retail stores is less than
other store?
Ans.
Yes No Equal
Analysis:-
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 betwe
between
en prices of Reliance fresh
and other stores.
Q.12. What are the problems you faced when you shop from these organized FMCG
Retail Outlets?
This question was asked from the respondents in order to found the problems which they
had faced while purchasing
urchasing from the organized retail outlets. In this maximum number of
respondents said that they faced the problems at billing counters due to long queues. 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%
65
Q.13. Do you think the market share of unorganized retail will:
0%
16%
22%
Definitely Increase
Increase
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.
Ans.
Co-Operative Rude
66
Analysis:-
Co-Operative,
86, 63%
Rude, 18, 13%
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:-
Poor, 6, 4%
Average, 18,13%
Excellent, 47,
35%
68
While 48% of surveyed people find it good means they don’t have to
wait for their turn
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 weree 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.
Analysis:-
100% 12 12 12
14 16 15
90% 15
34 31 45 51
80%
70% 115
60%
170
50% 155 153
135
170
40%
30% 104
20%
10% 49 51 47 49
19 23
0%
Convenience Ambiance Price Quality Service Product
Availability
70
As per survey conducted
Ranking
Ranking-Quality Preference
32%
25%
17% 16%
10%
In this question the respondents were asked to rank the main organized FMCG retail
outlets in the city on the basis of Quality. On the basis of quality most of the re
respondents
nd
ranked Reliance as no. 1 as 32%2% of respondents favors it. The 2 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 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
32%
16%
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 bas
of the respondents ranked Easy Day
position is occupied by Reliance as 3
service the third position is occupied by Big Bazaar
favor.
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 re
favors it. The 2nd position is occupied by Easy Day as 26
In case of Product range the third pos
speaks in its favor.
Q.16 D) Ranking on the basis of Price:
Ranking
Ranking- Price Preferance
26% 24%
22%
15% 13%
In this question the respondents were asked to rank the main organized FMCG retail
outlets in the city on the basis of Prices charged by them. On the basis of Price most of
the respondents ranked Big Bazaar as no. 1 as 26% of respondents favors it. The 2nd
position
osition is occupied by Reliance as 24% respondents spoke in its favor. In case of Price
the third
ird position is occupied by Vishal Mega Mart as 15% respondents speaks in favor
favor.
Q.16 E) Ranking
nking on the bases of Product Display:
25%
22%
25% 20%
17% 16%
20%
15%
10%
5%
0%
Easy Day Big
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 Display of the outlets. On the basis of Display most oof
Reliance’s as no. 1 as 20% of respondents favors it. The 2nd
the respondents ranked Reliance
position is occupied by Easy Day was supported by 18% respondents. In case of Display
the third position is occupied bby Big Bazaar & Vishal Mega ega Mart as each was supported
by 17% of the respondents.
73
anking on the basis of Time saving:
Q.16 F) Ranking
25%
22%
19% 19%
15%
In this question the respondents were asked to rank the main organized FMCG retail
outlets in the city on the basis of Time saver. On this basis mos
mostt of the respondents
nd
ranked Reliance as no. 1 as 25
25% of respondents favors it. The 2 position
on is occupied by
easy Day as 22%% respondents spoke in its favor. In case of Time saving the third pposition
is occupied by Vishal Mega Mart & More both 19 19%% respondents speaks in its favor.
Q 17.. According to you what are important factors for you when you
go for shopping? (Rank 1 to 5)
Ans.
Location Customer Services
74
Graph showing customers preference for selection retail outlet
9 16
33 50 37
27 75
38 63 63 142
57 62
70 82
48
52
95 37 17
59 45 22
30 21
38%
% of people prefer location as their first priority to buy their
daily needss because everybody in Ludhiana is looking for
convenience
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 retail outlets.
Better Quality
12%
18%
Reasonable Price
8%
Product Range
Good Enviournment
14% 18%
Time Saving
Display Of Products
4% Discounts&Promotional
26% Schemes
Q.19. 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 than 75%
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
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
Location
Quality
Variety
Customer Service
80
• Ready to food like Maggie, Biscuits and Kharkharas are bought
on weekly basis
• 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
• 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
• 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
83
RECOMMENDATION
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 a chain
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”
85
CHAPTER 6
1. Certain unavoidable errors will come into the study like non-response error,
3. 'Drop in' or 'Go through' error might distort the findings of the research.
Limitations
Time was the major constraint, which prevented me to put in more effort.
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
87
CHAPTER 8
BIBLIOGRAPHY
WEB LINKS-
http://www.vishalmegamart.net
http://www.thoughtsofanordinaryman.com/2008/06/review-reliance-super-
ludhiana.html
http://www.indiainbusiness.nic.in/economy/retail.htm
http://www.financialexpress.com/news/bharti-launches-easy-day-stores-in-
ludhiana/297827/
http://www.indiaretailbiz.com/blog/2008/04/17/wal-mart-backed-bharti-enters-
retail-with-debut-of-every-day-chain-in-india-launches-3-convenience-stores-in-
ludhiana/
http://www.economicstimes.com/
http://www.bigbazaar.com/
http://www.magportal.com/
http://www.retailindustry.about.com/
http://www.hindubusinessline.com/
www.Google.com
www.rai.com
www.ril.com
www.reliancefresh.info
BOOKS REFERED-
Belch. E. George and Belch. A. Michael, “Advertising and Promotion “Sixth Edition,
Tata Mcgraw Hill.
88
ANNEXURE I
QUESTIONNAIRE
General questions:
Name : _________________________________________________
Address : __________________________________________________
__________________________________________________
___________________________________________________
89
PROFESSION/OCCUPATION:-
5000-15000 15000-25000
Warm up questions:
Que.2: Are you aware about the organized Retail Outlets in Ludhiana?
Yes No
Que.3: Which organized FMCG Retail outlets are you aware about?
90
Que.4. from where do you come to know about the above store?
Ans.
Family Print media
Radio and TV
Que.5. where were you shopping before buying from these organized
FMCG Retail Outlets
Que.6. Have you ever visited Organized Retail Store? (If yes than only
go ahead)
Ans.
Yes No
91
Q.2 Out of these organized FMCG Retail Outlets where do you
generally purchase from?
Ans.
Q.4. How many time do you visit the organized FMCG Retail
Outlets in a month?
Ans.
Less than 3 K.M 3K.M -6 K.M
92
Q6. When do you purchase more?
Ans.
First week of month mid of the month
Q.7. How much of your monthly budget grocery products are you
shopping from these Organized FMCG Retail Outlet?
1,500-2000 2,000-2500
93
Q11. Do you find the pricing of the above stores is less than
traditional store?
Ans.
Yes No Equal
Q.12. what are the problems you face when you shop from these
organized FMCG retail outlets? (Specify)
Ans.
Co-Operative Rude
94
Q15. Rate the following on the basis of your experience?
Ans.
1. Excellent 2. Good 3. Average 4.Poor
Q17. According to you what is important thing for you when you
go for shopping? (Rank 1 to 5)
Ans.
Location Pricing & Discounts
Variety
95
Q.18.What is your reasons for purchasing from these organized
FMCG Retail Outlets? (Mark only 3)
1) ________________________________________________________
2) ________________________________________________________
3) ________________________________________________________
96