To Study The Consumer Behaviour in Max Lifestle Retail, Lucknow

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ACKNOWLEDGEMENT
Concentration, dedication and application are necessary but not sufficient to achieve any
goal. These must be awarded by guidance, assistance and co-operation of some person to
make it enable.
Many people have given their valuable time and ideas to enable me to complete the
research and the report. I am deeply indebted to all for their ideas and assistance, while
bearing the entire responsibility for weakness in the report.
I am highly obliged to MR. NIKHIL RANJAN (STORE MANAGER) and MRS. RITA
CHATTERJI (ASSISTANT STORE MANAGER), MAX LIFESTYLE, LUCKNOW
for providing me an opportunity to undergo this project report.
I am also indebted to MR. RAZAUR RAHMAN & ALL FACULTY MEMBERS of
SRMCEM, LKO who have been a constant source of inspiration and provided guidance
to me at every point of time.
My gratitude to all those, who RESPONDED TO MY QUESTIONNAIRE in a well
defined manner and helped me acquiring knowledge.
Lastly, I thanks all those, who have directly or indirectly, helped me in this project..
ABHISHEK PANDEY
ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

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PGDM- I YEAR
DECLARATION
I, ABHISHEK PANDEY, student of POST GRADUATE DIPLOMA IN
MANAGEMENThereby declare that the project report entitled “A DETAIL STUDY OF
CONSUMER BEHAVIOUR AND BUYING BEHAVIOVR OF CUSTOMERS IN MAX
STORE OF LUCKNOW CITY” has been compiled by me on the basis of my project report and
has not been submitted any where in any manner.
It is a report, which is based on various interviews, surveys that is conducted during my
project report period in LUCKNOW as a student of P.G.D.M. from “SHRI
RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW.”
ABHISHEK PANDEY
PGDM- I YEAR

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EXECUTIVE SUMMARY
This study is a modest effect at understanding the consumer behavior especially in
retail store in Lucknow. Analysis to Lucknow people perception of retail store (survey
only retail channel in Zee mall). The survey was constituted in visiting of Zee Mall
Customers were interviewed by means of carefully prepared questionnaire to study and
understand customer behaviour in depth. I study also the consumer decision making in
retail store in Indian city and what effect consumer decision-making in retail store.

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PREFACE
The sea of change can pull customers in many directions. It is our responsibility to light the way
and take care of them… before the competition does.
RETAILING Means Re-tailing to the customers so that they comeback
Retailing consists of all activities involved in selling goods and services to consumers for their
personal, family, or household use. It covers sales of goods ranging from automobiles to apparel
and food products, and services ranging from hair cutting to air travel and computer education.
Sales of goods to intermediaries who resell to retailers or sales to manufacturers are not
considered a retail activity.
The retail sector in India is highly fragmented with organized retail contributing to only 2% of
total retail sales. The retail sector in developed countries was also highly fragmented at the
beginning of the last century but emergence of large chains like Wall Mart, Sears, and
McDonald’s led to rapid growth of organized retail and growing consolidation of the retail
industry in the developed countries.
Organized retail is growing rapidly and we see the emergence of large organized retail chains like
Shopper’s Stop, Lifestyle, and Westside. We also find retail malls mushrooming all over the
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country. The opportunities in retail industry in India will increase since Indian retailing is on the
threshold of a major change.
The study of retailing is very important to MBA students interested in employment opportunities
with large retail chains.
The remarkable world of Retail

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Retailing
including all
activities
involved in
selling goods or
services directly
to the final
consumers for
personal, non
business use
Any organisation
selling to final
consumers-
whether it is a
manufacture,
whole seller, or
retailer – is
doing retailing.
Consumers
today can shop
for goods &
services in a
wide variety of
retail Org. The
best- known type
of retail is the
Department
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Retail, according to Concise Oxford English Dictionary, is "the sale of goods to the public for use
or consumption rather than for resale."
World over, the retail segment has performed exceptionally since its inception in the 20th century.
Sample these facts:
➢ Retail is currently the biggest industry in the world with sales of $7.2 trillion
➢ Every 10th billionaire in the world is a retailer.
➢ 25 of the top 50 Fortune 500 companies are in retail.
The Indian retail story couldn't have been more different. India has approx 12 million retail
stores, more than rest of the world put together. But the per capita square feet area under retail is
just 2 sq.ft or 0.2 sq. meters with fragmented keerana stores being the predominant players.
Retailing in India has remained in the unorganized sector and largely untouched by corporate.
The first decade of modern retail in India has been characterized by a shift from traditional
channels to new formats including department stores, hypermarkets, supermarkets and specialty
stores across a range of categories.
Modern retail formats have mushroomed in metros and mini-metros, in the last few years modern
retail has also established its presence in the second rung cities. Thus, exposing the residents of
these cities to shopping options, they have never experienced before. It has been forecasted that
the share of modern retail will increase from 2 per cent currently, to about 15-20 per cent over the
next decade.

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To begin with, retailers today will have to support the large retail infrastructure in terms of
Malls and Superstores that are being created.
The challenge for leading retailers shall therefore shift from diverting demand to creating
demand.
With all the modern stores offering convenience in terms of an assortment of products, ambience,
service and innovative products, the paradigm shall shift from competing with the kirana stores to
an in-house demand creation. Relevant experiences from consumer goods companies, which have
successfully crafted an explosion in demand in their sectors, through innovation, consumer driven
strategies, will be head runner.
Times are changing. With the GDP at an all time high and income levels shooting through the
roof, the average Indian consumer has never had it so good. The propensity to consume has
reached peaks that had never been scaled before. Credit cards are flashed with disdain and
shopping baskets are getting bigger all the time. Here are some factors that indicate the potential
of retail in India:
➢ At 271 million, one of the largest consuming base in the world, forming 27% of the total
population.
➢ A high spending community below 45 years comprises 81 percent of the population.
➢ A young population with 54% population below 25 years
➢ Increased literacy from 44% in 1965 to 70% in 2003
➢ Increase in working women from 1.3 million in 1961 to 4.8 million in 1998.

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➢ Increase in media penetration to 38-million cable household and 80-million TV household
in 2001
The first decade of modern retail in India has been characterized by a shift from traditional kirana
shops to new formats including department stores, hypermarkets, supermarkets and specialty
stores across a range of categories. Modern retail formats have mushroomed in metros and mini-
metros. In the last few years, modern retail has also established its presence in the second-rung
cities, exposing residents to shopping options like never before. However, even as modern
retailers garner share from traditional channels, there is a larger role they would be required to
play in boosting consumption levels.
Figures suggest that the total turnover of the sector is around Rs 10 lakh crores, of which 4 per
cent is contributed by the organised sector.
During the last decade, India's middle- and high-income segment notched up an impressive 105
per cent growth. This segment has been triggering the demand for consumer goods. Increased
awareness, free access to information and choice in competing products and services are making
customers redefine the retail business. They are on the lookout for convenience, speed, efficiency
and a wide range of products. Retailers need to explore different channels of retailing to cater to
customers' needs.
The days of brick-and-mortar's limited potential are fading and retailers need to tap the immense
opportunities that other channels offer.

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Driven by increasingly intense competition in an increasingly global marketplace, retailers must
seek new ways of capturing the hearts and minds of consumers. The traditional levers of price,
selection and location — although still important — are no longer sufficient as bases for
competitive differentiation. Retailers should be focused on improving the end-to-end shopping
experience, boosting sales and winning customer loyalty by connecting to the shopper in every
possible way.
Multichannel retailing is all about giving the customer a choice of which shopping channel he or
she wishes to purchase products through. The most popular shopping channels include the stores,
Internet and catalogues and telemarkets (including mobile shopping).
Retailers must provide a seamless multichannel experience for their customers. For this, they
become the most valuable consumers within a retailer's customer base.
Multichannel retailing needs to be adopted:
• Grow market share
• Increase customer base
• Offer convenience
• Achieve cost reductions through economies of scale, supply chain efficiencies, and
logistics
• Improve customer analytics

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• Opennew revenue streams by cross-sell & sell ups
• Reduce cycle time between order and delivery
• Lower fulfillment cost & Improve demand planning
However, going multichannel, the retailer should not ignore the critical part: the customer.
Customers have become more sophisticated and expect a retailer to recognize them.
Evolution of Indian Retail

Traditional Rural Retail Fairs
Traditional Family Run Convenience Stores
Traditional Rural Retail Fairs
Traditional rural retail fairs are a very big attraction to fo reign tourists. We
have the Pushkar fair in Rajasthan which brings in a lot of revenue both from
domestic buy ers and buyers from abroad. In the Pushkar fair live stock like
camels, horses, cows, goats, and sheep are sold as well as bought. A range of
exotic items are also available. The traditional ite ms here are handmade
jewelry and other colorful memorabilia of Rajasthan.
Traditional rural retail fairs in India deal in a good number of handcrafts

ite ms which are mentioned below:
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• Hand painted wooden chest drawers

• Wooden wall brackets
• Embossed wooden table
• Hand painted chairs in chowki
• Wooden corner stand
• Wooden Hand painted table
• Embossed wooden chairs
• Brown wooden stool
• Camel bone Jewelry
• Metal jewelry
• Snake charmer puppets
• Handmade candles
The Suraj Kund mela is also a huge galore of Indian traditional ite ms. This
fair is held at Haryana which is 8 kilometers from South Delhi. The fair has
been held for the last 20 years. The fair deals in items categorized as
• Indian arts
• Handicrafts
• Heritage
• Culture and tradition
Traditional rural retail fairs have a ty pical rural set up like:
• Huts of mud
• Thatched platforms
• lamps of wood
• String cots
• Plainness ground
The small thatched stores are a vibrant display of handcraft items. The focus
every year is on a particular State for instance, in 2006 it was Maharashtra. The

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other group of ite ms representing the Indian Subcontinent available there

are:
• Classical
• Tribal art
• Folk art
As such Traditio nal Rural Retail fairs involve credit worthy artisans and
weavers of over 350 in number and they are selected from across the country.
Along with the county's rich cultural heritage being showcased, the fair is
open to foreign traditiona l goods as well. The more rejuvenating side of these
fairs would be listed as under:
• Indian Sweets Snacks
• Indian folk music
• Classical dance
• Bengal tiger show
• Elephant rides
• Tiger show and rides
• Giraffe tricks
• Balloon and Clay items
• Painting
• Games
Therefore, traditiona l rural retail fairs are a never ending occupation and the
key to it lies in the originality and attractiveness of the items.
Traditional Family Run Convenience Stores
Traditional family run convenience stores are too well established in India
than to be wiped out and besides there is uniqueness in the traditional items
that represent the sub-continent. The retail stores in India are essentially
dominated by the unorganized sector or traditional stores. Infact the traditional
stores have taken up 98 percent of the Indian retail market. Now stores run by
families are primarily food based and the set up is as Kirana or the 'corner
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grocer' stores. Basically they provide high service with low prices. If the stores
are not food based then the ty pe of retail items available are local in nature.
The traditional family run convenience stores can take pride in the fact that the
Kirana is the most common outlet forms for the consumers. The tough
competition for convenience stores are coming from organized retail stores
dealing in food items, like:
• Apna Bazaar
• Canteen stores
• Food World
• Subhiksha
• Food Bazaar
• Convenience Stores are open for long hours and is one of the formats of
the Indian retail stores that cater to basic needs of the consumer. A good
example of such would be Convenio. These stores are found in both
residential as well as commercial markets. The food products of
traditional family run convenience stores are comprised of branded as
well as non-branded items. The benefits of family run convenience stores
is that they give importance to:
• Personal touch
• Facilities of credit
• Quick home delivery
Non-food based stock comprises of multiple and varieties of local brands.

The future of such stores as they face competition from organized sector,
would depend on the following particulars:
• Place and capacity
• Diligent area coverage
• Disciplined work schedule
• Managing turnover
• Revenue from assets
• Customer service and satisfaction

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The traditiona l family run convenience stores serves the purpose of the
housewives who definitely wants to avoid traveling long distances to purchase
daily needs. The convenience factor in terms of items, among people in general
can be highlighted as below:
• Groceries
• Fru its
• Drug Store
• Necessary stationery
As such traditional family run convenience stores are here to stay and cannot
be oversized by the organized retail sector besides, it represents the variety of
India
Indian retail industry

India retail industry is the largest industry in India, with an employ ment of
around 8% and contribu ting to over 10% of the country's GDP. Retail industry
in India is expected to rise 25% y early being driven by strong income growth,
changing lifesty les, and favorable demographic patterns.
It is expected that by 2016 mo dern retail industry in India will be worth US$
175- 200 billion. India retail industry is one of the fastest growing industries
with revenue expected in 2007 to amount US$ 320 billion and is increasing at a
rate of 5% yearly. A further increase of 7-8% is expected in the industry of
retail in India by growth in consumerism in urban areas, rising incomes, and a
steep rise in rural consumption. It has further been predicted that the retailing
industry in India will amount to US$ 21.5 billion by 2010 from the current size
of US$ 7.5 billion.
Shopping in India have witnessed a revolution with the change in the consumer
buying behavior and the whole format of shopping also altering. Industry of
retail in India which have become modern can be seen from the fact that there
are multi- stored malls, huge shopping centers, and sprawling complexes which
offer food, shopping, and entertainment all under the same roof.

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India retail industry is expanding itself most aggressively, as a result a great

demand for real estate is being created. Indian retailers preferred means of
expansion is to expand to other regions and to increase the number of their
outlets in a city. It is expected that by 2010, India may have 600 new shopping
centers.
In the Indian retailing industry, food is the most dominating sector and is
growing at a rate of 9% annually. The branded food industry is try ing to enter
the India retail industry and convert Indian consumers to branded food. Since at
present 60% of the Indian grocery basket consists of non- branded items.
India retail industry is progressing well and for this to continue retailers as
well as the Indian government will have to make a combined effort.
Indian organized retail market
Indian organized retail market is growing at a fast pace due to the boom in the
India retail industry. In 2005, the retail industry in India amounted to Rs
10,000 billion accounting for about 10% to the country 's GDP. The organized
retail market in India out of this total market accounted for Rs 350 billion
which is about 3.5% of the total revenues.
Retail market in the Indian organized sector is expected to cross Rs 1000

billion by 2010. Traditionally the retail industry in India was largely
unorganized, comprising of drug stores, medium, and small grocery stores.
Most of the organized retailing in India have started recently and is
concentrating mainly in metropolitan cities.
The growth in the Indian organized retail market is mainly due to the change in
the consumers behavior. This change has come in the consumer due to increased
income, changing lifesty les, and patterns of demography which are favorable.
Now the consumer wants to shop at a place where he can get food,
entertainment, and shopping all under one roof. This has given Indian organized
retail market a major boost.
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Retail market in the organized sector in India is growing can be seen from the
fact that 1500 supermarkets, 325 departmental stores, and 300 new malls are
being built. Many Indian companies are entering the Indian retail market
which is giving Indian organized retail market a boost. One such company is
the Reliance Industries Limited. It plans to invest US$ 6 billion in the Indian
retail market by opening 1000 hypermarkets and 1500 supermarkets.
Pantaloons is another Indian company which plans to increase its retail space to
30 million square feet with an investment of US$ 1 billion. Bharti Telecoms an
Indian company is in talks with Tesco a global giant for a £ 750 million joint
venture. A number of global retail giants such as Walmart, Carrefour, and Metro
AG are also planning to set up shop in India. Indian organized retail market
will definitely grow as a result of all this investments.
Indian organized retail market is increasing and for this growth to continue the
Indian retailers as well as government must make a combined effort.
The Global Retail Industry : An Overview
Retail has played a major role world over in increasing productivity across a wide range of
consumer goods and services .The impact can be best seen in countries like U.S.A., U.K.,
Mexico, Thailand and more recently China. Economies of countries like Singapore, Malaysia,
Hong Kong, Sri Lanka and Dubai are also heavily assisted by the retail sector.

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Retail is the second-largest industry in the United States both in number of establishments and
number of employees. It is also one of the largest world wide. The retail industry employs more
than 22 million Americans and generates more than $3 trillion in retail sale annually.
Retailing is a U.S. $7 trillion sector. Wal-Mart is the world’s largest retailer. Already the world’s
largest employer with over l million associates, Wal-Mart displaced oil giant Exxon Mobil as the
world’s largest company when it posted $219 billion in sales for fiscal 2001. Wal-Mart has
become the most successful retail brand in the world due its ability to leverage size, market clout,
and efficiency to create market dominance. Wal-Mart heads Fortune magazine list of top 500
companies in the world. Forbes Annual List of Billionaires has the largest number (45/497) from
the retail business.

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GLOBAL RETAIL
1999 2002 2005

Total Retail (US$ Billion) 150 180 225
Organized Retail (US$ Billion) 1.1 3.3 7
% Share of Organized retail 0.7 1.8 3.2
Rank Retailer Home Country
1. Wal-Mart Stores, Inc. U.S.A.
2. Carrefour Group France
3. The Kroger Co. U.S.A.
4. The Home Depot. Inc. U.S.A.
5. Metro Germany
(Source: STORES / Deloitte Touch Tomahastsu)

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The factors responsible for the development of the retail sector in India can be broadly
summarized as follows:
• Rising incomes and improvements in infrastructure are enlarging consumer markets
and accelerating the convergence of consumer tastes. Looking at income classification,
the National Council of Applied Economic Research (NCAER) classified
approximately 500Io of the Indian population as low income in 1994-95; this is
expected to decline to 17 by 2006-07.
• Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kellogs, Unilever, Nestle, etc. to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers.
• Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc.
• The internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains. Reach of satellite LV. channels is
helping in creating awareness about global products for local markets. About 47% of
India’s population is under the age of 20; and this will increase to 55°h by 2015. This
young population, which is technology-savvy, watch more than 50 TV satellite
channels, and display the highest propensity to spend, will immensely contribute to the
growth of the retail sector in the country.

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As India continues to get strongly integrated with the world economy riding the waves of
globalization, the retail sector is bound to take big leaps in the years to come. The Indian retail
sector is estimated to have a market size of about $ 180 billion; but the organised sector
represents only 2% share of this market. Most of the organised retailing in the country has just
started recently, and has been concentrated mainly in the metro cities. India is the last large Asian
economy to liberalize its retail sector. In Thailand, more than 40% of all consumer goods are sold
through the super markets and departmental stores. A similar phenomenon has swept through all
other Asian countries. Organized retailing in India has a huge scope because of the vast market
and the growing consciousness of the consumer about product quality and services. A study
conducted by Fitch, expects the organized retail industry to continue to grow rapidly, especially
through increased levels of penetration in larger towns and metros and also as it begins to spread
to smaller cities and B class towns. Fuelling this growth is the growth in development of the
retail-specific properties and malls. According to the estimates available with Fitch, close to
2Smn sq. ft. of retail space is being developed and will be available for occupation over the next
36-48 months. Fitch expects organized retail to capture l5%- 20% market share by 2010. A
McKinsey report on India says organised retailing would increase the efficiency and productivity
of entire gamut of economic activities, and would help in achieving higher GDP growth. At 6%,
the share of employment of retail in India is low, even when compared to Brazil (l4%), and
Poland (12%).

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Key Strategic Factors in Retailing
The key to success is identifying a superior value-promise and who is in a better position to do it
than retailers? Retailers are the closest to the point of purchase and have access to a wealth of
information on consumer shopping behaviour. Retailers have some unique advantages for
managing brands such as continuous and actionable dialogue with consumers, control over brand
presentation at point-of-sale, control over shopping environment, display location/adjacencies,
and signage. And they have used this advantage with tremendous success.
The 3 stages of evolution of the trade channel are shown
in the exhibit below :
Extended Limited Direct

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Manufacture Manufacture Manufacture

/ Retailer
Depo/CNF
Depo/CNF
Distributo
r Retailer
Shopper
Retailer
Shopper
Shoppe
r
As seen, the role of the intermediary is being diminished gradually, which has obvious
implication of backlash of the trade channel upwards towards the suppliers. This is more severe in
countries such as India, where the channel economics in favour of the middlemen is still strong
enough given the fragmentation of the retail sector. Therefore when FoodWorld, the largest grocer
in
India has a “direct supply” contract with over 20% of its key suppliers, it gives rise to conflict of
interest with the distribution infrastructure that suppliers have painstakingly built over the years.
Thus companies like HLL have evolved a distinct distribution channel altogether (called “Modern
Trade”) to service the needs of such large grocers. Even the mom and pop stores (known as
kirana shops) are affected due to this “unfair” back-end advantage extended by the suppiier to its
leading accounts (the emerging supermarket chains).

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The strategies adopted by the retailer to compete with branded goods are illustrated by the
following diagram. Branding the store and following a private label strategy is the key strategy
which helps the retailer to compete with branded products.
FORMAL RETAILING SECTOR
1. Typically large retailers
2. Greater enforcement of taxation mechanisms

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3. High level of labor usage monitoring
Evolution of Indian retail

Historic/Rural Traditional/Pervasive Government Modern Formats/
Reach Reach Supported International
Exclusive Brand
Outlets
Hyper/Super Markets
Department Stores
Shopping Malls
PDS Outlets
Khadi Stores
Cooperatives
Convenience Stores
Weekly Markets Mom and
Village Fairs Pop/Kiranas
Melas
Source of Neighborhood Availability/ Low Shopping

Entertainment Costs /
Stores/Convenience Experience/Efficiency
Distribution
CATEGORIES OF INDIAN RETAIL
1. Corporate Houses

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Tatas: Tata Trent
RPG group: Food World, Health and Glow, etc
ITC: Wills Life Style
Rahejas(ShoppersStop), Hiranandani(Haiko), DLF(DT cinemas) etc.
2. Dedicated brand outlets
Nike, Reebok, Zodiac etc
3. Multi-brand outlets
Vijay Sales, Viveks etc
4. Manufacturers/ Exporters
Pantaloons, Bata, Weekender
Classifying Indian retail
(A)Modern Format retailers

1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (S Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated

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(B)Traditional Format Retailers
1) Kiranas: Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets

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4) Exclusive /Multiple Brand Outlets
(C)Large Indian retailers
1. Hypermarket
1) Big Bazaar
2) Giants
3) Shoprite
4) Star
II Department store
1) Lifestyle
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2) Pantaloons
3) Piramyds
4) Shoppers Stop
5) Trent
III Entertainment
1) Fame Adlabs
2) Fun Republic
3) Inox
4) PVR

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The Indian retail sector can be broadly classified into
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional types of
retailers, who operate small single-outlet businesses mainly using family labour, dominate this
sector In comparison, super markets account for a small proportion of food sales in India
However the growth rate of super market sales has being significant in recent years because
greater numbers of higher income Indians prefer to shop at super markets due to higher standards
of hygiene and attractive ambience.
b) HEALTH & BEAUTY PRODUCTS
With growth in income levels, Indians have started spending more on health and beauty products
.Here also small, single-outlet retailers dominate the market .However in recent years, a few retail
chains specializing in these products have come into the market. Although these retail chains
account for only a small share of the total market their business is expected to grow significantly
in the future due to the growing quality consciousness of buyers for these products

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C) CLOTHING & FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over India
Traditional outlets stock a limited range of cheap and popular items; in contrast, modern clothing
and footwear stores have modern products and attractive displays to lure customers. However,
with rapid urbanization, and changing patterns of consumer tastes and preferences, it is unlikely
that the traditional outlets will survive the test of time.
D) HOME FURNITURE & HOUSEHOLD GOODS
Small retailers again dominate this sector. Despite the large size of this market, very few large
and modern retailers have established specialized stores for these products. However there is
considerable potential for the entry or expansion of specialized retail chains in the country.
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign companies during
the post liberalization period. A greater variety of consumer electronic items and household
appliances became available to the Indian customer. Intense competition among companies to sell
their brands provided a strong impetus to the growth for retailers doing business in this sector.
F) LEISURE & PERSONAL GOODS

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Increasing household incomes due to better economic opportunities have encouraged consumer
expenditure on leisure and personal goods in the country. There are specialized retailers for each
category of products (books, music products, etc.) in this sector. Another prominent feature of this
sector is popularity of franchising agreements between established manufacturers and retailers.
Benefit to customer through retailer sector There has been a significant change
in retail trading over the years, from small kiranawalas in the vicinity to big super markets; a
transition is happening from the traditional retail sector to organized retailing. The
unorganized sector still holds a dominant position in this industry. The organized segment
holds just about 1.2% of the current US$ 245 billion retail market, which is expected to
reach about US $ 385 billion by the middle of this decade. With consumers looking at
convenience with multiplicity of choice under one roof and expectations evolving over time,
consumer demand is truly the driving force for organized retailing in the country. Food and
beverages form the main chunk of the retail market. They are followed by apparel and
footwear. The Indian textile industry, the backbone of the apparel segment, has a large share

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of the Indian economy, accounting for over 20% of industrial production as well as
providing direct and indirect employment to around 65 million people. Despite the retail
store density in India with regard to population being the largest, it is estimated that over
90% of the stores are less than 500 sq. ft in size. Industry estimates put the number of retail
outlets at 12 million. This is clearly indicative of small-shop ownership crowding the
unorganized segment of retailing. While this fragmented market structure does pose
significant challenges for organized retailing, potential does exist if modern information and
supply chain management systems are to support the development of convenience shops
that match customer expectations. Today trend is the development of integrated retail cum
Entertainment centers or shopping malls. An increasing number of retailers are focusing on
malls now as opposed to stand-alone developments. While the number of shopping malls
has seen a massive surge in the recent past in the metros and their suburbs, the latest trend in
this sector is the increasing focus on providing leisure activities such as multiplexes,
facilities for kids' entertainment, eateries etc. within the mall premises. Customer less the
time consumes and more entertainment with his family in malls because they within
shopping mall number of retail shop and variety of products and selected the product they
want. Good environment in mall. Less crowed and These are enclosed, air-conditioned,
multi-level malls of at least 100,00 sq ft. Critical to these malls is the concept of the
anchor, the key outlet or store around which other outlets cluster. The most popular Indian
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anchors include Shoppers' Stop, Globus, Pantaloon, Lifestyle and hypermarkets like Big
Bazaar and Giant. Cinemas also often anchor malls. Driven by the lucrative tax breaks, the
old single screen theatres are being divided into three-five smaller screens, as was done in
the US, years ago. Example for wave and PVR.
Landmark Group
The Landmark Group, founded in 1973 with a single store in Bahrain has grown
into one of the largest retail conglomerates in the Middle East and is expanding
rapidly in India. It currently operates over 750 stores across the region with a
retail presence in China as well. In addition to its retail sector, the Group has
also diversified into leisure, food, hotels and electronics and has created a
comprehensive infrastructure including its own logistics and distribution
division, to support its retail operations and other businesses.
Key Facts
35 Years of retail experience.
Turnover in excess of US$2.5bn.
Total retail space over 10 million sq ft.
Retail Presence across 12 countries: Bahrain, China, India, Jordan, Kingdom of Saudi
Arabia, Kuwait, Oman, Qatar, Spain, UAE, Pakistan & Egypt.
Operates over 825 stores.
Employs 24,000 personnel.

36
Core Values of Landmark Group

1. Passion for excellence – We are committed to setting industry benchmarks –
be it our product or practices. Our doctrine is to strive and maintain the lead in
whatever we do, with strict adherence to quality and delivering value for
money.
2. Integrity in every thing we do - Our business is driven by trust, strong
ethics and mutual respect.
3. E mpowering people to strive and deliver – Our core strength is our
employees. We believe in giving our personnel the opportunity and
responsibility that are integral to their professional development and our
Group’s success.
4. Adapting to changing market and customer needs – We keep ourselves
abreast with industry trends and dynamic consumer preferences. Our offerings
keep evolving to address changing and discerning consumer needs.

37
Look Good Feel Good

• Max a value retail store for the family was launched in May 2004 in the
UAE.
• With stores that ty pically measure between 25,000 to 30,000 sq. ft, Max
retails its own label clothing for men, women and children as well as
footwear and home ware.
• A pioneer in the Middle East of the global trend of delivering quality and
value at very attractive prices, Max is being increasingly recognized as a
key player in the value retail format.
• With 75 stores across UAE, Saudi Arabia, Jordan, Kuwait, Bahrain, Qatar,
Oman & India, Max plans to expand its network in more potential markets
within the Middle East, Turkey and India to build a significant presence
for the brand by targeting to have 100 stores by 2009.
• A good shopping experience and great value is an assurance that
translates into making customers “Look good. Feel good” with Max.
Key Facts
Established in 2004.
75 stores spread across 8 countries.
The Largest Value Fashion Chain in the Middle East
Products designed and developed exclusively for Max, by a large team of

in-house designers and buyers.

38
KIDSWEAR DEPARTMENT
INFANTS SECTION: -
BOYS (SIZES) PREPACK GIRLS (SIZES) PREPACK
6-12 MONTHS 3 6-12 MONTHS 3
TOTAL 9 9
BOYS SECTION: -
SUB SECTION 1-8 YEARS PREPACK 8-14 YEARS PREPACK
SIZES SIZES
2-3 YEARS 3 8-9 YEARS 3

39
TOTAL 12 12
GIRLS SECTION: -
SUB SECTION 1-8 YEARS PREPACK 8-14 YEARS PREPACK
SIZES SIZES
TOTAL 12 12
INFANTS GIRLS
TUNIC
V-NECK
R- NECK
COLLER
FRONT OPEN
SKIRT
CAPRI
SHIRT
2-8 BOYS
T-SHIRT
DENIM JEANS
TROUSERS
CARGO

40
PAINTS
¾ CAPRI
COTTON WOVEN
KNITTED
DENIM
2-8 GIRLS
TUNIC
SKIRTS
T-SHIRT
HALTER NECK
POT
SEGDE
HALF SLEAVES
CUT SLEAVES
SLEAVELESS
HOODED SKIRT
SPORTS CAPRI
LEGINGS
¾ LEGINGS
FULL LEGINGS
LONG TOPS
MINI SKIRTS
CALF LENGTH SKIRT
DENIM
JEANS
CAPRI
STYLES: - KNIT TOP, KNIT BOTTOM, WOVEN TOP, WOVEN BOTTOM, SPEGDEE, HALTER
NECK TOP, DRESS, TUNIC, DENIM, CAPRI, DONGRIE, 3 PIECE PACK (SPORTS, SLEAVELESS,
HALF SLEAVES), 2 PIECE PACK (NIGT WEAR, SKIRTS).
ETHNIC
FUSION
KURTI
ROUND NECK
V-NECK
41
HALTER NECK
MATKA NECK
CUT NECK
SQUARE NECK
CUT SLEAVES
STEPS KURTI
SKIRT
STRAIGHT SKIRTS
CRUSH SKIRTS
CRUSH ANKLE SKIRTS
FABRICS: - ACOBA, COTTON, GORGET, SHIFFON, LINEN, VISCOS.
SIZES PREPACK
XS 1
S 2
M 2
L 2
TRADITIONAL
KURTI
SHORT LENGTH KURTI
HE KURTA
LONG KURTA
DUPATTA
COTTON
SHIFFON
SALWAR
PATIALA
NORMAL
CHOORIDAR
SIZES PREPACK
S 2
M 3
L 3
XL 2
XXL 1
42
ETHNIC WEAR BASICS: -
KURTA
SALWAR
CHOORIDAR
PATIALA
DUPATTA
PANTS
BASICS SLIPS
HOMES
TABLE MAT
TABLE RUNNER
TABLE COVER
DUBLE BED SHEET
SINGLE BED SHEET
DOUBLE BED COVER
SINGLE BED COVER
NAPPKIN
TOWEL
BATH MATS
CUSHION COVERS
WESTERN WEAR
CORE
KNIT TOP
WOVEN TOP
KNIT BOTTOM
WOVEN BOTTOM
SKIRTS
YOUNG
KNIT TOP
WOVEN TOP
KNIT BOTTOM
43
WOVEN BOTTOM
DENIM BOTTOM
JACKET
SHORTS
SKIRTS
SPORTY
JACKET
KNIT TOP
WOVEN TOP
KNIT BOTTOM
WOVEN BOTTOM
DENIM
DENIM FULL LENGTH
CAPRI
NIGHT WEAR
GOWNS
SLEEPWEAR
MENSWEAR
CASUAL DENIM
BOOT CUT
REGULAR FIT
SLIMFIT
CASUAL NON- DENIM
KNITTED TOP- FULL SLEAVES
KNITTED TOP- HALF SLEAVES
KNITTED TOP- SLEAVE LESS
44
WOVEN TOP- FULL SLEAVES

WOVEN TOP- HALF SLEAVES
WOVEN TOP- SLEAVE LESS
WOVEN TOP- H/S BASIC
WOVEN TOP- F/S BASIC
FORMAL
WOVEN BOTTOM- FLAT FRONT
WOVEN BOTTOM- PLEATED
INNER WEAR
TRUNK VALUE PACK
WEST VALUE PACK
Y FRONT VALUE PACK
SEMI FORMAL
WOVEN BOTTOM- FLAT FRONT
WOVEN BOTTOM- PLEATED
SPORTS WEAR
KNITTED TOP- FULL SLEAVES
KNITTED TOP- HALF SLEAVES
KNITTED TOP- SLEAVELESS
JACKET
KNITTED TRACK BOTTOM
WOVEN TRACK BOTTOM
WOVEN TRACK SHORTS
KNIT TRACK SHORTS
SIZES- SHIRTS T-SHIRTS DENIM REGULAR FIT SLIM FIT
39 to 44 S to XL 28 to 36 28 to 36 28 to 38
FOOTWEAR
MENS FOOTWEAR
➢ CASUAL SHOES
➢ FORMAL SHOES
➢ CASUAL LACE UPS
➢ FORMAL LACE UPS

45
➢ CASUAL SLIP UPS

➢ CASUAL SLIP ONES
➢ CASUAL SANDALS
➢ FORMAL SANDALS
➢ SPORT SHOES
LADIES FOOTWEAR
➢ H-HEAL SANDAL
➢ M-HEAL SANDAL
➢ WEDGE HEAL SANDAL
➢ FLAT SANDAL
➢ CASUAL SANDAL
➢ SPORTS SANDAL
➢ COMFORT SANDAL
➢ FORMAL SANDAL
➢ EVA SANDAL
KIDS FOOTWEAR
➢ KIDS BOYS
➢ KIDS GIRLS
➢ INFANT BOYS
➢ INFANT GIRLS
➢ BOTIES
STORE OPENING
1. Check the lock before unlock.
2. unlock the door at 9:30 am.
3. Switch on optimum lights on floor.
46
4. Security in place with complete uniform.

5. Adequate housekeeping staff sould be in store.
6. Select the housekeeping workdone, cleaning, moppng.
7. Switch on A.C. at 10:00 am.
8. Switch on the music.
9. Trials rooms are empty and clean before 10:30 am.
10. Floats issued in tills and dedicated cashier by 10:25 am.
11. Ensure that staff is complete uniform by 10:30 am.
12. Merchandise well present on the floor.
STORE CLOSING
1. All the tills closed.
2. Switch off sensomatic, E.D.C. machine, music at till point.
3. Recycling of Security ags and hangers.
4. Merchandise well present on the floor.
5. Trial rooms are empty.
6. Switch off A.C.
7. Switch off all lights.
8. Lock Manager’s room.
9. Lock I.T. room.
10. Switch off Sensomatic on both floors and at entrance.
11. Security in place with complete uniform at back door.
12. Manager signature.
13. Security signature.
DUTIES &RESPONSIBILITIES OF STORE MANAGER

47
Duties & Responsibilities

➢ Sales Forecasting & Budget
➢ Personnel Recruitment, selection, training, motivation and evaluation
➢ Merchandise Display, Inventory Management and merchandise reorders
➢ Handling store receipts, preparing bank transactions, opening and closing
store
➢ Reviewing customer complaints
➢ Reviewing computer data forms
➢ Review of overall operations and reports to top management.
DEPARTMENT MANAGERS DETAIL CHECKLIST
➢ Cleaning and Dusting

➢ Floor cleaned and Mopped
➢ Fixture (Clean, Alignment & Breakage)
➢ Stock Replenishment
➢ All sty le displayed on floor.
➢ Size cubing on all merchandise
➢ Price tickets on all merchandise
➢ Security tag on all merchandise
➢ Merchandise well presented
➢ Shelf Talkers (Clean and Properly display ed)
➢ Ensure ironing of Merchandise is in process.
➢ Trial rooms clean
➢ Cash Counters Clean (Merchandise, hangers & tags)
➢ Daily sales register updation
➢ Daily grooming check
➢ Ensure that the adequate manpower on the floor on hourly basis
➢ Staff should try and attend each and every customer, greeting is very
important
➢ Ensure that staff is regularly interacting with the customer by giving
exceptional service for customer delight at all time
➢ Ensure the presence of one manager at any given time on each floor
➢ Time and again check that the villing check out is fast enough as per the
standard norms
48
➢ Ensure that the lunch breaks should start by 1:00 pm and finished by max
4:00 pm
➢ Ensure the presence of all staff on the floor in peak hours between 5:00
pm to 9:30 pm
➢ Time and again check on walk-ins, average bill size, sales on hourly basis
an accordingly
➢ Encourage the staff for further improvement
➢ Ensure your morning shift staff and weekly off for the next day is
convey ed to all staff.
➢ Maintain DM’s log book on daily basis & acknowledge by SM, ASM on
daily basis
CRE DETAIL CHECKLIST

➢ Cleaning and dusting of shelves, browsers, arms & back bars.
➢ Check at 10:30 am floor clean & mopped
➢ Fixture (Clean & Alignment)
➢ Have a walk on the floor after 10:30 am and check the replenishment
require
➢ Stock replenishment for new lines & broken sizes on the floor
➢ Remove broken sizes from the floor if it is not available in back
➢ Ensure that all sty le displayed on floor
➢ Price tickets on all merchandise
➢ Start size cubing on all merchandise
➢ Security tags on all merchandise
➢ Merchandise well presented
➢ Start ironing of merchandise at 10:00am till 4:00 pm
➢ Trials rooms (clean, tokens and manned) by 10:30 am
➢ Try and attend each and every customer, greeting is very important.
Distribution Of Target In Departments

Let,

49
Store target = Rs 50,00,000

Department Target = Rs. 9,50,000
Department Target in % = 19%
One Month = 8 weekends and 23 week days
One Weekend Target = Rs 9,50,000/23 = Rs 41304
Total weekend target = Rs 41304*8 = Rs 3,30,434
Total weekday target = Rs 9,50,000- Rs 3,30,434 = Rs 6,19,566
One weekday target = Rs 6,19,566/23 = Rs 26,937
CRE target (Monthly) = Rs 9,50,000/5 = Rs 1,90,000
One Weekend Target = Rs 41304

One Weekday Target = Rs 26937

50

51
DIPSTICK PARAMETERS
Enable retailers to find out about the health of

specific area of operation in an instant.
Customer Transactions
➢ Customer Conversion Ratio
➢ Return To Net Sales
➢ Transactions Per Hour
➢ Sales Per Transaction
➢ Hourly Customer Traffic
Stocks
➢ Average Selling Price
➢ Average Stock Price
➢ Stock Turnover/Inventory Turnover Rate
➢ Percentage Inventory Costs
52
➢ Gross Margin Return on Inventory

➢ Markdown Goods Percentage
➢ Shrinkage to Net Sales
Space
➢ Occupancy Cost Per Square Foot Selling Space
➢ Sales Per Square Foot
➢ Stock Per Square Foot
➢ Percentage of Selling Space
Employees
➢ Net Sales Per Full Time Employ ee
➢ Labour Productivity
➢ Gross Margin Per Full Time Employ ee
Customer Conversion Ratio
Customer Conversion Ratio

= Number Of Transactions x 100
Customer Traffic
-Reflects Retailers ability to turn a potential customer into a buyer
-Low figure means that promotional activities are not being converted into
sales or that the overall sales effort needs to be assessed afresh
-Automatic counting mechanisms or periodic survey s of customer traffic
Returns to Net Sales
Returns to Net Sales

= Total Returns x 100
Net Sales

53
-Indication of Customer satisfaction

-Increase in value is an early warning indication
-Quality of merchandise is a suspect
Transactions Per Hour

Transactions Per Hour = Number Of Transactions
Number of Hours
-Hourly variations in sales activities is important for setting store hours and
staff schedules
-Cash registers will give the time of sale
Sales Per Transaction

Sales Per Transaction
= Net Sales
Number Of Transactions
-Reflects Retailers ability to turn a potential customer into a buyer

-Low figure means that promotional activities are not being converted into
sales or that the overall sales effort needs to be assessed afresh
-Automatic counting mechanisms or periodic survey s of customer traffic
Hourly Customer Traffic

Hourly Customer Traffic
= Customer Traffic In
Number of Hours

54
-Can be applied to an entire store or a single department to schedule hours and

establish staff levels
-Used to track customer traffic
Average Selling Price

Average Selling Price
Total Values of Good Sold
Total Quantity Sold
Average Stock Price

Average Stock Price
= Total Values of Goods in Stock
Total Quantity in Stock
-Turning stocks around efficiently y ields better pro fits

-If daily sales account for 2% sales it will take 50 days to sell stock and in 365
days the turnaround of the stock is 365/50 i.e 7.3 times
Stock Turnover / Inventory Rate Turnover
Stock Turnover / Inventory Rate Turnover

= Net Sales
Average Retail Value of Inventory
-Indicates how often the inventory is sold and replaced in a given period of
time
-When this ratio declines there is a possibility that the inventory is excessive
Percentage Inventory Carrying Costs
Percentage Inventory Carry ing Costs

55
= Inventory Carry ing costs x 100
Net Sales
-Important measure as there is a rise in inventory carry ing costs due to higher
interest rates
-Important to reduce stock obsolescence and prevent blockage of working
capital
-Retailers use this measure to track the percentage of their net sales represented
by the fixed costs of maintaining inventory.
Gross Margin Return on Inventory
Gross Margin Return on Inventory

= Gross Margin
Average Value of Inventory
-GMROI compares the margin on sales with the original cost value of
merchandise to y ield a return on merchandise investment
-Preferably the inventory is to be valued at cost rather than retail value as it
gives a better indication of investment
Markdown Goods percentage

Markdown Goods percentage
= Net Sales at Markdown
Total Net Sales

56
-If the ratio increases, the retailer may need to take a closer look at
merchandising practices, especially pricing
-Markdowns may be symptoms of other problems like or buying, advertising or
store layout.
Shrinkage to Net Sales
Shrinkage to Net Sales

= Actual Inventory – Book Inventory x 100
Net Sales
-Percentage of net sales lost due to shrinkage

-Does not indicate cause of shrinkage but the magnitude of the problem.
Occupancy Cost Per Square Foot Selling Space
Occupancy Cost Per Square Foot Selling Space

= Occupancy Cost
Square Feet of Selling Space
-Translates into occupancy cost per unit of selling space

-In other words the amount that needs to be generated by that unit of space to
justify occupancy costs
-For multi-unit retailer it is a useful tool to compare the performance of units
at different locations.
Sales Per Square Foot

Sales Per Square Foot
= Net Sales

57
Square Feet of Selling Space
-Used to compare different departments or stores using a common standard

-Important tool to decide alternate uses of the space
Percentage of Selling Space

Percentage of Selling Space
= Selling Space x 100
Total Space
-Efficiency of space utility
-Ratio varies with merchandise and can be used to compare different
departments or stores.
Net Sales Per Full Time Employee

Net Sales Per Full Time Employee
= Net Sales
Total Full Time Employ ees
-Average Sales generated by each full time employee

-Can be used to set performance targets.
Labour Productivity
58
Labour Productivity
= Total Labour Costs x 100
Net Sales
-Tracks labour costs incurred to achieve a given sales volume

-Can be applied purely to sales employ ees
Gross Margin Per Full Ti me Employee
Gross Margin Per Full Time Employ ee

= Gross Margin
Total Full Time Employees
-Gross profit generated per employ ee, used to gauge performance of sales
employees
-Not the only measure but a starting tool.

59
THE STORE LAYOUT

The store design and layout tells a customer what the store is all about. It is a very strong tool in
the hands of the retailer for communicating and creating the image of the store in the minds of the
customers.
For a retailer store layout is:

The primary considerations that the retailer takes into account while choosing the look for his
store are his target audience, their needs, and buying habits and the merchandise that he is going
to sell. Creating a store image is like giving a personality to the store
For the consumer:

A store needs to be simple to navigate; it must appeal to his sensory perceptions and must create a
sense of belonging, a sense of relationship, a sense of security or assurance and a sense of
pleasure in the shopping experience
Finally it is the physical attribute of the store which affects the customer’s sensory perceptions,
and makes him relate to the store in a particular manner.
The store layout can be classified into
• Grid
• Race track
• Free form.

60
Grid layout: It is most commonly used in a supermarkets and discount stores. It Is a

preferred layout in many retail stores that adopt self service.
Race track layout: This layout is popularly found in department stores. The display is in the
form of the race track or a loop with a major aisle running through the store. It links the various
departments or the sections inside the store.
Free form lay out: In a freeform, merchandise is arranged in an asy mmetrical

manner. It allows for free movement and is often used in retail outlets to
encourage people to browse and shop.
MAX STORE LAYOUT

61
Baggage
12234
Kids
Foot
Accessories
Menswear
234PWestern
Ethnic
antry
700Cash
2350
1502
2315
1805 2 2
ftwear
ft wear
wear
Department
and
Department
Counter
Department
home
Till Department

62
Consumer Behavior and Marketing Strategy

The study of consumers helps firms and organizations improve their marketing
strategies by understanding issues such as how
• The psychology of how consumers think, feel, reason, and select between
different alternatives (e.g., brands, products);
• The the psy chology of how the consumer is influenced by his or her
environment (e.g., culture, family, signs, media);
• The behavior of consumers while shopping or making other marketing
decisions;
• Limitations in consumer knowledge or information processing abilities
influence decisions and marketing outcome;

63
• How consumer motivation and decision strategies differ between products

that differ in their level of importance or interest that they entail for the
consumer; and
• How marketers can adapt and improve their marketing campaigns and
marketing strategies to more effectively reach the consumer.
Understanding these issues helps us adapt our strategies by taking the consumer
into consideration. For example, by understanding that a number of different
messages compete for our potential customers’ attention, we learn that to be
effective, advertisements must usually be repeated extensively. We also learn
that consumers will sometimes be persuaded more by logical arguments, but at
other times will be persuaded more by emotional or sy mbolic appeals. By
understanding the consumer, we will be able to make a more informed decision
as to which strategy to employ.
One "official" definition of consumer behavior is "The study of individuals,

groups, or organizations and the processes they use to select, secure, use, and
dispose of products, services, experiences, or ideas to satisfy needs and the
impacts that these processes have on the consumer and society." Although it is
not necessary to memorize this definition, it brings up some useful points:
• Behavior occurs either for the individual, or in the context of a group
(e.g., friends influence what kinds of clothes a person wears) or an
organization (people on the job make decisions as to which products the
firm should use).
• Consumer behavior involves the use and disposal of products as well as
the study of how they are purchased. Product use is often of great interest
to the marketer, because this may influence how a product is best
positioned or how we can encourage increased consumption. Since many
environmental problems result from product disposal (e.g., motor oil
being sent into sewage sy stems to save the recycling fee, or garbage
piling up at landfills) this is also an area of interest.
• Consumer behavior involves services and ideas as well as tangible
products.
• The impact of consumer behavior on society is also of relevance. For
example, aggressive marketing of high fat foods, or aggressive marketing
64
of easy credit, may have serious repercussions for the national health and
economy.
There are four main applications of consumer behavior:

• The most obvious is for marketing strategy—i.e., for making better
marketing campaigns. Fo r example, by understanding that consumers are
more receptive to food advertising when they are hungry, we learn to
schedule snack advertisements late in the afternoon. By understanding
that new products are usually initially adopted by a few consumers and
only spread later, and then only gradually, to the rest of the population,
we learn that (1) companies that introduce new products must be well
financed so that they can stay afloat until their products become a
commercial success and (2) it is important to please initial customers,
since they will in turn influence many subsequent customers ’ brand
choices.
• A second application is public policy. In the 1980s, Accutane, a near
miracle cure for acne, was introduced. Unfortunately, Accutane resulted
in severe birth defects if taken by pregnant women. Although physicians
were instructed to warn their female patients of this, a number still
became pregnant while taking the drug. To get consumers’ attention, the
Federal Drug Administration (FDA) took the step of requiring that very
graphic pictures of deformed babies be shown on the medicine containers.
• Social marketing involves getting ideas across to consumers rather than
selling something. Marty Fishbein, a marketing professor, went on
sabbatical to work for the Centers for Disease Control try ing to reduce
the incidence of transmission of diseases through illegal drug use. The
best solution, obviously, would be if we could get illegal drug users to
stop. This, however, was deemed to be infeasible. It was also determined
that the practice of sharing needles was too ingrained in the drug culture
to be stopped. As a result, using knowledge of consumer attitudes, Dr.
Fishbein created a campaign that encouraged the cleaning of needles in
bleach before sharing them, a goal that was believed to be more realistic.
• As a final benefit, study ing consumer behavior should make us better
consumers. Common sense suggests, for example, that if you buy a 64
liquid ounce bottle of laundry detergent, you should pay less per ounce
than if y ou bought two 32 ounce bottles. In practice, however, you often
65
pay a size premium by buying the larger quantity. In other words, in this
case, knowing this fact will sensitize y ou to the need to check the unit
cost labels to determine if y ou are really getting a bargain.
There are several units in the market that can be analy zed. Our main thrust in
this course is the consumer. However, we will also need to analy ze our own
firm’s strengths and weaknesses and those of competing firms. Suppose, for
example, that we make a product aimed at older consumers, a growing segment.
A competing firm that targets babies, a shrinking market, is likely to consider
repositioning toward our market. To assess a competing firm’s potential threat,
we need to examine its assets (e.g., technology, patents, market knowledge,
awareness of its brands) against pressures it faces from the market. Finally, we
need to assess conditions (the marketing environment). For example, although
we may have developed a product that offers great appeal for consumers, a
recession may cut demand dramatically.
Segmentation
Segmentation is important in consumer analysis because understanding the
consumer will allow us segment the market more meaningfully.
Segmentation basically involves dividing consumers into groups such that
members of a group (1) are as similar as possible to members of that same
group but (2) differ as much as possible from members other segments.
This enables us then to "treat" each segment differently—e.g., by:
• Providing different products (e.g., some consumers like cola taste,
while others prefer lime)
• Offering different prices (some consumers will take the cheapest

product available, while others will pay for desired features)
• Distributing the products where they are likely to be bought by the
targeted segment.
Culture
Culture is part of the external influences that impact the consumer. That
is, culture represents influences that are imposed on the consumer by other
individuals.

66
• The definition of culture is "That complex whole which includes

knowledge, belief, art, morals, custom, and any other capabilities and
habits acquired by man person as a member of society."
Culture has several important characteristics:
(1) Culture is comprehensive. (2) Culture is learned rather than being
something we are born with. (3) Culture is manifested within boundaries
of acceptable behavior. (4) Conscious awareness of cultural standards is
limited. (5) Cultures fall somewhere on a continuum between static and
dynamic depending on how quickly they accept change.
Different perspectives exist in different cultures on several issues; e.g.:
• Monochronic cultures tend to value precise scheduling and doing one
thing at a time; in polychronic cultures, in contrast, promptness is
valued less, and multiple tasks may be performed simultaneously.
(See text for more detail).
• Space is perceived differently. Americans will feel crowded where
people from more densely populated countries will be comfortable.
• Symbols differ in meaning. For example, while white symbols purity
in the U.S., it is a sy mbol of death in China. Colors that are
considered masculine and feminine also differ by culture.
• In terms of etiquette, some cultures have more rigid procedures than
others. In some countries, for example, there are explicit standards as
to how a gift should be presented. In some cultures, gifts should be
presented in private to avoid embarrassing the recipient; in others,
the gift should be made publicly to ensure that no perception of
secret bribery could be made.
The United States has undergone some changes in its predominant culture
over the last several decades. Again, however, it should be kept in mind
that there are great variations within the culture. For example, on the
average, Americans have become less materialistic and have sought more
leisure; on the other hand, the percentage of people working extremely
long hours has also increased. The text discusses changes in values in
more detail.
Demographics and Social Stratification
67
Demographics are clearly tied to subculture and segmentation. Here,

however, we shift our focus from analyzing specific subcultures to trying
to understand the implications for an entire population of its makeup.
Several issues are useful in the structure of a population. For example, in
some rapidly growing countries, a large percentage of the population is
concentrated among younger generations. In countries such as Korea,
China, and Taiwan, this has helped stimulate economic growth, while in
certain poorer countries, it puts pressures on society to accommodate an
increasing number of people on a fixed amount of land. Other countries
such as Japan and Germany, in contrast, experience problems with a
"graying" society, where fewer non-retired people are around to support an
increasing number of aging seniors. Because Germany actually hovers
around negative population growth, the German government has issued
large financial incentives, in the forms of subsidies, for women who have
children. In the United States, population growth occurs both through
births and immigration. Since the number of births is not growing,
problems occur for firms that are dependent on population growth (e.g.,
Gerber, a manufacturer of baby food).
Family Decision Making
The Family Life Cycle . Individuals and families tend to go through a "life
cycle." The simple life cycle goes from
child/teenager ---> young single ---> young couple * ---> full nest
---> empty nest ---> widow(er).

* For purposes of this discussion, a "couple" may either be married or
merely involve living together. The breakup of a non-marital relationship
involving cohabitation is similarly considered equivalent to a divorce.
In real life, this situation is, of course, a bit more complicated. For
example, many couples undergo divorce. Then we have the scenario:
full nest ---> single parent
Family Decision Making : Individual members of families often serve
different roles in decisions that ultimately draw on shared family
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resources. Some individuals are information gatherers/holders, who seek

out information about products of relevance. The decision maker(s) have
the power to determine issues such as:
○ whether to buy;
○ which product to buy (pick-up or passenger car?);
○ which brand to buy;
○ where to buy it; and
○ when to buy.
Group Influences
Humans are inherently social animals, and individuals greatly influence
each other.
A useful framework of analysis of group influence on the individual is the
so called reference group—the term comes about because an individual
uses a relevant group as a standard of reference against which oneself is
compared. Reference groups come in several different forms. The
aspirational reference group refers to those others against whom one
would like to compare oneself. For example, many firms use athletes as
spokespeople, and these represent what many people would ideally like to
be. Associative reference groups include people who more realistically
represent the individuals’ current equals or near-equals—e.g., coworkers,
neighbors, or members of churches, clubs, and organizations. Finally, the
dissociative reference group includes people that the individual would not
like to be like. For example, the store literally named The Gap came about
because many younger people wanted to actively dissociate from parents
and other older and "uncool" people. The Quality Paperback Book
specifically suggests in its advertising that its members are "a breed apart"
from conventional readers of popular books.
Diffusion of Innovation

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The diffusion of innovation refers to the tendency of new products,

practices, or ideas to spread among people. Usually, when new products or
ideas come about, they are only adopted by a small group of people
initially; later, many innovations spread to other people. The bell shaped
curve frequently illustrates the rate of adoption of a new product.
Cumulative adoptions are reflected by the S-shaped curve. The saturation
point is the maximum proportion of consumers likely to adopt a product.
In the case of refrigerators in the U.S., the saturation level is nearly one
hundred percent of households; it well below that for video games that,
even when spread out to a large part of the population, will be of interest
to far from everyone.
Some cultures tend to adopt new products more quickly than others, based
on several factors:
○ Modernity: The extent to which the culture is receptive to new
things. In some countries, such as Britain and Saudi Arabia,
tradition is greatly valued—thus, new products often don’t fare
too well. The United States, in contrast, tends to value progress.
○ Homophily: The more similar to each other that members of a
culture are, the more likely an innovation is to spread—people
are more likely to imitate similar than different models. The two
most rapidly adopting countries in the World are the U.S. and
Japan. While the U.S. interestingly scores very low, Japan
scores high.
○ Physical distance: The greater the distance between people, the
less likely innovation is to spread.
○ Opinion leadership: The more opinion leaders are valued and
respected, the more likely an innovation is to spread. The style of
opinion leaders moderates this influence, however. In less
innovative countries, opinion leaders tend to be more conservative,
i.e., to reflect the local norms of resistance.
Perception

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Background . Our perception is an approximation of reality. Our brain

attempts to make sense out of the stimuli to which we are exposed. This works
well, for example, when we "see" a friend three hundred feet away at his or her
correct height; however, our perception is sometimes "off"—for example,
certain shapes of ice cream containers look like they contain more than
rectangular ones with the same volume.
Factors in percpetion. Several sequential factors influence our perception.
Exposure involves the extent to which we encounter a stimulus. Fo r example,
we are exposed to numerous commercial messages while driving on the
freeway: bill boards, radio advertisements, bumper-stickers on cars, and signs
and banners placed at shopping malls that we pass. Most of this exposure is
random—we don’t plan to seek it out. However, if we are shopping for a car,
we may deliberately seek out advertisements and "tune in" when dealer
advertisements come on the radio.
Learning and Memory

Background. Learning involves "a change in the content or organization of
long term memory and/or behavior." The first part of the definition focuses on
what we know (and can thus put to use) while the second focuses on concrete
behavior. Fo r example, many people will avoid foods that they consumed
shortly before becoming ill. Learning is not all knowledge based. For example,
we may experience the sales people in one store being nicer to us than those in
the other. We thus may develop a preference for the one store over the other;
however, if pressed, we may not be able to give a conscious explanation as to
the reason for our preference.
Motivation, Personality, and Emotion
Perspectives on Consumer Behavior and Motivation . We considered
several perspectives on behavior as a way to understand what motivates the
consumer. Each of these perspectives suggests different things as to what the
marketer should do and what can (and cannot) be controlled. Note that each
perspective tends to contain a "grain" oftruth and that one should not be too
dogmatic in emphasizing one over the others.
Maslow’s Hierarchy of Needs . The late Abraham Maslow suggested

the intuitively appealing notion that humans must satisfy the most basic
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objectives before they can move onto "higher level" ones. Thus, an individual
must satisfy physiological needs (such as food and liquid) before he or she will
be able to expend energy on less fundamental objectives such as safety. Only
when basic objectives have been met will a person move on to seek such
objectives as love and belonging, and only a small minority of people make it
as far as seeking self-actualization.
Maslow’s Hierarchy is useful in understanding different needs of consumers
across the World. However, one must be careful not to take it too literally,
since people may occasionally "swing" between needs. For example, a homeless
person who currently does not have shelter may seek that out even though he or
she is hungry.
Properties of motivation. Motivation is described through several properties:
• Motivation is composed of energy and direction. A person may or may
not have enough motivation to engage in a given activity. For example, a
person may be motivated enough to go and shop fo r food, but not enough
to engage in a comprehensive exercise program.
• Motives may be overt, hidden, and multiple. Some motivations are
publicly expressed (e.g., the desire to buy an energy efficient house),
while others (e.g., the desire to look wealthy by buy ing a fancy car) are
not. Individuals may also hold multiple motivations (e.g., buy a car and
save money for retirement) which may conflict.
• Many motivations are driven by the desire for tension reduction
(e.g., eliminate thirst or hunger).
• Motivations can be driven by both internal and external factors.
That is, a person may want a painting either because he or she likes it
(internal motivation) or because this will give her status among the
artistic elite (external).
• Motivations may have either a positive or negative valence -- people
may either be motivated to achieve something (e.g., get a promotion at
work) or avoid something (e.g., being hospitalized without having
adequate insurance).
• Consumers are motivated to achieve goals. Achieving these goals may
require sustained activity over time (e.g., exercising every day for months
or years) as opposed to just taking some action once.

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• Consumers maintain a balance between the desires for stability and

variety. Most consumers want some variety (e.g., they do not want to eat
the same meal every day ), but also want a certain stability (they do not
want to try an entirely new food every day ).
• Motivation reflects individual differences. Different consumers are
motivated to achieve different things, and it may be difficult to infer
motivations from looking at actual behavior without understanding these
differences in desired outcomes.
Self-Concept, Situational Influences, and Lifestyle

The self-concept . The consumer faces several possible selves. The actual
self reflects how the individual actually is, although the consumer may not be
aware of that reality (e.g., many anorexic consumers who are dangerously thin
believe that they are in fact fat). In contrast, the ideal self reflects a self that a
person would like to have, but does not in fact have. For example, a couch
potato may want to be a World famous athlete, but may have no actual athletic
ability. The private self is one that is not intentionally exposed to others. For
example, a police officer may like and listen to rap music in private, but
project a public self-image of a country music enthusiast, playing country
songs at work where police officers are portrayed as heroes. The key here is to
keep in mind which kind of self we are try ing to reach in promotional
messages. If we appeal to the hidden self, for example, we must be careful to
make our appeals subtle and hint, if appropriate, on how the individual’s
confidentiality and privacy can be enhanced.
Individuals will often seek to augment and enhance their self concepts, and it
may be possible to market products that help achieve this goal. For example, a
successful attorney may want to wear (in politically correct terms) cowchild
boots and a cowchild hat to bring home an image as a ranch enthusiast.
Lifestyles. Self-concept often translates into a person’s lifesty le, or the way
that he or she lives his or her life. For example, a person may be very
materialistic, preferring to wear flashy clothes and drive expensive cars, or
prefer instead a simpler life with fewer visible status symbols. Attempts have
been made to classify consumers into various segments based on their
lifestyles. The Values and Lifesty le (VA LS) Project, developed by the Stanford
Research Institute (SRI), attempts to classify people based on a combination of
values and resources. Thus, for example, both "Achievers" and "Strivers" want
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public recognition, but only the Achievers have the resources to bring this
about. A global analogue is the Global Scan.
Situational influences . Specific circumstances often influence consumer

behavior. For example, consumers in a rush are likely to take the most
convenient product available. Consumers whose attention is demanded
elsewhere are likely to disregard commercial messages. Consumers shopping
for a special occasion (e.g., a wedding) may buy different products.
Consumer Decision Making

Definitions . Consumer decision making comes about as an attempt to solve
consumer problems. A problem refers to "a discrepancy between a desired
state and an ideal state which is sufficient to arouse and activate a decision
process." Thus, problems can be major (e.g., a consumer has been fired
and is without a job) or minor (e.g., the consumer lacks an eraser
necessary to take an exam the next day), and the broader and more
ambiguous a problem is, the more potential solutions are generally
available (see class slides for examples).
Consu mer Problem Recognition. Consumers often note problems by
comparing their current, or actual, situation, explicitly or implicitly, to
some desired situation. In terms of the "big picture," what is compared
may be the totality of one’s lifestyle. Once a discrepancy is found, a
determination is found as to whether this is large enough to warrant action,
in which case a search for solutions is initiated.
Problems come in several different types. A problem may be an active one
(e.g., you have a headache and would like as quick a solution as possible)
or inactive-- you are not aware that your situation is a problem (e.g., a
consumer is not aware that he or she could have more energy with a new
vitamin). Problems may be acknowledged (e.g., a consumer is aware that
his or her car does not accelerate well enough or unacknowledged (e.g., a
consumer will not acknowledge that he or she consumes too much alcohol).
Finally, needs can be relatively specific (generic), as in the need for

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enjoyment (which can be satisfied many different ways), or specific, as in

the need for professional attire to wear at a new job.
Several different methods can be used to detect consumer problems, which
are discussed on pp. 508-509 in the text.
Creating problems for consumers is a way to increase sales, albeit a
questionably ethical one. One way to create new problems, and resultant
needs, is to create a new ideal state. This is often done quite arbitrarily in
the fashion industry, as skirt lengths and the appropriate number of buttons
on a suit often change arbitrarily up and down. It may also be possible to
create dissatisfaction with current states--e.g., a firm may publicize
current crime statistics to increase the sales of handguns and alarms. Many
vocational training schools advertise that better careers than the
consumer ’s current one are available upon graduation (a promise on which,
by the way, they may not deliver in the end).
There are two main approaches to search. Internal searches are based on
what consumers already know. Thus, it may be important for certain firms
to advertise to consumers before they actually need the product. For
example, one bail bond company advertised its existence to people "in case
you ever find yourself in jail." As another example, if you decide to go out
for fast food, you may not consult any directories, but instead search your
memory for fast food restaurants conveniently located. A problem is that
some excellent ones which are not remembered, or have never been heard
of, are not considered. External searches get people to either speak to
others (getting information by word of mouth) or use other sources (such
as advertisements now sought out or yellow page listings). Because the
yellow pages are often the first place to which people turn, this medium is
able to charge very large advertising rates.
Consumers often do not consider all alternatives. Some are not known (the
"unawareness" set), some were once known but are not readily accessible
in memory (the "inert" set), others are ruled out as unsatisfactory (the
"inept" set--e.g., Glad bags attempts to get "bargain bags" into that set),
and those that are considered represent the "evoked" set, from which one
alternative is likely to be purchased.
The amount of effort a consumer puts into searching depends on a number
of factors such as the market (how many competitors are there, and how
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great are differences between brands expected to be?), product

characteristics (how important is this product? How complex is the
product? How obvious are indications of quality?), consumer
characteristics (how interested is a consumer, generally, in analyzing
product characteristics and making the best possible deal?), and situational
characteristics (as previously discussed).
Two interesting issues in decisions are variety seeking (where consumers
seek to try new brands not because these brands are expected to be "better"
in any way, but rather because the consumer wants a "change of pace," and
"impulse" purchases. Impulse purchases are, generally speaking,
unplanned, but represent a somewhat fuzzy group. For example, a shopper
may plan to buy vegetables but only decide in the store to actually buy
broccoli and corn. Alternatively, a person may buy an item which is
currently on sale, or one that he or she remembers that is needed only once
inside the store (remember the Wal-Mart article).
Several different strategies for influencing consumer decision making are
discussed in the text on pp. 537-541.
Consumer Outlet Selection
Retail evolution and consumer choice . For many products, consumers
frequently have numerous choices as to where they are going to actually obtain
the product. Although we are used to thinking of buy ing automobiles only from
dealerships, fo r example, it is today possible to buy them through brokers or
fleet sales organizations that may both (1) offer a lower price and/or (2)
provide the help of a neutral third party which does not have a vested interest
in the sales of one make over the other.
In general, the evolution of diversity in the retail scene has provided consumers
with more choice. In the old day s, most consumers had access only to "general"
stores for most products. Gradually, in urban environments, specialty and
discount stores evolved. Today, a consumer may generally choose to buy most
products either at a relatively high price, frequently with a significant amount
of service, in a specialty store, or with lower service in a discount store. A
special case of the discount store is the category killer--a store that tends to
specialize in some limited area (e.g., electronics), lacking the breadth of a
traditional discount store often undercutting the traditional discount store on
price (which they are able to do because of the bargaining power that results

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from high buying volumes of a narrow assortment of merchandise from the

same manufacturer).
"At home" shopping and electronic commerce . During the last
several decades, the incidence of "at home" shopping has increased. The growth
of catalog sales can be traced to advances in computer technology and
subsequent list availability (as we discussed in the section of direct marketing
segmentation methods). A more recent development is Internet based marketing.
Although sales are modest in this domain at the moment, it is too early to judge
the total potential of this medium. Although many of the concerns that
consumers hold about computer crime tend to be exaggerated and/or largely
unwarranted, public fears are a major holdback. Another problem is the
demographics of computer and Internet use--the majority of U.S. consumers,
and certainly the great majority of residents of even highly industrialized
countries, are not regular Internet users. Certain products specifically aimed at
heavy Internet users (e.g., records, software) and products/services that require
a high level of customization (e.g., airline tickets) may find good opportunities.
An interesting problem with Internet commerce, which may well have spillover
effects outside the realm of the Net, is the relative ease with which consumers
may compare prices of different retailers, resulting in intense price
competition. Note that recent legislation has limited taxation of Internet sales
in the U.S., in a sense attempting to "jump start" this innovation.
Store positioning. Positioning of retail stores is essential. In general, stores
which excel on a significant dimension seem to perform better--for example,
Nordstrom’s excels through its intense customer service, while Wal-Mart excels
through its efficiency and low prices. (In a course on marketing strategy or
retailing, you will probably discuss the issue of the importance of balanced
markets--it is healthier if different firms have different strategies, so that
everyone will not be competing intensely on the same variables). Stores which
fall somewhere in between--e.g., Sears--tend to do less well since they get
"stuck in the middle" and have to compete against both. Obviously, there is a
limit to how strongly you can move toward one extreme. For example, if
Nordstrom were to double its prices and even double its service, that position
would be untenable, and certain extreme discount stores that offer lower prices
than Wal-Mart tend not to be successful because they are ultimately not
satisfactory to consumers.

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Consumer behaviour and retailing

decisions
Does consumers' selection of retail outlets depend on the brands available or
is it the retail outlet first and the brand next? Marketers need to do in-depth
research on the various aspects that link brand and retail strategy.
DECISION-MAKING with regard to retail outlet selection is very similar to

consumer decision-making on brands where the consumer goes through a
process starting from identify ing needs to post-purchase issues. There are a few
interesting and important dimensions associated with consumer behaviour and
retail outlet selection.
Does the retail outlet have psychological implications on the target
segment? When Titan and Timex watches were retailed through exclusive shops,
consumers wanting lower-end watches probably felt that a ty pical Titan
showroom was too elitist, which could have had a negative impact.
Does selection of outlets vary in accordance with ty pes of product
categories? While buy ing a TV or a washing machine, would consumers visit an
exclusive showroom of BPL, Onida or Sony, or would they visit a multi-brand
outlet?
Would there be differences in the psychographic (and demographic)

profiles of consumers choosing outlets? What is the sequence in which
consumers are likely to go about their decisions? Will they select the brand or
the category first before choosing the outlet?

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What is the impact of the image developed by a retail outlet? Is FoodWorld

different from a neighbourhood grocery shop in the minds of consumers? What
kind of perception are consumers likely to have with regard to shopping from
an online outlet such as Fabmart vis-à-vis a brick-and-mortar outlet like
Fountainhead or Landmark?
Would consumers be interested in store or retail brands? Traditionally,
retailers have been carry ing manufacturers' brands. But in recent times (at least
to a significant extent in the foods category ), supermarkets such as FoodWorld
have started carry ing retail or store brands. Nilgiri's is another example in the
South which carries its own brands of chocolates, biscuits and other
commodities.
What contributes to retail equity or retail image or retail loy alty?
How do retail outlets handle perceived risks?
Marketers need in-depth knowledge about the various dimensions which link
retailing and consumer behaviour. There is research required to handle retail
decisions in a competitive context. McDonald's found that a major chunk of its
consumers decide to eat a few minutes before they make the purchase decisions
and hence it is building small outlets in large supermarkets such as Wal-Mart
and Home Depot. It is providing play areas to ensure a number of families visit
its outlets with children. A few companies also operate through kiosks in
airports, malls and high-traffic areas. Sunglass Hut is a brand which operates
kiosks at various places which displays about 1,000 different models along with
their prices. Consumers could place an order through these kiosks and the
product is home-delivered.
Retail outlet selection and brand selection

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There are three fundamental patterns, which a consumer can follow and they
could be:
(I) Brand first, retail outlet second
(ii) Retail outlet first, brand second
(iii) Brand and retail outlet simultaneously.
A consumer wanting to buy a car may collect information on brands and
purchase it fro m a retail outlet based on his perception of price offered or afte r-
sales service provided by the outlet (ty pically, search for information on brands
is followed by retail outlet selection in durables). In certain product categories,
especially where `category killers' exist, consumers may think of the retail
outlet initially and then the brands (television, refrigerator and audio products
retailed through outlets like Vivek and Co. in the South, could be an example).
One more dimension may be to compare brands in the evoked set at retail
outlets which also exist in an evoked set of their own. This is highly possible,
especially in the Indian context where dealers develop a social relationship
with consumers, especially in semi-urban and rural areas. Primary research
could be used to discover the specific sequence involved in a situation of this
kind. A `brand first' dimension may need feature-based advertising and a `retail
outlet first' dimension may require a set of point-of-purchase (POP) materials
and special training to sales personnel to recognise the needs of consumers.
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Further, if it is known that a number of consumers may be oriented to visit their

favourite retailer (before obtaining info rmation on brands) in a geographical
area, there would have to be more emphasis on regional/local advertising which
highlights the retail shop rather than regular brand-based national advertising.
Strategies and sequences
Retail outlet first and brand second: When a number of consumers follow this
sequence of decision-making, display of point-of-purchase material and
building the image of the outlet becomes important. The manufacturer of the
brand may have to ensure that the brand (and the variants demanded) will be
available at the key outlets in a locality. Point-of-purchase materials which are
to be used at the retail outlet may require primary research - should visuals be
used, should product features be used, should the POP material be in the
regional language. There may also be a need to monitor competition from other
retail outlets to ensure that consumers are kept satisfied in terms of service,
price, promotional deals and ambience. This is especially applicable to durables
retailing in India (in cities). Retailers attempt to increase consumer traffic by
providing a number of `add-ons'.
Brand first and outlet second: The brand was probably thought of by the
consumers because (i) the consumers may not have developed a relationship
with any retailer which is strong enough to get into the `evoked retail set' or
(ii) the brand has got into the evoked set because of advertising or positive
word of mouth. Local advertising with the mention of brand names which have
already got into the evoked set would enable consumers to be `pulled' to the
outlet.
Primary research may be required to identify the brands in the evoked set. This
feedback may have to be provided by the manufacturers of a brand to retailers
in various regions (especially if it is a brand with a major chunk of the market
and one which is nationally advertised). Even multinational outlets could make
use of this approach and mention the brands in the evoked set (in a given
geographical area). This is likely to improve traffic to the outlet. Besides, the
evoked set could also change from time to time depending on the strategies of
brands.
About two decades ago, brands like Solidaire, Dy anora and Crown may have
been top-of-the-mind (in a specific geographical area) but slowly gave way to
other brands - these changes should be captured (how often this happens, why,
and the differences between markets) to formulate retail strategies. The local
advertising could be different from the national advertising for the brand. A
brand may be advertised on features nationally but the retail outlet in may
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prefer to highlight the effective afte r-sales service associated with the brand as
this may be a priority of consumers. The combination of `push-pull' strategy is
shown in the table.
The interest generated in the brand would have to be backed by good pre-sale
services at the outlet.
Brand and retail outlet simultaneously : When consumers think of the brand and
retail outlet together, it means that they have a certain preference for the outlet
and would like to check the evoked set of brands there. The marketer would
have to carry out primary research to find out specific markets where
consumers have a very positive relationship with retailers. This is important
because of the influence of retailers over the purchase behaviour of consumers
in the Indian context.
It may also be worthwhile to check if the evoked brands are carried by the
retailers who have a positive relationship with the target segments. This is to
ensure that the retailers who have a favourable perception among the target
segment carry the desired brands. Failing this, consumers may turn to a
different retailer, which would be to the disadvantage of a retailer who has
already won the confidence of consumers. Retail sales personnel also become
important in this situation. The prospective consumers are "carried over" to the
purchase stage by the store personnel and hence there should be incentive
programmes for the store personnel.
If a company such as BPL or Videocon is dealing with a number of brands/sub-
brands, it has to ensure the availability of specific brands which may interest
the consumers. If the retail outlet is a large one dealing with a number of
brands (like Vivek), a shop-in-shop arrangement may be preferable. This model
puts the brand in focus and reinforces the positive association a consumer may
have about it. A considerable amount of pre-sale service would have to back up
the shop-in-shop concept.
The shop-in-shop concept creates an aura of exclusivity. Consumers tend to
have higher expectations about the pre-sale service and the attention given to
them. A large store also is likely to stock several brands and hence all brands in
the evoked set would have to compete with each other to progress from the
evoked set to choice set. Large outlets may also have a built-in provision for a
lower price (because of volumes) and hence may be in a better position to

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clinch the deal with consumers who may simultaneously consider both the
brand and the retail outlet.
THE STRIKING NEW FACE OF LUCKNOW
Who says great retail is only for the metros? Check out Lucknow where residents are
shopping like never before.This city in Utterpradesh has the state's largest shopping mall. It also
holds the distinction of being one of India's cleanest cities.
It is Utterpradesh’ capital with a population nudging 30 lakh as of 2001. This is LUCKNOW,
which is now experiencing a retail revolution of sorts.Lucknow believes the general feeling that
the retail revolution as we know occurs only in the metros. A walk along the main Hagaratganj,
Aminabad, Gomtinagar Lines areas is like walking through a large shopping mall. Here, you'll
find every brand, all kinds of products in every shape, shade and size and all types of food! You'll
also find four of Lucknow's supermarkets here. All these are changing the way Lucknow shops.
Two of the largest supermarkets in LUCKNOW are Saharaganj location Hagaratganj run by the
Sahara group and wave location in gomti nagar,Fun Republic Family Entertainment
Centre,Location: Near Eldeco Greens, Gomti Nagar.Total area: 18,000 sq mtrs/ 4.5 hectares of
prime land.Project deadline: March 2006.
With a total of 74 shops, this is part of the Zee Groups master plan of 25 all-India malls. Touted
as Lucknow’s biggest mall, not just in terms of size but owing to the names it is planning to bring

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into the city, the project is reportedly 95 per cent sold-out. Ladhani’s Taj Multiplex,Location:
Near Hoteltaj Residency, Gomti Nagar.Total area: 20,000 sq ft.Project deadline: March 2006.
Fortuna’s City Malllocation: Near Cms Gomti Nagar.Total Area: 70,000 Sq Ft.Project deadline:
By 2007.
Singapore mall,gomti nagar( work in progress) . Both offer valuable lessons in how organised
retail in smaller towns can succeed. Despite dramatic changes in the retail scene, Lucknow’s
retailers feel the need for a shift in mindset, habits, more modern restaurants and theatres to drive
lifestyle changes. And this is already happening. Here we profile three leading retailers from
Lucknow. Barista, the fast-growing espresso chain. At present two mall heart of Lucknow
Saharaganj or Wave I analysis to Luck now people perception of retail store (survey only retail
channel in Sahara gang, wave). The survey was constituted in visiting of Sahara gang and wave
Customers were interviewed by means of carefully prepared questionnaire to study and
understand customer’s psychology in depth.

84

85
Sele cti on of the Topic
First of all our research topic was selected. The topic being “A DETAIL STUDY OF
CONSUMER BEHAVIOUR IN LIFESTYLE INTERNATIONAL Pvt. Ltd. MAX RETAIL
DIVISION AT LUCKNOW”

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Ob jec tiv e o f resear ch
➢ To know the perception of customers towards the purchasing.
➢ To know the buying behavior of customers in retail store.
➢ To know the strategy of retail store for attracting customers
➢ To know the satisfaction level of customers.
Extens iv e liter atur e Sur vey
The yearly Journals and manuals & project reports provide by our institute were studied.
Lots of valuable information regarding real estate industry was collected through Internet
and necessary information regarding company through website of the organization.

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Samp lin g Des ign
⇒ Sampling unit Respondents of Fun Mall
⇒ Size of sample 100 respondents
⇒ Sample Method Random Sampling
⇒ Types of questionnaire Close ended
Type o f Data
Data type collected for analysis is PRIMARY i.e. data has been observed and recorded by
the researchers for the first time to their knowledge.
Data collected through journals, newspapers & internet is SECONDARY type.

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Me thod of da ta col lect ion
This study is a research which utilizes interrogation and observation method for data
collection. Secondary data was obtained from intensive analysis & observation. The
primary data are those, which are collected afresh and for the first time, and thus happen to
be original in character. The secondary data, on the other hand, are those which have
already been collected by some one else and which have already been passed through the
statistical process. Method employed to collect data is Questionnaire. This is a simple
survey conducted by filling in questionnaire from the people who visit malls.
Co llec tion of the Pr imar y da ta
As this study is of descriptive type, the primary data has been collected through
Questionnaire.

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Ob ser vation method
Under the Observation method, the information is sought by way of direct observation
without asking from the respondent. The main advantage of this method is that subjective
bias is eliminated, if observation is done accurately.
Anal ys is of Da ta
Data collected through questionnaire is being processed .This processed data is
represented by means of suitable graphs & diagrams.
➢ WHICH TYPE OF PLACE DO YOU VISIT FREQUENTLY FOR YOUR

SHOPPING NEEDS ?:
a) SHOPPING MALL [ 80 RESPONDENTS]
b) UPSTREET MARKET [ 8 RESPONDENTS]
c) LOCAL MARKET [ 12 RESPONDENTS]

90
➢ On the basis of above respondents the graph shows that maximum respondents
i.e. 80 out of 100 are agree that they frequently visit shopping mall for their
shopping needs.
It means maximum no of customer are preferred Shopping Malls for purchasing.
➢ YOU PREFER TO GO IN STORE WITH:
a. FAMILY [52 RESPONDENTS]

91
b. SPOUSE [12 RESPONDENTS]
c. FRIENDS [ 36 RESPONDENTS]
d. OTHERS [ 0 RESPONDENTS]
i.e. 52 out of 100 are preferred to go in store with their family.
It means maximum no of customers are family conscious for visiting retail store.
➢ FROM WHERE WOULD YOU PREFER TO BUY PRODUCTS:
a) SINGLE BRANDED STORE [ 24 RESPONDENTS ]
b) MULTI BRANDED STORE [ 60 RESPONDENTS ]
c) FACTORY OUTLET [ 4 RESPONDENTS ]
d) LOCAL BIG RETAIL OUTLET [ 12 RESPONDENTS ]

92
i.e. 60 out of 100 are preferred multi branded store for shopping.
It means maximum no of customers are time conscious and desire for many brand
under one roof.
➢ HOW OFTEN DO YOU ASK FOR ASSISTENCE FROM STORE STAFF IN

SELECTING YOUR PURCHASE?
a) ALMOST ALWAYS [ 12 RESPONDENTS ]
b) FREQUENTLY [ 16 RESPONDENTS ]
c) SOMETIMES [ 60 RESPONDENTS]
d) NEVER [ 12 RESPONDENTS ]
i.e. 60 out of 100 wanted sometime assistance from store staffs.
It means maximum no of customers do not compromise with their choice.
➢ WHAT DO YOU LOOK FOR IN A PRODUCT DURING YOUR PURCHASE:

93
a) FASHION [ 12 RESPONDENTS ]
b) COMFORT [ 16 RESPONDENTS ]
c) PRICE [ 60 RESPONDENTS ]
d) COLOURS AVAILABLE [ 12 RESPONDENTS ]
i.e. 60 out of 100 preferred price during their purchasing.
It means maximum no of customers are price conscious so maximum customers
belongs to middle class.
➢ WHEN DO YOU PREFER TO SHOP MOST IN STORE:
a) DURING SALE [ 18RESPONDENTS ]
b) DURING FRESH SEASON STOCK [ 54RESPONDENTS]
c) DURING DISCOUNT [ 24 RESPONDENTS ]
d) WHEN REQUIRED [ 4 RESPONDENTS]

94
➢ On the basis of above respondents the graph shows that maximum
respondents i.e. 60 out of 100 are prefer shopping during fresh season stock.
It means maximum no of customers did not compromise quality with discount and
offers.
A) RANGE B) PRICE C) SIZE D) FASHION E) BRAND
1st OPTION 30 20 30 8 10
2nd OPTION 22 32 25 10 13
3rd OPTION 20 18 15 14 33
4th OPTION 16 17 19 32 16
5th OPTION 12 13 11 36 28
➢ WHAT INFLUENCES YOUR BUYING SELECTIONS:

95
are attracted towards the Store due to this ranking-
FASHION BRAND PRICE RANGE, SIZE
It means maximum no of customers are prefer to the Malls for FASHION

96
➢ HOW FREQUENTLY YOU VISIT THE STORE:
a) <1 MONTH [ 60 RESPONDENTS ]
b) 1-3 MONTH [ 28 RESPONDENTS ]
c) 1-6 MONTH [ 4 RESPONDENTS ]
d) 1 YEAR [ 8 RESPONDENTS ]
i.e. 60 out of 100 are visited the store with in one month.
It means maximum no of customers are visiting the store monthly.
➢ WHAT IS AVERAGE MONEY YOU SPEND ON SHOPING?
a) <=999 [ 20 RESPONDENTS ]
b) 1000-1999 [ 52 RESPONDENTS ]
c) 2000-2999 [16 RESPONDENTS ]
d) >3000 [ 12 RESPONDENTS ]

97
i.e. 52 out of 100 are spend Rs 1000-1999 on shopping.
It means maximum no of customers prefer middle class shopping.
➢ :HOW DO YOU RATE THE PRICING OF PRODUCT AT MAX?
a) EXPENSIVE [ 10 RESPONDENTS ]
b) COMPETITIVE [ 16 RESPONDENTS ]
c) AFFORDABLE [ 34 RESPONDENTS ]
d) REASONABLE [ 40 RESPONDENTS ]
i.e. 40 out of 10 are agree that price of products are reasonable.
It means maximum no of customers are agree that price of products are equal to the
other market rate.
➢ HOW DID YOU COME TO KNOW ABOUT MAX?
a) NEWSPAPER [ 12 RESPONDENTS]
98
b) RADIO ADVERTISEMENT [ 12 RESPONDENTS]
c) LEAFLET [ 20 RESPONDENTS]
d) SMS [ 6 RESPONDENTS]
e) WORLD OF MOUTH [ 46 RESPONDENTS]
f) OTHERS [ 4 RESPONDENTS]
i.e. 46 out of 100 are know about max store by reference group.
It means maximum no of customers are know about the max store by other people
reference.
➢ WHAT MORE FACILITY WOULD YOU LIKE TO GET AT MAX?
a) MEMBERSHIP CARD [ 16 RESPONDENTS]
b) DISCOUNT MAILERS [ 32 RESPONDENTS]
c) FREE PARKING OFFERS [ 24 RESPONDENTS]
d) LUCKY DRAW OFFER [ 28 RESPONDENTS]

99
i.e. 32 out of 100 want discount mailers facility.
It means maximum no of customers want every information at their door step.
➢ WHICH CATEGORY OF PRODUCT DO YOU BUY MOST AT MAX?
a) MEN’S WEAR [ 12 RESPONDENTS ]
b) WOMEN’S WEAR [ 36 RESPONDENTS ]
c) ETHNIC WEAR [ 20 RESPONDENTS ]
d) KIDS WEAR [ 12 RESPONDENTS ]
e) FOOTWEAR [ 4 RESPONDENTS ]
f) ACCESSORIES [16 RESPONDENTS]
i.e. 36 out of 100 are purchasing maximum from women’s wear.
Customers prefer shopping according to-
WOMEN’S WEAR ETHENIC MEN’S, KID’S WEAR
FOOTWEAR ACCESSORIES

100
➢ WHEN YOU THINK OF SHOPPING WHICH STORE COMES IN
YOUR MIND FIRST-
A)PANTALOONS [ 16 RESPONDENTS ]
B) GLOBUS [ 30 RESPONDENTS ]
C) MAX [ 44 RESPONDENTS ]
D) WESTSIDE [ 10 RESPONDENTS ]
i.e. 44 out of 100 prefer MAX for shopping.
It means max retail targeting to the middle class customers.
➢ AGE WISE DISTRIBUTION

A) <20 [ 12 RESPONDENTS ]
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) >40 [18 RESPONDENTS]

101
i.e. 45 out of 100 are young age people.
It means maximum no of customers belongs to young age group.
➢ GENDER WISE DISTRIBUTION

E) MALE [ 58 RESPONDENTS ]
F) FEMALE [ 42 RESPONDENTS ]
i.e. 58 out of 100 are males.
It means maximum no of customers are male in malls due to family responsibility.
➢ NO. OF FAMILY MEMBER WISE DISTRIBUTION

102
A) <=2 [ 08 RESPONDENTS ]
B) 3-4 [ 54 RESPONDENTS ]
C) >4 [ 38 RESPONDENTS ]
i.e. 54 out of 100 having 3-4 members in their family.
It means maximum no of customers having nucleur family.
➢ EDUCATION WISE DISTRIBUTION
A) HIGH SCHOOL [ 08 RESPONDENTS]

B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
B) GRADUATION [ 32 RESPONDENTS ]
C) POST GRADUATION [ 32 RESPONDENTS ]
D) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]

103
i.e. 32 out of 100 are graduates and 32 out of 100 are post graduate.
It means maximum no of customers are educated and aware about retail store.
➢ OCCUPATION WISE DISTRIBUTION
A) STUDENT [ 33 RESPONDENTS ]
B) GOV. SERVICE [ 8 RESPONDENTS ]
C) PVT. EMPLOYEE [ 40 RESPONDENTS ]
D) SELF EMPLOYEE [ 12 RESPONDENTS ]
E) HOUSE WIFE [ 07 RESPONDENTS]
i.e. 40 out of 100 are Pvt. Employee.
It means maximum no of customers are self dependent.
➢ INCOME WISE DISTRIBUTION
A)LESS THAN Rs 20,000 [ 28 RESPONDENTS ]

B) BETWEEN Rs 30,000 TO 40,000 [ 48 RESPONDENTS ]
C)BETWEEN Rs 40,001 TO 50,000 [ 20 RESPONDENTS ]
104
D)MORE THAN Rs 50,000 [ 12 RESPONDENTS ]
i.e. 48 out of 100 are having monthly income between Rs 30,000 to 40,000.
It means maximum no of customers are belonging to upper middle class.

105
1. Maximum no of middle class customers come to max for shopping.
2. Max retail targeting to the middle class customers.
3. Maximum no of customers belongs to young age group.
4. Maximum no of customers are male in malls due to family responsibility.
5. It means maximum no of customers having nucleur family.
6. Maximum no of customers are educated and aware about retail store.
7. Maximum no of customers are self dependent.
8. Maximum no of customers are belonging to upper middle class.
9. Maximum no of customer are preferred Shopping Malls for purchasing.
10.Maximum no of customers are family conscious for visiting retail store.
11.Maximum no of customers are time conscious and desire for many brand under
one roof.
12.Maximum no of customers do not compromise with their choice.

106
13.Maximum no of customers are price conscious so maximum customers belongs to
middle class.
14.Maximum no of customers did not compromise quality with discount and offers.
15.Maximum respondents are attracted towards the Store due to this ranking-
FASHION BRAND PRICE RANGE, SIZE
16.Maximum no of customers are visiting the store monthly.
17.Maximum no of customers prefer middle class shopping.
18.Maximum no of customers are agree that price of products are equal to the other
market rate.
19.Maximum no of customers are know about the max store by
20.Most of the customers know about the MAX retail through other people
reference.

107
LIM ITATI ONS
Every report has its pros and cons so mine also have some limitations.
They can be pointed as:
1) Conclusions are for Lucknow City only.
2) Use of secondary data for analysis.
3) Only Zee Mall was present for collection of data so it was tough to collect
more respondent.

108
4) Respondents were not keen to give the answers of questionnaire.
CONCLUSION
The past 4-5 years have seen increasing activity in retailing. And, various
business houses have already planned for few investments in the coming 2-3
years. And though the retailers will have to face increasingly demanding
customers, and intensely competitive rivals, more investments will keep flow in.
And the share of organized sector will grow rapidly. retailing in India is surely
poised for a takeoff and will provide many opportunities both to existing players as
well as new entrants.. The country is witnessing a period of boom in retail trade,
109
mainly on account of a gradual increase in the disposable incomes of the middle
and upper-middle class households. More and more corporate houses including
large real estate companies are coming into the retail business, directly or
indirectly, in the form of mall and shopping center builders and managers. New
formats like super markets and large discount and department stores have started
influencing the traditional looks of bookstores, furnishing stores and chemist
shops. The retail revolution, apart from bringing in sweeping, positive changes in
the quality of life in the metros and bigger towns, is also bringing in slow changes
in lifestyle in the smaller towns of India. Increase in literacy, exposure to media,
greater availability and penetration of a variety of consumer goods into the
interiors of the country, have all resulted in narrowing down the spending
differences between the consumers of larger metros and those of smaller towns.
Lastly I want to conclude my project in some points-
➢ The customers are attracting towards shopping malls & retail outlets.
➢ The shopping malls & retail outlets are targeting to middle class customers
because the purchasing power of this class are rapidly growing as well as
the class is also growing.

110
➢ The young generation is fashion & show-off conscious so retail outlets are
mainly focused on them.
➢ Most of the family wants to purchase from big showrooms and malls
because there are no bargaining system so the have a trust that there is no
cheating.
➢ The main strength of most of the retail outlets are providing attractive offers
to attract customers.
➢ Big retail stores are running customer loyalty programmes which has
increased profits and no. of customers.

111
RECOMMENDATIONS
My recommendations on the basis of the are:
➢ Grant industry status to retail
➢ Retail stores should use an area that is easily approachable.
➢ Invest in supply chain infrastructure
➢ Ease distribution – infrastructure creation
➢ It should take steps to convert the footfall in the Retail Stores into sales by offering,
“Catchy & Intelligent schemes”.
➢ The attitude of sales force must be helping & communication in formal way.
➢ Proper signage’s should be used in retail store
➢ Exchange Policies of retail store should be properly communicated to customers
during Sale.
➢ Men’s Accessories like Sunglasses and Bracelets can be add up in Accessories
section.
112
➢ To solve the problem of alteration on Sunday, Company can provide the home
delivery of Altered merchandise.
➢ Sizes of the merchandising should be standard.
➢ Sizes of merchandising should be easily visible or one rack can be made for each
size of different style.
Bibliog raphy
BOOKS:-
➢ Marketing Management. ----Kotler & Keller
➢ Marketing Management in Indian Perspective
----V. S. Ramaswamy & S. Namakumari
➢ Research methodology ---C.R. Kothari
➢ Quantitative Methods ---B. M. Aggarwal.
➢ Retail management ---Levy & Weitzs

113
MAGZINES:-
➢ Business worlds
➢ Indian retail
➢ Economics of India
➢ India today
WEBSITES:-
➢ www.goggle.com
➢ www.tataretail.com
➢ www.retailindia.net
➢ www.retailyatra.com
➢ www.retailbiz.com
➢ www.aboutus.com
➢ www.businessworld.in

114

115
GENERAL QUESTIONNAIR
NAME:-………………… DATE:-……/……/2008 PLACE:-……………….
1) Which type of place do you visit frequently for your shopping needs?
a) Shopping mall b) Upstreet market
c) Local markets
2) You prefer to go in Store with –

a) Family b) Spouse
c) Friends d) Others
3) What influences your buying selections?

a) Availability of range b) Reasonable price
c) Availability of size d) Fashion appeal
e) Customer service f) Brand name
4) From where would you prefer to buy products?

a) Single brand store b) Multi brand store
c) Factory outlets d) Local Big Retail Store
5) How often do you ask for assistance from store staff in selecting your purchase?
a) Almost always b) Frequently
c) Sometimes d) Never
6) What do you look for in a product during your purchase?

a) Fashion b) Comfort
c) Price d) Colors Available
7) When do you prefer to shop Most in Store?

a) During Sale b) During Fresh season stock
c) During Discount d) When required

116
8) How frequently you visit the Store?

a) <1 month b) 1-3 month
c) 1-6 month d) 1 year
9) What is average money you spend on Shopping?

a) <= 999/- b) 1000-1999
c) 2000-2999 d) >3000
(If not customer of Max leave question 10-13).
10) How do you rate the pricing of product at Max?

a) Expensive b) Competitive
c) Affordable d) Reasonable
11) How did you come to know about Max?

a) Newspaper b) Radio advertisement
c) Leaflet d) SMS
e) Word of Mouth f) others specify………
12) What more facility would you like to get at Max?

a) Membership Card b) Discount Mailers
c) Free Parking offers d) Lucky draw offer
13) Which Category of Product do you buy most at Max ?

a) Men’s wear b) Women’s wear c) Ethnic wear
d) Kids wear e) Foot wear f) Accessories
14) When you think of Shopping which Store comes in your mind first-
a) Pantaloons b) Globus
c) MAX d) Westside
15) Any suggestion …………………………………………………………..

………………………………………………………………………………...
………………………………………………………………………………...
………………………………………………………………………………...
Age group <20 20-24 25-29 30-34 35-39 >40

Gender Male Female
No of <=2 3-4 >4
Family
Members
Qualificatio High Diploma Graduate Post- Professiona
n School Or pre- graduate l course
graduate

117
Occupation Studen Gov. Pvt. Self House wife Retired

t Service Employe Employe
e d
Location Gomti Mahanag Aliganj Hazratga Indiranaga Niralan o
nagar ar nj r agar the
r
Household Less 30,000- 40,001- More
Income Than 40,000 50,000 then
(per month) 20,000 50,000
THANK YOU

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1

bearing the entire responsibility for weakness in the report.

CHATTERJI (ASSISTANT STORE MANAGER), MAX LIFESTYLE, LUCKNOW

for providing me an opportunity to undergo this project report.

I am also indebted to MR. RAZAUR RAHMAN & ALL FACULTY MEMBERS of

to me at every point of time.

My gratitude to all those, who RESPONDED TO MY QUESTIONNAIRE in a well

defined manner and helped me acquiring knowledge.

ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

I, ABHISHEK PANDEY, student of POST GRADUATE DIPLOMA IN

MANAGEMENThereby declare that the project report entitled “A DETAIL STUDY OF

CONSUMER BEHAVIOUR AND BUYING BEHAVIOVR OF CUSTOMERS IN MAX

has not been submitted any where in any manner.

It is a report, which is based on various interviews, surveys that is conducted during my

project report period in LUCKNOW as a student of P.G.D.M. from “SHRI

RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW.”

ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

This study is a modest effect at understanding the consumer behavior especially in

Customers were interviewed by means of carefully prepared questionnaire to study and

ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

and take care of them… before the competition does.

RETAILING Means Re-tailing to the customers so that they comeback

considered a retail activity.

industry in the developed countries.

threshold of a major change.

with large retail chains.

The remarkable world of Retail

ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

or consumption rather than for resale."

Sample these facts:

➢ Every 10th billionaire in the world is a retailer.

➢ 25 of the top 50 Fortune 500 companies are in retail.

stores across a range of categories.

ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

Malls and Superstores that are being created.

strategies, will be head runner.

➢ A high spending community below 45 years comprises 81 percent of the population.

➢ A young population with 54% population below 25 years

➢ Increased literacy from 44% in 1965 to 70% in 2003

ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

➢ Increase in media penetration to 38-million cable household and 80-million TV household

play in boosting consumption levels.

cent is contributed by the organised sector.

opportunities that other channels offer.

ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

Driven by increasingly intense competition in an increasingly global marketplace, retailers must

competitive differentiation. Retailers should be focused on improving the end-to-end shopping

Internet and catalogues and telemarkets (including mobile shopping).

become the most valuable consumers within a retailer's customer base.

Multichannel retailing needs to be adopted:

• Grow market share

• Increase customer base

• Improve customer analytics

ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

• Opennew revenue streams by cross-sell & sell ups

• Reduce cycle time between order and delivery

• Lower fulfillment cost & Improve demand planning

Evolution of Indian Retail

Traditional Family Run Convenience Stores

Traditional Rural Retail Fairs

Traditional rural retail fairs in India deal in a good number of handcrafts