Description
The Documentation about the consumer behavior analysis done by Max Lifestyle.
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ACKNOWLEDGEMENT 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 PGDM- I YEAR
ABHISHEK PANDEY,, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT,, LUCKNOW ABHISHEK PANDEY SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT LUCKNOW
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DECLARATIION DECLARAT ON
I, ABHISHEK PANDEY, student of POST GRADUATE DIPLOMA IN MANAGEMENT hereby 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
ABHISHEK PANDEY,, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT,, LUCKNOW ABHISHEK PANDEY SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT LUCKNOW
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EXECUTIIVE SUMMARY EXECUT VE 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.
ABHISHEK PANDEY,, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT,, LUCKNOW ABHISHEK PANDEY SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT LUCKNOW
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PREFACE 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 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.
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The remarkable world of Retail
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Retail, according to Concise Oxford English Dictionary, is "the sale of 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 consumerswhether 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 store. Modern retail formats have mushroomed in metros and mini-metros, in hypermarkets, supermarkets and specialty stores across a range of categories. The first decade of modern retail in India has been characterized by a shift from traditional channels to new formats including department stores, Retailing in India has remained in the unorganized sector and largely untouched by corporate. meters with fragmented keerana stores being the predominant players. 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. ? 25 of the top 50 Fortune 500 companies are in retail. ? Retail is currently the biggest industry in the world with sales of $7.2 trillion ? Every 10th billionaire in the world is a retailer. 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:
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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. 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:
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? 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. ? 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 minimetros. 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
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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.
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.
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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 Open new 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.
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E v o llu t iio n o f I n d iia n R e t a iill Evo ut on of Ind an Reta
Tradit ional Rural Retail F airs Tradit ional F a mily Run Conve ni ence Stores
T r a d iit iio n a ll R u r a ll R e t a iill F a iir s Trad t ona Rura Reta Fa rs
Tradition al rura l retail fairs a re a v er y big attrac tion t o f oreign tourists. We have the Pu shkar f air in Rajas than w hich brings in a lot of revenue both f rom do mestic b u yers an d bu yers f ro m abro ad. In the Pushkar f air live stock like camels, hor ses, cows, goats, and sheep are sold a s well as bought. A range of exotic ite ms are also available . The t raditional ite ms h ere are hand made jewelr y and other c olorf ul me morabili a of Rajasthan.
Tradition al rura l retail fairs in Indi a deal in a g ood nu mb er of handcraft s ite ms whic h are mentioned be low:
? ? ?
Hand painted wooden chest drawers Wo oden wa ll brack ets Embossed wooden table
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? ? ? ? ? ? ? ? ?
Hand painted chair s in chowki Wo oden cor ner sta nd Wo oden Ha nd pain ted table Embossed wooden chairs Brown wo oden st o ol Ca mel bone Jewelr y Metal jewelr y Snake char m er pup pets Hand made c andles
The Suraj Kund me la is also a huge ga lore of Indian tra ditional i te ms. T h is f air is held at Har yana which i s 8 kilo met ers f rom South Delhi. The f air has been held f or the l ast 20 years . The f air deals in ite ms c ategorized as
? ? ? ?
Indian arts Handicraf ts Heritage Culture and traditi on
Tradition al rura l retail fairs have a ty pical rural set u p like:
? ?
Huts of mud Thatched pl atf orms
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? ? ?
lamps of wood String cots Plainness ground
The s mall t hatched stores are a vibran t displa y of handcr af t items. T he f ocus ever y year is on a particular State f or instance, i n 2006 i t was Maha rashtra. The other group of items represe nting t he India n Subcont inent avail able the re are:
? ? ?
Classical Tribal art Folk art
As such T raditio nal Rural Retail fa irs involve credit worth y arti sans an d weavers of over 350 in numbe r and the y a re selecte d f rom a cross the countr y. Along with the cou nt y's ric h cult ural heritage bei ng sho wcased, the f air is open to f oreign tra ditional g oods a s well. The more rej uvenating s ide of these f airs would be list ed as under:
? ? ? ?
Indian Sweets Snacks Indian folk music Classical d ance Bengal tige r show
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? ? ? ? ? ?
Elephant ri des Tiger show and rid es Giraf f e tricks Balloon an d Cla y i tems Painting Ga mes
Theref ore, traditio nal rural r etail fa irs are a never end ing occupat ion and the ke y to it lie s in the originalit y and att ractiveness of the items.
T r a d iit iio n a ll F a m iilly R u n C o n v e n iie n c e S t o r e s Trad t ona Fam y Run Conven ence Stores
Tradition al fa mi l y run convenienc e stores are t oo wel l establishe d in Ind ia than to be wiped o ut and besi des ther e is unique ness in the traditio nal ite ms that represen t the s ub-continent. The retail stores in In dia are esse ntiall y do minated b y the u norganized sector or tradition al store s. Inf act t he traditi onal stores have taken u p 98 percent of the Indian retai l mark et. Now st ores run b y f amilies are pri mar il y f ood ba sed and the set up i s as Kir ana or the 'corner grocer' s tores. B asi call y the y p rovide high service with l ow prices. If the st ores are not f ood based then the t yp e of retail ite ms av ailable are local in nature.
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The traditional f amil y run co nvenien ce stores can take pride in the f act that the Kirana is the most co mmon outlet forms f or the consumers. The tough co mpetitio n f or convenienc e st ores ar e co ming f ro m org anized retail stores dealing in f ood ite ms , like:
? ? ? ? ? ?
Apna Bazaar Canteen sto res Food Worl d Subhiksha Food Bazaa r Convenience Stores are open for long hours an d is one of the formats of the Indian re tail st ores that cate r to b asic needs of the c onsu mer. A good exa mple of such w ould be Co nvenio. These store s are f ound in bot h residential a s well as commerci al mar kets. The food products of traditional f a mil y r un convenie nce sto res are co mp rised of branded as well as non -brande d it e ms. T he benef its of f amil y run c onvenience stores is that the y give i mp ortance t o:
? ?
Personal to uch Facilities of credit
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?
Quick home deliver y
Non-f ood based st ock co mpri ses of mu ltiple an d variet ies of local brands. The f uture of such stores as th e y f ac e co mpetitio n f rom o rganized sect or, would depend on the f ollowing partic ulars:
? ? ? ? ? ?
Place and ca pacit y Diligent area cover age Disciplined work schedule Managing t urnover Revenue f ro m asse ts Custo mer service a nd satisf action
The traditi onal fa mily run c onvenie nce stores serves t he purpose of the housewive s who d e f initel y wa nts to a void traveli ng long distances t o purch ase dail y needs. The c onvenience f actor i n ter ms of ite ms, a mo ng peop le in ge neral can be highl ighted as below:
? ? ? ?
Groceries Fruits Drug Store Necessar y s tationer y
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As such tradition a l family run conve nience stores are here to stay and cannot
be oversized by th e organized retail sector besi des, it r epresents t he varie ty of
India
Indian retail industry
India retail i ndustr y i s the larg est ind ustr y in In dia, wit h an e mplo yment o f around 8% and contributing to over 10% of the countr y' s GDP. R etail ind u str y in India is e xpecte d to rise 25 % yearl y b eing dri ven b y s trong inco me grow th, changing lif est yles , and f avorable de mo graphic patterns .
It is expecte d that b y 2016 modern r etail industry in I ndia will be wort h US$ 175- 200 b illion. I ndia retail i ndustr y is one of the f astest growing indust ri es with revenue expec ted in 2007 to amo unt US$ 320 billio n and is inc reasing at a rate of 5% ye arl y. A f urther increase of 7 -8% is expecte d in the in dustr y o f retail in Ind ia b y g rowth in consumer i sm in urba n areas, rising inco mes, and a steep rise in rural consu mpti on. It ha s f urther been pred icted that th e retail ing industr y in India w ill a mount to US$ 21.5 billio n b y 20 1 0 f rom the c urrent size of US$ 7.5 billio n.
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Shopping in India have witnes sed a r evolution with the change in th e cons umer bu ying beh avior an d the whole f ormat of shopping also a ltering. Ind ustr y of retail in India which have become mo dern can be seen f rom the f act that th ere are multi - s tored malls, huge s hoppin g centers, an d spra wling co mplexes w hich off er f ood, shopping, and entert ain me nt all under the sa me roof .
India retail i ndustry i s expanding itse lf most agg ressivel y, a s a resul t a gre at de mand f or real est ate is being create d. India n retailer s pref erred me ans o f expansion i s to expand to oth er regions and to i ncrease the number of their outlets in a cit y. It is expected that b y 2 010, In dia ma y have 600 ne w shop ping centers.
In the India n retailing industr y, f ood is the most domina ting sector a nd is growing at a rate o f 9% annuall y. The branded f ood indu str y is tr yi ng to en ter the India reta il ind ustr y and c onvert I ndian cons u mers t o branded f ood. Sin ce at present 60 % of the Indian groc er y bas ket consist s of non - branded ite ms.
India retail i ndustry i s progressing well and for this to continue retailers as well as the Indian govern ment will have to make a co mb ined ef f ort.
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Indiian organiized retaiill market Ind an organ zed reta market
Indian organized retail market is growing at a fast pace due to the boom in the India reta il indus try . In 2005, the r etail indust r y in In dia a mount ed to R s 10,000 bil lion acco unting f or about 1 0% to the c ountry ' s GDP . Th e organi zed retail market in In dia out of this tota l market acc ounted f or Rs 350 billio n which is about 3.5% of the total revenues.
Retail mark et in th e Indian org anized sector is ex pected to cross R s 1000 billion b y 2010. T r aditionall y the reta il industr y in India was lar gel y unorganized , co mp rising of drug stor es, mediu m, and s mal l grocer y stores . Most of the organi zed retailing in Ind ia have starte d rec entl y and is concentratin g main l y i n metro politan cities.
The growth in the Indian orga nized r etail market is mai nl y d ue to the chan ge in the consu mers beh avior. This change has co me in the co nsu mer due to incr eased inco me, cha nging l if est yles, an d patte rns of demograph y which are f avorab le. Now the consumer wants to shop at a place where he can get food, entertainme nt, and shopping a ll under one roof . This has given India n orga nized retail market a maj or boost.
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Retail mark et in th e organized sector in India is growin g can be seen f ro m t he f act that 1500 supe rma rkets, 3 25 depa rtmental st ores, an d 300 new malls ar e being built . Man y Indian co mpanies a re entering t he Indian retail market which is giving Indian organ iz ed reta il market a boost. One such c o mpan y is the Reliance Indus tries Li mite d. It pl ans to inve st US$ 6 billion i n the Ind ian retail market b y op ening 1000 h yper m arkets and 1 500 su per markets.
Pantaloons is anot her Indian c o mpan y w hich pla ns to i n crease its reta il sp ace to 30 million square f eet with an invest me nt of US$ 1 bil l ion. Bharti Teleco ms an Indian compan y is in talks with Tesco a global gi ant for a £ 750 mi llion jo i nt venture. A nu mber of global retail gia nts such as Wal ma rt, Carref our, and Metro AG are also planning t o set up shop in In dia. Indi an organized retail mar ket will def initel y grow as a resul t of all this invest me nts.
Indian organized retail market is increasing and for thi s growth to continu e the Indian retailers as well as govern men t must ma ke a combined eff ort.
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The Glloball Retaiill Industry : An Overviiew The G oba Reta Industry : An Overv ew
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. 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 $219 billion in sales for fiscal 2001. Wal-Mart has become the most successful retail brand in the world due its ability to leverage size, market clout, and efficiency to create market dominance. Wal-Mart heads Fortune magazine list of top 500 companies in the world. Forbes Annual List of Billionaires has the largest number (45/497) from the retail business.
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GLOBAL RETAIL GLOBAL RETAIL
1999 1999 Tottall Rettaiill ((US$ Biilllliion)) To a Re a US$ B on Orrganiized Rettaiill ((US$ Biilllliion)) O gan zed Re a US$ B on % Sharre off Orrganiized rrettaiill % Sha e o O gan zed e a 150 150 1..1 11 0..7 07 2002 2002 180 180 3..3 33 1..8 18 2005 2005 225 225 7 7 3..2 32
Rank 1. 2. 3. 4. 5.
Retailer Wal-Mart Stores, Inc. Carrefour Group The Kroger Co. The Home Depot. Inc. Metro
Home Country U.S.A. France U.S.A. U.S.A. 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 Strategiic Factors iin Retaiilliing Key Strateg c Factors n Reta ng
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 evollutiion of the trade channell are shown The 3 stages of evo ut on of the trade channe are shown iin the exhiibiit bellow : n the exh b t be ow :
Extended
Limited
Direct
Manufacture
Manufacture
Manufacture / Retailer
Depo/CNF Depo/CNF Distributor Retailer Retailer Shopper Shopper
Shopper
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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). 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.
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FORMAL RETAILING SECTOR FORMAL RETAILING SECTOR
1. Typically large retailers 2. Greater enforcement of taxation mechanisms 3. High level of labor usage monitoring
Evolution of Indian retail
Historic/Rural Reach Traditional/Pervasive Reach Government Supported Modern Formats/ International
PDS Outlets Khadi Stores Cooperatives Weekly Markets Village Fairs Melas
Source of Entertainment
Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls
Convenience Stores Mom and Pop/Kiranas
Neighborhood Stores/Convenience
Availability/ Low Costs / Distribution
Shopping Experience/Efficiency
7
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CATEGORIES OF INDIAN RETAIL CATEGORIES OF INDIAN RETAIL
1. Corporate Houses Tatas: Tata Trent RPG group: Food World, Health and 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 Glow, etc
Cllassiifyiing Indiian retaiill C ass fy ng Ind an reta
(A)Modern Format retailers
1) Supermarkets 2) Hypermarkets 3) Department Stores 4) Specialty Chains (Foodworld) (Big Bazaar) (S Stop) (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 4) Exclusive /Multiple Brand Outlets
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(C)Large Indian retailers I. Hypermarket 1) Big Bazaar 2) Giants 3) Shoprite 4) Star II Department store 1) Lifestyle 2) Pantaloons 3) Piramyds 4) Shoppers Stop
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5) Trent III Entertainment 1) Fame Adlabs 2) Fun Republic 3) Inox 4) PVR
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The Indiian retaiill sector can be broadlly cllassiifiied iinto The Ind an reta sector can be broad y c ass f ed nto
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
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.
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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
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.
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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 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
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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 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
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The Land mark Gr o up, f ounded in 197 3 with a single sto re in Bah rain ha s g rown into one of the largest retail conglo mer ates in the Mid dle East and is exp anding rapidl y in India. It currentl y operate s over 75 0 stor es a cross the region w ith a retail presen ce in China as well. In addition to its ret a il sector, t he Grou p has also diver sif ied in to leisure, f ood, hotels an d electr o nics and has cr ea ted a co mprehens ive in f rastructure inclu ding its own lo gistics and di stri bution division, to supp or t its retail o peratio ns and othe r busin esses.
Key Factts Key Fac s 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.
Core Vallues of Landmark Group Core Va ues of Landmark Group
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1.
Passio n for ex cellence – We are committed to setti n g industr y bench m arks –
be it our product or practices. Our do ctrine is to strive and mai ntain the l ead in whatever we do, with strict a dhere nce to qualit y an d delivering valu e f or mo ne y. 2. Integrity in ev ery thing w e do - Our business i s driven b y trus t, s trong ethics and mu tual respect.
3. E mpow ering people to str ive a nd deliver – Ou r core streng th i s our emplo yees. We believe in givin g our pe rsonnel the opp ortunit y and
responsibil it y that are integral to their prof essional de velop ment and our Group’s success.
4. Adapti ng to changing market a nd cust o mer nee ds – We keep ou rselves abreast with industr y tren ds and d yn ami c consumer pre f erences. Our off erings keep evolvi ng to a ddress chan ging an d discernin g consu mer needs.
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L o o k G o o d F e e ll G o o d Look Good Fee Good
?
Max a value retai l store f or the f amil y w as launche d in Ma y 2004 in th e UAE.
?
Wit h st ores t hat t yp i call y measure b etween 2 5,000 to 30,000 sq. f t, Ma x retails its own la bel clothing f or me n, wo men and children as well a s f ootwear and ho me ware.
?
A pioneer in the Middle East of the global trend of delivering qualit y and value at ver y attra ctive prices, M ax i s being increas ingl y reco gnized as a ke y pla yer i n the v alue retail f or mat.
?
Wit h 75 stores acr oss UAE, Saudi Ar abia, Jordan, Kuwa it, Bahrain, Qatar, O man & India , Ma x plans to e xpand i ts netwo rk in more potentia l mar kets within t he Mi ddle East, Tur ke y a nd I ndia to build a si g nif icant presence f or the brand b y ta rgeting to h ave 10 0 stores b y 2009.
?
A good shopping experience and great value is an assurance that translates i nto mak ing custo mers ?Lo ok good. Feel goo d ? with Max .
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Key Factts Key Fac s
Established in 2004. 75 stores spread across 8 countries. The Largest Value Fashion Chain in the Middle East Products designed and developed in-house designers and buyers. exclusively for Max, by a large team of
KIDSWEAR DEPARTMENT
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BOYS (SIZES) 6-12 MONTHS 12-18 MONTHS 18-24 MONTHS TOTAL BOYS SECTION: SUB SECTION
PREPACK 3 3 3 9
GIRLS (SIZES) 6-12 MONTHS 12-18 MONTHS 18-24 MONTHS
PREPACK 3 3 3 9
1-8 YEARS
SIZES
PREPACK
8-14 YEARS
SIZES
PREPACK
2-3 YEARS 3-4 YEARS 5-6 YEARS 7-8 YEARS TOTAL GIRLS SECTION: SUB SECTION
1-8 YEARS
SIZES
3 3 3 3 12
8-9 YEARS 9-10 YEARS 11-12 YEARS 13-14 YEARS
3 3 3 3 12
PREPACK
8-14 YEARS
SIZES
PREPACK
2-3 YEARS 3-4 YEARS 5-6 YEARS 7-8 YEARS TOTAL
3 3 3 3 12
8-9 YEARS 9-10 YEARS 11-12 YEARS 13-14 YEARS
3 3 3 3 12
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V-NECK R- NECK COLLER FRONT OPEN
SKIRT CAPRI SHIRT 2-8 BOYS T-SHIRT DENIM JEANS TROUSERS CARGO 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 ABHISHEK PANDEY,, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT,, LUCKNOW ABHISHEK PANDEY SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT LUCKNOW
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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 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 XS S M L PREPACK 1 2 2 2
TRADITIONAL KURTI SHORT LENGTH KURTI HE KURTA LONG KURTA DUPATTA COTTON SHIFFON ABHISHEK PANDEY,, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT,, LUCKNOW ABHISHEK PANDEY SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT LUCKNOW
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SALWAR PATIALA NORMAL CHOORIDAR SIZES S M L XL XXL ETHNIC WEAR BASICS: KURTA SALWAR CHOORIDAR PATIALA DUPATTA PANTS BASICS SLIPS PREPACK 2 3 3 2 1
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
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CORE KNIT TOP WOVEN TOP KNIT BOTTOM WOVEN BOTTOM SKIRTS YOUNG KNIT TOP WOVEN TOP KNIT BOTTOM 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
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BOOT CUT REGULAR FIT SLIMFIT CASUAL NON- DENIM KNITTED TOP- FULL SLEAVES KNITTED TOP- HALF SLEAVES KNITTED TOP- SLEAVE LESS 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 WOVEN TOP- FULL SLEAVES WOVEN TOP- HALF SLEAVES INNER WEAR TRUNK VALUE PACK WEST VALUE PACK Y FRONT VALUE PACK SEMI FORMAL WOVEN BOTTOM- FLAT FRONT WOVEN BOTTOM- PLEATED WOVEN TOP- FULL SLEAVES WOVEN TOP- HALF SLEAVES 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 39 to 44 S to XL 28 to 36
REGULAR FIT 28 to 36
SLIM FIT 28 to 38
FOOTWEAR
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? ? ? ? ? ? ? ? ?
CASUAL SHOES FORMAL SHOES CASUAL LACE UPS FORMAL LACE UPS 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.
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3. Switch on optimum lights on floor. 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
Duties & Responsibilities
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? Sales Forec asting & Budget ? Personnel Recruit me nt, select ion, tr aining, mo tivation and evaluati on ? Merchandis e Displ a y, Inventor y Man age ment and merch andise reord ers ? Handling store rec eipts, preparing bank transactions, opening and closing store ? Reviewing custo mer co mplain ts ? Reviewing co mput er data f orms ? Review of overall operations a nd rep orts to top manage me nt.
DEPARTMENT MANAGERS DETAIL CHECKLIST
? Cleaning an d Dust i ng ? Floor cleane d and Mopped ? Fixture (Cl ean, Ali gn ment & Breakag e) ? Stock Repl enish me nt ? All st yle d ispla yed on f loor. ? Size cubing on all mer chandise ? Price ticket s on all me rchandis e ? Securit y ta g on all mer chandise ? Merchandis e well presented
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? Shelf Talkers (Cle an and Pro perl y di spla yed) ? Ensure iron ing of Merchandis e is in process. ? Trial roo ms clean ? Cash Cou nters Cl e an (Merchan dise, h angers & ta gs) ? Dail y sales registe r updation ? Dail y groo ming ch eck ? Ensure that the ade quate manp ower o n the f loor on hourl y basis ? Staf f should tr y an d attend each and e ver y custo mer, gre eting is ver y important ? Ensure that staf f is regul arl y in teracti ng with the custo m er b y givin g exceptional service f or customer delig ht at all time ? Ensure the presenc e of one ma nager a t an y given ti me o n each f loor ? Ti me and a gain ch eck that the villing check out i s f ast enough as p er the standard no r ms ? Ensure that the lunch breaks s hould start b y 1:00 p m and f inished b y max 4:00 p m ? Ensure the presenc e of all staff on the f loor in peak hours between 5:00 pm to 9:3 0 p m ? Ti me and a gain ch eck on walk -ins, a verage bill s ize, sa les on hour l y basi s an accordingl y
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? Encourage t he staf f f or f urther impro ve ment ? Ensure you r morni ng shif t staf f and weekl y of f f or the next da y is conve yed to all sta ff . ? Maintain D M’s lo g book on d ail y bas i s & ackno wledge b y S M, A SM on dail y basis
CRE DETAIL CHECKLIST
? Cleaning an d dusti ng of shelves, bro wsers, ar ms & bac k bars. ? Check at 10 :30 a m f loor clean & mop ped ? Fixture (Cl ean & Align ment)
? Have a walk on the f loor af ter 10:30 am a nd check the re plenishmen t
require ? Stock reple nish me nt f or new lines & broken size s on the f loor ? Re move br oken siz es f rom the f loor if it is not a vailable in back ? Ensure that all st yle displa ye d on f loor ? Price ticket s on all me rchandis e ? Start size cu bing o n all mercha ndise ? Securit y ta gs on al l merchandi se
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? Merchandis e well presented ? Start ironi ng of me rchandise at 10:00 am till 4:0 0 p m ? Trials roo ms (clea n, tokens a nd man n ed) b y 10:30 a m ? Tr y and atte nd eac h and ever y custo mer , greetin g is ve r y i mportan t.
Distribution Of Target In Departments
Let, 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
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DIPSTICK PARAMETERS
Enable retail ers to f ind out about the health of specif ic area of operation in a n insta nt.
Customer Transactions
? Custo mer Conver si on Ratio ? Return To Net Sale s ? Transaction s Per H our ? Sales Per T ransacti on
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? Hourl y Cu sto mer T raff ic
Stocks
? Average Sel ling Pr ice ? Average Stock Price ? Stock Turn over/In ventor y Tur nover Rate ? Percentage I nvento r y Costs ? Gross Margin Retu rn on Inventor y ? Markdown Goods Percentage ? Shrinkage t o Net Sales
Space
? Occupanc y Cost Per Square Foot Selli ng Space ? Sales Per Square Foot ? Stock Per Square Foot ? Percentage of Selli ng Space
Employees
? Net Sales Per Full Ti me E mpl o yee ? Labour Pro ductivity
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? Gross Margin Per Full Time E mplo ye e Custo mer Conver sion Rati o Custo mer Conver si on Ratio = Nu mber Of Transactions Cust o mer Tr aff ic -Ref lects Retailers abilit y to t urn a p otential cus to mer i nto a bu yer -Low f igure means that p ro moti onal a ctiv ities are no t be ing conv erted i nto sales or that the overall sales ef f ort needs to be assess ed af resh -Auto matic counti ng mechani s ms or periodic sur ve ys of custo mer tr af f ic x 100
Returns to Net Sales
Returns to Net Sal es = Total Re turns Net Sales x 100
-Indication of Customer satisfaction -Increase in value is an earl y warning indicatio n -Qualit y of mercha ndise is a s uspect
Transactions Per Hour
Transaction s Per H our = Nu mbe r Of Transactions Nu mber of Hours
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-Hourl y variation s in sale s activ itie s is i mportant f or setting store hou rs and staf f schedules -Cash regis ters wil l give the ti me of sale
Sales Per Transaction
Sales Per T ransacti on = Net Sales Nu mber Of Transa ctions
-Ref lects Retailers abilit y to t urn a p otential cus to mer i nto a bu yer -Low f igure means that p ro moti onal a ctivities are no t be ing conv erted i nto sales or that the overall sales ef f ort needs to be assess ed af resh -Auto matic counti ng mechani s ms or periodic sur ve ys of custo mer tr af f ic
Hourly Customer Traffic
Hourl y Cu sto mer T raff ic = Custo mer Traf f ic In Nu mber of Hours -Can be appli ed to an entire store or a single depar t men t to schedule hours and establish staf f levels -Used to track customer traf f ic
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Average Selling Price
Average Selling Price Total Value s of Good Sold Total Quan tit y Sold
Average Stock Price
Average Stock Price = Total Value s of Goods in Stock Total Q uantit y in Stock -Turning stocks ar ound ef f icientl y yi elds better p rof its -If dail y sales acc ount f or 2% sales i t will t ake 50 da ys to sell stock and i n 365 da ys the tur naroun d of the stock is 3 6 5/50 i.e 7.3 ti mes
Stock Turnover / Inventory Rate Turnover
Stock Turn over / I nventor y R ate Tur nover = Net Sales
Average Re tail Value of Inventor y -Indicates h ow of ten the inventor y i s sold and replace d in a given period of time -When this ratio declines there is a possibilit y t hat the i n ventor y is excessive
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Percentage Inventory Carrying Costs
Percentage I nvento r y Carr ying Costs = Inven tor y C arr yi ng cost s x 10 0 Net Sa les -Important measure as there is a rise in inventor y ca rr ying costs due t o higher interest rates -Important to r ed uce stock obsolescence and preve n t blockage of wo rking capital -Retailers us e this mea sure to tra ck th e percentage of the ir net sales rep rese nted b y the f ixed costs of maintain ing inv entor y.
Gross Margin Return on Inventory
Gross Margin Retu rn on Inventor y = Gross Margin Averag e Value of Invento r y -GMROI c o mpare s the marg in on sales with the original co st val ue of mer chandise to yie ld a return o n merc handise inv est ment -Pref erabl y the in ventor y is to be v alued at co st rathe r than retai l value as it gives a bett er indic ation of invest men t
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Markdown Goods percentage
Markdown Goods percentage = Net Sale s at Ma rkdown Total Net Sales
-If the ratio increases, the reta il er ma y need to take a closer l ook at mer chandisi ng pra ctices, especi all y p ricing -Markdow ns ma y b e s ympto ms of oth er proble ms like o r bu ying, adverti si ng or store la yout .
Shrinkage to Net Sales
Shrinkage t o Net Sales = Actual Inventor y – Book Inve ntor y x 100 N et Sales -Percentage of net sales lost d ue to s h rinkage -Does not indicate cause of shrinkage but the ma gnitude of the problem.
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Occupancy Cost Per Square Foot Selling Space
Occupanc y Cost Per Square Foot Selli ng Space = Occupanc y Cost Square Feet of Selling Space -Translates i nto oc cupanc y cos t per u nit of selling space -In other words th e amou nt that nee ds to be generated b y that unit of space to justif y occu panc y costs -For multi -uni t retailer it is a usef ul tool to compare th e perf ormance of units at diff erent locations.
Sales Per Square Foot
Sales Per Square Foot = Net Sales Square Feet of Selling Space
-Used to compare diff erent depart me nts or stores using a co mmon standard -Important tool to decide alternate uses of the space
Percentage of Selling Space
Percentage of Selli ng Space = Selling Space x 10 0
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Total Space -Eff icienc y of spac e utilit y -Ratio varies wit h mercha ndise a nd can be used to compare dif f erent depart ments or sto res.
Net Sales Per Full Time Employee
Net Sales Per Full Ti me E mpl o yee = Net Sales Total Full Ti me E mp lo yees
-Average Sa les gen erated b y eac h f ull ti me e mpl o yee -Can be use d to set perf ormance targe ts.
Labour Productivity
Labour Pro ductivity = Total Labo ur Costs x 100 Net Sales
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-Tracks labo ur cos ts incurred t o achi eve a given sales v olu me -Can be app lied pu rel y to sales e mplo ye e s
Gross Margin Per Full Time Employee
Gross Margin Per Full Time E mplo ye e = Gross Margin Total Full Ti me E mp lo yees -Gross prof it generated per emplo yee, used to gauge perf ormance of sales emplo yees -Not the onl y meas ure but a starting tool.
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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.
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.
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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 for m l ay out: In a f reef orm, merchandise i s arran ged in an a s ymmet rical ma nner. It allows f or f ree move me nt and is of ten used in retail outl ets to encourage people to browse a nd shop.
MAX STORE LAYOUT
Accessories Department 700 ft2
Baggage Counter
Cash Till Kids wear Department 2350 ft2
2 3 1
4 Foot wear Department 1502 ft2
Western wear Department
2234 ft2 Menswear Department 2315 ft2 Pantry Ethnic wear and home Department 1805 ft2
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Consumer Behavior and Marketing Strategy
The stud y of cons umers helps f ir ms and organizat ions improve thei r mar keting strategies b y under standing is sues su c h as how
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The ps ycho log y of how cons u mers t h ink, f eel, reason, a nd select be tween diff erent alternativ es (e.g., bra nds, pr oducts);
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The the ps ych olo g y of how t he co nsu mer i s inf luen ced b y his o r her environ men t (e.g., culture, f amil y, sig ns, media);
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The behavi or of consu mers while s hopping o r makin g other mar keting decisions;
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Li mitation s in c o nsu mer k nowledg e or inf or mation p rocessing abilities inf luence decisions and market ing out co me;
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How co nsu mer mo tivation and decisi on strate gies dif f er between prod ucts that dif f er in their level of i mporta n ce or inter est that the y entail f or the consu mer; a nd
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How mar keters c a n adapt a nd i mpr ove their marketi ng ca mpai gns an d mar keting s trategie s to more ef f ectivel y r each the c onsu mer .
Understanding these issues helps us a dap t our strateg ies b y taki ng the cons umer into consi deration. For exa mple, b y understandi ng that a nu mber of different me ssages co mpete f or our potential custo mers’ attent ion, we learn that to be eff ective, advertiseme nts must usual l y be repeated ext ensivel y . We also learn that consu mers w il l some ti mes be per suaded more b y lo gical argu ment s, but at other ti mes w ill be persua ded mor e b y e motion al o r s ymbo lic ap peal s. B y understandi ng the consu mer, we wil l be able to ma ke a mo re inf ormed de c ision as to which strateg y t o e mplo y.
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One "of f icial" definition of consu mer behavior i s "T he stud y of indivi duals, groups, or or ganiz ations a nd th e pro cesses t he y u se to select, secure, us e, an d dispose of products, services, exper iences, or ideas t o satisf y n eeds an d the impacts t hat th ese processes have on the consu mer a nd societ y." Altho ugh it is not necessar y to memorize thi s def inition, it brings up s ome usef ul points:
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Behavior occurs e ither f or the indiv idual, or in the c ontext of a group (e.g., f riends inf l uence wha t kin ds of clothes a per son wear s) or an organizatio n (peo p le on the j ob mak e decisio ns a s to which p roducts th e f irm shoul d use).
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Consu mer behavio r involves t he use and disposa l of products as w ell as the stud y of how the y are purc hased. Product u se is of ten of great interest to the market er, because this ma y inf luence how a product is b est positioned or how we can encourage increased consu mption. Since man y environ men tal pro ble ms result f rom product disposal (e.g., mot or oil being sen t int o s ewage s ys te ms to save t he rec yc li ng f ee, or gar bag e piling up a t landf ills) this is also an a rea of interest.
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Consu mer behavi or involv es ser vi ces and i deas a s well as tangi bl e products.
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The i mpact of co nsu mer beha vior on societ y is also of relevance. Fo r exa mple, agg ress iv e marketi ng of hig h f at f oods, or a gg ressive marketin g of eas y cre dit, ma y have seri ous rep ercussions f or the national health an d econo m y.
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There are f our mai n applications of consu mer be havior:
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The most obvi ou s is f or marketing strategy—i .e., f or making bett er mar keting ca mpaig ns. For exa mple, b y understa nding t hat consu me rs are mo re receptiv e to f ood advertising when the y are hu ngr y, we lear n to schedule snack ad vertise ment s late in the af ternoon. B y unde rstandi ng that new product s are usuall y initia ll y ad opted b y a f ew consu mers an d onl y spread la ter, and then onl y gra duall y, to the r est of the population, we learn that (1) co mpanies t hat in troduce new prod ucts must be well f inanced so that the y c an sta y af loat until their pr oducts beco me a co mmercial succe s s and (2) it is important to please initial custo mer s, since the y will i n turn inf luence ma n y subseq uent custo mers’ br and choices.
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A second applica t ion is p ublic p oli cy . In the 1980 s, Accutane, a near mir acle cure f or acne, was i ntro duce d. Unf ortunatel y, Accutane re sulte d in severe birth d ef ects if taken b y pr egnant wo me n. Alt hough ph ys icians were inst ructed t o warn their f emale patien ts of th is, a nu mber still beca me pre gnant while taki ng the d rug. To g et con su mer s’ atten tion, t h e Federal Drug A d ministration (FDA) took the step of requiring that ver y graphic pict ures of def ormed b abies b e shown o n the me dicine conta iners.
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Social marke ting i nvolves gett ing id eas across to con s umers rather th an selling so met hing . Mart y F ishbein , a mark eti ng pr of essor, went on sabbatical to w ork f or the Centers f or Disease Contr ol tr yi n g to reduce the incidence of trans mi ssion of disease s throug h illega l drug use. The best solution, ob viousl y, wo uld be if we could get illegal drug users to stop . This, ho wever, wa s dee med to b e in f easible. It was al so deter mined t hat the practic e of sha ring needl es wa s t oo ingrai ned in the drug c ulture to be stopped. As a res u lt, using knowled g e of consu mer atti t udes, Dr. Fishbei n
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created a ca mpaig n that encouraged the cleaning of needles in bleac h bef ore sharing the m, a goal t hat was believed to be mor e realistic.
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As a f inal benef it, stud ying cons u mer behavior shoul d mak e us better consu mers. Co mmon sense sug gests, f or example, th at if yo u bu y a 64 liquid oun ce bottl e of laundr y deter gent, you should pa y less pe r ounc e than if you bough t two 32 o unce bot tles. In prac tice, h owever, yo u of ten pa y a size premi u m b y bu yin g the larger quantit y. In o ther words, in this case, kno wing this f act will se nsitiz e you to th e nee d to ch eck th e uni t cost labels to determi ne if you are rea lly getting a bargai n.
There are several units in the marke t that can be anal yzed. Our main thr ust in this course is the consumer. H oweve r, we will also ne ed to anal yze our own f irm’s strengt hs a nd weakn esse s an d those of competing firms. Sup pos e, f or exa mple, t hat we ma ke a pr oduct ai me d at ol der con su mer s, a gr owing se gment. A co mpe ting f irm that targe ts ba bies , a sh rinking mark et, is likel y to c on sider repositioni ng toward our market. To assess a co mp e ting f irm’s potent ial t hreat, we need to exa mi ne its assets ( e.g. , technolog y, pate nts, market k nowl edge, awareness of its br ands) again st pres s ures it f aces f rom the market. Finall y, we need to assess con ditions (the marke ting environ me nt). For examp le, a lth ough we ma y have dev eloped a product that of f ers great appeal f or consu mers, a recession ma y cut de mand dramaticall y.
Segmentation
Segmentation is important in consumer analysis because understanding the consumer will allow us segment the market more m eaningfully.
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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 "t reat" each segment differently —e.g., by:
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Providing different products (e.g., some consumers like cola taste, while others prefer lime)
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Offering different prices (some consumers will take the cheapest product available, while others will pay for desired f eatures) Distributing the products where they are likely to be bought by the targeted segment.
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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.
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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
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limited. (5) Cultures fall somewhere on a co ntinuum between static and dynamic depending on how quickly they accept change. Different perspectives exist in different cultures on several issues; e.g.:
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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).
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Space is perceived differently. Americans will feel crowded where people from more densely populated countries will be comfo rtable. Symbols differ in meaning. For example, while white symbols purity in the U.S., it is a symbol of death in China. Colors that are considered masculine and feminine also differ by culture.
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In terms of etiquette, some cultures have more rigid proce dures 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.
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Demographics and Social Stratification
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 economi c 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 f ewer 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 ha ve 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
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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 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:
o o o o o
whether to buy; which product to buy (pick -up or passenger car?) ; which brand to buy; where to buy it; and when to buy.
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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’ curr ent 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
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
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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 ou t 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:
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Modernity: The extent to which the culture is receptive to new things. In some coun tries, 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.
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Hom ophily: The more similar to each other that members of a culture are, the more l ikely 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.
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Physical distance: The greater the distance betwee n people, the
less likel y innovati on is to sp read.
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Opinion leadership: The more o pinion lea ders ar e valued and
respected, the mor e likely an innova tion is to spread. The st yle of
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opinion
lead ers
mo derates
th is
i nf luence,
howeve r.
In
less
innovative countri es, opinion leaders tend to be more c onservative, i.e., to ref lect the l ocal nor ms of resistance.
Perception
Background. Our perception is an approxi ma tion of realit y. Our brain
atte mpts to make s ense out of the stimu l i to which we are exposed. This works well, f or example, when we "see" a f riend three hundred f eet awa y at his or her correct he ight; h owever, our p erc eption i s so metime s "of f "—f or exa mple, certain shap es of ice crea m c onta iners look like t he y contain more than rectangular ones with the sa me volume.
Factors in percpetion. Several se quential f actors in f luence our perce ption.
Exposure inv olves the extent to whi ch we encounter a stimulus. For ex a mp le, we are exp osed to nu mero us co m mer cial me ssages while dr iving o n the f reewa y: bill boar ds, radio advertis e me nts, bu mpe r -sti ckers on cars, and signs and banner s place d at shop ping mal ls that we pass. Most of this ex po sure is rando m— we don’t plan to seek it o u t. However, if we are shopping f or a car, we ma y deliberat el y seek out adv ertise ments and "tune in" when d ealer advertiseme nts come on the ra dio.
Learning and Memory
Background. Learning invol ves "a change in the con tent or organ izati on of
long ter m me mor y and/or behavi or." The f irst part of the def inition f ocus es on
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what we know (a n d can thus put to use) while the sec ond f ocuses on co ncrete behavior. For exa mp le, ma n y pe opl e will avoid f oods that the y c onsu me d shortl y b ef ore bec oming il l. Lear nin g is not all knowle dge based . For exa mp le, we ma y exper ience the sales peo ple i n one store be ing nicer to us tha n th ose in the other. We thus ma y d evelop a pr ef erence f or the o ne store over the o ther; however, if presse d, we ma y not b e able to give a con scious e xplanati on as to the reason f or our pref erence.
Motivation, Personality, and Emotion
Perspectives on Consumer Behavior and Motivation . We cons idered
several perspe ctiv es on behavior a s a wa y t o underst and what mot ivate s the consu mer. Each of these perspect ive s sugge sts dif f erent thing s as to wh at the mar keter sho uld d o and what can (a nd cannot) be c on trolled. Note t hat each perspective tend s to contain a "grai n" of truth and that one should n ot be too dog matic i n e mpha sizing one over the others.
Maslow’s Hierarchy of Needs.
The late Ab raha m Ma slow sug gested
the intuitivel y a p pealing notio n th at hu mans mus t satisf y the mos t basic objectives b ef ore the y can mov e ont o "higher le vel" o nes. Thus, a n indi vidual mu st satisf y ph ysi ological needs (su ch as f ood and liquid) bef ore he or she will be able to expen d energ y o n less f unda mental objectiv es such a s saf et y. Onl y when basic object ives have been met will a person mo ve on to seek such objectives as lov e and belonging , an d onl y a s mall mi norit y of people make it as f ar as seeking s elf -actualization.
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Maslow’s Hiera rc h y is usef ul in understandin g dif f erent needs of consu mers across the World. However, one must be caref ul not to take it too literall y, since people ma y o ccasionall y "sw ing " between needs. For example, a ho meless person who cur rent l y do es not have s helter ma y seek th at out even thoug h he or she is hun gr y. Properties of moti vation. Mo tivation is describe d throu gh several p roperti es:
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Motivation is composed of energy and direction . A person ma y or ma y
not have enoug h motivation to en gag e in a given activi t y. For exa mpl e, a person ma y be mot ivated enoug h to g o and shop f or f ood, but not eno ugh to engage in a co mprehensive e xercis e progra m.
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Motives m ay be overt, hidden, and m ultiple . Some motivati ons are
publicl y expr essed (e.g., the desire to bu y an energ y eff icient house), while other s (e.g., the desire t o look wealth y b y bu yin g a f anc y car) are not. Individua ls ma y als o hold multi ple m otivatio ns (e .g., bu y a car a nd save mone y f or ret ire ment) wh ich ma y c onf lict.
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Many m otivations are driven by the desire for tension reduction
(e.g., elimi nate thirst or hung er).
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Motivations can be driven by both internal and external factors .
That is, a p erson ma y wan t a painti ng either becau se he or she li kes it (internal motivation) or be cause t his will give her status a mong the artistic elite (exter nal).
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Motivations m ay have either a positive or negative valence -- people
ma y either be mot ivated to ac h ieve so mething (e.g., g et a pro mo tion a t work) or avoi d so mething ( e.g., being hospi talize d without ha ving adequate ins urance ).
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Consum ers are motivated to achieve goals . Achieving these g oals ma y
require sustained activit y over time ( e.g., exercising ev er y da y f or mont hs or years) as oppose d to just ta king so me action o nce.
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Consum ers m aintain a balance between the desires for stability and variety. Most cons umers want so me variet y (e.g., the y do not wan t to eat
the sa me meal eve r y da y) , but also want a ce rtain sta bilit y (the y do not want to tr y an entirel y new f ood ever y d a y).
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Motivation reflects individual differences . Diff erent consu mers ar e
mo tivated t o achi eve dif f erent things, and it ma y be dif f icult to inf er mo tivation s f rom l ooking at actual b ehavi or witho ut u nderstandin g these diff erences in desi red outco me s.
Self-Concept, Situational Influences, and Lifestyle
The self-concept. The cons u mer f aces several possible selves. The actual
self ref lects how the individu al actu all y is, alth ough t he consu me r ma y not be aware of that reali t y (e.g., man y ano rexic con su mers w ho are dangero usl y thin believe that the y a re in f act f at). In contrast, the id eal s elf ref lects a self that a person wo ul d li ke to have, but d oe s not in f act have . For exa mple, a couch potato ma y wan t to be a Worl d f amo us athlete, but ma y have n o actual a thletic abilit y. The privat e self is one that i s not inten tionall y exposed t o others . Fo r exa mple, a pol ice off icer ma y li k e an d listen to rap mus ic in p rivate, but p roject a public self -i mag e of a count r y music enth usiast, pl a yi ng co untr y son gs at work where police off icers are portr a ye d as hero es. Th e ke y here i s to ke ep in mi nd whic h kind o f self we are tr yin g to reach in pro motional mes sages. If we appeal to the hi dd en self , f or exa mpl e, we must be care f ul to make ou r ap peals
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subtle and hint, i f appropriate, on how the i ndividu a l’s conf identialit y and privac y can be enh anced. Individuals wi ll often seek to aug me nt and enha nce th eir self concepts, and it ma y be possi ble t o market produ cts t hat help achiev e t his goal. For exa mple, a successf ul attorne y ma y wan t to wear (in politicall y correct ter ms) co wchild boots and a cowchi ld hat to br ing ho m e an i mage a s a ran ch enthusia s t.
Lifestyles. Self -concept of ten t ran slates into a perso n’s lif est yle, or th e wa y
that he or she lives his or her lif e. For example, a person ma y b e ver y mat erialistic , pref erring to wear f lash y clo thes and d rive expensive car s, or pref er instead a si mp le r lif e wit h f ewer visi ble sta tus s ymbols. Atte mpts have been made to cl assif y cons u mers into variou s se gments bas ed on their lif est yles. The Val ues and Lif est yle ( VALS) Project, de veloped b y t he Sta nf ord Research Institut e (SRI), at te mpts to classif y peopl e bas ed on a co mbinatio n of values and resourc es. Thus, f or example, both "Achieve rs" and "Strivers " want public recogni tion , but onl y t he Ac hievers have the resources to brin g this about. A gl obal analogue is the Global Scan.
Situational influences . Specif ic circu msta nces o f ten inf luence consu mer
behavior. F or exa mp le, cons u mers in a rush are lik el y to take t he mo st convenient prod u ct available. C o nsu mers whose attention is d e manded
elsewhere are likely t o disregard co mmer cial mes sages. Consumer s shoppi ng f or a special occa sion (e.g., a wed ding) ma y bu y dif f erent products.
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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 bro ader and more ambiguous a problem is, the more potential solutions are generally available (see class slides for examples). Consumer Problem Recognition. Consumers often note problems by comparing their current, or actual, situation, explicitly or implicit ly, 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 so lutions 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 consume s too much alcohol). Finally, needs can be relatively specific (generic), as in the need for enjoyment (which can be satisfied many different ways), or specific, as in the need for professional attire to wear at a new job.
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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 s tate. 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 d eliver 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 loca ted. 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.
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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 th e "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 great are differences How between are brands expected of to be?), product consumer characteristics (how important is this product? How complex is the product? obvious indications quality?), characteristics (how interested is a consumer, generally, in analyzing product characteristics and maki ng 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 rat her 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 actual ly 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 d ecision making are discussed in the text on pp. 537 -541.
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Consumer Outlet Selection
Retail evolution and consumer choice . For ma n y product s, consu mer s
f requentl y have nu mer ous c hoices as to where the y are going to actuall y o btain the produ ct. Al tho ugh we are us ed to thinkin g of bu yin g auto mo biles onl y f rom dealerships, f or example, it is toda y possible to bu y t he m through brok ers or f leet sales organizations that ma y both (1) of f er a lower price a nd/o r (2) provide the hel p o f a neutral third part y which doe s n ot have a vested i nterest in the sales of one ma ke over t he othe r. In general, the evo lution of diversit y in the retail scene has provided consu mer s with more ch oice. In the old da ys , most con su mers had access onl y to "ge neral" stores f or most p roducts. Gra duall y, i n urban en vir on ments, s pecialt y an d discount stores ev olved. T oda y, a co nsu mer ma y g ener all y choo se to bu y most products either at a relativel y h igh p rice, f requentl y wi th a signif ic ant amo unt of service, in a s pecialt y st ore, or with lowe r servic e in a di scount sto re. A special case of the discount store is the category killer--a store that ten ds to specialize in so m e li mited area ( e. g., electro nics), l acking the bread t h of a traditional discou n t store of ten un de rcutting t he tradi ti onal disc ount st or e on price (whic h the y are able to do bec ause of the bargai ning powe r that r e sults f rom high bu yin g volu mes of a narrow assor t ment o f merchandi se f rom the sa me manuf acturer ).
"At home" shopping and electronic commerce . D uring th e last
several decades , th e incidence of "at ho me" shop ping ha s increased. The g r owth of catalog sales can be tra ced to advances in co mp uter tec hnolog y a n d subsequent li st av ailabilit y (as we d iscussed in the sec tion of direct mar keting seg mentati on meth ods). A more recen t develo p ment is I nternet b ased mark eting. Although sales are modest in this do mai n at the mo men t, it is too earl y to judge
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the total pote ntia l of this mediu m. Altho ugh man y of the co ncerns that consu mers hol d about co mputer cri me tend to be ex aggerated and/or l argel y unwarranted , pu bl ic f ears are a major hol dback. A nother pr oble m i s the de mographi cs of computer an d Inter net use --the major it y of U.S. cons u mer s, and certai nl y t he great majorit y o f resid ents of ev en highl y ind ustri alized countries, are not regular Internet us ers. Certain p rodu cts specificall y ai me d at heav y Int ernet use rs (e.g., record s, s of tware) and pr odu cts/services that re quire a high le vel of cus to mization (e.g., ai rline ticket s) ma y f ind good oppo rtun ities. An interes ting pr o ble m with Intern et co mmerce, which ma y well have s pil lover eff ects outside t he real m of the Net, is the re lative e ase with w hich c onsu mer s ma y co mp are pr ices of dif f erent retailers, result ing in in tense price
co mpetitio n. Note that recent le gislat ion has li mited ta xation of Internet sales in the U.S. , in a se nse atte mpt ing to " ju mp start " this i n novation.
Store positioning. Positioning of retail stores is ess e ntial. In ge neral, s tores
which excel on a significant dimens ion see m to perf orm better --f or exa mp le, Nordstrom’s excel s through its intense customer servic e, while Wal -Mart excels through its ef f icienc y an d low price s. (In a course on marke ting strate g y or retailing, you will probabl y discuss the issue of the importance of bal anced markets--it is hea lthier if diff erent f irms have diff erent strategies, so that ever yone will n ot be co mpeting i nte nsel y on the sa me variables). St ores which f all some where in between --e. g., Se ars --tend to do le ss well s ince the y g e t "stuck in the mi dd le" and have to comp ete against both . Obviousl y, there is a limit to ho w stro ngl y you ca n mo ve toward on e ex tre me. For e xa mp le, if Nordstrom were to double its prices and even do uble its service, tha t position would be un tenabl e, and cer tain e xtr eme discoun t store s that of f er lower prices than Wal - Mart te nd not to b e suc cessf ul because t he y are ulti mat el y not satisf actor y to con su mers.
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Consumer behaviour and retailing decisions
Does consume rs' s election of retail o utlets depend on th e brands availabl e or is it the retail outle t first and the br and next? Market ers need to do in -depth research o n the va rious aspe cts that l ink brand and ret a il strategy.
DECISIO N -MAK I NG with rega rd t o retail outlet sel ection is ver y si milar to consu mer decisio n - making on bra n ds where the co nsu mer g oes thro ugh a process s tarting f rom identif ying nee ds to p ost -purc has e issues. There are a f ew interesting and i mportant di mension s associate d with consu mer behavio ur an d retail outlet selection.
Wh en Titan and Time x watches were retailed t hrough exclus ive shops, consu mers wa ntin g lower -end watc hes probabl y f elt that a t ypic al Titan showroo m was to o elitist, whi ch coul d have had a negat ive i mpact.
categories? While bu ying a TV or a washing machine, would con su mers v isit an exclusive sho wroo m of BPL, Onida or Son y, or would the y vis it a multi -brand outlet?
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of consumers cho o sing outlets? Wh at is the sequence i n which consu me r s are likel y to go ab out their deci sions? Wil l the y select t he brand or the ca tegor y f irst bef ore choosing th e outl et?
diff erent f rom a neighbourho od groc er y sh op in the mi nds of consumers? What kind of perception are consu mer s lik el y t o have wi th r egard to shop ping f rom an online outl et such as Fab mart vis -à-vis a brick - and- mortar outlet like Fountainhe ad or L and mark?
retailers have been carr ying man uf acturers' brands. But in recent time s (at least to a si gnif i cant ex tent in the f oods c ategor y), super ma r kets suc h as Food Wo rld have star ted car r yi ng retail or store brands. Nilgiri 's is another exa mple i n the South w hich c ar ries its own bra nds of chocolat e s, biscui ts and other
co mmoditi es. etail e quit y o r retail i mag e or re tail lo yalt y?
Marketers need i n -depth kn owledge about the variou s di mension s whic h link retailing an d consumer behaviour. T here is resea rch r equired to handle retail decisions in a co mpetitive c ontext. McDonald 's f ound that a major chunk of its consu mers decide t o eat a f ew minute s bef ore the y make the purcha se decis ion s and hence i t is bu ilding s ma ll outle t s in large super ma rkets such as Wal - Mart and Ho me Depot. I t is prov iding pla y areas to ensure a nu mber of f amilies visit its outlets wi th c hildren. A f ew companies als o op erate through k io sks in airports, mall s and high-traf f ic areas. Sunglass Hut i s a brand which ope rates kiosks at various p laces which displa ys abou t 1,0 00 dif ferent models along with
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their prices. Cons umers could place an order through these kiosks and the product is ho me-de livered.
Retail outlet selection and brand selection
There are three f u nda mental pattern s , which a cons u mer can f ollow a nd the y could be: (I) Brand first, retail outlet second (ii) Retail outlet first, brand second (iii) Brand a nd retail outlet simultaneousl y. A consu mer w ant ing to bu y a car ma y c ollect inf orma tion on bra nd s and purchase it f rom a retail outlet based on his perception o f price off ered or af ter sales service p rovi ded b y the out let ( t yp icall y, sea rch f or inf ormati on on brands
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is f ollowed b y reta il outlet selection i n durables). In cer tain product categ ories, especiall y where `categor y killers' exist, consumer s ma y think of the retail outlet initiall y an d then the brands (t elevision, ref riger ator and audio pro ducts retailed through outlets like V ive k an d Co. in th e Sout h, could be an exa mp le).
One more di mensi on ma y be to co mp are brands in t he evoked set at retail outlets w hich al so exist in an ev oke d set of their o wn. This is highl y pos sible, especiall y in the Indian conte xt wh ere dealers de velo p a social relat io nship with cons u mers, e speciall y i n se mi - urban and rural a reas. Pri mar y rese arch could be used to d iscover the specif i c sequence invol v ed in a situation o f this kind. A `brand f irst' di mensi on ma y n eed f eature -based advertising an d a `retai l outlet f irst' di me n sion ma y req uire a set of point -of -purchase (PO P) mat erials and special training to sales p ersonnel to recogni se the needs of consumer s. Further, if it is known that a nu mber of consumers ma y be oriented to visit their f avourite retai ler (bef ore obtaining inf ormatio n on brands) in a geographical area, there wo uld have to be more e mp hasis o n region al/local adver tisin g which highlights the retai l shop rathe r than r egular brand -based national ad vertisi ng. Strategies and se quences Retail outlet f irst and brand sec ond: Whe n a nu mb er o f consumers f ollo w this sequence of deci sion- makin g, disp la y of point -of -purchase mate rial and
building the i mag e of the outle t be co mes i mportant. The manuf acturer of the brand ma y have to ensure that the b ran d (and the vari ants de mande d) wi ll be available at the ke y out lets in a localit y. Point-of -purch ase materials wh ic h are to be used at the r etail outl et ma y re quire pri mar y rese arch - should visu als be used, should p rod uct f eatures be used, should th e POP m aterial be i n the
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regional language. There ma y also be a need to monitor competition f ro m other retail outlets to e nsure that consu m ers are kept satisf ied in ter ms of service, price, pro motiona l deals and a mbie nc e. This is es peciall y applicab le to dur ables retailing in In dia (in cities). Retailers attempt to incre ase consumer t raf fic b y providing a nu mbe r of `add -ons'. Brand f irst and o utlet secon d: The brand wa s proba bl y thoug ht of by t h e consu mers becau s e (i) the cons u me rs ma y not have developed a rela ti onship with an y retai ler which i s str ong e n ough to get into t he `evok ed ret ail set' or (ii) the bra nd has got into the evo k ed set beca use of advertisin g or p o sitive word of mouth. Lo cal advertising wit h the menti on of brand na mes which have alread y got int o t he evoked set wo uld enable consu m ers to be `pulled ' to the outlet. Pri mar y research ma y be requ ired to identif y th e brand s in the evoked set. This f eedback ma y hav e to be pr ovided b y t he man uf acturers of a brand to re t ailers in various region s (especia ll y if it is a brand with a maj or chunk of the market and one which is n ationall y advert ise d). Even multinati onal outlets could ma ke use of this appro ach and menti on the bran ds in the evoked set (in a give n geographical area) . This is likel y to improve tra f f ic to the outlet. Besides , the evoked set could a lso change f rom ti me to ti me dep end ing on the strategi es of brands. About tw o decade s ago, bra nds like Solidaire, D yanor a and Cro wn ma y hav e been top -of -the- mi nd (in a specif ic geographical are a) but slow l y ga ve w a y to other brand s - thes e changes s hould be captured (how of ten this happens , wh y, and the dif f erences between mar kets ) to f ormulate re t ail strategies. The local advertising could be dif f erent f rom the national ad ver tising f or the bra nd. A brand ma y be adv ertised on f eature s nationall y bu t t he retail outlet in ma y
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pref er to highlight the eff ective af ter -sales service asso ciated with the bra nd as this ma y be a prio rit y of consu mers. The co mbinatio n of `push -pull' strate g y is shown in t he table. The interest gener ated in the brand would have to be backed b y good pr e -sale services at t he outl et.
Brand an d retail o utlet si multaneou sl y: When consu mer s think of the bran d and retail out let to geth er, it means that t h e y have a cert ain p ref erence f or the o utlet and would like to check the evoked set of brands there. The mar keter would have to carr y o u t prima r y r esearc h to f ind out specif ic markets where consu mers have a ver y positiv e rel ationship with ret ailers. T his i s i mportant because of the i nf luence o f retailers over the purchase behaviour of cons umers in the India n conte xt. It ma y also be w orthwhile to c hec k if the evoked brands are carried b y t he retailers who have a positive relationship with the tar get seg ments. Th is is to ensure that the re tailer s who have a f avourable perc eption a mo ng the target seg ment carr y th e desired bra nds. Failing thi s, co nsu mers ma y turn to a diff erent retailer, which would be t o the disadvanta g e of a retailer who has alread y won the c onf idence of consumers. Retail sale s p ersonnel also b eco me important in this s ituation. The pros p ective consu me rs are "carried over" t o the purchase stag e b y the store perso n nel and hence t he re should be in ce ntive progra mme s f or the store pers onnel. If a comp an y su ch as BPL or Vid eoco n is deali ng wi th a nu mber of brands/ sub brands, it has to e nsure the availabi l it y of specif ic brands which ma y int erest the consu mers . If the retail outlet is a large one dealing with a nu mber of
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brands (li ke Vi vek ), a s ho p-in-sh op a rrange ment ma y be pref erable. This mo del puts the brand in f ocus and reinf orce s the po sitive asso ciation a consu mer ma y have about it. A considerable a mo un t of pre -sale service would have to back up the shop-in -shop c oncept. The shop -i n-shop concept create s a n aura of exclusivit y. Consu mers t end to have high er expec tations ab out th e pre -sale ser vice a nd the at tention gi ven to the m. A lar ge store also is lik el y to st ock several brands and hence all bran ds in
the evoke d set wo uld have to co mp e te with each oth er to pr ogress f rom the evoked se t to choi ce set. L arge o utle ts ma y also have a built -in provi sion f or a lower price (beca use of volumes) a nd hence ma y be in a better position to clinch the deal with consumers who ma y si multaneousl y consider bot h the brand and the retai l outle t.
THE STRIKING NEW FACE OF LUCKNOW 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,
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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 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
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Customers were interviewed by means of carefully prepared questionnaire to study and understand customer’s psychology in depth.
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Selection of the Topic Selection 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”
Objective of research Objective of research
? 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.
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Extensive literature Survey Extensive literature Survey
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.
Sampling Design Sampling Design
? Sampling unit ? Size of sample ? Sample Method ? Types of questionnaire Respondents of Fun Mall 100 respondents Random Sampling Close ended
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Type of Data Type of 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.
Method of data collection Method of data collection
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.
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Collllectiion of the Priimary data Co ect on of the Pr mary data
As this study is of descriptive type, the primary data has been collected through Questionnaire.
Observation method Observation 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.
Analysis of Data Analysis of Data
Data collected through questionnaire is being processed .This processed data is represented by means of suitable graphs & diagrams.
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? WHICH TYPE OF PLACE DO YOU VISIT FREQUENTLY FOR YOUR ? WHICH TYPE OF PLACE DO YOU VISIT FREQUENTLY FOR YOUR SHOPPING NEEDS ?:: SHOPPING NEEDS ?
a) b) c) SHOPPING MALL UPSTREET MARKET LOCAL MARKET [ 80 RESPONDENTS] [ 8 RESPONDENTS] [ 12 RESPONDENTS]
Respondents
A B C
12% 8%
80%
? 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.
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? YOU PREFER TO GO IN STORE WITH:: ? YOU PREFER TO GO IN STORE WITH
a. FAMILY b. SPOUSE c. FRIENDS d. OTHERS [52 RESPONDENTS] [12 RESPONDENTS] [ 36 RESPONDENTS] [ 0 RESPONDENTS]
Respondents
FAMILY SPOUSE 0% 36% 52% FRIENDS OTHERS
12%
? On the basis of above respondents the graph shows that maximum 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.
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? FROM WHERE WOULD YOU PREFER TO BUY PRODUCTS:
a) SINGLE BRANDED STORE b) MULTI BRANDED STORE c) FACTORY OUTLET d) LOCAL BIG RETAIL OUTLET [ 24 RESPONDENTS ] [ 60 RESPONDENTS ] [ 4 RESPONDENTS ] [ 12 RESPONDENTS ]
Respondents
SINGLE BRAND STORE FACTORY OUTLET MULTI BRAND STORE LOCAL BIG RETAIL OUTLET
4%
12% 24%
60%
? On the basis of above respondents the graph shows that maximum respondents 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.
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? HOW OFTEN DO YOU ASK FOR ASSISTENCE FROM STORE STAFF IN ? HOW OFTEN DO YOU ASK FOR ASSISTENCE FROM STORE STAFF IN SELECTING YOUR PURCHASE? SELECTING YOUR PURCHASE?
a) ALMOST ALWAYS b) FREQUENTLY c) SOMETIMES d) NEVER [ 12 RESPONDENTS ] [ 16 RESPONDENTS ] [ 60 RESPONDENTS] [ 12 RESPONDENTS ]
Respondents
ALMOST ALWAYS FREQUENTLY SOMETIMES NEVER
12%
12%
16%
60%
? On the basis of above respondents the graph shows that maximum 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.
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? WHAT DO YOU LOOK FOR IN A PRODUCT DURING YOUR PURCHASE:: WHAT DO YOU LOOK FOR IN A PRODUCT DURING YOUR PURCHASE
a) FASHION b) COMFORT c) PRICE d) COLOURS AVAILABLE [ 12 RESPONDENTS ] [ 16 RESPONDENTS ] [ 60 RESPONDENTS ] [ 12 RESPONDENTS ]
Respondents
FASHION COMFORT PRICE COLOUR
12%
12% 16%
60%
? On the basis of above respondents the graph shows that maximum 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.
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? WHEN DO YOU PREFER TO SHOP MOST IN STORE:: ? WHEN DO YOU PREFER TO SHOP MOST IN STORE
a) DURING SALE b) DURING FRESH SEASON STOCK c) DURING DISCOUNT d) WHEN REQUIRED [ 18 RESPONDENTS ] [ 54 RESPONDENTS] [ 24 RESPONDENTS ] [ 4 RESPONDENTS]
Sales
DURING SALE DURING FRESH SEASON STOCK DURING DISCOUNT WHEN REQUIRED
4% 18% 24%
54%
? 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.
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? WHAT INFLUENCES YOUR BUYING SELECTIONS:: ? WHAT INFLUENCES YOUR BUYING SELECTIONS
A) RANGE 1st OPTION 2nd OPTION 3rd OPTION 4th OPTION 5th OPTION 30 22 20 16 12 B) PRICE 20 32 18 17 13 C) SIZE 30 25 15 19 11 D) FASHION 8 10 14 32 36 E) BRAND 10 13 33 16 28
40 35 30 25 20 15 10 5 0 RANGE PRICE SIZE FASHION BRAND Option 1 Option 2 Option 3 Option 4 Option 5
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? On the basis of above respondents the graph shows that maximum respondents are attracted towards the Store due to this rankingFASHION BRAND PRICE RANGE, SIZE
It means maximum no of customers are prefer to the Malls for FASHION
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? HOW FREQUENTLY YOU VISIT THE STORE:: ? HOW FREQUENTLY YOU VISIT THE STORE
a) <1 MONTH b) 1-3 MONTH c) 1-6 MONTH d) 1 YEAR [ 60 RESPONDENTS ] [ 28 RESPONDENTS ] [ 4 RESPONDENTS ] [ 8 RESPONDENTS ]
Respondents
< 1 MONTH 1-3 MONTH 1-6 MONTH 1 YEAR
4%
8%
28% 60%
? On the basis of above respondents the graph shows that maximum 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.
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? WHAT IS AVERAGE MONEY YOU SPEND ON SHOPING? ? WHAT IS AVERAGE MONEY YOU SPEND ON SHOPING?
a) <=999 b) 1000-1999 c) 2000-2999 d) >3000 [ 20 RESPONDENTS ] [ 52 RESPONDENTS ] [16 RESPONDENTS ] [ 12 RESPONDENTS ]
Respondents
<= 999 1000-1999 2000-2999 >3000
12% 20%
16%
52%
? On the basis of above respondents the graph shows that maximum respondents i.e. 52 out of 100 are spend Rs 1000-1999 on shopping. It means maximum no of customers prefer middle class shopping.
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? ::HOW DO YOU RATE THE PRICING OF PRODUCT AT MAX? ? HOW DO YOU RATE THE PRICING OF PRODUCT AT MAX?
a) EXPENSIVE b) COMPETITIVE c) AFFORDABLE d) REASONABLE [ 10 RESPONDENTS ] [ 16 RESPONDENTS ] [ 34 RESPONDENTS ] [ 40 RESPONDENTS ]
Respondnets
EXPENSIVE COMPETITIVE AFFORDABLE REASONABLE
10% 40% 16%
34%
? On the basis of above respondents the graph shows that maximum 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.
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? HOW DID YOU COME TO KNOW ABOUT MAX? ? HOW DID YOU COME TO KNOW ABOUT MAX?
a) NEWSPAPER b) RADIO ADVERTISEMENT c) LEAFLET d) SMS e) WORLD OF MOUTH f) OTHERS [ 12 RESPONDENTS] [ 12 RESPONDENTS] [ 20 RESPONDENTS] [ 6 RESPONDENTS] [ 46 RESPONDENTS] [ 4 RESPONDENTS]
Respondents
NEWSPAPER RADIO ADVERTISEMENT LEAFLET 4% 12% 12% SMS WORLD OF MOUTH OTHERS
46% 20% 6%
? On the basis of above respondents the graph shows that maximum 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.
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? WHAT MORE FACILITY WOULD YOU LIKE TO GET AT MAX? ? WHAT MORE FACILITY WOULD YOU LIKE TO GET AT MAX?
a) MEMBERSHIP CARD b) DISCOUNT MAILERS c) FREE PARKING OFFERS d) LUCKY DRAW OFFER [ 16 RESPONDENTS] [ 32 RESPONDENTS] [ 24 RESPONDENTS] [ 28 RESPONDENTS]
Respondents
16% 28% MEMBERSHIP CARD DISCOUNT MAILERS FREE PARKING OFFERS 32% 24% LUCKY DRAW OFFER
? On the basis of above respondents the graph shows that maximum respondents i.e. 32 out of 100 want discount mailers facility. It means maximum no of customers want every information at their door step.
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? WHICH CATEGORY OF PRODUCT DO YOU BUY MOST AT MAX? ? 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) FOOTWEAR f) ACCESSORIES [ 12 RESPONDENTS ] [ 36 RESPONDENTS ] [ 20 RESPONDENTS ] [ 12 RESPONDENTS ] [ 4 RESPONDENTS ] [16 RESPONDENTS]
Respondents
16% 4% 12% MEN'S WEAR WOMEN'S WEAR ETHNIC WEAR 12% 36% KIDS WEAR FOOT WEAR ACCESSORIES 20%
? On the basis of above respondents the graph shows that maximum respondents i.e. 36 out of 100 are purchasing maximum from women’s wear. Customers prefer shopping according toWOMEN’S WEAR FOOTWEAR ETHENIC MEN’S, KID’S WEAR
ACCESSORIES
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? WHEN YOU THINK OF SHOPPING WHICH STORE COMES IN ? WHEN YOU THINK OF SHOPPING WHICH STORE COMES IN YOUR MIND FIRSTYOUR MIND FIRSTA) PANTALOONS B) GLOBUS C) MAX D) WESTSIDE [ 16 RESPONDENTS ] [ 30 RESPONDENTS ] [ 44 RESPONDENTS ] [ 10 RESPONDENTS ]
Respondents
10% 16%
PANTALOONS 44% 30% GLOBUS MAX WESTSIDE
? On the basis of above respondents the graph shows that maximum respondents i.e. 44 out of 100 prefer MAX for shopping. It means max retail targeting to the middle class customers.
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? AGE WISE DISTRIBUTION ? AGE WISE DISTRIBUTION
A) <20 B) 20-29 C) 30-39 D) >40 [ 12 RESPONDENTS ] [ 45 RESPONDENTS ] [25 RESPONDENTS ] [18 RESPONDENTS]
Respondents
12%
18%
< 20 20-29 30-39 25% 45% >40
? On the basis of above respondents the graph shows that maximum respondents i.e. 45 out of 100 are young age people. It means maximum no of customers belongs to young age group.
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? GENDER WISE DISTRIBUTION ? GENDER WISE DISTRIBUTION
E) MALE F) FEMALE [ 58 RESPONDENTS ] [ 42 RESPONDENTS ]
Respondents
42% MALE FEMALE 58%
? On the basis of above respondents the graph shows that maximum respondents i.e. 58 out of 100 are males. It means maximum no of customers are male in malls due to family responsibility.
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? NO.. OF FAMILY MEMBER WISE DISTRIBUTION ? NO OF FAMILY MEMBER WISE DISTRIBUTION
A) <=2 B) 3-4 C) >4 [ 08 RESPONDENTS ] [ 54 RESPONDENTS ] [ 38 RESPONDENTS ]
Respondents
8% 38%
<=2 54% 3 to 4 >4
? On the basis of above respondents the graph shows that maximum respondents i.e. 54 out of 100 having 3-4 members in their family. It means maximum no of customers having nucleur family.
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? EDUCATION WISE DISTRIBUTION ? EDUCATION WISE DISTRIBUTION
A) HIGH SCHOOL B) LESS THAN GRADUATION B) GRADUATION C) POST GRADUATION D) PROFESIONAL QUALIFICATION [ 08 RESPONDENTS] [ 12 RESPONDENTS ] [ 32 RESPONDENTS ] [ 32 RESPONDENTS ] [ 16 RESPONDENTS ]
Respondents
8% 12% HIGH SCHOOL LESS THAN GRADUATION GRADUATION POST GRADUATION 32% 32% PROFESSIONAL QUALIFICATON
16%
? On the basis of above respondents the graph shows that maximum respondents 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.
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? OCCUPATION WISE DISTRIBUTION ? OCCUPATION WISE DISTRIBUTION
A) STUDENT B) GOV. SERVICE C) PVT. EMPLOYEE D) SELF EMPLOYEE E) HOUSE WIFE [ 33 RESPONDENTS ] [ 8 RESPONDENTS ] [ 40 RESPONDENTS ] [ 12 RESPONDENTS ] [ 07 RESPONDENTS]
Respondents
7% 12% 33% STUDENTS GOV. SERVICE PVT. EMPLOYEE 40% 8% SELF EMPLOYEE HOUSE WIFE
? On the basis of above respondents the graph shows that maximum respondents i.e. 40 out of 100 are Pvt. Employee. It means maximum no of customers are self dependent.
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? INCOME WISE DISTRIBUTION ? INCOME WISE DISTRIBUTION
A) LESS THAN Rs 20,000 B) BETWEEN Rs 30,000 TO 40,000 C) BETWEEN Rs 40,001 TO 50,000 D) MORE THAN Rs 50,000 [ 28 RESPONDENTS ] [ 48 RESPONDENTS ] [ 20 RESPONDENTS ] [ 12 RESPONDENTS ]
Respndents
LESS THAN Rs. 20,000 BETWEEN Rs. 30,000 T0 40,000 BETWEEN Rs. 40,000 TO 50,000 MORE THAN Rs. 50,000
? On the basis of above respondents the graph shows that maximum 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.
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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. 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 rankingFASHION BRAND PRICE RANGE, SIZE
16. Maximum no of customers are visiting the store monthly.
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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.
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LIMITATIONS LIMITATIONS
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. 4) Respondents were not keen to give the answers of questionnaire.
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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, mainly on account of a gradual increase in the disposable incomes of the middle and uppermiddle 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,
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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. ? 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.
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RECOMMENDATIONS 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. ? 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.
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Bibliography Bibliography
BOOKS:? Marketing Management. ----Kotler & Keller
? Marketing Management in Indian Perspective ----V. S. Ramaswamy & S. Namakumari ? Research methodology
? Quantitative Methods ? Retail management
---C.R. Kothari ---B. M. Aggarwal. ---Levy & Weitzs
MAGZINES:? Business worlds ? Indian retail ? Economics of India ? India today
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WEBSITES:? www.goggle.com ? www.tataretail.com ? www.retailindia.net ? www.retailyatra.com ? www.retailbiz.com ? www.aboutus.com ? www.businessworld.in
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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 c) During Discount 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
b) During Fresh season stock d) When required
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11) How did you come to know about Max? a) Newspaper c) Leaflet e) Word of Mouth
b) Radio advertisement d) SMS 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 firsta) Pantaloons b) Globus c) MAX d) Westside 15) Any suggestion ………………………………………………………….. ………………………………………………………………………………... ………………………………………………………………………………... ………………………………………………………………………………... Age group Gender No of Famiilly Fam y Members Qualificatio n Occupation <20 Male <=2 20-24 Female 3-4 25-29 >4 30-34 35-39 >40
High School Studen t Gomti nagar Less Than 20,000
Diploma Or pregraduate Gov. Service Mahanag ar 30,00040,000
Graduate
Postgraduate Self Employe d Hazratga nj More then 50,000
Professiona l course House wife Retired
Location Household Income (per month)
Pvt. Employe e Aliganj 40,00150,000
Indiranaga r
Niralan agar
oth er
THANK YOU
ABHISHEK PANDEY,, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT,, LUCKNOW ABHISHEK PANDEY SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT LUCKNOW
doc_757081593.docx
The Documentation about the consumer behavior analysis done by Max Lifestyle.
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ACKNOWLEDGEMENT 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 PGDM- I YEAR
ABHISHEK PANDEY,, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT,, LUCKNOW ABHISHEK PANDEY SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT LUCKNOW
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DECLARATIION DECLARAT ON
I, ABHISHEK PANDEY, student of POST GRADUATE DIPLOMA IN MANAGEMENT hereby 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
ABHISHEK PANDEY,, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT,, LUCKNOW ABHISHEK PANDEY SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT LUCKNOW
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EXECUTIIVE SUMMARY EXECUT VE 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.
ABHISHEK PANDEY,, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT,, LUCKNOW ABHISHEK PANDEY SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT LUCKNOW
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PREFACE 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 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.
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The remarkable world of Retail
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Retail, according to Concise Oxford English Dictionary, is "the sale of 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 consumerswhether 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 store. Modern retail formats have mushroomed in metros and mini-metros, in hypermarkets, supermarkets and specialty stores across a range of categories. The first decade of modern retail in India has been characterized by a shift from traditional channels to new formats including department stores, Retailing in India has remained in the unorganized sector and largely untouched by corporate. meters with fragmented keerana stores being the predominant players. 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. ? 25 of the top 50 Fortune 500 companies are in retail. ? Retail is currently the biggest industry in the world with sales of $7.2 trillion ? Every 10th billionaire in the world is a retailer. 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:
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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. 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:
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? 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. ? 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 minimetros. 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
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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.
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.
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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 Open new 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.
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E v o llu t iio n o f I n d iia n R e t a iill Evo ut on of Ind an Reta
Tradit ional Rural Retail F airs Tradit ional F a mily Run Conve ni ence Stores
T r a d iit iio n a ll R u r a ll R e t a iill F a iir s Trad t ona Rura Reta Fa rs
Tradition al rura l retail fairs a re a v er y big attrac tion t o f oreign tourists. We have the Pu shkar f air in Rajas than w hich brings in a lot of revenue both f rom do mestic b u yers an d bu yers f ro m abro ad. In the Pushkar f air live stock like camels, hor ses, cows, goats, and sheep are sold a s well as bought. A range of exotic ite ms are also available . The t raditional ite ms h ere are hand made jewelr y and other c olorf ul me morabili a of Rajasthan.
Tradition al rura l retail fairs in Indi a deal in a g ood nu mb er of handcraft s ite ms whic h are mentioned be low:
? ? ?
Hand painted wooden chest drawers Wo oden wa ll brack ets Embossed wooden table
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? ? ? ? ? ? ? ? ?
Hand painted chair s in chowki Wo oden cor ner sta nd Wo oden Ha nd pain ted table Embossed wooden chairs Brown wo oden st o ol Ca mel bone Jewelr y Metal jewelr y Snake char m er pup pets Hand made c andles
The Suraj Kund me la is also a huge ga lore of Indian tra ditional i te ms. T h is f air is held at Har yana which i s 8 kilo met ers f rom South Delhi. The f air has been held f or the l ast 20 years . The f air deals in ite ms c ategorized as
? ? ? ?
Indian arts Handicraf ts Heritage Culture and traditi on
Tradition al rura l retail fairs have a ty pical rural set u p like:
? ?
Huts of mud Thatched pl atf orms
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? ? ?
lamps of wood String cots Plainness ground
The s mall t hatched stores are a vibran t displa y of handcr af t items. T he f ocus ever y year is on a particular State f or instance, i n 2006 i t was Maha rashtra. The other group of items represe nting t he India n Subcont inent avail able the re are:
? ? ?
Classical Tribal art Folk art
As such T raditio nal Rural Retail fa irs involve credit worth y arti sans an d weavers of over 350 in numbe r and the y a re selecte d f rom a cross the countr y. Along with the cou nt y's ric h cult ural heritage bei ng sho wcased, the f air is open to f oreign tra ditional g oods a s well. The more rej uvenating s ide of these f airs would be list ed as under:
? ? ? ?
Indian Sweets Snacks Indian folk music Classical d ance Bengal tige r show
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? ? ? ? ? ?
Elephant ri des Tiger show and rid es Giraf f e tricks Balloon an d Cla y i tems Painting Ga mes
Theref ore, traditio nal rural r etail fa irs are a never end ing occupat ion and the ke y to it lie s in the originalit y and att ractiveness of the items.
T r a d iit iio n a ll F a m iilly R u n C o n v e n iie n c e S t o r e s Trad t ona Fam y Run Conven ence Stores
Tradition al fa mi l y run convenienc e stores are t oo wel l establishe d in Ind ia than to be wiped o ut and besi des ther e is unique ness in the traditio nal ite ms that represen t the s ub-continent. The retail stores in In dia are esse ntiall y do minated b y the u norganized sector or tradition al store s. Inf act t he traditi onal stores have taken u p 98 percent of the Indian retai l mark et. Now st ores run b y f amilies are pri mar il y f ood ba sed and the set up i s as Kir ana or the 'corner grocer' s tores. B asi call y the y p rovide high service with l ow prices. If the st ores are not f ood based then the t yp e of retail ite ms av ailable are local in nature.
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The traditional f amil y run co nvenien ce stores can take pride in the f act that the Kirana is the most co mmon outlet forms f or the consumers. The tough co mpetitio n f or convenienc e st ores ar e co ming f ro m org anized retail stores dealing in f ood ite ms , like:
? ? ? ? ? ?
Apna Bazaar Canteen sto res Food Worl d Subhiksha Food Bazaa r Convenience Stores are open for long hours an d is one of the formats of the Indian re tail st ores that cate r to b asic needs of the c onsu mer. A good exa mple of such w ould be Co nvenio. These store s are f ound in bot h residential a s well as commerci al mar kets. The food products of traditional f a mil y r un convenie nce sto res are co mp rised of branded as well as non -brande d it e ms. T he benef its of f amil y run c onvenience stores is that the y give i mp ortance t o:
? ?
Personal to uch Facilities of credit
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?
Quick home deliver y
Non-f ood based st ock co mpri ses of mu ltiple an d variet ies of local brands. The f uture of such stores as th e y f ac e co mpetitio n f rom o rganized sect or, would depend on the f ollowing partic ulars:
? ? ? ? ? ?
Place and ca pacit y Diligent area cover age Disciplined work schedule Managing t urnover Revenue f ro m asse ts Custo mer service a nd satisf action
The traditi onal fa mily run c onvenie nce stores serves t he purpose of the housewive s who d e f initel y wa nts to a void traveli ng long distances t o purch ase dail y needs. The c onvenience f actor i n ter ms of ite ms, a mo ng peop le in ge neral can be highl ighted as below:
? ? ? ?
Groceries Fruits Drug Store Necessar y s tationer y
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As such tradition a l family run conve nience stores are here to stay and cannot
be oversized by th e organized retail sector besi des, it r epresents t he varie ty of
India
Indian retail industry
India retail i ndustr y i s the larg est ind ustr y in In dia, wit h an e mplo yment o f around 8% and contributing to over 10% of the countr y' s GDP. R etail ind u str y in India is e xpecte d to rise 25 % yearl y b eing dri ven b y s trong inco me grow th, changing lif est yles , and f avorable de mo graphic patterns .
It is expecte d that b y 2016 modern r etail industry in I ndia will be wort h US$ 175- 200 b illion. I ndia retail i ndustr y is one of the f astest growing indust ri es with revenue expec ted in 2007 to amo unt US$ 320 billio n and is inc reasing at a rate of 5% ye arl y. A f urther increase of 7 -8% is expecte d in the in dustr y o f retail in Ind ia b y g rowth in consumer i sm in urba n areas, rising inco mes, and a steep rise in rural consu mpti on. It ha s f urther been pred icted that th e retail ing industr y in India w ill a mount to US$ 21.5 billio n b y 20 1 0 f rom the c urrent size of US$ 7.5 billio n.
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Shopping in India have witnes sed a r evolution with the change in th e cons umer bu ying beh avior an d the whole f ormat of shopping also a ltering. Ind ustr y of retail in India which have become mo dern can be seen f rom the f act that th ere are multi - s tored malls, huge s hoppin g centers, an d spra wling co mplexes w hich off er f ood, shopping, and entert ain me nt all under the sa me roof .
India retail i ndustry i s expanding itse lf most agg ressivel y, a s a resul t a gre at de mand f or real est ate is being create d. India n retailer s pref erred me ans o f expansion i s to expand to oth er regions and to i ncrease the number of their outlets in a cit y. It is expected that b y 2 010, In dia ma y have 600 ne w shop ping centers.
In the India n retailing industr y, f ood is the most domina ting sector a nd is growing at a rate o f 9% annuall y. The branded f ood indu str y is tr yi ng to en ter the India reta il ind ustr y and c onvert I ndian cons u mers t o branded f ood. Sin ce at present 60 % of the Indian groc er y bas ket consist s of non - branded ite ms.
India retail i ndustry i s progressing well and for this to continue retailers as well as the Indian govern ment will have to make a co mb ined ef f ort.
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Indiian organiized retaiill market Ind an organ zed reta market
Indian organized retail market is growing at a fast pace due to the boom in the India reta il indus try . In 2005, the r etail indust r y in In dia a mount ed to R s 10,000 bil lion acco unting f or about 1 0% to the c ountry ' s GDP . Th e organi zed retail market in In dia out of this tota l market acc ounted f or Rs 350 billio n which is about 3.5% of the total revenues.
Retail mark et in th e Indian org anized sector is ex pected to cross R s 1000 billion b y 2010. T r aditionall y the reta il industr y in India was lar gel y unorganized , co mp rising of drug stor es, mediu m, and s mal l grocer y stores . Most of the organi zed retailing in Ind ia have starte d rec entl y and is concentratin g main l y i n metro politan cities.
The growth in the Indian orga nized r etail market is mai nl y d ue to the chan ge in the consu mers beh avior. This change has co me in the co nsu mer due to incr eased inco me, cha nging l if est yles, an d patte rns of demograph y which are f avorab le. Now the consumer wants to shop at a place where he can get food, entertainme nt, and shopping a ll under one roof . This has given India n orga nized retail market a maj or boost.
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Retail mark et in th e organized sector in India is growin g can be seen f ro m t he f act that 1500 supe rma rkets, 3 25 depa rtmental st ores, an d 300 new malls ar e being built . Man y Indian co mpanies a re entering t he Indian retail market which is giving Indian organ iz ed reta il market a boost. One such c o mpan y is the Reliance Indus tries Li mite d. It pl ans to inve st US$ 6 billion i n the Ind ian retail market b y op ening 1000 h yper m arkets and 1 500 su per markets.
Pantaloons is anot her Indian c o mpan y w hich pla ns to i n crease its reta il sp ace to 30 million square f eet with an invest me nt of US$ 1 bil l ion. Bharti Teleco ms an Indian compan y is in talks with Tesco a global gi ant for a £ 750 mi llion jo i nt venture. A nu mber of global retail gia nts such as Wal ma rt, Carref our, and Metro AG are also planning t o set up shop in In dia. Indi an organized retail mar ket will def initel y grow as a resul t of all this invest me nts.
Indian organized retail market is increasing and for thi s growth to continu e the Indian retailers as well as govern men t must ma ke a combined eff ort.
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The Glloball Retaiill Industry : An Overviiew The G oba Reta Industry : An Overv ew
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. 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 $219 billion in sales for fiscal 2001. Wal-Mart has become the most successful retail brand in the world due its ability to leverage size, market clout, and efficiency to create market dominance. Wal-Mart heads Fortune magazine list of top 500 companies in the world. Forbes Annual List of Billionaires has the largest number (45/497) from the retail business.
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GLOBAL RETAIL GLOBAL RETAIL
1999 1999 Tottall Rettaiill ((US$ Biilllliion)) To a Re a US$ B on Orrganiized Rettaiill ((US$ Biilllliion)) O gan zed Re a US$ B on % Sharre off Orrganiized rrettaiill % Sha e o O gan zed e a 150 150 1..1 11 0..7 07 2002 2002 180 180 3..3 33 1..8 18 2005 2005 225 225 7 7 3..2 32
Rank 1. 2. 3. 4. 5.
Retailer Wal-Mart Stores, Inc. Carrefour Group The Kroger Co. The Home Depot. Inc. Metro
Home Country U.S.A. France U.S.A. U.S.A. 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 Strategiic Factors iin Retaiilliing Key Strateg c Factors n Reta ng
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 evollutiion of the trade channell are shown The 3 stages of evo ut on of the trade channe are shown iin the exhiibiit bellow : n the exh b t be ow :
Extended
Limited
Direct
Manufacture
Manufacture
Manufacture / Retailer
Depo/CNF Depo/CNF Distributor Retailer Retailer Shopper Shopper
Shopper
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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). 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.
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FORMAL RETAILING SECTOR FORMAL RETAILING SECTOR
1. Typically large retailers 2. Greater enforcement of taxation mechanisms 3. High level of labor usage monitoring
Evolution of Indian retail
Historic/Rural Reach Traditional/Pervasive Reach Government Supported Modern Formats/ International
PDS Outlets Khadi Stores Cooperatives Weekly Markets Village Fairs Melas
Source of Entertainment
Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls
Convenience Stores Mom and Pop/Kiranas
Neighborhood Stores/Convenience
Availability/ Low Costs / Distribution
Shopping Experience/Efficiency
7
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CATEGORIES OF INDIAN RETAIL CATEGORIES OF INDIAN RETAIL
1. Corporate Houses Tatas: Tata Trent RPG group: Food World, Health and 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 Glow, etc
Cllassiifyiing Indiian retaiill C ass fy ng Ind an reta
(A)Modern Format retailers
1) Supermarkets 2) Hypermarkets 3) Department Stores 4) Specialty Chains (Foodworld) (Big Bazaar) (S Stop) (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 4) Exclusive /Multiple Brand Outlets
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(C)Large Indian retailers I. Hypermarket 1) Big Bazaar 2) Giants 3) Shoprite 4) Star II Department store 1) Lifestyle 2) Pantaloons 3) Piramyds 4) Shoppers Stop
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5) Trent III Entertainment 1) Fame Adlabs 2) Fun Republic 3) Inox 4) PVR
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The Indiian retaiill sector can be broadlly cllassiifiied iinto The Ind an reta sector can be broad y c ass f ed nto
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
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.
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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
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.
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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 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
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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 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
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The Land mark Gr o up, f ounded in 197 3 with a single sto re in Bah rain ha s g rown into one of the largest retail conglo mer ates in the Mid dle East and is exp anding rapidl y in India. It currentl y operate s over 75 0 stor es a cross the region w ith a retail presen ce in China as well. In addition to its ret a il sector, t he Grou p has also diver sif ied in to leisure, f ood, hotels an d electr o nics and has cr ea ted a co mprehens ive in f rastructure inclu ding its own lo gistics and di stri bution division, to supp or t its retail o peratio ns and othe r busin esses.
Key Factts Key Fac s 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.
Core Vallues of Landmark Group Core Va ues of Landmark Group
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1.
Passio n for ex cellence – We are committed to setti n g industr y bench m arks –
be it our product or practices. Our do ctrine is to strive and mai ntain the l ead in whatever we do, with strict a dhere nce to qualit y an d delivering valu e f or mo ne y. 2. Integrity in ev ery thing w e do - Our business i s driven b y trus t, s trong ethics and mu tual respect.
3. E mpow ering people to str ive a nd deliver – Ou r core streng th i s our emplo yees. We believe in givin g our pe rsonnel the opp ortunit y and
responsibil it y that are integral to their prof essional de velop ment and our Group’s success.
4. Adapti ng to changing market a nd cust o mer nee ds – We keep ou rselves abreast with industr y tren ds and d yn ami c consumer pre f erences. Our off erings keep evolvi ng to a ddress chan ging an d discernin g consu mer needs.
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L o o k G o o d F e e ll G o o d Look Good Fee Good
?
Max a value retai l store f or the f amil y w as launche d in Ma y 2004 in th e UAE.
?
Wit h st ores t hat t yp i call y measure b etween 2 5,000 to 30,000 sq. f t, Ma x retails its own la bel clothing f or me n, wo men and children as well a s f ootwear and ho me ware.
?
A pioneer in the Middle East of the global trend of delivering qualit y and value at ver y attra ctive prices, M ax i s being increas ingl y reco gnized as a ke y pla yer i n the v alue retail f or mat.
?
Wit h 75 stores acr oss UAE, Saudi Ar abia, Jordan, Kuwa it, Bahrain, Qatar, O man & India , Ma x plans to e xpand i ts netwo rk in more potentia l mar kets within t he Mi ddle East, Tur ke y a nd I ndia to build a si g nif icant presence f or the brand b y ta rgeting to h ave 10 0 stores b y 2009.
?
A good shopping experience and great value is an assurance that translates i nto mak ing custo mers ?Lo ok good. Feel goo d ? with Max .
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Key Factts Key Fac s
Established in 2004. 75 stores spread across 8 countries. The Largest Value Fashion Chain in the Middle East Products designed and developed in-house designers and buyers. exclusively for Max, by a large team of
KIDSWEAR DEPARTMENT
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BOYS (SIZES) 6-12 MONTHS 12-18 MONTHS 18-24 MONTHS TOTAL BOYS SECTION: SUB SECTION
PREPACK 3 3 3 9
GIRLS (SIZES) 6-12 MONTHS 12-18 MONTHS 18-24 MONTHS
PREPACK 3 3 3 9
1-8 YEARS
SIZES
PREPACK
8-14 YEARS
SIZES
PREPACK
2-3 YEARS 3-4 YEARS 5-6 YEARS 7-8 YEARS TOTAL GIRLS SECTION: SUB SECTION
1-8 YEARS
SIZES
3 3 3 3 12
8-9 YEARS 9-10 YEARS 11-12 YEARS 13-14 YEARS
3 3 3 3 12
PREPACK
8-14 YEARS
SIZES
PREPACK
2-3 YEARS 3-4 YEARS 5-6 YEARS 7-8 YEARS TOTAL
3 3 3 3 12
8-9 YEARS 9-10 YEARS 11-12 YEARS 13-14 YEARS
3 3 3 3 12
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V-NECK R- NECK COLLER FRONT OPEN
SKIRT CAPRI SHIRT 2-8 BOYS T-SHIRT DENIM JEANS TROUSERS CARGO 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 ABHISHEK PANDEY,, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT,, LUCKNOW ABHISHEK PANDEY SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT LUCKNOW
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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 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 XS S M L PREPACK 1 2 2 2
TRADITIONAL KURTI SHORT LENGTH KURTI HE KURTA LONG KURTA DUPATTA COTTON SHIFFON ABHISHEK PANDEY,, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT,, LUCKNOW ABHISHEK PANDEY SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT LUCKNOW
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SALWAR PATIALA NORMAL CHOORIDAR SIZES S M L XL XXL ETHNIC WEAR BASICS: KURTA SALWAR CHOORIDAR PATIALA DUPATTA PANTS BASICS SLIPS PREPACK 2 3 3 2 1
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
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CORE KNIT TOP WOVEN TOP KNIT BOTTOM WOVEN BOTTOM SKIRTS YOUNG KNIT TOP WOVEN TOP KNIT BOTTOM 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
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BOOT CUT REGULAR FIT SLIMFIT CASUAL NON- DENIM KNITTED TOP- FULL SLEAVES KNITTED TOP- HALF SLEAVES KNITTED TOP- SLEAVE LESS 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 WOVEN TOP- FULL SLEAVES WOVEN TOP- HALF SLEAVES INNER WEAR TRUNK VALUE PACK WEST VALUE PACK Y FRONT VALUE PACK SEMI FORMAL WOVEN BOTTOM- FLAT FRONT WOVEN BOTTOM- PLEATED WOVEN TOP- FULL SLEAVES WOVEN TOP- HALF SLEAVES 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 39 to 44 S to XL 28 to 36
REGULAR FIT 28 to 36
SLIM FIT 28 to 38
FOOTWEAR
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? ? ? ? ? ? ? ? ?
CASUAL SHOES FORMAL SHOES CASUAL LACE UPS FORMAL LACE UPS 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.
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3. Switch on optimum lights on floor. 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
Duties & Responsibilities
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? Sales Forec asting & Budget ? Personnel Recruit me nt, select ion, tr aining, mo tivation and evaluati on ? Merchandis e Displ a y, Inventor y Man age ment and merch andise reord ers ? Handling store rec eipts, preparing bank transactions, opening and closing store ? Reviewing custo mer co mplain ts ? Reviewing co mput er data f orms ? Review of overall operations a nd rep orts to top manage me nt.
DEPARTMENT MANAGERS DETAIL CHECKLIST
? Cleaning an d Dust i ng ? Floor cleane d and Mopped ? Fixture (Cl ean, Ali gn ment & Breakag e) ? Stock Repl enish me nt ? All st yle d ispla yed on f loor. ? Size cubing on all mer chandise ? Price ticket s on all me rchandis e ? Securit y ta g on all mer chandise ? Merchandis e well presented
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? Shelf Talkers (Cle an and Pro perl y di spla yed) ? Ensure iron ing of Merchandis e is in process. ? Trial roo ms clean ? Cash Cou nters Cl e an (Merchan dise, h angers & ta gs) ? Dail y sales registe r updation ? Dail y groo ming ch eck ? Ensure that the ade quate manp ower o n the f loor on hourl y basis ? Staf f should tr y an d attend each and e ver y custo mer, gre eting is ver y important ? Ensure that staf f is regul arl y in teracti ng with the custo m er b y givin g exceptional service f or customer delig ht at all time ? Ensure the presenc e of one ma nager a t an y given ti me o n each f loor ? Ti me and a gain ch eck that the villing check out i s f ast enough as p er the standard no r ms ? Ensure that the lunch breaks s hould start b y 1:00 p m and f inished b y max 4:00 p m ? Ensure the presenc e of all staff on the f loor in peak hours between 5:00 pm to 9:3 0 p m ? Ti me and a gain ch eck on walk -ins, a verage bill s ize, sa les on hour l y basi s an accordingl y
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? Encourage t he staf f f or f urther impro ve ment ? Ensure you r morni ng shif t staf f and weekl y of f f or the next da y is conve yed to all sta ff . ? Maintain D M’s lo g book on d ail y bas i s & ackno wledge b y S M, A SM on dail y basis
CRE DETAIL CHECKLIST
? Cleaning an d dusti ng of shelves, bro wsers, ar ms & bac k bars. ? Check at 10 :30 a m f loor clean & mop ped ? Fixture (Cl ean & Align ment)
? Have a walk on the f loor af ter 10:30 am a nd check the re plenishmen t
require ? Stock reple nish me nt f or new lines & broken size s on the f loor ? Re move br oken siz es f rom the f loor if it is not a vailable in back ? Ensure that all st yle displa ye d on f loor ? Price ticket s on all me rchandis e ? Start size cu bing o n all mercha ndise ? Securit y ta gs on al l merchandi se
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? Merchandis e well presented ? Start ironi ng of me rchandise at 10:00 am till 4:0 0 p m ? Trials roo ms (clea n, tokens a nd man n ed) b y 10:30 a m ? Tr y and atte nd eac h and ever y custo mer , greetin g is ve r y i mportan t.
Distribution Of Target In Departments
Let, 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
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DIPSTICK PARAMETERS
Enable retail ers to f ind out about the health of specif ic area of operation in a n insta nt.
Customer Transactions
? Custo mer Conver si on Ratio ? Return To Net Sale s ? Transaction s Per H our ? Sales Per T ransacti on
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? Hourl y Cu sto mer T raff ic
Stocks
? Average Sel ling Pr ice ? Average Stock Price ? Stock Turn over/In ventor y Tur nover Rate ? Percentage I nvento r y Costs ? Gross Margin Retu rn on Inventor y ? Markdown Goods Percentage ? Shrinkage t o Net Sales
Space
? Occupanc y Cost Per Square Foot Selli ng Space ? Sales Per Square Foot ? Stock Per Square Foot ? Percentage of Selli ng Space
Employees
? Net Sales Per Full Ti me E mpl o yee ? Labour Pro ductivity
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? Gross Margin Per Full Time E mplo ye e Custo mer Conver sion Rati o Custo mer Conver si on Ratio = Nu mber Of Transactions Cust o mer Tr aff ic -Ref lects Retailers abilit y to t urn a p otential cus to mer i nto a bu yer -Low f igure means that p ro moti onal a ctiv ities are no t be ing conv erted i nto sales or that the overall sales ef f ort needs to be assess ed af resh -Auto matic counti ng mechani s ms or periodic sur ve ys of custo mer tr af f ic x 100
Returns to Net Sales
Returns to Net Sal es = Total Re turns Net Sales x 100
-Indication of Customer satisfaction -Increase in value is an earl y warning indicatio n -Qualit y of mercha ndise is a s uspect
Transactions Per Hour
Transaction s Per H our = Nu mbe r Of Transactions Nu mber of Hours
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-Hourl y variation s in sale s activ itie s is i mportant f or setting store hou rs and staf f schedules -Cash regis ters wil l give the ti me of sale
Sales Per Transaction
Sales Per T ransacti on = Net Sales Nu mber Of Transa ctions
-Ref lects Retailers abilit y to t urn a p otential cus to mer i nto a bu yer -Low f igure means that p ro moti onal a ctivities are no t be ing conv erted i nto sales or that the overall sales ef f ort needs to be assess ed af resh -Auto matic counti ng mechani s ms or periodic sur ve ys of custo mer tr af f ic
Hourly Customer Traffic
Hourl y Cu sto mer T raff ic = Custo mer Traf f ic In Nu mber of Hours -Can be appli ed to an entire store or a single depar t men t to schedule hours and establish staf f levels -Used to track customer traf f ic
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Average Selling Price
Average Selling Price Total Value s of Good Sold Total Quan tit y Sold
Average Stock Price
Average Stock Price = Total Value s of Goods in Stock Total Q uantit y in Stock -Turning stocks ar ound ef f icientl y yi elds better p rof its -If dail y sales acc ount f or 2% sales i t will t ake 50 da ys to sell stock and i n 365 da ys the tur naroun d of the stock is 3 6 5/50 i.e 7.3 ti mes
Stock Turnover / Inventory Rate Turnover
Stock Turn over / I nventor y R ate Tur nover = Net Sales
Average Re tail Value of Inventor y -Indicates h ow of ten the inventor y i s sold and replace d in a given period of time -When this ratio declines there is a possibilit y t hat the i n ventor y is excessive
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Percentage Inventory Carrying Costs
Percentage I nvento r y Carr ying Costs = Inven tor y C arr yi ng cost s x 10 0 Net Sa les -Important measure as there is a rise in inventor y ca rr ying costs due t o higher interest rates -Important to r ed uce stock obsolescence and preve n t blockage of wo rking capital -Retailers us e this mea sure to tra ck th e percentage of the ir net sales rep rese nted b y the f ixed costs of maintain ing inv entor y.
Gross Margin Return on Inventory
Gross Margin Retu rn on Inventor y = Gross Margin Averag e Value of Invento r y -GMROI c o mpare s the marg in on sales with the original co st val ue of mer chandise to yie ld a return o n merc handise inv est ment -Pref erabl y the in ventor y is to be v alued at co st rathe r than retai l value as it gives a bett er indic ation of invest men t
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Markdown Goods percentage
Markdown Goods percentage = Net Sale s at Ma rkdown Total Net Sales
-If the ratio increases, the reta il er ma y need to take a closer l ook at mer chandisi ng pra ctices, especi all y p ricing -Markdow ns ma y b e s ympto ms of oth er proble ms like o r bu ying, adverti si ng or store la yout .
Shrinkage to Net Sales
Shrinkage t o Net Sales = Actual Inventor y – Book Inve ntor y x 100 N et Sales -Percentage of net sales lost d ue to s h rinkage -Does not indicate cause of shrinkage but the ma gnitude of the problem.
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Occupancy Cost Per Square Foot Selling Space
Occupanc y Cost Per Square Foot Selli ng Space = Occupanc y Cost Square Feet of Selling Space -Translates i nto oc cupanc y cos t per u nit of selling space -In other words th e amou nt that nee ds to be generated b y that unit of space to justif y occu panc y costs -For multi -uni t retailer it is a usef ul tool to compare th e perf ormance of units at diff erent locations.
Sales Per Square Foot
Sales Per Square Foot = Net Sales Square Feet of Selling Space
-Used to compare diff erent depart me nts or stores using a co mmon standard -Important tool to decide alternate uses of the space
Percentage of Selling Space
Percentage of Selli ng Space = Selling Space x 10 0
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Total Space -Eff icienc y of spac e utilit y -Ratio varies wit h mercha ndise a nd can be used to compare dif f erent depart ments or sto res.
Net Sales Per Full Time Employee
Net Sales Per Full Ti me E mpl o yee = Net Sales Total Full Ti me E mp lo yees
-Average Sa les gen erated b y eac h f ull ti me e mpl o yee -Can be use d to set perf ormance targe ts.
Labour Productivity
Labour Pro ductivity = Total Labo ur Costs x 100 Net Sales
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-Tracks labo ur cos ts incurred t o achi eve a given sales v olu me -Can be app lied pu rel y to sales e mplo ye e s
Gross Margin Per Full Time Employee
Gross Margin Per Full Time E mplo ye e = Gross Margin Total Full Ti me E mp lo yees -Gross prof it generated per emplo yee, used to gauge perf ormance of sales emplo yees -Not the onl y meas ure but a starting tool.
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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.
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.
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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 for m l ay out: In a f reef orm, merchandise i s arran ged in an a s ymmet rical ma nner. It allows f or f ree move me nt and is of ten used in retail outl ets to encourage people to browse a nd shop.
MAX STORE LAYOUT
Accessories Department 700 ft2
Baggage Counter
Cash Till Kids wear Department 2350 ft2
2 3 1
4 Foot wear Department 1502 ft2
Western wear Department
2234 ft2 Menswear Department 2315 ft2 Pantry Ethnic wear and home Department 1805 ft2
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Consumer Behavior and Marketing Strategy
The stud y of cons umers helps f ir ms and organizat ions improve thei r mar keting strategies b y under standing is sues su c h as how
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The ps ycho log y of how cons u mers t h ink, f eel, reason, a nd select be tween diff erent alternativ es (e.g., bra nds, pr oducts);
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The the ps ych olo g y of how t he co nsu mer i s inf luen ced b y his o r her environ men t (e.g., culture, f amil y, sig ns, media);
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The behavi or of consu mers while s hopping o r makin g other mar keting decisions;
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Li mitation s in c o nsu mer k nowledg e or inf or mation p rocessing abilities inf luence decisions and market ing out co me;
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How co nsu mer mo tivation and decisi on strate gies dif f er between prod ucts that dif f er in their level of i mporta n ce or inter est that the y entail f or the consu mer; a nd
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How mar keters c a n adapt a nd i mpr ove their marketi ng ca mpai gns an d mar keting s trategie s to more ef f ectivel y r each the c onsu mer .
Understanding these issues helps us a dap t our strateg ies b y taki ng the cons umer into consi deration. For exa mple, b y understandi ng that a nu mber of different me ssages co mpete f or our potential custo mers’ attent ion, we learn that to be eff ective, advertiseme nts must usual l y be repeated ext ensivel y . We also learn that consu mers w il l some ti mes be per suaded more b y lo gical argu ment s, but at other ti mes w ill be persua ded mor e b y e motion al o r s ymbo lic ap peal s. B y understandi ng the consu mer, we wil l be able to ma ke a mo re inf ormed de c ision as to which strateg y t o e mplo y.
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One "of f icial" definition of consu mer behavior i s "T he stud y of indivi duals, groups, or or ganiz ations a nd th e pro cesses t he y u se to select, secure, us e, an d dispose of products, services, exper iences, or ideas t o satisf y n eeds an d the impacts t hat th ese processes have on the consu mer a nd societ y." Altho ugh it is not necessar y to memorize thi s def inition, it brings up s ome usef ul points:
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Behavior occurs e ither f or the indiv idual, or in the c ontext of a group (e.g., f riends inf l uence wha t kin ds of clothes a per son wear s) or an organizatio n (peo p le on the j ob mak e decisio ns a s to which p roducts th e f irm shoul d use).
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Consu mer behavio r involves t he use and disposa l of products as w ell as the stud y of how the y are purc hased. Product u se is of ten of great interest to the market er, because this ma y inf luence how a product is b est positioned or how we can encourage increased consu mption. Since man y environ men tal pro ble ms result f rom product disposal (e.g., mot or oil being sen t int o s ewage s ys te ms to save t he rec yc li ng f ee, or gar bag e piling up a t landf ills) this is also an a rea of interest.
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Consu mer behavi or involv es ser vi ces and i deas a s well as tangi bl e products.
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The i mpact of co nsu mer beha vior on societ y is also of relevance. Fo r exa mple, agg ress iv e marketi ng of hig h f at f oods, or a gg ressive marketin g of eas y cre dit, ma y have seri ous rep ercussions f or the national health an d econo m y.
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There are f our mai n applications of consu mer be havior:
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The most obvi ou s is f or marketing strategy—i .e., f or making bett er mar keting ca mpaig ns. For exa mple, b y understa nding t hat consu me rs are mo re receptiv e to f ood advertising when the y are hu ngr y, we lear n to schedule snack ad vertise ment s late in the af ternoon. B y unde rstandi ng that new product s are usuall y initia ll y ad opted b y a f ew consu mers an d onl y spread la ter, and then onl y gra duall y, to the r est of the population, we learn that (1) co mpanies t hat in troduce new prod ucts must be well f inanced so that the y c an sta y af loat until their pr oducts beco me a co mmercial succe s s and (2) it is important to please initial custo mer s, since the y will i n turn inf luence ma n y subseq uent custo mers’ br and choices.
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A second applica t ion is p ublic p oli cy . In the 1980 s, Accutane, a near mir acle cure f or acne, was i ntro duce d. Unf ortunatel y, Accutane re sulte d in severe birth d ef ects if taken b y pr egnant wo me n. Alt hough ph ys icians were inst ructed t o warn their f emale patien ts of th is, a nu mber still beca me pre gnant while taki ng the d rug. To g et con su mer s’ atten tion, t h e Federal Drug A d ministration (FDA) took the step of requiring that ver y graphic pict ures of def ormed b abies b e shown o n the me dicine conta iners.
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Social marke ting i nvolves gett ing id eas across to con s umers rather th an selling so met hing . Mart y F ishbein , a mark eti ng pr of essor, went on sabbatical to w ork f or the Centers f or Disease Contr ol tr yi n g to reduce the incidence of trans mi ssion of disease s throug h illega l drug use. The best solution, ob viousl y, wo uld be if we could get illegal drug users to stop . This, ho wever, wa s dee med to b e in f easible. It was al so deter mined t hat the practic e of sha ring needl es wa s t oo ingrai ned in the drug c ulture to be stopped. As a res u lt, using knowled g e of consu mer atti t udes, Dr. Fishbei n
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created a ca mpaig n that encouraged the cleaning of needles in bleac h bef ore sharing the m, a goal t hat was believed to be mor e realistic.
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As a f inal benef it, stud ying cons u mer behavior shoul d mak e us better consu mers. Co mmon sense sug gests, f or example, th at if yo u bu y a 64 liquid oun ce bottl e of laundr y deter gent, you should pa y less pe r ounc e than if you bough t two 32 o unce bot tles. In prac tice, h owever, yo u of ten pa y a size premi u m b y bu yin g the larger quantit y. In o ther words, in this case, kno wing this f act will se nsitiz e you to th e nee d to ch eck th e uni t cost labels to determi ne if you are rea lly getting a bargai n.
There are several units in the marke t that can be anal yzed. Our main thr ust in this course is the consumer. H oweve r, we will also ne ed to anal yze our own f irm’s strengt hs a nd weakn esse s an d those of competing firms. Sup pos e, f or exa mple, t hat we ma ke a pr oduct ai me d at ol der con su mer s, a gr owing se gment. A co mpe ting f irm that targe ts ba bies , a sh rinking mark et, is likel y to c on sider repositioni ng toward our market. To assess a co mp e ting f irm’s potent ial t hreat, we need to exa mi ne its assets ( e.g. , technolog y, pate nts, market k nowl edge, awareness of its br ands) again st pres s ures it f aces f rom the market. Finall y, we need to assess con ditions (the marke ting environ me nt). For examp le, a lth ough we ma y have dev eloped a product that of f ers great appeal f or consu mers, a recession ma y cut de mand dramaticall y.
Segmentation
Segmentation is important in consumer analysis because understanding the consumer will allow us segment the market more m eaningfully.
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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 "t reat" each segment differently —e.g., by:
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Providing different products (e.g., some consumers like cola taste, while others prefer lime)
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Offering different prices (some consumers will take the cheapest product available, while others will pay for desired f eatures) Distributing the products where they are likely to be bought by the targeted segment.
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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.
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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
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limited. (5) Cultures fall somewhere on a co ntinuum between static and dynamic depending on how quickly they accept change. Different perspectives exist in different cultures on several issues; e.g.:
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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).
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Space is perceived differently. Americans will feel crowded where people from more densely populated countries will be comfo rtable. Symbols differ in meaning. For example, while white symbols purity in the U.S., it is a symbol of death in China. Colors that are considered masculine and feminine also differ by culture.
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In terms of etiquette, some cultures have more rigid proce dures 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.
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Demographics and Social Stratification
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 economi c 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 f ewer 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 ha ve 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
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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 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:
o o o o o
whether to buy; which product to buy (pick -up or passenger car?) ; which brand to buy; where to buy it; and when to buy.
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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’ curr ent 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
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
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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 ou t 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:
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Modernity: The extent to which the culture is receptive to new things. In some coun tries, 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.
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Hom ophily: The more similar to each other that members of a culture are, the more l ikely 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.
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Physical distance: The greater the distance betwee n people, the
less likel y innovati on is to sp read.
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Opinion leadership: The more o pinion lea ders ar e valued and
respected, the mor e likely an innova tion is to spread. The st yle of
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opinion
lead ers
mo derates
th is
i nf luence,
howeve r.
In
less
innovative countri es, opinion leaders tend to be more c onservative, i.e., to ref lect the l ocal nor ms of resistance.
Perception
Background. Our perception is an approxi ma tion of realit y. Our brain
atte mpts to make s ense out of the stimu l i to which we are exposed. This works well, f or example, when we "see" a f riend three hundred f eet awa y at his or her correct he ight; h owever, our p erc eption i s so metime s "of f "—f or exa mple, certain shap es of ice crea m c onta iners look like t he y contain more than rectangular ones with the sa me volume.
Factors in percpetion. Several se quential f actors in f luence our perce ption.
Exposure inv olves the extent to whi ch we encounter a stimulus. For ex a mp le, we are exp osed to nu mero us co m mer cial me ssages while dr iving o n the f reewa y: bill boar ds, radio advertis e me nts, bu mpe r -sti ckers on cars, and signs and banner s place d at shop ping mal ls that we pass. Most of this ex po sure is rando m— we don’t plan to seek it o u t. However, if we are shopping f or a car, we ma y deliberat el y seek out adv ertise ments and "tune in" when d ealer advertiseme nts come on the ra dio.
Learning and Memory
Background. Learning invol ves "a change in the con tent or organ izati on of
long ter m me mor y and/or behavi or." The f irst part of the def inition f ocus es on
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what we know (a n d can thus put to use) while the sec ond f ocuses on co ncrete behavior. For exa mp le, ma n y pe opl e will avoid f oods that the y c onsu me d shortl y b ef ore bec oming il l. Lear nin g is not all knowle dge based . For exa mp le, we ma y exper ience the sales peo ple i n one store be ing nicer to us tha n th ose in the other. We thus ma y d evelop a pr ef erence f or the o ne store over the o ther; however, if presse d, we ma y not b e able to give a con scious e xplanati on as to the reason f or our pref erence.
Motivation, Personality, and Emotion
Perspectives on Consumer Behavior and Motivation . We cons idered
several perspe ctiv es on behavior a s a wa y t o underst and what mot ivate s the consu mer. Each of these perspect ive s sugge sts dif f erent thing s as to wh at the mar keter sho uld d o and what can (a nd cannot) be c on trolled. Note t hat each perspective tend s to contain a "grai n" of truth and that one should n ot be too dog matic i n e mpha sizing one over the others.
Maslow’s Hierarchy of Needs.
The late Ab raha m Ma slow sug gested
the intuitivel y a p pealing notio n th at hu mans mus t satisf y the mos t basic objectives b ef ore the y can mov e ont o "higher le vel" o nes. Thus, a n indi vidual mu st satisf y ph ysi ological needs (su ch as f ood and liquid) bef ore he or she will be able to expen d energ y o n less f unda mental objectiv es such a s saf et y. Onl y when basic object ives have been met will a person mo ve on to seek such objectives as lov e and belonging , an d onl y a s mall mi norit y of people make it as f ar as seeking s elf -actualization.
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Maslow’s Hiera rc h y is usef ul in understandin g dif f erent needs of consu mers across the World. However, one must be caref ul not to take it too literall y, since people ma y o ccasionall y "sw ing " between needs. For example, a ho meless person who cur rent l y do es not have s helter ma y seek th at out even thoug h he or she is hun gr y. Properties of moti vation. Mo tivation is describe d throu gh several p roperti es:
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Motivation is composed of energy and direction . A person ma y or ma y
not have enoug h motivation to en gag e in a given activi t y. For exa mpl e, a person ma y be mot ivated enoug h to g o and shop f or f ood, but not eno ugh to engage in a co mprehensive e xercis e progra m.
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Motives m ay be overt, hidden, and m ultiple . Some motivati ons are
publicl y expr essed (e.g., the desire to bu y an energ y eff icient house), while other s (e.g., the desire t o look wealth y b y bu yin g a f anc y car) are not. Individua ls ma y als o hold multi ple m otivatio ns (e .g., bu y a car a nd save mone y f or ret ire ment) wh ich ma y c onf lict.
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Many m otivations are driven by the desire for tension reduction
(e.g., elimi nate thirst or hung er).
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Motivations can be driven by both internal and external factors .
That is, a p erson ma y wan t a painti ng either becau se he or she li kes it (internal motivation) or be cause t his will give her status a mong the artistic elite (exter nal).
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Motivations m ay have either a positive or negative valence -- people
ma y either be mot ivated to ac h ieve so mething (e.g., g et a pro mo tion a t work) or avoi d so mething ( e.g., being hospi talize d without ha ving adequate ins urance ).
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Consum ers are motivated to achieve goals . Achieving these g oals ma y
require sustained activit y over time ( e.g., exercising ev er y da y f or mont hs or years) as oppose d to just ta king so me action o nce.
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Consum ers m aintain a balance between the desires for stability and variety. Most cons umers want so me variet y (e.g., the y do not wan t to eat
the sa me meal eve r y da y) , but also want a ce rtain sta bilit y (the y do not want to tr y an entirel y new f ood ever y d a y).
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Motivation reflects individual differences . Diff erent consu mers ar e
mo tivated t o achi eve dif f erent things, and it ma y be dif f icult to inf er mo tivation s f rom l ooking at actual b ehavi or witho ut u nderstandin g these diff erences in desi red outco me s.
Self-Concept, Situational Influences, and Lifestyle
The self-concept. The cons u mer f aces several possible selves. The actual
self ref lects how the individu al actu all y is, alth ough t he consu me r ma y not be aware of that reali t y (e.g., man y ano rexic con su mers w ho are dangero usl y thin believe that the y a re in f act f at). In contrast, the id eal s elf ref lects a self that a person wo ul d li ke to have, but d oe s not in f act have . For exa mple, a couch potato ma y wan t to be a Worl d f amo us athlete, but ma y have n o actual a thletic abilit y. The privat e self is one that i s not inten tionall y exposed t o others . Fo r exa mple, a pol ice off icer ma y li k e an d listen to rap mus ic in p rivate, but p roject a public self -i mag e of a count r y music enth usiast, pl a yi ng co untr y son gs at work where police off icers are portr a ye d as hero es. Th e ke y here i s to ke ep in mi nd whic h kind o f self we are tr yin g to reach in pro motional mes sages. If we appeal to the hi dd en self , f or exa mpl e, we must be care f ul to make ou r ap peals
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subtle and hint, i f appropriate, on how the i ndividu a l’s conf identialit y and privac y can be enh anced. Individuals wi ll often seek to aug me nt and enha nce th eir self concepts, and it ma y be possi ble t o market produ cts t hat help achiev e t his goal. For exa mple, a successf ul attorne y ma y wan t to wear (in politicall y correct ter ms) co wchild boots and a cowchi ld hat to br ing ho m e an i mage a s a ran ch enthusia s t.
Lifestyles. Self -concept of ten t ran slates into a perso n’s lif est yle, or th e wa y
that he or she lives his or her lif e. For example, a person ma y b e ver y mat erialistic , pref erring to wear f lash y clo thes and d rive expensive car s, or pref er instead a si mp le r lif e wit h f ewer visi ble sta tus s ymbols. Atte mpts have been made to cl assif y cons u mers into variou s se gments bas ed on their lif est yles. The Val ues and Lif est yle ( VALS) Project, de veloped b y t he Sta nf ord Research Institut e (SRI), at te mpts to classif y peopl e bas ed on a co mbinatio n of values and resourc es. Thus, f or example, both "Achieve rs" and "Strivers " want public recogni tion , but onl y t he Ac hievers have the resources to brin g this about. A gl obal analogue is the Global Scan.
Situational influences . Specif ic circu msta nces o f ten inf luence consu mer
behavior. F or exa mp le, cons u mers in a rush are lik el y to take t he mo st convenient prod u ct available. C o nsu mers whose attention is d e manded
elsewhere are likely t o disregard co mmer cial mes sages. Consumer s shoppi ng f or a special occa sion (e.g., a wed ding) ma y bu y dif f erent products.
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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 bro ader and more ambiguous a problem is, the more potential solutions are generally available (see class slides for examples). Consumer Problem Recognition. Consumers often note problems by comparing their current, or actual, situation, explicitly or implicit ly, 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 so lutions 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 consume s too much alcohol). Finally, needs can be relatively specific (generic), as in the need for enjoyment (which can be satisfied many different ways), or specific, as in the need for professional attire to wear at a new job.
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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 s tate. 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 d eliver 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 loca ted. 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.
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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 th e "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 great are differences How between are brands expected of to be?), product consumer characteristics (how important is this product? How complex is the product? obvious indications quality?), characteristics (how interested is a consumer, generally, in analyzing product characteristics and maki ng 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 rat her 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 actual ly 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 d ecision making are discussed in the text on pp. 537 -541.
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Consumer Outlet Selection
Retail evolution and consumer choice . For ma n y product s, consu mer s
f requentl y have nu mer ous c hoices as to where the y are going to actuall y o btain the produ ct. Al tho ugh we are us ed to thinkin g of bu yin g auto mo biles onl y f rom dealerships, f or example, it is toda y possible to bu y t he m through brok ers or f leet sales organizations that ma y both (1) of f er a lower price a nd/o r (2) provide the hel p o f a neutral third part y which doe s n ot have a vested i nterest in the sales of one ma ke over t he othe r. In general, the evo lution of diversit y in the retail scene has provided consu mer s with more ch oice. In the old da ys , most con su mers had access onl y to "ge neral" stores f or most p roducts. Gra duall y, i n urban en vir on ments, s pecialt y an d discount stores ev olved. T oda y, a co nsu mer ma y g ener all y choo se to bu y most products either at a relativel y h igh p rice, f requentl y wi th a signif ic ant amo unt of service, in a s pecialt y st ore, or with lowe r servic e in a di scount sto re. A special case of the discount store is the category killer--a store that ten ds to specialize in so m e li mited area ( e. g., electro nics), l acking the bread t h of a traditional discou n t store of ten un de rcutting t he tradi ti onal disc ount st or e on price (whic h the y are able to do bec ause of the bargai ning powe r that r e sults f rom high bu yin g volu mes of a narrow assor t ment o f merchandi se f rom the sa me manuf acturer ).
"At home" shopping and electronic commerce . D uring th e last
several decades , th e incidence of "at ho me" shop ping ha s increased. The g r owth of catalog sales can be tra ced to advances in co mp uter tec hnolog y a n d subsequent li st av ailabilit y (as we d iscussed in the sec tion of direct mar keting seg mentati on meth ods). A more recen t develo p ment is I nternet b ased mark eting. Although sales are modest in this do mai n at the mo men t, it is too earl y to judge
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the total pote ntia l of this mediu m. Altho ugh man y of the co ncerns that consu mers hol d about co mputer cri me tend to be ex aggerated and/or l argel y unwarranted , pu bl ic f ears are a major hol dback. A nother pr oble m i s the de mographi cs of computer an d Inter net use --the major it y of U.S. cons u mer s, and certai nl y t he great majorit y o f resid ents of ev en highl y ind ustri alized countries, are not regular Internet us ers. Certain p rodu cts specificall y ai me d at heav y Int ernet use rs (e.g., record s, s of tware) and pr odu cts/services that re quire a high le vel of cus to mization (e.g., ai rline ticket s) ma y f ind good oppo rtun ities. An interes ting pr o ble m with Intern et co mmerce, which ma y well have s pil lover eff ects outside t he real m of the Net, is the re lative e ase with w hich c onsu mer s ma y co mp are pr ices of dif f erent retailers, result ing in in tense price
co mpetitio n. Note that recent le gislat ion has li mited ta xation of Internet sales in the U.S. , in a se nse atte mpt ing to " ju mp start " this i n novation.
Store positioning. Positioning of retail stores is ess e ntial. In ge neral, s tores
which excel on a significant dimens ion see m to perf orm better --f or exa mp le, Nordstrom’s excel s through its intense customer servic e, while Wal -Mart excels through its ef f icienc y an d low price s. (In a course on marke ting strate g y or retailing, you will probabl y discuss the issue of the importance of bal anced markets--it is hea lthier if diff erent f irms have diff erent strategies, so that ever yone will n ot be co mpeting i nte nsel y on the sa me variables). St ores which f all some where in between --e. g., Se ars --tend to do le ss well s ince the y g e t "stuck in the mi dd le" and have to comp ete against both . Obviousl y, there is a limit to ho w stro ngl y you ca n mo ve toward on e ex tre me. For e xa mp le, if Nordstrom were to double its prices and even do uble its service, tha t position would be un tenabl e, and cer tain e xtr eme discoun t store s that of f er lower prices than Wal - Mart te nd not to b e suc cessf ul because t he y are ulti mat el y not satisf actor y to con su mers.
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Consumer behaviour and retailing decisions
Does consume rs' s election of retail o utlets depend on th e brands availabl e or is it the retail outle t first and the br and next? Market ers need to do in -depth research o n the va rious aspe cts that l ink brand and ret a il strategy.
DECISIO N -MAK I NG with rega rd t o retail outlet sel ection is ver y si milar to consu mer decisio n - making on bra n ds where the co nsu mer g oes thro ugh a process s tarting f rom identif ying nee ds to p ost -purc has e issues. There are a f ew interesting and i mportant di mension s associate d with consu mer behavio ur an d retail outlet selection.
Wh en Titan and Time x watches were retailed t hrough exclus ive shops, consu mers wa ntin g lower -end watc hes probabl y f elt that a t ypic al Titan showroo m was to o elitist, whi ch coul d have had a negat ive i mpact.
categories? While bu ying a TV or a washing machine, would con su mers v isit an exclusive sho wroo m of BPL, Onida or Son y, or would the y vis it a multi -brand outlet?
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of consumers cho o sing outlets? Wh at is the sequence i n which consu me r s are likel y to go ab out their deci sions? Wil l the y select t he brand or the ca tegor y f irst bef ore choosing th e outl et?
diff erent f rom a neighbourho od groc er y sh op in the mi nds of consumers? What kind of perception are consu mer s lik el y t o have wi th r egard to shop ping f rom an online outl et such as Fab mart vis -à-vis a brick - and- mortar outlet like Fountainhe ad or L and mark?
retailers have been carr ying man uf acturers' brands. But in recent time s (at least to a si gnif i cant ex tent in the f oods c ategor y), super ma r kets suc h as Food Wo rld have star ted car r yi ng retail or store brands. Nilgiri 's is another exa mple i n the South w hich c ar ries its own bra nds of chocolat e s, biscui ts and other
co mmoditi es. etail e quit y o r retail i mag e or re tail lo yalt y?
Marketers need i n -depth kn owledge about the variou s di mension s whic h link retailing an d consumer behaviour. T here is resea rch r equired to handle retail decisions in a co mpetitive c ontext. McDonald 's f ound that a major chunk of its consu mers decide t o eat a f ew minute s bef ore the y make the purcha se decis ion s and hence i t is bu ilding s ma ll outle t s in large super ma rkets such as Wal - Mart and Ho me Depot. I t is prov iding pla y areas to ensure a nu mber of f amilies visit its outlets wi th c hildren. A f ew companies als o op erate through k io sks in airports, mall s and high-traf f ic areas. Sunglass Hut i s a brand which ope rates kiosks at various p laces which displa ys abou t 1,0 00 dif ferent models along with
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their prices. Cons umers could place an order through these kiosks and the product is ho me-de livered.
Retail outlet selection and brand selection
There are three f u nda mental pattern s , which a cons u mer can f ollow a nd the y could be: (I) Brand first, retail outlet second (ii) Retail outlet first, brand second (iii) Brand a nd retail outlet simultaneousl y. A consu mer w ant ing to bu y a car ma y c ollect inf orma tion on bra nd s and purchase it f rom a retail outlet based on his perception o f price off ered or af ter sales service p rovi ded b y the out let ( t yp icall y, sea rch f or inf ormati on on brands
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is f ollowed b y reta il outlet selection i n durables). In cer tain product categ ories, especiall y where `categor y killers' exist, consumer s ma y think of the retail outlet initiall y an d then the brands (t elevision, ref riger ator and audio pro ducts retailed through outlets like V ive k an d Co. in th e Sout h, could be an exa mp le).
One more di mensi on ma y be to co mp are brands in t he evoked set at retail outlets w hich al so exist in an ev oke d set of their o wn. This is highl y pos sible, especiall y in the Indian conte xt wh ere dealers de velo p a social relat io nship with cons u mers, e speciall y i n se mi - urban and rural a reas. Pri mar y rese arch could be used to d iscover the specif i c sequence invol v ed in a situation o f this kind. A `brand f irst' di mensi on ma y n eed f eature -based advertising an d a `retai l outlet f irst' di me n sion ma y req uire a set of point -of -purchase (PO P) mat erials and special training to sales p ersonnel to recogni se the needs of consumer s. Further, if it is known that a nu mber of consumers ma y be oriented to visit their f avourite retai ler (bef ore obtaining inf ormatio n on brands) in a geographical area, there wo uld have to be more e mp hasis o n region al/local adver tisin g which highlights the retai l shop rathe r than r egular brand -based national ad vertisi ng. Strategies and se quences Retail outlet f irst and brand sec ond: Whe n a nu mb er o f consumers f ollo w this sequence of deci sion- makin g, disp la y of point -of -purchase mate rial and
building the i mag e of the outle t be co mes i mportant. The manuf acturer of the brand ma y have to ensure that the b ran d (and the vari ants de mande d) wi ll be available at the ke y out lets in a localit y. Point-of -purch ase materials wh ic h are to be used at the r etail outl et ma y re quire pri mar y rese arch - should visu als be used, should p rod uct f eatures be used, should th e POP m aterial be i n the
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regional language. There ma y also be a need to monitor competition f ro m other retail outlets to e nsure that consu m ers are kept satisf ied in ter ms of service, price, pro motiona l deals and a mbie nc e. This is es peciall y applicab le to dur ables retailing in In dia (in cities). Retailers attempt to incre ase consumer t raf fic b y providing a nu mbe r of `add -ons'. Brand f irst and o utlet secon d: The brand wa s proba bl y thoug ht of by t h e consu mers becau s e (i) the cons u me rs ma y not have developed a rela ti onship with an y retai ler which i s str ong e n ough to get into t he `evok ed ret ail set' or (ii) the bra nd has got into the evo k ed set beca use of advertisin g or p o sitive word of mouth. Lo cal advertising wit h the menti on of brand na mes which have alread y got int o t he evoked set wo uld enable consu m ers to be `pulled ' to the outlet. Pri mar y research ma y be requ ired to identif y th e brand s in the evoked set. This f eedback ma y hav e to be pr ovided b y t he man uf acturers of a brand to re t ailers in various region s (especia ll y if it is a brand with a maj or chunk of the market and one which is n ationall y advert ise d). Even multinati onal outlets could ma ke use of this appro ach and menti on the bran ds in the evoked set (in a give n geographical area) . This is likel y to improve tra f f ic to the outlet. Besides , the evoked set could a lso change f rom ti me to ti me dep end ing on the strategi es of brands. About tw o decade s ago, bra nds like Solidaire, D yanor a and Cro wn ma y hav e been top -of -the- mi nd (in a specif ic geographical are a) but slow l y ga ve w a y to other brand s - thes e changes s hould be captured (how of ten this happens , wh y, and the dif f erences between mar kets ) to f ormulate re t ail strategies. The local advertising could be dif f erent f rom the national ad ver tising f or the bra nd. A brand ma y be adv ertised on f eature s nationall y bu t t he retail outlet in ma y
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pref er to highlight the eff ective af ter -sales service asso ciated with the bra nd as this ma y be a prio rit y of consu mers. The co mbinatio n of `push -pull' strate g y is shown in t he table. The interest gener ated in the brand would have to be backed b y good pr e -sale services at t he outl et.
Brand an d retail o utlet si multaneou sl y: When consu mer s think of the bran d and retail out let to geth er, it means that t h e y have a cert ain p ref erence f or the o utlet and would like to check the evoked set of brands there. The mar keter would have to carr y o u t prima r y r esearc h to f ind out specif ic markets where consu mers have a ver y positiv e rel ationship with ret ailers. T his i s i mportant because of the i nf luence o f retailers over the purchase behaviour of cons umers in the India n conte xt. It ma y also be w orthwhile to c hec k if the evoked brands are carried b y t he retailers who have a positive relationship with the tar get seg ments. Th is is to ensure that the re tailer s who have a f avourable perc eption a mo ng the target seg ment carr y th e desired bra nds. Failing thi s, co nsu mers ma y turn to a diff erent retailer, which would be t o the disadvanta g e of a retailer who has alread y won the c onf idence of consumers. Retail sale s p ersonnel also b eco me important in this s ituation. The pros p ective consu me rs are "carried over" t o the purchase stag e b y the store perso n nel and hence t he re should be in ce ntive progra mme s f or the store pers onnel. If a comp an y su ch as BPL or Vid eoco n is deali ng wi th a nu mber of brands/ sub brands, it has to e nsure the availabi l it y of specif ic brands which ma y int erest the consu mers . If the retail outlet is a large one dealing with a nu mber of
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brands (li ke Vi vek ), a s ho p-in-sh op a rrange ment ma y be pref erable. This mo del puts the brand in f ocus and reinf orce s the po sitive asso ciation a consu mer ma y have about it. A considerable a mo un t of pre -sale service would have to back up the shop-in -shop c oncept. The shop -i n-shop concept create s a n aura of exclusivit y. Consu mers t end to have high er expec tations ab out th e pre -sale ser vice a nd the at tention gi ven to the m. A lar ge store also is lik el y to st ock several brands and hence all bran ds in
the evoke d set wo uld have to co mp e te with each oth er to pr ogress f rom the evoked se t to choi ce set. L arge o utle ts ma y also have a built -in provi sion f or a lower price (beca use of volumes) a nd hence ma y be in a better position to clinch the deal with consumers who ma y si multaneousl y consider bot h the brand and the retai l outle t.
THE STRIKING NEW FACE OF LUCKNOW 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,
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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 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
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Customers were interviewed by means of carefully prepared questionnaire to study and understand customer’s psychology in depth.
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Selection of the Topic Selection 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”
Objective of research Objective of research
? 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.
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Extensive literature Survey Extensive literature Survey
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.
Sampling Design Sampling Design
? Sampling unit ? Size of sample ? Sample Method ? Types of questionnaire Respondents of Fun Mall 100 respondents Random Sampling Close ended
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Type of Data Type of 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.
Method of data collection Method of data collection
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.
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Collllectiion of the Priimary data Co ect on of the Pr mary data
As this study is of descriptive type, the primary data has been collected through Questionnaire.
Observation method Observation 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.
Analysis of Data Analysis of Data
Data collected through questionnaire is being processed .This processed data is represented by means of suitable graphs & diagrams.
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? WHICH TYPE OF PLACE DO YOU VISIT FREQUENTLY FOR YOUR ? WHICH TYPE OF PLACE DO YOU VISIT FREQUENTLY FOR YOUR SHOPPING NEEDS ?:: SHOPPING NEEDS ?
a) b) c) SHOPPING MALL UPSTREET MARKET LOCAL MARKET [ 80 RESPONDENTS] [ 8 RESPONDENTS] [ 12 RESPONDENTS]
Respondents
A B C
12% 8%
80%
? 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.
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? YOU PREFER TO GO IN STORE WITH:: ? YOU PREFER TO GO IN STORE WITH
a. FAMILY b. SPOUSE c. FRIENDS d. OTHERS [52 RESPONDENTS] [12 RESPONDENTS] [ 36 RESPONDENTS] [ 0 RESPONDENTS]
Respondents
FAMILY SPOUSE 0% 36% 52% FRIENDS OTHERS
12%
? On the basis of above respondents the graph shows that maximum 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.
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? FROM WHERE WOULD YOU PREFER TO BUY PRODUCTS:
a) SINGLE BRANDED STORE b) MULTI BRANDED STORE c) FACTORY OUTLET d) LOCAL BIG RETAIL OUTLET [ 24 RESPONDENTS ] [ 60 RESPONDENTS ] [ 4 RESPONDENTS ] [ 12 RESPONDENTS ]
Respondents
SINGLE BRAND STORE FACTORY OUTLET MULTI BRAND STORE LOCAL BIG RETAIL OUTLET
4%
12% 24%
60%
? On the basis of above respondents the graph shows that maximum respondents 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.
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? HOW OFTEN DO YOU ASK FOR ASSISTENCE FROM STORE STAFF IN ? HOW OFTEN DO YOU ASK FOR ASSISTENCE FROM STORE STAFF IN SELECTING YOUR PURCHASE? SELECTING YOUR PURCHASE?
a) ALMOST ALWAYS b) FREQUENTLY c) SOMETIMES d) NEVER [ 12 RESPONDENTS ] [ 16 RESPONDENTS ] [ 60 RESPONDENTS] [ 12 RESPONDENTS ]
Respondents
ALMOST ALWAYS FREQUENTLY SOMETIMES NEVER
12%
12%
16%
60%
? On the basis of above respondents the graph shows that maximum 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.
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? WHAT DO YOU LOOK FOR IN A PRODUCT DURING YOUR PURCHASE:: WHAT DO YOU LOOK FOR IN A PRODUCT DURING YOUR PURCHASE
a) FASHION b) COMFORT c) PRICE d) COLOURS AVAILABLE [ 12 RESPONDENTS ] [ 16 RESPONDENTS ] [ 60 RESPONDENTS ] [ 12 RESPONDENTS ]
Respondents
FASHION COMFORT PRICE COLOUR
12%
12% 16%
60%
? On the basis of above respondents the graph shows that maximum 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.
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? WHEN DO YOU PREFER TO SHOP MOST IN STORE:: ? WHEN DO YOU PREFER TO SHOP MOST IN STORE
a) DURING SALE b) DURING FRESH SEASON STOCK c) DURING DISCOUNT d) WHEN REQUIRED [ 18 RESPONDENTS ] [ 54 RESPONDENTS] [ 24 RESPONDENTS ] [ 4 RESPONDENTS]
Sales
DURING SALE DURING FRESH SEASON STOCK DURING DISCOUNT WHEN REQUIRED
4% 18% 24%
54%
? 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.
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? WHAT INFLUENCES YOUR BUYING SELECTIONS:: ? WHAT INFLUENCES YOUR BUYING SELECTIONS
A) RANGE 1st OPTION 2nd OPTION 3rd OPTION 4th OPTION 5th OPTION 30 22 20 16 12 B) PRICE 20 32 18 17 13 C) SIZE 30 25 15 19 11 D) FASHION 8 10 14 32 36 E) BRAND 10 13 33 16 28
40 35 30 25 20 15 10 5 0 RANGE PRICE SIZE FASHION BRAND Option 1 Option 2 Option 3 Option 4 Option 5
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? On the basis of above respondents the graph shows that maximum respondents are attracted towards the Store due to this rankingFASHION BRAND PRICE RANGE, SIZE
It means maximum no of customers are prefer to the Malls for FASHION
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? HOW FREQUENTLY YOU VISIT THE STORE:: ? HOW FREQUENTLY YOU VISIT THE STORE
a) <1 MONTH b) 1-3 MONTH c) 1-6 MONTH d) 1 YEAR [ 60 RESPONDENTS ] [ 28 RESPONDENTS ] [ 4 RESPONDENTS ] [ 8 RESPONDENTS ]
Respondents
< 1 MONTH 1-3 MONTH 1-6 MONTH 1 YEAR
4%
8%
28% 60%
? On the basis of above respondents the graph shows that maximum 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.
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? WHAT IS AVERAGE MONEY YOU SPEND ON SHOPING? ? WHAT IS AVERAGE MONEY YOU SPEND ON SHOPING?
a) <=999 b) 1000-1999 c) 2000-2999 d) >3000 [ 20 RESPONDENTS ] [ 52 RESPONDENTS ] [16 RESPONDENTS ] [ 12 RESPONDENTS ]
Respondents
<= 999 1000-1999 2000-2999 >3000
12% 20%
16%
52%
? On the basis of above respondents the graph shows that maximum respondents i.e. 52 out of 100 are spend Rs 1000-1999 on shopping. It means maximum no of customers prefer middle class shopping.
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? ::HOW DO YOU RATE THE PRICING OF PRODUCT AT MAX? ? HOW DO YOU RATE THE PRICING OF PRODUCT AT MAX?
a) EXPENSIVE b) COMPETITIVE c) AFFORDABLE d) REASONABLE [ 10 RESPONDENTS ] [ 16 RESPONDENTS ] [ 34 RESPONDENTS ] [ 40 RESPONDENTS ]
Respondnets
EXPENSIVE COMPETITIVE AFFORDABLE REASONABLE
10% 40% 16%
34%
? On the basis of above respondents the graph shows that maximum 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.
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? HOW DID YOU COME TO KNOW ABOUT MAX? ? HOW DID YOU COME TO KNOW ABOUT MAX?
a) NEWSPAPER b) RADIO ADVERTISEMENT c) LEAFLET d) SMS e) WORLD OF MOUTH f) OTHERS [ 12 RESPONDENTS] [ 12 RESPONDENTS] [ 20 RESPONDENTS] [ 6 RESPONDENTS] [ 46 RESPONDENTS] [ 4 RESPONDENTS]
Respondents
NEWSPAPER RADIO ADVERTISEMENT LEAFLET 4% 12% 12% SMS WORLD OF MOUTH OTHERS
46% 20% 6%
? On the basis of above respondents the graph shows that maximum 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.
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? WHAT MORE FACILITY WOULD YOU LIKE TO GET AT MAX? ? WHAT MORE FACILITY WOULD YOU LIKE TO GET AT MAX?
a) MEMBERSHIP CARD b) DISCOUNT MAILERS c) FREE PARKING OFFERS d) LUCKY DRAW OFFER [ 16 RESPONDENTS] [ 32 RESPONDENTS] [ 24 RESPONDENTS] [ 28 RESPONDENTS]
Respondents
16% 28% MEMBERSHIP CARD DISCOUNT MAILERS FREE PARKING OFFERS 32% 24% LUCKY DRAW OFFER
? On the basis of above respondents the graph shows that maximum respondents i.e. 32 out of 100 want discount mailers facility. It means maximum no of customers want every information at their door step.
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? WHICH CATEGORY OF PRODUCT DO YOU BUY MOST AT MAX? ? 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) FOOTWEAR f) ACCESSORIES [ 12 RESPONDENTS ] [ 36 RESPONDENTS ] [ 20 RESPONDENTS ] [ 12 RESPONDENTS ] [ 4 RESPONDENTS ] [16 RESPONDENTS]
Respondents
16% 4% 12% MEN'S WEAR WOMEN'S WEAR ETHNIC WEAR 12% 36% KIDS WEAR FOOT WEAR ACCESSORIES 20%
? On the basis of above respondents the graph shows that maximum respondents i.e. 36 out of 100 are purchasing maximum from women’s wear. Customers prefer shopping according toWOMEN’S WEAR FOOTWEAR ETHENIC MEN’S, KID’S WEAR
ACCESSORIES
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? WHEN YOU THINK OF SHOPPING WHICH STORE COMES IN ? WHEN YOU THINK OF SHOPPING WHICH STORE COMES IN YOUR MIND FIRSTYOUR MIND FIRSTA) PANTALOONS B) GLOBUS C) MAX D) WESTSIDE [ 16 RESPONDENTS ] [ 30 RESPONDENTS ] [ 44 RESPONDENTS ] [ 10 RESPONDENTS ]
Respondents
10% 16%
PANTALOONS 44% 30% GLOBUS MAX WESTSIDE
? On the basis of above respondents the graph shows that maximum respondents i.e. 44 out of 100 prefer MAX for shopping. It means max retail targeting to the middle class customers.
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? AGE WISE DISTRIBUTION ? AGE WISE DISTRIBUTION
A) <20 B) 20-29 C) 30-39 D) >40 [ 12 RESPONDENTS ] [ 45 RESPONDENTS ] [25 RESPONDENTS ] [18 RESPONDENTS]
Respondents
12%
18%
< 20 20-29 30-39 25% 45% >40
? On the basis of above respondents the graph shows that maximum respondents i.e. 45 out of 100 are young age people. It means maximum no of customers belongs to young age group.
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? GENDER WISE DISTRIBUTION ? GENDER WISE DISTRIBUTION
E) MALE F) FEMALE [ 58 RESPONDENTS ] [ 42 RESPONDENTS ]
Respondents
42% MALE FEMALE 58%
? On the basis of above respondents the graph shows that maximum respondents i.e. 58 out of 100 are males. It means maximum no of customers are male in malls due to family responsibility.
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? NO.. OF FAMILY MEMBER WISE DISTRIBUTION ? NO OF FAMILY MEMBER WISE DISTRIBUTION
A) <=2 B) 3-4 C) >4 [ 08 RESPONDENTS ] [ 54 RESPONDENTS ] [ 38 RESPONDENTS ]
Respondents
8% 38%
<=2 54% 3 to 4 >4
? On the basis of above respondents the graph shows that maximum respondents i.e. 54 out of 100 having 3-4 members in their family. It means maximum no of customers having nucleur family.
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? EDUCATION WISE DISTRIBUTION ? EDUCATION WISE DISTRIBUTION
A) HIGH SCHOOL B) LESS THAN GRADUATION B) GRADUATION C) POST GRADUATION D) PROFESIONAL QUALIFICATION [ 08 RESPONDENTS] [ 12 RESPONDENTS ] [ 32 RESPONDENTS ] [ 32 RESPONDENTS ] [ 16 RESPONDENTS ]
Respondents
8% 12% HIGH SCHOOL LESS THAN GRADUATION GRADUATION POST GRADUATION 32% 32% PROFESSIONAL QUALIFICATON
16%
? On the basis of above respondents the graph shows that maximum respondents 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.
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? OCCUPATION WISE DISTRIBUTION ? OCCUPATION WISE DISTRIBUTION
A) STUDENT B) GOV. SERVICE C) PVT. EMPLOYEE D) SELF EMPLOYEE E) HOUSE WIFE [ 33 RESPONDENTS ] [ 8 RESPONDENTS ] [ 40 RESPONDENTS ] [ 12 RESPONDENTS ] [ 07 RESPONDENTS]
Respondents
7% 12% 33% STUDENTS GOV. SERVICE PVT. EMPLOYEE 40% 8% SELF EMPLOYEE HOUSE WIFE
? On the basis of above respondents the graph shows that maximum respondents i.e. 40 out of 100 are Pvt. Employee. It means maximum no of customers are self dependent.
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? INCOME WISE DISTRIBUTION ? INCOME WISE DISTRIBUTION
A) LESS THAN Rs 20,000 B) BETWEEN Rs 30,000 TO 40,000 C) BETWEEN Rs 40,001 TO 50,000 D) MORE THAN Rs 50,000 [ 28 RESPONDENTS ] [ 48 RESPONDENTS ] [ 20 RESPONDENTS ] [ 12 RESPONDENTS ]
Respndents
LESS THAN Rs. 20,000 BETWEEN Rs. 30,000 T0 40,000 BETWEEN Rs. 40,000 TO 50,000 MORE THAN Rs. 50,000
? On the basis of above respondents the graph shows that maximum 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.
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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. 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 rankingFASHION BRAND PRICE RANGE, SIZE
16. Maximum no of customers are visiting the store monthly.
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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.
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LIMITATIONS LIMITATIONS
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. 4) Respondents were not keen to give the answers of questionnaire.
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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, mainly on account of a gradual increase in the disposable incomes of the middle and uppermiddle 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,
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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. ? 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.
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RECOMMENDATIONS 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. ? 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.
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Bibliography Bibliography
BOOKS:? Marketing Management. ----Kotler & Keller
? Marketing Management in Indian Perspective ----V. S. Ramaswamy & S. Namakumari ? Research methodology
? Quantitative Methods ? Retail management
---C.R. Kothari ---B. M. Aggarwal. ---Levy & Weitzs
MAGZINES:? Business worlds ? Indian retail ? Economics of India ? India today
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WEBSITES:? www.goggle.com ? www.tataretail.com ? www.retailindia.net ? www.retailyatra.com ? www.retailbiz.com ? www.aboutus.com ? www.businessworld.in
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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 c) During Discount 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
b) During Fresh season stock d) When required
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11) How did you come to know about Max? a) Newspaper c) Leaflet e) Word of Mouth
b) Radio advertisement d) SMS 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 firsta) Pantaloons b) Globus c) MAX d) Westside 15) Any suggestion ………………………………………………………….. ………………………………………………………………………………... ………………………………………………………………………………... ………………………………………………………………………………... Age group Gender No of Famiilly Fam y Members Qualificatio n Occupation <20 Male <=2 20-24 Female 3-4 25-29 >4 30-34 35-39 >40
High School Studen t Gomti nagar Less Than 20,000
Diploma Or pregraduate Gov. Service Mahanag ar 30,00040,000
Graduate
Postgraduate Self Employe d Hazratga nj More then 50,000
Professiona l course House wife Retired
Location Household Income (per month)
Pvt. Employe e Aliganj 40,00150,000
Indiranaga r
Niralan agar
oth er
THANK YOU
ABHISHEK PANDEY,, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT,, LUCKNOW ABHISHEK PANDEY SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT LUCKNOW
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