Description
In the Present Changing & Competitive environment the taste, preference & purchasing behaviour are also characterized by fast change. Therefore, in order to face the cut throat competition and to survive in the market. . It is realized by studying the buying behavior of consumers that many consumer products that they felt reflected their own special needs, personalities and lifestyles.
INTRODUCTION Consumer Behaviour:
Consumer behaviour is to do with the activities of individuals to obtaining and using the goods, and services; it encompasses the decision-making process that proceeds and determines purchases. In the words of Professor Walter C.G. and Professor Paul G.W. it is "the process whereby individuals decide whether, what, when, where, how and from whom to purchase goods and services". Consumer behaviour is all the psychological, social and physical behaviour of potential customers as they become aware of, evaluate, purchase, consumer and tell others about the products or services. In the Present Changing & Competitive environment the taste, preference & purchasing behaviour are also characterized by fast change. Therefore, in order to face the cut throat competition and to survive in the market, a car manufacturing company has to be constantly innovating & updating its technology and understands the latest, consumer trends, tastes and preference. It is realized by studying the buying behavior of consumers that many consumer products that they felt reflected their own special needs, personalities and lifestyles. Consumer behaviour provides invaluable dues and guidelines to market on new technological frontiers, which they should explore to better meet the needs of specific groups of consumers, most marketers adopted a policy of market segmentation & successfully market to different segments the marketing manager needs appropriate marketing strategies, which account for these difference in consumer’s behavior. It plays a very significant role in the decision making process. The Micro Perspective & Societal perspective. The micro perspective involves understanding consumers for the purpose of helping a firm or organization accomplish its objectives. The social perspective can provide insight into aggregate economic & social trends and can perhaps even predict such trends. It may suggest ways to increase the efficiency of the market system & improve the well being of people in society.
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Consumers Behavior can be defined as: "The behavior that consumer display in searching for punching, using, evaluating and disposing of products & service that they expect will satisfy their needs." The decision process & physical activity individuals engaging when evaluating, acquiring, using or disposing of goods and services. A consumer plays a no, of roles in purchase decision. The study, of consumer's behavior would be incomplete if it treated only one consumer role. Some consumers Behavior role are Role 1Initiator Influencer Description The individual who determines that some or need or want is not being met & authorize to rectify the situation. A person who by some international or unintentional word or action influences the purchase decision, the actual purchase and Buyer User the use of the product or service. The individaqtual who actually makes the purchase transaction. The person most directly involved in the consumption or use of purchase. Thus, the importance of CB lies in the fact that behavior can be understand & influenced to ensure a positive purchase decision. So, a round understanding of CB is essential ot the long run success of any marketing program. In fact, it is seen as a cornerstone of the marketing concept. That's why the marketing managers interest lies exactly to ensure that his marketing strategy result in purchase of the product. Consumer Buying Process: Understand consumer behaviour makes it mandatory to first understand the buying process. Good many models of consumer behaviour portraying buying process have been developed during the last three decades. These models treat consumer as a decisionmaker. Among all these models, the one given by Mr. J.A. Howard and J. Seth in their title THE THEORY OF BUYER BEHAVIOUR is having sophisticated model which is the most comprehensive and, hence, largely accepted. In simple three words the buying process is made up of three stages namely "input"- ' process' - 'output'. Consumption is the process that begins well before a product is bought and extends well beyond that. 2
Buying process represents a problem solving approach; it is a decision-making process leading to buying decisions on the part of consumers. Step in Buying Process: The consumer buying process is a five step activity. These steps are 1. 2. 3 4 5 Need Recognition. Information Search Evaluation and Intention Purchase decision Post purchase behaviour as depicted in the following diagram:
1.
Need recognition:
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The starting point of buying process is the perceived want or a desire. Need recognition is the awareness of the want or a desire or a consumption problem without whose satisfaction the consumer feels restless and tension-charged. That is, he or she feels that a desire or want has arisen which has to be satisfied. Needs or wants arise wither due to internal stimulus or external stimulus. A stimulus is called by marketing experts as a 'sign' or a cue,. It is the intensity or the urgency of want that decides the speed at which it is to be satisfied. That way human being is bundle of desires needs or wants; however, the most urgent ones are pushed to the top as the purchasing power of his or her is limited. 2. Information Search: A need aroused and recognized can be satisfied only when the product or service is available. Consumer interest is indicated in the consumer's willingness to seek further information about product or service. Since there are varieties of products and he seeks to have maximum satisfaction, he searches relevant information. Consumer has many alternative sources of information to tap such as friends, relatives, neighbors, salesmen, dealers, advertisements, packages and above all consumer organization. Consumer tries to get up-to-date and adequate information regarding the products and services he wants to go in for. 3. Evaluation and Intention: It is consumer's deep interest in the product or service that paves the way for evaluation and intention. The evaluation stage is the stage of mental trial of the product or a service. In evaluation stage, the consumer assigns relative value or weightless to different products or services based on the accumulated information and judges the relative worth of alternative products or services from the angle of want satisfying potential. Once he evaluates, he develops the intention to accept or reject a given product or service. The final purchase depends on the relative strength of the positive intention to buy. In evaluating the alternatives many values are taken into account such as product characteristics, brand images, tradeoff, conveniences, facilities and concessions. 4
4.
Purchase decision: It is the positive intention of the consumer that leads to a purchase decision. Decision to purchase implies consumer commitment for a product or a service. Practically, it is the last stage in the buying process because, it completes the exchange process. Such a purchase may be a trial or adoption. Trial purchases are done when the consumer buys the products or services for the first time. This occurs mostly in case of consumer non-durable. In case of consumer durable, it is purchase adoption than trial because, consumer durable items cannot be purchased on trial basis. It is through trial or adoption that the consumer gains experience and that may result in repeat sales, if he is satisfied with the product or the service.
5.
Post Purchase behaviour : Post purchase behaviour or reaction stands for the behaviour of a consumer after a commitment to product has been made. This post-purchase experience may be a set of positive or negative feelings. Positive feelings ors satisfaction will result in repeat sales or at least recommending the products or services to others; on the other hand, dissatisfaction or negative feeling s creating anxiety and doubts. This stage of mind is called as 'cognitive dissonane'. He tries to reduce it by goind in for other alternative product or service in search of highest level of satisfaction. It is Mr. Leon Festinger who put forward this theory of 'cognitive dissonance'. Accordingly, dissonance is a condition reflecting a tendency towards mental unease, which occurs when an individual holds two attitudes, ideas, and beliefs, which are not in harmony with each other. In other words, one feels uneasy when an attitude which is not consonant with one's behaviour. One, therefore, tends to reduce dissonance by either changing or strengthening one's views or suitably altering one's behaviour.
TYPES OF BUYING BEHAVIOUR
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There are four typical types of buying behaviour based on the type of products that intends to be purchased. 1. Complex buying behaviour : Complex buying behavior is where the individual purchases a high value brand and seeks a lot of information before the purchase is made. 2. Habitual buying behaviour: Habitual buying behaviour is where the individual buys a product out of habit e.g. a daily newspaper, sugar or salt. 3. Variety seeking buying behaviour: Variety seeking buying behaviour is where the individual likes to shop around and experiment with different products. So an individual may shop around for different breakfast cereals because he/she wants variety in the mornings! 4. Dissonance reducing buying behaviour: Dissonance reducing buying behaviour is when buyers are highly involved with the purchase of the product, because the purchase is expensive or infrequent. There is little difference between existing brands an example would be buying a diamond ring, there is perceived little difference between existing diamond brand manufacturers.
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Maslow’s Hierarchy of Needs:
Abraham Maslow hierarchy of needs theory sets out to explain what motivated individuals in life to achieve. He set out his answer in a form of a hierarchy. He suggests individuals aim to meet basic psychological needs of hunger and thirst. When this has been met they then move up to the next stage of the hierarchy, safety needs, where the priority is with job security and knowing that you have a regular income. Social needs come in the next level of the hierarchy, the need to belong or be loved is a natural human desire and people strive for this belonging. Esteem need is the need for status and recognition within society, status sometimes drives people, the need to have a good job title and be recognized or the need to wear branded clothes as a symbol of status. Self-actualization is the realization that an individual has reached their potential in life. The point of self-actualization is down to the individual, when do you know you have reached your point of self-fulfilment? But how does this concept help an organization trying to market a product or service? Well as we have established earlier within this website, marketing is about meeting needs and providing benefits, Maslow’s concept suggests that needs change as we go along our path of striving for self-actualization. Supermarket firms develop value brands to meet the psychological needs of hunger and thirst. Harrods develops products and services for those who want have met their esteem needs. So Maslow’s concept is useful for marketers as it can help them understand consumer needs and wants.
FACTORS PROCESS
INFLUENCE
CONSUMER
BUYING
DECISION
Consumer behavior refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants. There are different processes involved in the consumer behavior. Initially the consumer tries to find what commodities he would like to consume, then he selects only those commodities that promise greater utility. After selecting the commodities, the consumer makes an estimate of the available money which he can spend. Lastly, the consumer analyzes the prevailing prices of commodities and 7
takes the decision about the commodities he should consume. Meanwhile, there are various other factors influencing the purchases of consumer such as social, cultural, personal and psychological. The explanation of these factors is given below.
1. Cultural Factors Consumer behavior is deeply influenced by cultural factors such as: • • • Buyer culture Subculture Social class.
? Buying culture Basically, culture is the part of every society and is the important cause of person wants and behavior. The influence of culture on buying behavior varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries. ? Subculture Each culture contains different subcultures such as religions, nationalities, geographic regions, racial groups etc. Marketers can use these groups by segmenting the market into
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various small portions. For example marketers can design products according to the needs of a particular geographic group. ? Social Class Every society possesses some form of social class which is important to the marketers because the buying behavior of people in a given social class is similar. In this way marketing activities could be tailored according to different social classes. Here we should note that social class is not only determined by income but there are various other factors as well such as: wealth, education, occupation etc. 2. Social Factors Social factors also impact the buying behavior of consumers. The important social factors are: reference groups, family, role and status. ? Reference Groups Reference groups have potential in forming a person attitude or behavior. The impact of reference groups varies across products and brands. For example if the product is visible such as dress, shoes, car etc then the influence of reference groups will be high. Reference groups also include opinion leader (a person who influences other because of his special skill, knowledge or other characteristics). ? Family Buyer behavior is strongly influenced by the member of a family. Therefore marketers are trying to find the roles and influence of the husband, wife and children. If the buying decision of a particular product is influenced by wife then the marketers will try to target the women in their advertisement. Here we should note that buying roles change with change in consumer lifestyles. ? Roles and Status Each person possesses different roles and status in the society depending upon the groups, clubs, family, organization etc. to which he belongs. For example a woman is 9
working in an organization as finance manager. Now she is playing two roles, one of finance manager and other of mother. Therefore her buying decisions will be influenced by her role and status. 3. Personal Factors Personal factors can also affect the consumer behavior. Some of the important personal factors that influence the buying behavior are: lifestyle, economic situation, occupation, age, personality and self concept. ? Age Age and life-cycle have potential impact on the consumer buying behavior. It is obvious that the consumers change the purchase of goods and services with the passage of time. Family life-cycle consists of different stages such young singles, married couples, unmarried couples etc which help marketers to develop appropriate products for each stage. ? Occupation The occupation of a person has significant impact on his buying behavior. For example a marketing manager of an organization will try to purchase business suits, whereas a low level worker in the same organization will purchase rugged work clothes. ? Economic Situation Consumer economic situation has great influence on his buying behavior. If the income and savings of a customer is high then he will purchase more expensive products. On the other hand, a person with low income and savings will purchase inexpensive products. ? Lifestyle Lifestyle of customers is another import factor affecting the consumer buying behavior. Lifestyle refers to the way a person lives in a society and is expressed by the things in his/her surroundings. It is determined by customer interests, opinions, activities etc and shapes his whole pattern of acting and interacting in the world. 10
? Personality Personality changes from person to person, time to time and place to place. Therefore it can greatly influence the buying behavior of customers. Actually, Personality is not what one wears; rather it is the totality of behavior of a man in different circumstances. It has different characteristics such as: dominance, aggressiveness, self-confidence etc which can be useful to determine the consumer behavior for particular product or service. 4. Psychological Factors There are four important psychological factors affecting the consumer buying behavior. These are: perception, motivation, learning, beliefs and attitude ? MotivationThe level of motivation also affects the buying behavior of customers. Every person has different needs such as physiological needs, biological needs, social needs etc. The nature of the needs is that, some of them are most pressing while others are least pressing. Therefore a need becomes a motive when it is more pressing to direct the person to seek satisfaction. ? Perception Selecting, organizing and interpreting information in a way to produce a meaningful experience of the world is called perception. There are three different perceptual processes which are selective attention, selective distortion and selective retention. ? Beliefs and Attitudes Customer possesses specific belief and attitude towards various products. Since such beliefs and attitudes make up brand image and affect consumer buying behavior therefore marketers are interested in them. Marketers can change the beliefs and attitudes of customers by launching special campaigns in this regard.
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LITERATURE VIEW
Gopal Das, Rohit Vishal Kumar (2010) tried to find out the impact of retail sales promotions on consumers buying behaviour. In the Global Context of Open Market Economics of Today, the consumer has become the king. He enjoys a lot of Freedom in his Purchase Decision. A consumer is in the Position to influence the manufacturer or the marketer regarding, size, quality, content of the product, price, post sales service, among other things. As a result, the markets no longer remained the "sellers market", it obviously turned in to "buyers market". With the Indian retail boom, many players are entering with different retail formats. As a result, competition is becoming very tough. Keeping in mind that the Indian consumer is price sensitive, each player is trying to attract more customers through different sales promotional activities. But the exact picture of the impact of sales promotion on consumer behaviour is yet unclear to the retailer. Bidyut Jyoti Bhattacharjee Dibyojyoti Bhattacharjee (2005): - In this paper explores the impact of packaging, labeling and free sample on the buying behaviour of consumers of a communicational backward area of India. The hypothesis is that the packaging, labeling, sample has strong influence on consumers buying behaviour. Two factorial approaches are adopted to analyses this influence i.e., sex wise and age wise. The study is based on a sample of 73 respondents taking from Karimganj town in Assam. This study highlighted that packaging is considered as necessary part of the product, hence customer of backward areas find packaging as value addition. Hongwei He, Avinandan Mukherjee (2007)Made an extant research on the relationship between consumer image congruence and retail store choice and suggests that there exist four types of self congruity (actual self-congruity, social self-congruity, ideal selfcongruity, and ideal social self-congruity) based on the identification of four types of self-concept (actual self-image, social self-image, ideal self-image, and ideal social selfimage). Mixed results have been produced by research undertaken in the western context particularly in terms of which type(s) of self-congruity is(are) significantly related to consumer attitudes and behaviour. To assess further the predictive power of different 12
types of image-congruity, we conducted an empirical study among Chinese consumers on the relationship between self-congruity, satisfaction, perceived value and store loyality. China was chosen for this study because recent entry of European and American retailers in China exerts strong need for better understanding of retail consumer behaviour. Moreover both anecdotal and literature evidences suggest that Chinese consumers could differ significantly from the western counterparts in terms of how their self-congruity influences their shopping behaviour. Neha Mehta, Pawan K Chugan (2012) Studied that retail industry in India is booming and there is fierce competition. The country indeed has become the cynosure of FDI in retail sector and policies are heading towards more liberalization to attract foreign investment. There are various players in apparel segment in terms of lifestyle format. The study is aimed to find out impact of visual merchandising on the buying behavior of the customers visiting “Central Malls”. Four dimensions of visual merchandising viz. window display, in-store form/mannequin display, floor merchandising and promotional signage are studied and results reveal as to why visual merchandising is important for strategic marketing decisions to increase the sales of the stores. The study also reveals the dimensions of visual merchandising that are important and increase impulse buying of the consumers visiting the stores.
Monika Gupta, Dr. Amit Mittal (2011) studied attempts to identify perceptions of consumers towards existing retail formats in India. To have in-depth study of consumer perception, the basis on which consumers have been segmented keeping in view the products to be sold need to be understood. Customers of today carry out extensive research in gathering maximum information about product to be purchased, occasion for which the purchase is to be made as well as from where the purchase is to be made. Their evaluative criteria include price, brand reputation, distribution, promotion, personal selling. The factors causing planned vs unplanned purchasing behaviour and decision process model need to be understood thoroughly. The customers remain in dilemma about outlet choice vs. brand choice. 13
Pavlos A. Vlachos, Pavlos A. Vlachos, Adam Vrechopoulos (2009) expressed that since loyalty in services remains elusive and unpredictable, there is need to study consumer relationship with firms apart from the established satisfaction-loyalty chain approach. To that end, the present paper focuses on feelings of attachment and love and investigates through two empirical consumer studies, in two different grocery retailer brands, (a) emotional attachment effects on re-patronage intentions, (b) predictors of emotional attachment and, (c) moderating effects of consumer traits’ on the (a) relationship presented above. The findings imply that perceived transactional value store Retail image and corporate social responsibility (CSR) associations determine consumer store emotional attachment levels. Furthermore, we find that for consumers scoring low on the social value of warm relationships with others, and for consumers characterized by an avoidant attachment style, the effect of emotional attachment on re-patronage intentions is less salient. Interestingly, in the case of high avoidant individuals the effect is negative. Direct managerial implications for effectively manipulating consumer firm emotional attachment in the context of grocery retailing as well as future research perspectives are provided at the end. Dibyojyoti Bhattacharjee (2007) worked an attempt to analyze the impact of fashionable and attractive packaging of cosmetics in the minds of female consumers residing in an urban area. The buying behaviour and awareness labels of the respondents on the context of packaging of such items were also carried out on a random sample of 100 individuals. Some statistical and graphical tools were used to unearth the facts hidden behind the figures. Mike Nicholson, Sahrah Hong Xiao (2007) expressed that the Consumer Behaviour analysis research programme continues to develop as both an intellectual discipline and an applied area of empirical inquiry, enriching our understanding of consumer response to the products and services of everyday life, and to the marketing of those products and services. To date, however, the programme has functioned largely at an ontogenetic level, developing proximate-level accounts of consumer choice based upon operant learning at the expense of any meaningful engagement with the more ultimate-level accounts of such phenomena offered by adoption of a more phylogenetic perspective. In an attempt to 14
address this potential gap in current knowledge, this paper introduces the central tenets of neo-Darwinian theory and their relevance for the consumer behaviour analytic programme. More specifically, the paper seeks to apply adaption’s logic to the Behavioural Perspective Model, the principle explanatory framework within consumer behaviour analysis, in order to demonstrate how the hypotheses generated by that framework may gain greater conceptual clarity and empirical precision through accommodation of both ontogeny and phylogeny within its sphere of reference. Susana Azevedo Maria Madalena Pereira João J. M. Ferreira Vilma Pedroso (2008) The main objective of this paper is the research was to study the gender differences in consuming buying behaviour of a Portuguese population when they go shopping to buy apparel products. To attain this objective a survey was developed and administered across Portugal. The findings confirm the differences between women and men especially in terms of What, Where, When, and How they buy. Anja Lambrecht, Katja Seim, Bernd Skiera (2007) studied that in communication, information, and other industries, three-part tariffs are increasingly popular. A three-part tariff is defined by an access price, an allowance, and a marginal price for any usage in excess of the allowance. Empirical nonlinear pricing studies have focused on consumer choice under two-part tariffs. We show that consumer behavior differs under three-part tariffs and assess how consumer demand uncertainty impacts tariff choice. We develop a discrete/continuous model of choice among three-part tariffs and estimate it using consumer-level data on Internet usage. Our model extends prior work in accommodating consumer switching to competitors, thereby capturing behavior in competitive industries more accurately. Amit Kumar (April 4, 2011) focused on examining the perception of Indian consumers about celebrity endorsements, examining the celebrity attributes likely to influence consumer purchase intentions and finally the impact of celebrity endorsements on their purchase intention.
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Industry Profile
A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. Retail organizations exhibit great variety and new forms keep emerging. There are store retailers, now store retailers, and retail organizations. Consumers today can shop for goods and services in a wide variety of stores. The best-known type of retailers is the department store. Japanese department store such as Takashimaya and Mitsukoshi attract millions of shoppers each year. These stores feature art galleries, cooking classes, and children’s playgrounds. A retailer is at thee end of the distributive channel. He provides goods and service to the ultimate consumers. This he does through his small organization, with the help of a few personnel. In an individual retail store there is not much scope for organization except in the sense that the shopkeeper has to organize apportions his time and resources. The need for organization becomes essential as soon as he hires people enters into partnership or takes the help of members of his family in running his store. A retailer deals in an assortment of goods to cater to the needs of consumers. His objective is to make maximum profit out of his enterprise with that end. In view he has to pursue a policy to achieve his objective. This policy is called retailing mix. A retailing mix is the package of goods and services that store offers to the customers for sale. It is the combination of all efforts planned by the retailer and embodies the adjustment of the retail store to the market environment. The maximum satisfaction to the customers is achieved by a proper blend of all three. The success of the retail stores, therefore, depends on customers’ reaction to the retailing mix which influences the profit of the store, its volume of turnover, its share of the market, its image and status and finally its survival.
RETAIL
Retailing is the set of business activities that adds value to the products and services sold to the consumer for their personal or family use. A “retailer” buys goods or products in large quantities from manufactures or importers, either directly or through a wholesaler, and then sells smaller quantities to the end user. 16
Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term “retailer” is also applied where a service provider service the needs of a large number of individuals, such as a public utility, like electric power. • • • • • Retailing is an important institution in our society. Retailing provides considerable value to consumers while giving people opportunities for rewarding and challenging careers. Retail formats and companies are now major factors in the industry. The key to successful retailing is offering the right product, at the right price, in the right place, at the right time, and making a profit. Retailers must understand what customers want and what competitors are offering now and in the future.
The World of Organized Retailing:
• Retailers are using sophisticated communications and information systems to manage their business. The use of new technologies helps retailers reduce their operations costs, while better serving their customers. • To compete against non-store retailers, stores are now becoming more than just places to buy products. They are offering entertaining and educational experience for their customers. • In this dynamics environment, entrepreneurs are launching new companies and concepts and becoming industry leaders, while traditional firms have had to rethink their business. • Retail manager today must make complex decisions on selecting target markets and retail locations, determining what merchandise and service and service to offer negotiating with supplier and distributing merchandise to stores, training and motivating sales associates and deciding how to price, promote and present merchandise.
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RETAIL MIX The retail mix is the combination of factors retail used to satisfied customer needs and influences their purchase decision. Its include the type of merchandise and services offered, merchandise pricing, advertising, promotional programs store design merchandise display, assistance to customer provided by sales people and convenience of the store’s location. • • • • Retail mix is the term used to describe the various elements and methods required to formulate and execute retail marketing strategy. Retail managers must determine the optimum mix of retailing activities and coordinate the elements of the mix. The aim of such coordination is for each store to have a distinct retail image in consumers’ mind. The mix pay vary greatly according to the type of the retailer is in, and the type of product/ services. While many elements may make up a firm’s retail mix, the essential elements may include: • Store location • Merchandise assortments. • Store ambience, • Customer service, • Price, • Communication with customer, • Personal selling, • Store image • Store design, • Sales incentives, • People, • Process, • Physical evidence 18
Composition of Retail Mix
• • • • • • • Place Product Price Promotion People Process Physical Environment
Key element
1) Place (store location)• Target market • Channel structure • Channel management • Retailer image • Retail logistics • Retail distribution 2) Product • Product development • Product management • Product features and benefits • Branding • Packaging. 3) Price • Costs • Profitability • Value for money 19
• Competitiveness • Incentives • Quality • Status • After-sales services 4) Promotion • • • • • • Developing promotional mixes Advertising management Sales promotion Sales management Public relations Direct marketing
5) People • • • • • • Staff capability Efficiency Availability Effectiveness Customer interaction Internal marketing
6) Process • Order processing • Database management • Service delivery • Queuing system • Standardization
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Retail mix planning
Retail mix plan consists of• • • • Setting objectives Systematic way of identifying a range of options Formulation of plans for achieving goals. Logical sequence of retailing activities.
Importance of Retail mix planning
• Hostile and complex retail environment • External and internal retail organization factors interact o Maximizing revenue o Maximizing profit o Maximizing return on investment o Minimizing costs. • Each elements has conflicting needs • All these variables interact • All these variables result in optimum compromise.
Approaches to planning
1) Top down approach • Retail management sets goals and plans for all levels of management.
2) Bottom up approach • Various units prepare own goals and plans sent up for approvalIt is the effective blending of all the elements of retail mix activities within the retail organization that determines the success of retail management. Discuss this
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statement and explain with retail examples how the elements of retail mix could be blended to ensure the success of retail operation.
MAJOR INDIAN RETAILERS 1. Pantaloon Retail: It is headquartered in Mumbai with 450 stores across the country employing more than 18,000 people. It can boast of launching the first hypermarket Big Bazaar in India in 2001. An all-India retail space of 5 million sq. ft. which is expected to reach 30 mn by 2010. It is not only the largest retailer in India with a turnover of over Rs. 20 billion but is present across most retail segments - Food & grocery (Big bazaar, Food bazaar), Home solutions (Hometown, furniture bazaar, collection-i), consumer electronics (e-zone), shoes (shoe factory), Books: music & gifts (Depot), Health & Beauty care services (Star, Sitara and Health village in the pipeline), e-tailing (Futurbazaar.com), entertainment (Bowling co.) One of their recent innovations include e-commerce’ hybrid format of ’small’ shops , the area for these stores will be 150 sq. ft. fitted with 40 digital screens. Customers will be encouraged to browse through the entire range of products on digital screen. They will be able to place the order, the delivery of which will be arranged by the shop to their homes within a few hours 2. K Raheja Group They forayed into retail with Shopper’s Stop, India’s first departmental store in 2001. It is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS). They have signed a 50:50 joint venture with the Nuance Group for Airport Retailing. Shoppers Stop has 7, 52, 00 sq ft of retail space with a turnover of Rs 6.75 billion.
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The first Hyper city opened in Mumbai in 2006 with an area of 1, 20,000 sq. ft. clocking gross sales of Rs. 1 billionn in its first year. Crossword brand of book stores, Homes stop a store for home solutions, Mother care a concept stocking merchandise related to childcare are also owned by them. Recently, Raheja’s have signed an MoU with the Home Retail Group of UK to enter into a franchise arrangement for the Argos formats of catalogue & internet retailing. The group has announced plans to establish a network of 55 hypermarkets across India with sales expected to cross the US$100 million mark by 2010. 3. Tata group: Established in 1998, Trent - one of the subsidiaries of Tata Group - operates Westside, a lifestyle retail chain and Star India Bazaar - a hypermarket with a large assortment of products at the lowest prices. In 2005, it acquired Landmark, India's largest book and music retailer. Trent has more than 4 lakh sq. ft. space across the country. Westside registered a turnover of Rs 3.58 mn in 2006. Tata’s has also formed a subsidiary named Infiniti retail which consists of Croma, a consumer electronics chain. It is a 15000-17000 sq. ft. format with 8 stores as of September 2007. Another subsidiary, Titan Industries, owns brands like “Titan”, the watch of India has 200 exclusive outlets the country and Tanishq, the jewellery brand, has 87 exclusive outlets. Their combined turnover is Rs 6.55 billion.Trent plans to open 27 more stores across its retail formats adding 1.5 mn sq ft of space in the next 12 DLF malls. 4. RPG group: One of the first entrants into organised food & grocery retail with Foodworld stores in 1996 and then formed an alliance with Dairy farm International and launched health & glow (pharmacy & beauty care) outlets. Now the alliance has dissolved and RPG has Spencer’s Hyper, Super, Daily and Express formats and Music World stores across the country. 23
RPG has 6 lakh sq. ft. of retail space and has registered a turnover of Rs 4.5 billion in 2006.It is planning to venture into books retail, with the launch of its own bookstores “Books and Beyond” by the end of 2007. An IPO is also in the offering, with expansion to 450+ MusicWorld, 50+ Spencer's hyper outlets covering 4 million sq. ft. by 2010. 5. Landmark group: This group was launched in 1998 in India. Lifestyle is spread across six cities, covering 4.6 lakh sq. ft. with a turnover of Rs 3.5 billion in 2005. A new division named Lifestyle International has emerged for their international brands business comprising Bossino, Kappa and Springfield in their portfolio. Their retail mix includes Home solutions (Home centre), fashion (lifestyle, landmark International), value retailing (max retail), hypermarkets & supermarkets (Max), kids entertainment (Funcity).They plan to invest Rs. 300 crores in the next two years to expand on Max chain, and Rs 100 crores on Citymax 3 star hotel chain. They have already instituted a separate company christened Citymax Hotels (India). 6. Piramal Group In September 1999, Piramal Enterprises announced their arrival into retail with the launch of three retail concepts: India's first true shopping mall of international standards, called Crossroads; a lifestyle department store named Piramal Megastore; and a family entertainment centre known as Jammin. Piramal Megastore and Jammin were anchor tenants for Crossroads (recently sold to Pantaloon for Rs 4 billion). In 2001, the group entered the business of food & grocery retail with the launch of TruMart supermarkets in Pune. They have around 18 TruMart stores covering 1.90 lakh sq. ft. registering a turnover of Rs 37.6 mn in 2005. Piraymd Megatsore’s contributes more than 70 % to their retail mix with a turnover of Rs 112.8 mn. They plan to open 150 stores covering 75 mn sq ft of retail space in the next 5 years.
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7. Subhiksha Subhiksha is a Chennai-based, decade old, no frills, food, grocery, pharma and telecom, discount retail chain. ICICI Venture Capital holds 24% in the equity capital of Subhiksha. It has more than 500 stores across the country covering a retail space of more than 1 million sq ft with a registered turnover of Rs 3.34 bn in 2006. It has a planned investment of Rs.300 crores to ramp up its operations to 1200 stores by 2008. 8. Bharti-Walmart Their plans include US$ 7 billion investment in creating retail network in the country including 100 hypermarkets and several hundred small stores. They have signed a 50:50 percent joint venture agreement with Walmart. Wal-Mart will do the cash & carry while Bharti will do the front-end. 9. Reliance India’s most ambitious retail plans are by reliance, with investments to the tune of Rs. 30,000 cr ($ 6.67 bn) to set up multiple formats with expected sales of Rs 90,000 crores ($20 bn) by 2009-10. There are already more than 300 Reliance Fresh stores and the first Reliance Mart has opened in Ahmedabad. The next ones are slated to open at Jamnagar, followed by marts in Delhi / NCR, Hyderabad, Vijaywada, Pune and Ludhiana. 10. AV Birla Group They have a strong presence in apparel retailing through Madura garments which is subsidiary of Aditya Birla Nuvo Ltd. They own brands like Louis Phillipe, Van Heusen, Allen Solly, Peter England, Trouser town.
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In other segments of retail, AV Birla Group has announced investment plans of Rs 8000 9000 crores in the first 3 years till 2010. The acquisition of Trinethra (food & grocery) chain in the south has moved their tally to 400 stores in the country. Their “More” range of 15 supermarkets are slated to open at Nashik, Pune and other tier II cities in Western India in 2007 OTHERS RETAILERS
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Raymond Ltd.: Textiles, The Raymond Shop, Park Avenue, Park Avenue Woman, Parx, Colourplus, Neck Ties & More, Shirts & More etc.
? ?
Fabindia: Textiles, Home furnishings, handloom apparel, jewellery RP-Sanjiv Goenka Group Retail-Formats: Spencer’s Hyper, Spencer's Daily, Music World, Au Bon Pain (International bakery cafeteria), Beverly Hills Polo Club
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The Tata Group-Formats: Westside, Star India Bazaar, Steeljunction, Landmark, Titan Industries with World of Titans showrooms, Tanishq outlets, Croma.
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Reliance Retail-Formats: Reliance MART, Reliance SUPER, Reliance FRESH, Reliance Footprint, Reliance Living, Reliance Digital, Reliance Jewellery, Reliance Trends, Reliance Autozone, iStore
? ?
Reliance ADAG Retail-Format: Reliance World K Raheja Corp Group-Formats: ShoppersStop, Crossword, Hyper
City, InorbitMall
? ? ?
Nilgiri’s-Formats: Nilgiris’ supermarket chain Marks & Spencer: Clothing, lifestyle products, etc. ShriKannan Departmental Store (P) Ltd ., : Groceries, Clothing, Cosmetics [Western Tamilnadu's Leading Retailer]
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Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International Franchise brand stores.
? ? ?
Pyramid Retail-Formats: Pyramid Megastore, TruMart Next retail India Ltd (Consumer Electronics) Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre, Viveks Safe Deposit Lockers
? ?
PGC Retail -T-Mart India [1], Switcher, Respect India, Grand India Bazaar,etc., Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain.
? ? ? ? ? ? ? ? ?
Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain Vishal Retail Group-Formats: Vishal Mega Mart BPCL-Formats: In & Out German Metro Cash & Carry Shoprite Holdings-Formats: Shoprite Hyper Paritala stores bazar: honey shine stores Aditya Birla Group - "More" Outlets Kapas- Cotton garment outlets Nmart Retails with 131 operating Stores till now and total 287 Stores in India and 1 to open in DUBAI Shortly and many more in Process Globally (ZAMBIA, BANGLADESH, SRI LANKA etc.). (Expected to be 500 by the end of 2012)
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Gitanjali- Nakshatra, Gili, Asmi, D'damas, Gitanjali Jewels, Giantti, Gitanjali Gifts, etc.
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Entry of MNCs
The world's largest retailer by sales, Wal-Mart Stores Inc and Sunil Mittal's Bharti Enterprises have entered into a joint venture agreement and they are planning to open 10 to 15 cash-and-carry facilities over seven years. The first of the stores, which will sell groceries, consumer appliances and fruits and vegetables to retailers and small businesses, is slated to open in north India by the end of 2008. see also for more Detail Pick/Muller " Carrefour, the world’s second largest retailer by sales, is planning to set up two business entities in the country one for its cash-and-carry business and the other a master franchisee which will lend its banner, technical services and know how to an Indian company for direct-to-consumer retail. The world’s fifth largest retailer by sales, Costco Wholesale Corp (Costco) known for its warehouse club model is also interested in coming to India and waiting for the right opportunity. Tesco Plc., plans to set up shop in India with a wholesale cash-and-carry business and will help Indian conglomerate Tata group to grow its hypermarket business. 28
COMPANY PROFILE
Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian Consumer market. Headquartered in Mumbai, the company operates over 16 million square feet of retail space, has over 1000 stores across 73 cities in India and employs over 30,000 people. The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, food Bazaar, a supermarket chain, blends, the look, touch and fell of Indian bazaars with aspects of Modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include Brand Factory, Blue Sky, all, Top 10 and star and Sitara. The company also operates an online portal, futurebazaar.com Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail Limited. This entity has been created keeping in mind the growth and the current size of the company’s value retail business, led by its format divisions. Big Bazaar and Food Bazaar. The company operated 148 Big Bazaar stores, among other formats, in over 70 cities across the country, covering an operational retail space of over 6 million square feet. As a focused entity driving the growth of the group’s value retail business, Future Value Retail limited will continue to deliver more value to its customers, supply partners, stakeholders and communities across the country and shape the growth of modern retail in India. A subsidiary company, Home solutions Retail (India) Limited, operates home Town, a large-format home solutions store, Collection I, selling home furniture products and ozone focused on catering to the consumer electronics segment. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire India consumption space.
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FUTURE GROUP: Future group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’ leading businesses, spanning across the consumption space. While retail forms the core business activity of Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics. Led by its flagship enterprise, Pantaloon Retail, the group operates over 16 million square feet of retail space in 73 cities and towns and 65 rural locations across India headquartered in Mumbai, Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail. The group’s specialty retail formats include supermarket chain- Food Bazaar, sportswear retailer- Planet Sports, electronics retail chain- Aadhaar, among others. It also operates popular shopping portal-www.futurebazaar.com. Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the group’s core value of Indianness. The group’s corporate credo is, ‘Rewrite rules, Retain Values’.
Group vision
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Future Group shall deliver everything. Everywhere, every time for Every Indian Consumer in the most profitable manner.
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Group Mission
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We share the vision and belief that our customers and stakeholders shall be served only to creating and executing future scenarios in the consumption space leading to economic development.
•
We will be the trendsetters IU evolving delivery formats, crating retail realty, making consumption affordable for all customers’ segments- for classes and for masses.
• •
We shall infuse Indian bands with confidence and renewed ambition. We shall be efficient, cost-conscious and committed to quality in whatever we do.
We shall ensure that our positive attitude, sincerity, humility and united determination shall be driving force to make us successful. Core Values:
• • • • • • • •
Indianness: confidence in ourselves. Leadership: to be a leader both in thought and business. Respect & humility: to respect every individual and be humble in our conduct. Introspection: leading to purposeful thinking. Openness: to be open and receptive to new ideas knowledge and information. Valuing and Nurturing Relationships: to build long term relationships. Simplicity & Positivity: simplicity in our thought business and action. Adaptability: to be flexible and adaptable, to meet challenges.
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•
Flow: to respect and understand the universal law of nature.
Corporate Structure: Future Group is India’s leading retail company operating business in three sectors. Retail, Allied Services and Finance. Our retail business acr4oss value and lifestyle segments focuses on 4 key consumption verticals: foods, fashion, general merchandise and home. Future Group has about 35,000 direct employees and 1, 50,000 more are indirectly employed. Our corporate structure has been established to infuse pace and flexibility in decision making and implantation, with empowered managers across and group operation.
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Mr. Kishore Biyani Founder and Group CEO, Future Group Considered a pioneer of modern retail in India. Kishore’s leadership has led the group‘s transformation into India’s leading player in the consumption sector. Regularly ranked among India’s most admired CEO’s, he is the author of the book. ‘It happened in India’. He has won multiple awards from government bodies and the private sector in India and abroad and is on the board of number of bodies, including the National Innovation Foundation in India and New York Fashion Board. Executive Committee Board: o Mr. Kishore Biyani, Founder and Gr4oup CEO, Future Group o Mr. Anshuman Singh, Managing Director and CEO, Future Supply Chain Solutions Ltd. o Mr. B. Anand, Director, Finance, Future Group. o Mr. Damodar Mall, Director, Integrated Food Strategy, Future Group. o Mr. Kailash Bhatia, Director and CEO, Pantaloon Retail. o Mr. K.K. Rathi, CEO, Future Ventures India Ltd. o Mr. Sanjay Jog, Chief People Officer, Future Group
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o Mr. Santosh Desai, Managing Director and CEO, Future Brands India Ltd. o Mr. Sumit Dabriwala, Managing Director, Agre Developers Ltd. o Mr. Ushir Bhatt, Group CIO and CEO, Future Knowledge Services. o Ms. Vibha Rishi, Group Strategy and Consumer Director, Future Group o Mr. V. Vaidyanathan, Vice Chairman and MD of Future Capital Holdings Ltd.
Businesses:
Future Group has a number of businesses across the retail, financial and service industries. ? Financial
? Future Capital Holdings
? Future Generali ? Future Ventures • Services ? Future Innovercity ? Future Supply Chains ? Future Brands
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Big Bazaar ? Joint Venture Partnerships
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Generali Group
? Generali is a European insurance company.
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Staples Inc 35
? Staples Inc. is a United States based office supply retailer.
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Celio ? French fashion wear maker
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Clark
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C&J Clark International Ltd. is a UK-based footwear and accessories retailer. The Future Group has entered into a 50:50 joint-venture (JV) to form 'Clarks Future Footwear Ltd.'. The JV launched its first (1,600 sq ft.) stand-alone store in Connaught Place, Delhi on 19 April 2011. The brand seeks to gain a share of the premium segment in this category.
Every day, Future Group brings multiple products, opportunities and services to millions of customers in India. Through over 15 million square feet of retail space, we serve customers in 85 cities and 60 rural locations across the country. Most of all, we help India shop, save and realize dreams and aspirations to live a better quality of life every day. Future Group understands the soul of Indian consumers. As one of India’s retail pioneers with multiple retail formats, we connect a diverse and passionate community of Indian buyers, sellers and businesses. The collective impact on business is staggering: Around 220 million customers walk into our stores each year and choose products and services supplied by over 30,000 small, medium and large entrepreneurs and manufacturers from across India. And this number is set to grow. Future Group employs 35,000 people directly from every section of our society. We source our supplies from enterprises across the country, creating fresh employment, impacting livelihoods, empowering local communities and fostering mutual growth. We believe in the ‘Indian dream’ and have aligned our business practices to our larger objective of being a premier catalyst in India’s consumption-led growth story. Working towards this end, we are ushering positive socio-economic changes in communities to help the Indian dream fly high and the ‘Sone Ki Chidiya’ soars once again. This approach 36
remains embedded in our ethos even as we rapidly expand our footprints deeper into India.
Key Group Companies: • • • • • • • • • • • Pantaloons - Fresh fashion store Big Bazaar - Hypermarket chain Food Bazaar - Supermarket chain Fashion Big bazaar – Supermarket chain Ozone - Electronics superstore Hometown - Home improvement and building materials store Central - Seamless department store Planet Sports - Sportswear retailer Aadhar - Rural retail chain KB’s Fairprice - Urban low-frills neighborhood store Futurebazaar.com - Shopping portal
Services: While retail forms the core business activity of Future Group, group subsidiaries are present in leisure and entertainment, brand development, retail real estate development, retail media and logistics. Some of our other businesses include, mobile telephony brand, T24, operated in association with Tata Teleservices, a supply chain and logistics Infrastructure Company, and a company engaged in providing educational and training services through three Future Innovercity campuses in Ahmadabad, Bangalore and Kolkata Overview: Every day, Future Group brings multiple products, opportunities and services to millions of customers in India. Through over 15 million square feet of retail space, we serve
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customers in 85 cities and 60 rural locations across the country. Most of all, we help India shop, save and realize dreams and aspirations to live a better quality of life every day. Future Group understands the soul of Indian consumers. As one of India’s retail pioneers with multiple retail formats, we connect a diverse and passionate community of Indian buyers, sellers and businesses. The collective impact on business is staggering: Around 220 million customers walk into our stores each year and choose products and services supplied by over 30,000 small, medium and large entrepreneurs and manufacturers from across India. And this number is set to grow. Future Group employs 35,000 people directly from every section of our society. We source our supplies from enterprises across the country, creating fresh employment, impacting livelihoods, empowering local communities and fostering mutual growth. We believe in the ‘Indian dream’ and have aligned our business practices to our larger objective of being a premier catalyst in India’s consumption-led growth story. Working towards this end, we are ushering positive socio-economic changes in communities to help the Indian dream fly high and the ‘Sone Ki Chidiya’ soars once again. This approach remains embedded in our ethos even as we rapidly expand our footprints deeper into India. A new normal is being defined in the Indian consumer market every day. With farreaching socio-economic changes that India has undergone in the last decade, the drivers in urban and rural India are maturing fast. With a growth strategy tempered with localization and an inclusive business model, Future Group is the only pure play local retailer poised to lead India’s consumption story with sustainable value creation. Our multi-format retail strategy captures almost the entire consumption basket of Indian customers. As modern retail drives new demand, efficiency and consumption in new categories, our strategy is based on our deep understanding of Indian consumers. We
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understand the varied buying behavior of the Indian consumer across regional ethnicities and are constantly innovating to craft strategies that address the subtle differences. Future Group's strategy is aimed at achieving inclusive, sustained and profitable growth with three levers Customer-orientation: The bottom line in each of our retail success stories is "know your customer". An insight into the soul of Indian consumers - how they operate, think, dream and line - helps us innovate and create differentiating functionally. Continuous-innovation: As India's largest retailer, we understand the importance of innovation. We rethink strategies and realign businesses with increasing agility to provide diverse customer groups with refreshingly different retail experiences. Collaborative transformation: Creating a collaborative environment combining our strengths with our suppliers and vendors helps us create immense value for our customer which in turn fosters mutual growth. We believe that modern Indian retail rests on the strength of two pillars – scale and efficiencies. As front-runners in both areas, we firmly believe our core responsibility lies in providing protection to customers from the overall rate of inflation. While the scale and size of our operations helps us improve efficiencies, it also ensures we deliver greater value to our customers. Our retail thrust is focused on four principal verticals of Food, Fashion, General Merchandise and Home. These four categories together account for nearly 65% of the consumption in the country and represent mass consumer aspirations. Acknowledging this, we are creating retail pure play through divestment and demerger of non-retail businesses to concentrate our efforts on these verticals. 39
India’s retail boom is being driven by resurgence in the economy. Modern retail still has around 6% share of the total retail spend in the country that is estimated at around US $ 400 billion. Thus, the potential for modern retail growth in India is huge. Currently, leading retailers in mature markets occupy the top three slots by turnover, employment and value creation. As the Indian economy matures, it is upon us to make the same happen in our country.
Opportunities:
Start Here Dream Big. Grow Far. We're growing in dynamic ways and are looking for people who will enable us to continue our success.
Our Brands:
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More: 25 years ago, we began our pioneering journey transforming the Indian retail landscape, whole-heartedly enduring values. believing in rewriting rules and retaining values. Today, our deep footprint across India and landmark growth is testament to our
COMPANY’S MILESTONES
2011 April 2011 – KB’s Fairprice celebrates opening its 200 stores in India May 2011 – Future Supply Chains becomes ISO certified
2010 Future Group launches its telecom brand T24 in partnership with Tata Teleservices to provide additional loyalty benefits to its customers. Future Group launches products in key FMCG categories through such, a brand cocreated with Sachin Tendulkar.
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Future Group connects over 4000 small and medium Indian manufacturers and entrepreneurs with consumers.
2009 Future Group celebrates its first Shopping Festival across all retail formats in key Indian cities. Future Innovercity starts its campuses in Ahmadabad, Bangalore and Kolkata to offer degree programs through a tie-up with IGNOU. Future Group partners with Hong Kong-based Li & Fung Group to strengthen its supply chain and logistics network across the country.
2008 Future Capital Holdings becomes the second group company to make a successful Initial Public Offering (IPO) in the Indian capital market. Big Bazaar crosses the 100-store mark, marking one of the fastest expansions of the hypermarket format anywhere in the world. Total operational retail space crosses the 10 million square feet mark. Future Group acquires rural retail chain Aadhar from the Godrej Group, which has a presence in 65 rural locations.
2007 Future Group crosses the $1 billion turnover mark. Specialized companies in retail media, logistics, IPR and brand development and retailled technology services become operational. Pantaloon Retail wins the International Retailer of the Year award at US-based National Retail Federation convention in New York, and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona. Online portal Futurebazaar.com becomes India’s most popular shopping portal.
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2006 Future Capital Holdings, the group’s financial arm, is formed to manage over $1.5 billion in real estate, private equity and retail infrastructure funds. Home Town, the home building and improvement products retail chain, is launched along with consumer durables format Ezone and furniture chain Furniture Bazaar. Future Group enters into joint venture agreements to launch insurance products with Italian insurance major Generali. Future Group forms joint ventures with US office stationery retailer Staples.
2005 Future Group moves beyond retail and acquires a stake in Galaxy Entertainment, Indus League Clothing and Planet Retail. Future Group sets up Kshitij, India’s first real estate investment fund, to build a chain of shopping malls.
2004 Future Group launches India’s first seamless mall, Central, in Bangalore.
2002 Food Bazaar, the supermarket chain is launched.
2001 Future Group launches three Big Bazaar stores within a span of 22 days in Kolkata, Bangalore and Hyderabad.
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1997 Future Group enters modern retail with the launch of the first 8000-sq. ft. store Pantaloons in Kolkata.
1995 Future Group launches John Miller, a brand for Formal shirts.
1994 The Pantaloon Shoppe, Future Group’s exclusive menswear store in a franchisee format is launched across the nation. The company starts distribution of branded garments through multi-brand retail outlets across the nation.
1992 Pantaloon Retail India Ltd makes an Initial public offer (IPO).
1991 BARE, an Indian denim brand is launched.
1987 The company is incorporated under the name of Manz Wear Private Limited. A pantaloon, one of India’s first formal trouser brands, is launched.
Riteverses:
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Future Group was founded on a simple idea: Rewrite rules, retain values. This fundamental belief created a new kind of marketplace, forever transforming Indian retail. Today our core values continue to guide how we do business and improve the quality of life of the people we serve. At Future Group we are committed to being a catalyst of positive change in the communities, societies and business sectors in which we operate. We envision India’s transformation into the legendary 'Sone Ki Chidiya' (golden bird), taking wings once again to reach greater heights. We take pride in our Indianness. Our belief in inclusiveness for long-term sustainable growth and economic prosperity evokes trust among consumers, employees, suppliers, partners, shareholders and the community.
BIG BAZAAR
Big Bazaar was launched in September, 2001 with the opening of its first four stores in Calcutta, Indore, Bangalore and Hyderabad in 22 days. Within a span of ten years, there are now 148 Big Bazaar stores in 80 cities and towns across India. Big Bazaar is designed as an agglomerating of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products,
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general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections. Food Bazaar, a supermarket format was incorporated within Big Bazaar in 2002 and is now present within every Big Bazaar as well as in independent locations. A typical Big Bazaar is spread across around 50,000 square feet of retail space. While the larger metropolises have Big Bazaar Family centers measuring between 75,000 square feet and 1, 60,000 square feet, Big Bazaar Express stores in smaller towns measure around 30,000 square feet. Most of the Big Bazaar stores are multi-level and are located in stand-alone buildings in city centers as well as within shopping malls. These stores offer over 200,000 SKUs in a wide range of categories led primarily by fashion and products. In 2006-2007, more Indian discovered the value of shopping in Big Bazaar. And with the launch of each store, we discovered more value in terms of operational efficiency. Big Bazaar launched 27 new stores, in 22 cities, covering over 1.40 million square feet. As of June 2007, there were 56 Big Bazaar stores across 43 cities. While Big Bazaar continued to expand in the large cities, it also tapped consumption potential in smaller cities like Agra, Allahabad, Coimbatore, Surat, Panipat, Palakad, Kanpur and Kolhapur. The Year under review also witnessed realigning of business teams with shared experience in category management, sourcing, front-end operations and business planning. In addition, separate teams have been formed to look into all aspects of new store launches and to manage mature stores. This provides more flexibility and focus in expansion plans. The increase in SKUs in existing categories and the introduction of new categories encouraged the opening of larger stores or Super Centers, measuring 100,000 square feet or more. There are now 5 Big Bazaar Super Centers. Considering this scale of expansion, technology plays a significant facilitating role. The introducing of SAP in 2005-06 and its roll out during the year positively impacted the business. Big Bazaar has initiated the process of Auto Replenishments Systems, thus improving operational efficiencies and productivity. The company has also rationalized
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nearly 250 vendors through better vendor management in terms of potential to expand, and for inclusion and up gradation to the online B2B platform.
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ORGANIZATION STRUCTURE
Store Manager
Assistant Store Manager
Department Manager
Assistant Department Manager
Team Leader
Team Members
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MANAGEMENT STYLE: The organization structure for Big Bazaar is flat in nature. For Big Bazaar, the divisions are apparel, non-apparel and the new business division, which includes gold, footwear and the shop-n-shops. For Food Bazaar, a separate team has been created which again works independently. About 1,800 people work for Big Bazaar directly. Support and ancillary services comprise another 400 people. A new trainee is put through a basic three day training program before going on the shop floor. Evaluation is done every six months. THE STRATEGY: Saving is key to the Indian middle class consumer. The store, which would be created, had to offer value to the consumer. Keeping this in mind, the concept of big bazaar was created. In India when a customer needs something for the home, a typical thought is to seek it from the bazaar. A bazaar is a place where a complete range of products is always available to the consumer. This is true across India. As the store would offer a large mix of products at a discounted price, the name Big Bazaar was finalized. The idea was to recreate a complete bazaar, with a large product offering (at times modified to suit local needs) and to offer a good depth and width in terms of range. The mind to market for the first store was just six months. Price was the basic value proposition at Big Bazaar. The Big bazaar outlets sold a variety of products at prices, which were 5 to 60 percent lower than the market price. The line “Isse sasta aur achha kahin nahin” Emphasized this.
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OBJECTIVE AND RESEARCH METHODOLOGY OBJECTIVES:
? Primary Objective • • To study Consumer Buying Behaviour at ‘Fashion at Big Bazaar’. To compare the service and quality of ‘Big Bazaar and Vishal Mega Mart.’ ? Secondary Objective • • To understand the quality of brands in the store. To understand the quality of services provided in the store
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RESEARCH METHODOLOGY Research is a systematic and continues method of defining a problem, collecting the facts and analyzing them, reaching conclusion forming generalizations. Research methodology is a way to systematically solve the problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that all generally adopted by a researcher in studying his research problem along with the logic behind them. The scope of research methodology is wider than that of research method. Thus when we talk of research methodology we not only talk of research methods but also consider the logic behind the method we use in the context of our research study and explain why we are using a particular method. RESEARCH DESIGN A research is the arrangement of the conditions for the collections and analysis of the data in a manner that aims to combine relevance to the research purpose with economy in procedure. In fact, the research is design is the conceptual structure within which research is conducted; it constitutes the blue print of the collection, measurement and analysis of the data. As search the design includes an outline of what the researcher will do from writing the hypothesis and its operational implication to the final analysis of data. The design is such studies must be rigid and not flexible and most focus attention on the following; o What is the study about? o Why is the study being made? o Where will the study be carried out? o What type of data is required? o Where can be required data be found? o What period of time will the study include? o What will be sample design? o What techniques of data collection will be used?
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1 OBSERVATION Broad area of research interest identified
3 PROBLEM DEFINITION Research Problem Delineated
4 THEORETICAL FRAMEWORK Variables clearly identified and labelled
5 GENERATION OF HYPOTHESES
6 SCIENTIFIC RESEARCH DESIGN
7 DATA COLLECTION, ANALYSIS AND INTERPRETATION
2 PRELIMINARY DATA GATHERING Interviewing Literature Survey Research
Process
8 DEDUCTION Hypotheses substantiated? Research question answered? NO Yes 11 Manager ial decision making
9 Report writing
10 Report Presentat ion
TYPES OF RESEARCH DESIGN
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EXPLORATORY RESEARCH DESIGN: Exploratory research design is termed as formulating research studies. The main purpose of study is that of formulating a problem. The major emphasis in such study is on discovery of new idea’s and insights. As such the research design appropriate for such studies must be flexible enough to provide opportunity for considering different aspects of problem.
DESCRIPTIVE AND DIAGNOSTIC RESEARCH DESIGN: Descriptive research design is the design which is concerned with describing the characteristics of particular individual or of the group. Descriptive research includes surveys and fact finding enquires of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. Researcher has no control over the variables of this type of research. EXPERIMENTAL RESEARCH DESIGN: These are those studies where the researcher tests the hypothesis of casual relationship between variables. Such study requires procedure that will not only reduce biasness and increase reliability but will permit drawing influence about causality. Usually 54
experiments meets this requirement, hence these research designs are prepared for experiment. RESEARCH DESIGN IN STUDY: In the study I have applied Exploratory Research Design.. The main purpose of study is that of formulating a problem. The major emphasis in such study is on discovery of new ideas and insights. As such the research design appropriate for such studies must be flexible enough to provide opportunity for considering different aspects of problem. . DATA COLLECTION: After the research problem has been identified and selected the next step is to gather the requisite data. While deciding about the method of data collection to be used for the the researcher should keep in mind two types of data VIZ. primary and secondary.
PRIMARY DATA:
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The primary data are those, which are collected afresh and for the first time, and thus happened to be original in character. We can obtain primary data either through observation or through direct communication with respondent in one form or another or through personal interview. SECONDARY DATA: The secondary data on the other hand, are those which have already been collected by someone else and which have already been passed through the statistical processes. When the researcher utilizes secondary data then he has to look into various sources from where he can obtain them. For eg: Books, magazine, newspaper, Internet, publications and reports.
SAMPLE DESIGN: “A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting item for the sample” Generally Sample designs are two types 1. PROBABILITY RESEARCH DESIGN: Probabilistic sampling is characterized by the fact that each element of the population is known & non-zero chance of being included in the sample. 2. NON PROBABILITY RESEARCH DESIGN: It is that type of sampling which is according to the convenience of researcher therefore it is called convenience research also. SAMPLING UNITS:
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Sampling unit may be a geographical one, such as state, district, village etc. The researcher will have to decide one or more of such units that he has to select for his study. RESEARCH INSTRUMENT: Research instrument is used for collecting the data. This relates to the tools used for collection of data and other information required for the purpose of the project.
I) Research Design Type of Research- Descriptive Type of data – Primary data II) III) Data analysis tool – Bar chart, pie charts Sampling Framework
Sampling Technique-Non Probability i.e. convenient sampling Sample size – 50 Sampling Unit- Individuals IV) Data Collection Methods
Primary data is collected through survey conducted in the store with help of questionnaire.
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Limitations of the Study
No study is without limitations, whether it is of any type & so researcher study does have certain limitations Limitations are those difficulties which are faced by the researcher while his research works. The limitation Researcher has faced during research. 1. TIME CONSTRAINTS: The time period for the study is very less because the study is so complex. . 2. INFORMATION NOT SUFFICIENTLY AVAILABLE: The source of data collection is secondary so the information available is not sufficient. Moreover there is heterogeneity of information available at different sources. 3. RESPONDANTS WERE NOT WILLING TO SHARE INFORMATION: Employee were not ready to share much especially the negative points. 4. COMPLEX CALCULATIONS: The calculations are so complex that it needs expertise and tedious task. Other Limitations1. 2. 3. 4. Some respondents refuse to co-operate. Some respondents replied half heartedly. Some respondents gave incomplete information. The survey was conducted in very general way as no other variable such as their education level, occupation and sex.
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ANALYSIS AND INTERPRETATION OF DATA Age group of the respondents 0-18 A)
6%
B)
19-30
71%
C)
30-50 18%
D)
50 above 4% Table-6.1
Figure- 6.1
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INTERPRETATION:
Out of 50 respondents,6% people come under the age category of 0-18, 71% people come under the age category of 19-30 ,18% come under 30-50 category,4% come under category of 50 above.
Gender of the respondents Males A)
56%
B)
Females
44%
Table- 6.2
Figure- 6.2
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INTERPRETATION:
Out of 50 respondents, 56% are males and 44% are females. MAXIMUM MALES COME IN FBB STORE Q1. Had you been earlier at Fashion at Big Bazaar?
A) B)
YES NO
54% 46%
Table-6.3
Figure- 6.3
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INTERPRETATION:
Out of 50 respondents , 54% people had visited in the FBB store earlier and 46% people had visited first time in the FBB store. Maximum number of know about the FBB store earlier
Q2. How do you know FBB?
A)
By seeing 49%
B) C) D)
By ads By experience By friends or peers 10% 10% 10%
Table- 6.4
Figure- 6.4
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INTERPRETATION:
Out of 50 respondents 49% of people know fbb by seeing or by passing through the roads 10% of people know fbb by seeing ads,10% of people know by experience and 16% people know fbb Maximum number of know fbb by seeing or by passing through the roads. Q3. In your opinion is quality of brands at FBB is upto mark?
A) B)
YES NO
92%
8%
Table- 6.5
Figure- 6.5
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INTERPRETATION:
Out 50 respondents ,92% people said that quality of apparels in the FBB store is upto mark and 8% people said that quality is not upto mark. Maximum people said that quality of apparels in the FBB store are good . Q4. In your opinion is the service provided by FBB is upto mark?
A) B)
YES NO
Table- 6.6
96% 4%
Figure-6.6
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INTERPRETATION:
Out of 50 respondents, 96% people said that services provided in the FBB store is upto mark and 4% said that service is not upto mark. Maximum number of people are satisfied with the services provided by the FBB store. Q5.Apart from FBB, which retail outlets do you prefer?
A) B) C) D)
Local Market Vishal Megamart Westside OTHERS
35% 40% 15% 10%
Table- 6.7
Figure- 6.7
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INTERPRETATION:
Out of 50 respondents, 40% people visit Vishal mega mart for shopping and rest of the respondents visit local market, Westside for shopping. Maximum number of people visit Vishal mega mart for shopping.
Q6. The proportion of quality of brands at Vishal Megamart. A) B) SATISFACTORY 37% UNSATISFACTORY 63%
Table- 6.8
Figure- 6.8
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INTERPRETATION:
Through observation,37% number of people are satisfied with quality of brands in the vishal mega mart and 63% are dissatisfied Maximum number of people are dissatisfied with quality of brands in the vishal megamart. Q7. The proportion of quality of services at Vishal Megamart
A) B)
SATISFACTORY UNSATISFACTORY
27% 73%
Table- 6.9
Figure- 6.9
INTERPRETATION:
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Through observation,27% number of people are satisfied with quality of brands in the vishal mega mart and 73% are dissatisfied . Maximum number of people are dissatisfied with quality of services provided at the vishal megamart.
FINDINGS Objective1:To study the consumer buying behaviour at ‘Fashion at Big Bazaar’. Findings:
o People were very much familiar with fbb. o Store performing well in attracting the customers. o Fashion at big bazaar(FBB) provides better shopping experience.
Objective2: To compare the service and quality of ‘Big Bazaar and Vishal Mega Mart’. Findings:
o Quality of brands are better than vishal mega mart. o Quality of services provided by the fbb store is better than vishal mega mart.
Secondary objectives: Findings:
o Sales persons/ promoters behave well with customers. o Brands availabilty in FBB is upto mark. o Service provided at fbb is upto the mark.
Other Findings:
o Discount and offers doing well in the store. o Product display and signange board is good. o Location of fbb is very convenient. o Parking facility is good in fbb. o Cleanliness and hygiene maintained in the store is upto the mark.
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SUGGESTIONS
o More variety in jean wear, formal shirts is required, and size problem must try to be sorted out. o Sitting place is required for old aged person. o Discount boards should be made properly visible. o Announcement devices were in need to be repaired. o The numbers of Cash tills should be increased in weekends. o Sizes in jeans specially no. 34 and 32 must be made available. o More Brands should be made available. o Customer entry and exit point should be same. o Formal wearings for girls in need to be provided. o Some area should be added for the children to play so that parents can easily shop. o Music should be of customer choice.
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CONCLUSION
Behaviour is a mirror in which every one shows his or her image. Behaviour is the process of responding to stimuli. Consumer behaviour provides invaluable dues and guidelines to market on new technological frontiers, which they should explore to better meet the needs of specific groups of consumers, most marketers adopted a policy of market segmentation & successfully market to different segments the marketing manager needs appropriate marketing strategies, which account for these difference in consumer’s behaviour. After analyzing the findings of the research,I conclude that FBB store doing well inattracting the customers, store provide better shopping experience.The `quality of apparels in the FBB store is very good and service provided by the FBB store to the customers coming in the store is good.The brand availability of apparels in the store is well. It also concluded that,”discount and offers provided by the FBB store is good.The product display and signage board is good.
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doc_546793973.doc
In the Present Changing & Competitive environment the taste, preference & purchasing behaviour are also characterized by fast change. Therefore, in order to face the cut throat competition and to survive in the market. . It is realized by studying the buying behavior of consumers that many consumer products that they felt reflected their own special needs, personalities and lifestyles.
INTRODUCTION Consumer Behaviour:
Consumer behaviour is to do with the activities of individuals to obtaining and using the goods, and services; it encompasses the decision-making process that proceeds and determines purchases. In the words of Professor Walter C.G. and Professor Paul G.W. it is "the process whereby individuals decide whether, what, when, where, how and from whom to purchase goods and services". Consumer behaviour is all the psychological, social and physical behaviour of potential customers as they become aware of, evaluate, purchase, consumer and tell others about the products or services. In the Present Changing & Competitive environment the taste, preference & purchasing behaviour are also characterized by fast change. Therefore, in order to face the cut throat competition and to survive in the market, a car manufacturing company has to be constantly innovating & updating its technology and understands the latest, consumer trends, tastes and preference. It is realized by studying the buying behavior of consumers that many consumer products that they felt reflected their own special needs, personalities and lifestyles. Consumer behaviour provides invaluable dues and guidelines to market on new technological frontiers, which they should explore to better meet the needs of specific groups of consumers, most marketers adopted a policy of market segmentation & successfully market to different segments the marketing manager needs appropriate marketing strategies, which account for these difference in consumer’s behavior. It plays a very significant role in the decision making process. The Micro Perspective & Societal perspective. The micro perspective involves understanding consumers for the purpose of helping a firm or organization accomplish its objectives. The social perspective can provide insight into aggregate economic & social trends and can perhaps even predict such trends. It may suggest ways to increase the efficiency of the market system & improve the well being of people in society.
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Consumers Behavior can be defined as: "The behavior that consumer display in searching for punching, using, evaluating and disposing of products & service that they expect will satisfy their needs." The decision process & physical activity individuals engaging when evaluating, acquiring, using or disposing of goods and services. A consumer plays a no, of roles in purchase decision. The study, of consumer's behavior would be incomplete if it treated only one consumer role. Some consumers Behavior role are Role 1Initiator Influencer Description The individual who determines that some or need or want is not being met & authorize to rectify the situation. A person who by some international or unintentional word or action influences the purchase decision, the actual purchase and Buyer User the use of the product or service. The individaqtual who actually makes the purchase transaction. The person most directly involved in the consumption or use of purchase. Thus, the importance of CB lies in the fact that behavior can be understand & influenced to ensure a positive purchase decision. So, a round understanding of CB is essential ot the long run success of any marketing program. In fact, it is seen as a cornerstone of the marketing concept. That's why the marketing managers interest lies exactly to ensure that his marketing strategy result in purchase of the product. Consumer Buying Process: Understand consumer behaviour makes it mandatory to first understand the buying process. Good many models of consumer behaviour portraying buying process have been developed during the last three decades. These models treat consumer as a decisionmaker. Among all these models, the one given by Mr. J.A. Howard and J. Seth in their title THE THEORY OF BUYER BEHAVIOUR is having sophisticated model which is the most comprehensive and, hence, largely accepted. In simple three words the buying process is made up of three stages namely "input"- ' process' - 'output'. Consumption is the process that begins well before a product is bought and extends well beyond that. 2
Buying process represents a problem solving approach; it is a decision-making process leading to buying decisions on the part of consumers. Step in Buying Process: The consumer buying process is a five step activity. These steps are 1. 2. 3 4 5 Need Recognition. Information Search Evaluation and Intention Purchase decision Post purchase behaviour as depicted in the following diagram:
1.
Need recognition:
3
The starting point of buying process is the perceived want or a desire. Need recognition is the awareness of the want or a desire or a consumption problem without whose satisfaction the consumer feels restless and tension-charged. That is, he or she feels that a desire or want has arisen which has to be satisfied. Needs or wants arise wither due to internal stimulus or external stimulus. A stimulus is called by marketing experts as a 'sign' or a cue,. It is the intensity or the urgency of want that decides the speed at which it is to be satisfied. That way human being is bundle of desires needs or wants; however, the most urgent ones are pushed to the top as the purchasing power of his or her is limited. 2. Information Search: A need aroused and recognized can be satisfied only when the product or service is available. Consumer interest is indicated in the consumer's willingness to seek further information about product or service. Since there are varieties of products and he seeks to have maximum satisfaction, he searches relevant information. Consumer has many alternative sources of information to tap such as friends, relatives, neighbors, salesmen, dealers, advertisements, packages and above all consumer organization. Consumer tries to get up-to-date and adequate information regarding the products and services he wants to go in for. 3. Evaluation and Intention: It is consumer's deep interest in the product or service that paves the way for evaluation and intention. The evaluation stage is the stage of mental trial of the product or a service. In evaluation stage, the consumer assigns relative value or weightless to different products or services based on the accumulated information and judges the relative worth of alternative products or services from the angle of want satisfying potential. Once he evaluates, he develops the intention to accept or reject a given product or service. The final purchase depends on the relative strength of the positive intention to buy. In evaluating the alternatives many values are taken into account such as product characteristics, brand images, tradeoff, conveniences, facilities and concessions. 4
4.
Purchase decision: It is the positive intention of the consumer that leads to a purchase decision. Decision to purchase implies consumer commitment for a product or a service. Practically, it is the last stage in the buying process because, it completes the exchange process. Such a purchase may be a trial or adoption. Trial purchases are done when the consumer buys the products or services for the first time. This occurs mostly in case of consumer non-durable. In case of consumer durable, it is purchase adoption than trial because, consumer durable items cannot be purchased on trial basis. It is through trial or adoption that the consumer gains experience and that may result in repeat sales, if he is satisfied with the product or the service.
5.
Post Purchase behaviour : Post purchase behaviour or reaction stands for the behaviour of a consumer after a commitment to product has been made. This post-purchase experience may be a set of positive or negative feelings. Positive feelings ors satisfaction will result in repeat sales or at least recommending the products or services to others; on the other hand, dissatisfaction or negative feeling s creating anxiety and doubts. This stage of mind is called as 'cognitive dissonane'. He tries to reduce it by goind in for other alternative product or service in search of highest level of satisfaction. It is Mr. Leon Festinger who put forward this theory of 'cognitive dissonance'. Accordingly, dissonance is a condition reflecting a tendency towards mental unease, which occurs when an individual holds two attitudes, ideas, and beliefs, which are not in harmony with each other. In other words, one feels uneasy when an attitude which is not consonant with one's behaviour. One, therefore, tends to reduce dissonance by either changing or strengthening one's views or suitably altering one's behaviour.
TYPES OF BUYING BEHAVIOUR
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There are four typical types of buying behaviour based on the type of products that intends to be purchased. 1. Complex buying behaviour : Complex buying behavior is where the individual purchases a high value brand and seeks a lot of information before the purchase is made. 2. Habitual buying behaviour: Habitual buying behaviour is where the individual buys a product out of habit e.g. a daily newspaper, sugar or salt. 3. Variety seeking buying behaviour: Variety seeking buying behaviour is where the individual likes to shop around and experiment with different products. So an individual may shop around for different breakfast cereals because he/she wants variety in the mornings! 4. Dissonance reducing buying behaviour: Dissonance reducing buying behaviour is when buyers are highly involved with the purchase of the product, because the purchase is expensive or infrequent. There is little difference between existing brands an example would be buying a diamond ring, there is perceived little difference between existing diamond brand manufacturers.
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Maslow’s Hierarchy of Needs:
Abraham Maslow hierarchy of needs theory sets out to explain what motivated individuals in life to achieve. He set out his answer in a form of a hierarchy. He suggests individuals aim to meet basic psychological needs of hunger and thirst. When this has been met they then move up to the next stage of the hierarchy, safety needs, where the priority is with job security and knowing that you have a regular income. Social needs come in the next level of the hierarchy, the need to belong or be loved is a natural human desire and people strive for this belonging. Esteem need is the need for status and recognition within society, status sometimes drives people, the need to have a good job title and be recognized or the need to wear branded clothes as a symbol of status. Self-actualization is the realization that an individual has reached their potential in life. The point of self-actualization is down to the individual, when do you know you have reached your point of self-fulfilment? But how does this concept help an organization trying to market a product or service? Well as we have established earlier within this website, marketing is about meeting needs and providing benefits, Maslow’s concept suggests that needs change as we go along our path of striving for self-actualization. Supermarket firms develop value brands to meet the psychological needs of hunger and thirst. Harrods develops products and services for those who want have met their esteem needs. So Maslow’s concept is useful for marketers as it can help them understand consumer needs and wants.
FACTORS PROCESS
INFLUENCE
CONSUMER
BUYING
DECISION
Consumer behavior refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants. There are different processes involved in the consumer behavior. Initially the consumer tries to find what commodities he would like to consume, then he selects only those commodities that promise greater utility. After selecting the commodities, the consumer makes an estimate of the available money which he can spend. Lastly, the consumer analyzes the prevailing prices of commodities and 7
takes the decision about the commodities he should consume. Meanwhile, there are various other factors influencing the purchases of consumer such as social, cultural, personal and psychological. The explanation of these factors is given below.
1. Cultural Factors Consumer behavior is deeply influenced by cultural factors such as: • • • Buyer culture Subculture Social class.
? Buying culture Basically, culture is the part of every society and is the important cause of person wants and behavior. The influence of culture on buying behavior varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries. ? Subculture Each culture contains different subcultures such as religions, nationalities, geographic regions, racial groups etc. Marketers can use these groups by segmenting the market into
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various small portions. For example marketers can design products according to the needs of a particular geographic group. ? Social Class Every society possesses some form of social class which is important to the marketers because the buying behavior of people in a given social class is similar. In this way marketing activities could be tailored according to different social classes. Here we should note that social class is not only determined by income but there are various other factors as well such as: wealth, education, occupation etc. 2. Social Factors Social factors also impact the buying behavior of consumers. The important social factors are: reference groups, family, role and status. ? Reference Groups Reference groups have potential in forming a person attitude or behavior. The impact of reference groups varies across products and brands. For example if the product is visible such as dress, shoes, car etc then the influence of reference groups will be high. Reference groups also include opinion leader (a person who influences other because of his special skill, knowledge or other characteristics). ? Family Buyer behavior is strongly influenced by the member of a family. Therefore marketers are trying to find the roles and influence of the husband, wife and children. If the buying decision of a particular product is influenced by wife then the marketers will try to target the women in their advertisement. Here we should note that buying roles change with change in consumer lifestyles. ? Roles and Status Each person possesses different roles and status in the society depending upon the groups, clubs, family, organization etc. to which he belongs. For example a woman is 9
working in an organization as finance manager. Now she is playing two roles, one of finance manager and other of mother. Therefore her buying decisions will be influenced by her role and status. 3. Personal Factors Personal factors can also affect the consumer behavior. Some of the important personal factors that influence the buying behavior are: lifestyle, economic situation, occupation, age, personality and self concept. ? Age Age and life-cycle have potential impact on the consumer buying behavior. It is obvious that the consumers change the purchase of goods and services with the passage of time. Family life-cycle consists of different stages such young singles, married couples, unmarried couples etc which help marketers to develop appropriate products for each stage. ? Occupation The occupation of a person has significant impact on his buying behavior. For example a marketing manager of an organization will try to purchase business suits, whereas a low level worker in the same organization will purchase rugged work clothes. ? Economic Situation Consumer economic situation has great influence on his buying behavior. If the income and savings of a customer is high then he will purchase more expensive products. On the other hand, a person with low income and savings will purchase inexpensive products. ? Lifestyle Lifestyle of customers is another import factor affecting the consumer buying behavior. Lifestyle refers to the way a person lives in a society and is expressed by the things in his/her surroundings. It is determined by customer interests, opinions, activities etc and shapes his whole pattern of acting and interacting in the world. 10
? Personality Personality changes from person to person, time to time and place to place. Therefore it can greatly influence the buying behavior of customers. Actually, Personality is not what one wears; rather it is the totality of behavior of a man in different circumstances. It has different characteristics such as: dominance, aggressiveness, self-confidence etc which can be useful to determine the consumer behavior for particular product or service. 4. Psychological Factors There are four important psychological factors affecting the consumer buying behavior. These are: perception, motivation, learning, beliefs and attitude ? MotivationThe level of motivation also affects the buying behavior of customers. Every person has different needs such as physiological needs, biological needs, social needs etc. The nature of the needs is that, some of them are most pressing while others are least pressing. Therefore a need becomes a motive when it is more pressing to direct the person to seek satisfaction. ? Perception Selecting, organizing and interpreting information in a way to produce a meaningful experience of the world is called perception. There are three different perceptual processes which are selective attention, selective distortion and selective retention. ? Beliefs and Attitudes Customer possesses specific belief and attitude towards various products. Since such beliefs and attitudes make up brand image and affect consumer buying behavior therefore marketers are interested in them. Marketers can change the beliefs and attitudes of customers by launching special campaigns in this regard.
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LITERATURE VIEW
Gopal Das, Rohit Vishal Kumar (2010) tried to find out the impact of retail sales promotions on consumers buying behaviour. In the Global Context of Open Market Economics of Today, the consumer has become the king. He enjoys a lot of Freedom in his Purchase Decision. A consumer is in the Position to influence the manufacturer or the marketer regarding, size, quality, content of the product, price, post sales service, among other things. As a result, the markets no longer remained the "sellers market", it obviously turned in to "buyers market". With the Indian retail boom, many players are entering with different retail formats. As a result, competition is becoming very tough. Keeping in mind that the Indian consumer is price sensitive, each player is trying to attract more customers through different sales promotional activities. But the exact picture of the impact of sales promotion on consumer behaviour is yet unclear to the retailer. Bidyut Jyoti Bhattacharjee Dibyojyoti Bhattacharjee (2005): - In this paper explores the impact of packaging, labeling and free sample on the buying behaviour of consumers of a communicational backward area of India. The hypothesis is that the packaging, labeling, sample has strong influence on consumers buying behaviour. Two factorial approaches are adopted to analyses this influence i.e., sex wise and age wise. The study is based on a sample of 73 respondents taking from Karimganj town in Assam. This study highlighted that packaging is considered as necessary part of the product, hence customer of backward areas find packaging as value addition. Hongwei He, Avinandan Mukherjee (2007)Made an extant research on the relationship between consumer image congruence and retail store choice and suggests that there exist four types of self congruity (actual self-congruity, social self-congruity, ideal selfcongruity, and ideal social self-congruity) based on the identification of four types of self-concept (actual self-image, social self-image, ideal self-image, and ideal social selfimage). Mixed results have been produced by research undertaken in the western context particularly in terms of which type(s) of self-congruity is(are) significantly related to consumer attitudes and behaviour. To assess further the predictive power of different 12
types of image-congruity, we conducted an empirical study among Chinese consumers on the relationship between self-congruity, satisfaction, perceived value and store loyality. China was chosen for this study because recent entry of European and American retailers in China exerts strong need for better understanding of retail consumer behaviour. Moreover both anecdotal and literature evidences suggest that Chinese consumers could differ significantly from the western counterparts in terms of how their self-congruity influences their shopping behaviour. Neha Mehta, Pawan K Chugan (2012) Studied that retail industry in India is booming and there is fierce competition. The country indeed has become the cynosure of FDI in retail sector and policies are heading towards more liberalization to attract foreign investment. There are various players in apparel segment in terms of lifestyle format. The study is aimed to find out impact of visual merchandising on the buying behavior of the customers visiting “Central Malls”. Four dimensions of visual merchandising viz. window display, in-store form/mannequin display, floor merchandising and promotional signage are studied and results reveal as to why visual merchandising is important for strategic marketing decisions to increase the sales of the stores. The study also reveals the dimensions of visual merchandising that are important and increase impulse buying of the consumers visiting the stores.
Monika Gupta, Dr. Amit Mittal (2011) studied attempts to identify perceptions of consumers towards existing retail formats in India. To have in-depth study of consumer perception, the basis on which consumers have been segmented keeping in view the products to be sold need to be understood. Customers of today carry out extensive research in gathering maximum information about product to be purchased, occasion for which the purchase is to be made as well as from where the purchase is to be made. Their evaluative criteria include price, brand reputation, distribution, promotion, personal selling. The factors causing planned vs unplanned purchasing behaviour and decision process model need to be understood thoroughly. The customers remain in dilemma about outlet choice vs. brand choice. 13
Pavlos A. Vlachos, Pavlos A. Vlachos, Adam Vrechopoulos (2009) expressed that since loyalty in services remains elusive and unpredictable, there is need to study consumer relationship with firms apart from the established satisfaction-loyalty chain approach. To that end, the present paper focuses on feelings of attachment and love and investigates through two empirical consumer studies, in two different grocery retailer brands, (a) emotional attachment effects on re-patronage intentions, (b) predictors of emotional attachment and, (c) moderating effects of consumer traits’ on the (a) relationship presented above. The findings imply that perceived transactional value store Retail image and corporate social responsibility (CSR) associations determine consumer store emotional attachment levels. Furthermore, we find that for consumers scoring low on the social value of warm relationships with others, and for consumers characterized by an avoidant attachment style, the effect of emotional attachment on re-patronage intentions is less salient. Interestingly, in the case of high avoidant individuals the effect is negative. Direct managerial implications for effectively manipulating consumer firm emotional attachment in the context of grocery retailing as well as future research perspectives are provided at the end. Dibyojyoti Bhattacharjee (2007) worked an attempt to analyze the impact of fashionable and attractive packaging of cosmetics in the minds of female consumers residing in an urban area. The buying behaviour and awareness labels of the respondents on the context of packaging of such items were also carried out on a random sample of 100 individuals. Some statistical and graphical tools were used to unearth the facts hidden behind the figures. Mike Nicholson, Sahrah Hong Xiao (2007) expressed that the Consumer Behaviour analysis research programme continues to develop as both an intellectual discipline and an applied area of empirical inquiry, enriching our understanding of consumer response to the products and services of everyday life, and to the marketing of those products and services. To date, however, the programme has functioned largely at an ontogenetic level, developing proximate-level accounts of consumer choice based upon operant learning at the expense of any meaningful engagement with the more ultimate-level accounts of such phenomena offered by adoption of a more phylogenetic perspective. In an attempt to 14
address this potential gap in current knowledge, this paper introduces the central tenets of neo-Darwinian theory and their relevance for the consumer behaviour analytic programme. More specifically, the paper seeks to apply adaption’s logic to the Behavioural Perspective Model, the principle explanatory framework within consumer behaviour analysis, in order to demonstrate how the hypotheses generated by that framework may gain greater conceptual clarity and empirical precision through accommodation of both ontogeny and phylogeny within its sphere of reference. Susana Azevedo Maria Madalena Pereira João J. M. Ferreira Vilma Pedroso (2008) The main objective of this paper is the research was to study the gender differences in consuming buying behaviour of a Portuguese population when they go shopping to buy apparel products. To attain this objective a survey was developed and administered across Portugal. The findings confirm the differences between women and men especially in terms of What, Where, When, and How they buy. Anja Lambrecht, Katja Seim, Bernd Skiera (2007) studied that in communication, information, and other industries, three-part tariffs are increasingly popular. A three-part tariff is defined by an access price, an allowance, and a marginal price for any usage in excess of the allowance. Empirical nonlinear pricing studies have focused on consumer choice under two-part tariffs. We show that consumer behavior differs under three-part tariffs and assess how consumer demand uncertainty impacts tariff choice. We develop a discrete/continuous model of choice among three-part tariffs and estimate it using consumer-level data on Internet usage. Our model extends prior work in accommodating consumer switching to competitors, thereby capturing behavior in competitive industries more accurately. Amit Kumar (April 4, 2011) focused on examining the perception of Indian consumers about celebrity endorsements, examining the celebrity attributes likely to influence consumer purchase intentions and finally the impact of celebrity endorsements on their purchase intention.
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Industry Profile
A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. Retail organizations exhibit great variety and new forms keep emerging. There are store retailers, now store retailers, and retail organizations. Consumers today can shop for goods and services in a wide variety of stores. The best-known type of retailers is the department store. Japanese department store such as Takashimaya and Mitsukoshi attract millions of shoppers each year. These stores feature art galleries, cooking classes, and children’s playgrounds. A retailer is at thee end of the distributive channel. He provides goods and service to the ultimate consumers. This he does through his small organization, with the help of a few personnel. In an individual retail store there is not much scope for organization except in the sense that the shopkeeper has to organize apportions his time and resources. The need for organization becomes essential as soon as he hires people enters into partnership or takes the help of members of his family in running his store. A retailer deals in an assortment of goods to cater to the needs of consumers. His objective is to make maximum profit out of his enterprise with that end. In view he has to pursue a policy to achieve his objective. This policy is called retailing mix. A retailing mix is the package of goods and services that store offers to the customers for sale. It is the combination of all efforts planned by the retailer and embodies the adjustment of the retail store to the market environment. The maximum satisfaction to the customers is achieved by a proper blend of all three. The success of the retail stores, therefore, depends on customers’ reaction to the retailing mix which influences the profit of the store, its volume of turnover, its share of the market, its image and status and finally its survival.
RETAIL
Retailing is the set of business activities that adds value to the products and services sold to the consumer for their personal or family use. A “retailer” buys goods or products in large quantities from manufactures or importers, either directly or through a wholesaler, and then sells smaller quantities to the end user. 16
Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term “retailer” is also applied where a service provider service the needs of a large number of individuals, such as a public utility, like electric power. • • • • • Retailing is an important institution in our society. Retailing provides considerable value to consumers while giving people opportunities for rewarding and challenging careers. Retail formats and companies are now major factors in the industry. The key to successful retailing is offering the right product, at the right price, in the right place, at the right time, and making a profit. Retailers must understand what customers want and what competitors are offering now and in the future.
The World of Organized Retailing:
• Retailers are using sophisticated communications and information systems to manage their business. The use of new technologies helps retailers reduce their operations costs, while better serving their customers. • To compete against non-store retailers, stores are now becoming more than just places to buy products. They are offering entertaining and educational experience for their customers. • In this dynamics environment, entrepreneurs are launching new companies and concepts and becoming industry leaders, while traditional firms have had to rethink their business. • Retail manager today must make complex decisions on selecting target markets and retail locations, determining what merchandise and service and service to offer negotiating with supplier and distributing merchandise to stores, training and motivating sales associates and deciding how to price, promote and present merchandise.
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RETAIL MIX The retail mix is the combination of factors retail used to satisfied customer needs and influences their purchase decision. Its include the type of merchandise and services offered, merchandise pricing, advertising, promotional programs store design merchandise display, assistance to customer provided by sales people and convenience of the store’s location. • • • • Retail mix is the term used to describe the various elements and methods required to formulate and execute retail marketing strategy. Retail managers must determine the optimum mix of retailing activities and coordinate the elements of the mix. The aim of such coordination is for each store to have a distinct retail image in consumers’ mind. The mix pay vary greatly according to the type of the retailer is in, and the type of product/ services. While many elements may make up a firm’s retail mix, the essential elements may include: • Store location • Merchandise assortments. • Store ambience, • Customer service, • Price, • Communication with customer, • Personal selling, • Store image • Store design, • Sales incentives, • People, • Process, • Physical evidence 18
Composition of Retail Mix
• • • • • • • Place Product Price Promotion People Process Physical Environment
Key element
1) Place (store location)• Target market • Channel structure • Channel management • Retailer image • Retail logistics • Retail distribution 2) Product • Product development • Product management • Product features and benefits • Branding • Packaging. 3) Price • Costs • Profitability • Value for money 19
• Competitiveness • Incentives • Quality • Status • After-sales services 4) Promotion • • • • • • Developing promotional mixes Advertising management Sales promotion Sales management Public relations Direct marketing
5) People • • • • • • Staff capability Efficiency Availability Effectiveness Customer interaction Internal marketing
6) Process • Order processing • Database management • Service delivery • Queuing system • Standardization
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Retail mix planning
Retail mix plan consists of• • • • Setting objectives Systematic way of identifying a range of options Formulation of plans for achieving goals. Logical sequence of retailing activities.
Importance of Retail mix planning
• Hostile and complex retail environment • External and internal retail organization factors interact o Maximizing revenue o Maximizing profit o Maximizing return on investment o Minimizing costs. • Each elements has conflicting needs • All these variables interact • All these variables result in optimum compromise.
Approaches to planning
1) Top down approach • Retail management sets goals and plans for all levels of management.
2) Bottom up approach • Various units prepare own goals and plans sent up for approvalIt is the effective blending of all the elements of retail mix activities within the retail organization that determines the success of retail management. Discuss this
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statement and explain with retail examples how the elements of retail mix could be blended to ensure the success of retail operation.
MAJOR INDIAN RETAILERS 1. Pantaloon Retail: It is headquartered in Mumbai with 450 stores across the country employing more than 18,000 people. It can boast of launching the first hypermarket Big Bazaar in India in 2001. An all-India retail space of 5 million sq. ft. which is expected to reach 30 mn by 2010. It is not only the largest retailer in India with a turnover of over Rs. 20 billion but is present across most retail segments - Food & grocery (Big bazaar, Food bazaar), Home solutions (Hometown, furniture bazaar, collection-i), consumer electronics (e-zone), shoes (shoe factory), Books: music & gifts (Depot), Health & Beauty care services (Star, Sitara and Health village in the pipeline), e-tailing (Futurbazaar.com), entertainment (Bowling co.) One of their recent innovations include e-commerce’ hybrid format of ’small’ shops , the area for these stores will be 150 sq. ft. fitted with 40 digital screens. Customers will be encouraged to browse through the entire range of products on digital screen. They will be able to place the order, the delivery of which will be arranged by the shop to their homes within a few hours 2. K Raheja Group They forayed into retail with Shopper’s Stop, India’s first departmental store in 2001. It is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS). They have signed a 50:50 joint venture with the Nuance Group for Airport Retailing. Shoppers Stop has 7, 52, 00 sq ft of retail space with a turnover of Rs 6.75 billion.
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The first Hyper city opened in Mumbai in 2006 with an area of 1, 20,000 sq. ft. clocking gross sales of Rs. 1 billionn in its first year. Crossword brand of book stores, Homes stop a store for home solutions, Mother care a concept stocking merchandise related to childcare are also owned by them. Recently, Raheja’s have signed an MoU with the Home Retail Group of UK to enter into a franchise arrangement for the Argos formats of catalogue & internet retailing. The group has announced plans to establish a network of 55 hypermarkets across India with sales expected to cross the US$100 million mark by 2010. 3. Tata group: Established in 1998, Trent - one of the subsidiaries of Tata Group - operates Westside, a lifestyle retail chain and Star India Bazaar - a hypermarket with a large assortment of products at the lowest prices. In 2005, it acquired Landmark, India's largest book and music retailer. Trent has more than 4 lakh sq. ft. space across the country. Westside registered a turnover of Rs 3.58 mn in 2006. Tata’s has also formed a subsidiary named Infiniti retail which consists of Croma, a consumer electronics chain. It is a 15000-17000 sq. ft. format with 8 stores as of September 2007. Another subsidiary, Titan Industries, owns brands like “Titan”, the watch of India has 200 exclusive outlets the country and Tanishq, the jewellery brand, has 87 exclusive outlets. Their combined turnover is Rs 6.55 billion.Trent plans to open 27 more stores across its retail formats adding 1.5 mn sq ft of space in the next 12 DLF malls. 4. RPG group: One of the first entrants into organised food & grocery retail with Foodworld stores in 1996 and then formed an alliance with Dairy farm International and launched health & glow (pharmacy & beauty care) outlets. Now the alliance has dissolved and RPG has Spencer’s Hyper, Super, Daily and Express formats and Music World stores across the country. 23
RPG has 6 lakh sq. ft. of retail space and has registered a turnover of Rs 4.5 billion in 2006.It is planning to venture into books retail, with the launch of its own bookstores “Books and Beyond” by the end of 2007. An IPO is also in the offering, with expansion to 450+ MusicWorld, 50+ Spencer's hyper outlets covering 4 million sq. ft. by 2010. 5. Landmark group: This group was launched in 1998 in India. Lifestyle is spread across six cities, covering 4.6 lakh sq. ft. with a turnover of Rs 3.5 billion in 2005. A new division named Lifestyle International has emerged for their international brands business comprising Bossino, Kappa and Springfield in their portfolio. Their retail mix includes Home solutions (Home centre), fashion (lifestyle, landmark International), value retailing (max retail), hypermarkets & supermarkets (Max), kids entertainment (Funcity).They plan to invest Rs. 300 crores in the next two years to expand on Max chain, and Rs 100 crores on Citymax 3 star hotel chain. They have already instituted a separate company christened Citymax Hotels (India). 6. Piramal Group In September 1999, Piramal Enterprises announced their arrival into retail with the launch of three retail concepts: India's first true shopping mall of international standards, called Crossroads; a lifestyle department store named Piramal Megastore; and a family entertainment centre known as Jammin. Piramal Megastore and Jammin were anchor tenants for Crossroads (recently sold to Pantaloon for Rs 4 billion). In 2001, the group entered the business of food & grocery retail with the launch of TruMart supermarkets in Pune. They have around 18 TruMart stores covering 1.90 lakh sq. ft. registering a turnover of Rs 37.6 mn in 2005. Piraymd Megatsore’s contributes more than 70 % to their retail mix with a turnover of Rs 112.8 mn. They plan to open 150 stores covering 75 mn sq ft of retail space in the next 5 years.
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7. Subhiksha Subhiksha is a Chennai-based, decade old, no frills, food, grocery, pharma and telecom, discount retail chain. ICICI Venture Capital holds 24% in the equity capital of Subhiksha. It has more than 500 stores across the country covering a retail space of more than 1 million sq ft with a registered turnover of Rs 3.34 bn in 2006. It has a planned investment of Rs.300 crores to ramp up its operations to 1200 stores by 2008. 8. Bharti-Walmart Their plans include US$ 7 billion investment in creating retail network in the country including 100 hypermarkets and several hundred small stores. They have signed a 50:50 percent joint venture agreement with Walmart. Wal-Mart will do the cash & carry while Bharti will do the front-end. 9. Reliance India’s most ambitious retail plans are by reliance, with investments to the tune of Rs. 30,000 cr ($ 6.67 bn) to set up multiple formats with expected sales of Rs 90,000 crores ($20 bn) by 2009-10. There are already more than 300 Reliance Fresh stores and the first Reliance Mart has opened in Ahmedabad. The next ones are slated to open at Jamnagar, followed by marts in Delhi / NCR, Hyderabad, Vijaywada, Pune and Ludhiana. 10. AV Birla Group They have a strong presence in apparel retailing through Madura garments which is subsidiary of Aditya Birla Nuvo Ltd. They own brands like Louis Phillipe, Van Heusen, Allen Solly, Peter England, Trouser town.
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In other segments of retail, AV Birla Group has announced investment plans of Rs 8000 9000 crores in the first 3 years till 2010. The acquisition of Trinethra (food & grocery) chain in the south has moved their tally to 400 stores in the country. Their “More” range of 15 supermarkets are slated to open at Nashik, Pune and other tier II cities in Western India in 2007 OTHERS RETAILERS
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Raymond Ltd.: Textiles, The Raymond Shop, Park Avenue, Park Avenue Woman, Parx, Colourplus, Neck Ties & More, Shirts & More etc.
? ?
Fabindia: Textiles, Home furnishings, handloom apparel, jewellery RP-Sanjiv Goenka Group Retail-Formats: Spencer’s Hyper, Spencer's Daily, Music World, Au Bon Pain (International bakery cafeteria), Beverly Hills Polo Club
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The Tata Group-Formats: Westside, Star India Bazaar, Steeljunction, Landmark, Titan Industries with World of Titans showrooms, Tanishq outlets, Croma.
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Reliance Retail-Formats: Reliance MART, Reliance SUPER, Reliance FRESH, Reliance Footprint, Reliance Living, Reliance Digital, Reliance Jewellery, Reliance Trends, Reliance Autozone, iStore
? ?
Reliance ADAG Retail-Format: Reliance World K Raheja Corp Group-Formats: ShoppersStop, Crossword, Hyper
City, InorbitMall
? ? ?
Nilgiri’s-Formats: Nilgiris’ supermarket chain Marks & Spencer: Clothing, lifestyle products, etc. ShriKannan Departmental Store (P) Ltd ., : Groceries, Clothing, Cosmetics [Western Tamilnadu's Leading Retailer]
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Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International Franchise brand stores.
? ? ?
Pyramid Retail-Formats: Pyramid Megastore, TruMart Next retail India Ltd (Consumer Electronics) Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre, Viveks Safe Deposit Lockers
? ?
PGC Retail -T-Mart India [1], Switcher, Respect India, Grand India Bazaar,etc., Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain.
? ? ? ? ? ? ? ? ?
Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain Vishal Retail Group-Formats: Vishal Mega Mart BPCL-Formats: In & Out German Metro Cash & Carry Shoprite Holdings-Formats: Shoprite Hyper Paritala stores bazar: honey shine stores Aditya Birla Group - "More" Outlets Kapas- Cotton garment outlets Nmart Retails with 131 operating Stores till now and total 287 Stores in India and 1 to open in DUBAI Shortly and many more in Process Globally (ZAMBIA, BANGLADESH, SRI LANKA etc.). (Expected to be 500 by the end of 2012)
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Gitanjali- Nakshatra, Gili, Asmi, D'damas, Gitanjali Jewels, Giantti, Gitanjali Gifts, etc.
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Entry of MNCs
The world's largest retailer by sales, Wal-Mart Stores Inc and Sunil Mittal's Bharti Enterprises have entered into a joint venture agreement and they are planning to open 10 to 15 cash-and-carry facilities over seven years. The first of the stores, which will sell groceries, consumer appliances and fruits and vegetables to retailers and small businesses, is slated to open in north India by the end of 2008. see also for more Detail Pick/Muller " Carrefour, the world’s second largest retailer by sales, is planning to set up two business entities in the country one for its cash-and-carry business and the other a master franchisee which will lend its banner, technical services and know how to an Indian company for direct-to-consumer retail. The world’s fifth largest retailer by sales, Costco Wholesale Corp (Costco) known for its warehouse club model is also interested in coming to India and waiting for the right opportunity. Tesco Plc., plans to set up shop in India with a wholesale cash-and-carry business and will help Indian conglomerate Tata group to grow its hypermarket business. 28
COMPANY PROFILE
Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian Consumer market. Headquartered in Mumbai, the company operates over 16 million square feet of retail space, has over 1000 stores across 73 cities in India and employs over 30,000 people. The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, food Bazaar, a supermarket chain, blends, the look, touch and fell of Indian bazaars with aspects of Modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include Brand Factory, Blue Sky, all, Top 10 and star and Sitara. The company also operates an online portal, futurebazaar.com Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail Limited. This entity has been created keeping in mind the growth and the current size of the company’s value retail business, led by its format divisions. Big Bazaar and Food Bazaar. The company operated 148 Big Bazaar stores, among other formats, in over 70 cities across the country, covering an operational retail space of over 6 million square feet. As a focused entity driving the growth of the group’s value retail business, Future Value Retail limited will continue to deliver more value to its customers, supply partners, stakeholders and communities across the country and shape the growth of modern retail in India. A subsidiary company, Home solutions Retail (India) Limited, operates home Town, a large-format home solutions store, Collection I, selling home furniture products and ozone focused on catering to the consumer electronics segment. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire India consumption space.
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FUTURE GROUP: Future group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’ leading businesses, spanning across the consumption space. While retail forms the core business activity of Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics. Led by its flagship enterprise, Pantaloon Retail, the group operates over 16 million square feet of retail space in 73 cities and towns and 65 rural locations across India headquartered in Mumbai, Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail. The group’s specialty retail formats include supermarket chain- Food Bazaar, sportswear retailer- Planet Sports, electronics retail chain- Aadhaar, among others. It also operates popular shopping portal-www.futurebazaar.com. Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the group’s core value of Indianness. The group’s corporate credo is, ‘Rewrite rules, Retain Values’.
Group vision
•
Future Group shall deliver everything. Everywhere, every time for Every Indian Consumer in the most profitable manner.
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Group Mission
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We share the vision and belief that our customers and stakeholders shall be served only to creating and executing future scenarios in the consumption space leading to economic development.
•
We will be the trendsetters IU evolving delivery formats, crating retail realty, making consumption affordable for all customers’ segments- for classes and for masses.
• •
We shall infuse Indian bands with confidence and renewed ambition. We shall be efficient, cost-conscious and committed to quality in whatever we do.
We shall ensure that our positive attitude, sincerity, humility and united determination shall be driving force to make us successful. Core Values:
• • • • • • • •
Indianness: confidence in ourselves. Leadership: to be a leader both in thought and business. Respect & humility: to respect every individual and be humble in our conduct. Introspection: leading to purposeful thinking. Openness: to be open and receptive to new ideas knowledge and information. Valuing and Nurturing Relationships: to build long term relationships. Simplicity & Positivity: simplicity in our thought business and action. Adaptability: to be flexible and adaptable, to meet challenges.
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•
Flow: to respect and understand the universal law of nature.
Corporate Structure: Future Group is India’s leading retail company operating business in three sectors. Retail, Allied Services and Finance. Our retail business acr4oss value and lifestyle segments focuses on 4 key consumption verticals: foods, fashion, general merchandise and home. Future Group has about 35,000 direct employees and 1, 50,000 more are indirectly employed. Our corporate structure has been established to infuse pace and flexibility in decision making and implantation, with empowered managers across and group operation.
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Mr. Kishore Biyani Founder and Group CEO, Future Group Considered a pioneer of modern retail in India. Kishore’s leadership has led the group‘s transformation into India’s leading player in the consumption sector. Regularly ranked among India’s most admired CEO’s, he is the author of the book. ‘It happened in India’. He has won multiple awards from government bodies and the private sector in India and abroad and is on the board of number of bodies, including the National Innovation Foundation in India and New York Fashion Board. Executive Committee Board: o Mr. Kishore Biyani, Founder and Gr4oup CEO, Future Group o Mr. Anshuman Singh, Managing Director and CEO, Future Supply Chain Solutions Ltd. o Mr. B. Anand, Director, Finance, Future Group. o Mr. Damodar Mall, Director, Integrated Food Strategy, Future Group. o Mr. Kailash Bhatia, Director and CEO, Pantaloon Retail. o Mr. K.K. Rathi, CEO, Future Ventures India Ltd. o Mr. Sanjay Jog, Chief People Officer, Future Group
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o Mr. Santosh Desai, Managing Director and CEO, Future Brands India Ltd. o Mr. Sumit Dabriwala, Managing Director, Agre Developers Ltd. o Mr. Ushir Bhatt, Group CIO and CEO, Future Knowledge Services. o Ms. Vibha Rishi, Group Strategy and Consumer Director, Future Group o Mr. V. Vaidyanathan, Vice Chairman and MD of Future Capital Holdings Ltd.
Businesses:
Future Group has a number of businesses across the retail, financial and service industries. ? Financial
? Future Capital Holdings
? Future Generali ? Future Ventures • Services ? Future Innovercity ? Future Supply Chains ? Future Brands
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Big Bazaar ? Joint Venture Partnerships
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Generali Group
? Generali is a European insurance company.
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Staples Inc 35
? Staples Inc. is a United States based office supply retailer.
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Celio ? French fashion wear maker
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Clark
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C&J Clark International Ltd. is a UK-based footwear and accessories retailer. The Future Group has entered into a 50:50 joint-venture (JV) to form 'Clarks Future Footwear Ltd.'. The JV launched its first (1,600 sq ft.) stand-alone store in Connaught Place, Delhi on 19 April 2011. The brand seeks to gain a share of the premium segment in this category.
Every day, Future Group brings multiple products, opportunities and services to millions of customers in India. Through over 15 million square feet of retail space, we serve customers in 85 cities and 60 rural locations across the country. Most of all, we help India shop, save and realize dreams and aspirations to live a better quality of life every day. Future Group understands the soul of Indian consumers. As one of India’s retail pioneers with multiple retail formats, we connect a diverse and passionate community of Indian buyers, sellers and businesses. The collective impact on business is staggering: Around 220 million customers walk into our stores each year and choose products and services supplied by over 30,000 small, medium and large entrepreneurs and manufacturers from across India. And this number is set to grow. Future Group employs 35,000 people directly from every section of our society. We source our supplies from enterprises across the country, creating fresh employment, impacting livelihoods, empowering local communities and fostering mutual growth. We believe in the ‘Indian dream’ and have aligned our business practices to our larger objective of being a premier catalyst in India’s consumption-led growth story. Working towards this end, we are ushering positive socio-economic changes in communities to help the Indian dream fly high and the ‘Sone Ki Chidiya’ soars once again. This approach 36
remains embedded in our ethos even as we rapidly expand our footprints deeper into India.
Key Group Companies: • • • • • • • • • • • Pantaloons - Fresh fashion store Big Bazaar - Hypermarket chain Food Bazaar - Supermarket chain Fashion Big bazaar – Supermarket chain Ozone - Electronics superstore Hometown - Home improvement and building materials store Central - Seamless department store Planet Sports - Sportswear retailer Aadhar - Rural retail chain KB’s Fairprice - Urban low-frills neighborhood store Futurebazaar.com - Shopping portal
Services: While retail forms the core business activity of Future Group, group subsidiaries are present in leisure and entertainment, brand development, retail real estate development, retail media and logistics. Some of our other businesses include, mobile telephony brand, T24, operated in association with Tata Teleservices, a supply chain and logistics Infrastructure Company, and a company engaged in providing educational and training services through three Future Innovercity campuses in Ahmadabad, Bangalore and Kolkata Overview: Every day, Future Group brings multiple products, opportunities and services to millions of customers in India. Through over 15 million square feet of retail space, we serve
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customers in 85 cities and 60 rural locations across the country. Most of all, we help India shop, save and realize dreams and aspirations to live a better quality of life every day. Future Group understands the soul of Indian consumers. As one of India’s retail pioneers with multiple retail formats, we connect a diverse and passionate community of Indian buyers, sellers and businesses. The collective impact on business is staggering: Around 220 million customers walk into our stores each year and choose products and services supplied by over 30,000 small, medium and large entrepreneurs and manufacturers from across India. And this number is set to grow. Future Group employs 35,000 people directly from every section of our society. We source our supplies from enterprises across the country, creating fresh employment, impacting livelihoods, empowering local communities and fostering mutual growth. We believe in the ‘Indian dream’ and have aligned our business practices to our larger objective of being a premier catalyst in India’s consumption-led growth story. Working towards this end, we are ushering positive socio-economic changes in communities to help the Indian dream fly high and the ‘Sone Ki Chidiya’ soars once again. This approach remains embedded in our ethos even as we rapidly expand our footprints deeper into India. A new normal is being defined in the Indian consumer market every day. With farreaching socio-economic changes that India has undergone in the last decade, the drivers in urban and rural India are maturing fast. With a growth strategy tempered with localization and an inclusive business model, Future Group is the only pure play local retailer poised to lead India’s consumption story with sustainable value creation. Our multi-format retail strategy captures almost the entire consumption basket of Indian customers. As modern retail drives new demand, efficiency and consumption in new categories, our strategy is based on our deep understanding of Indian consumers. We
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understand the varied buying behavior of the Indian consumer across regional ethnicities and are constantly innovating to craft strategies that address the subtle differences. Future Group's strategy is aimed at achieving inclusive, sustained and profitable growth with three levers Customer-orientation: The bottom line in each of our retail success stories is "know your customer". An insight into the soul of Indian consumers - how they operate, think, dream and line - helps us innovate and create differentiating functionally. Continuous-innovation: As India's largest retailer, we understand the importance of innovation. We rethink strategies and realign businesses with increasing agility to provide diverse customer groups with refreshingly different retail experiences. Collaborative transformation: Creating a collaborative environment combining our strengths with our suppliers and vendors helps us create immense value for our customer which in turn fosters mutual growth. We believe that modern Indian retail rests on the strength of two pillars – scale and efficiencies. As front-runners in both areas, we firmly believe our core responsibility lies in providing protection to customers from the overall rate of inflation. While the scale and size of our operations helps us improve efficiencies, it also ensures we deliver greater value to our customers. Our retail thrust is focused on four principal verticals of Food, Fashion, General Merchandise and Home. These four categories together account for nearly 65% of the consumption in the country and represent mass consumer aspirations. Acknowledging this, we are creating retail pure play through divestment and demerger of non-retail businesses to concentrate our efforts on these verticals. 39
India’s retail boom is being driven by resurgence in the economy. Modern retail still has around 6% share of the total retail spend in the country that is estimated at around US $ 400 billion. Thus, the potential for modern retail growth in India is huge. Currently, leading retailers in mature markets occupy the top three slots by turnover, employment and value creation. As the Indian economy matures, it is upon us to make the same happen in our country.
Opportunities:
Start Here Dream Big. Grow Far. We're growing in dynamic ways and are looking for people who will enable us to continue our success.
Our Brands:
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More: 25 years ago, we began our pioneering journey transforming the Indian retail landscape, whole-heartedly enduring values. believing in rewriting rules and retaining values. Today, our deep footprint across India and landmark growth is testament to our
COMPANY’S MILESTONES
2011 April 2011 – KB’s Fairprice celebrates opening its 200 stores in India May 2011 – Future Supply Chains becomes ISO certified
2010 Future Group launches its telecom brand T24 in partnership with Tata Teleservices to provide additional loyalty benefits to its customers. Future Group launches products in key FMCG categories through such, a brand cocreated with Sachin Tendulkar.
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Future Group connects over 4000 small and medium Indian manufacturers and entrepreneurs with consumers.
2009 Future Group celebrates its first Shopping Festival across all retail formats in key Indian cities. Future Innovercity starts its campuses in Ahmadabad, Bangalore and Kolkata to offer degree programs through a tie-up with IGNOU. Future Group partners with Hong Kong-based Li & Fung Group to strengthen its supply chain and logistics network across the country.
2008 Future Capital Holdings becomes the second group company to make a successful Initial Public Offering (IPO) in the Indian capital market. Big Bazaar crosses the 100-store mark, marking one of the fastest expansions of the hypermarket format anywhere in the world. Total operational retail space crosses the 10 million square feet mark. Future Group acquires rural retail chain Aadhar from the Godrej Group, which has a presence in 65 rural locations.
2007 Future Group crosses the $1 billion turnover mark. Specialized companies in retail media, logistics, IPR and brand development and retailled technology services become operational. Pantaloon Retail wins the International Retailer of the Year award at US-based National Retail Federation convention in New York, and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona. Online portal Futurebazaar.com becomes India’s most popular shopping portal.
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2006 Future Capital Holdings, the group’s financial arm, is formed to manage over $1.5 billion in real estate, private equity and retail infrastructure funds. Home Town, the home building and improvement products retail chain, is launched along with consumer durables format Ezone and furniture chain Furniture Bazaar. Future Group enters into joint venture agreements to launch insurance products with Italian insurance major Generali. Future Group forms joint ventures with US office stationery retailer Staples.
2005 Future Group moves beyond retail and acquires a stake in Galaxy Entertainment, Indus League Clothing and Planet Retail. Future Group sets up Kshitij, India’s first real estate investment fund, to build a chain of shopping malls.
2004 Future Group launches India’s first seamless mall, Central, in Bangalore.
2002 Food Bazaar, the supermarket chain is launched.
2001 Future Group launches three Big Bazaar stores within a span of 22 days in Kolkata, Bangalore and Hyderabad.
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1997 Future Group enters modern retail with the launch of the first 8000-sq. ft. store Pantaloons in Kolkata.
1995 Future Group launches John Miller, a brand for Formal shirts.
1994 The Pantaloon Shoppe, Future Group’s exclusive menswear store in a franchisee format is launched across the nation. The company starts distribution of branded garments through multi-brand retail outlets across the nation.
1992 Pantaloon Retail India Ltd makes an Initial public offer (IPO).
1991 BARE, an Indian denim brand is launched.
1987 The company is incorporated under the name of Manz Wear Private Limited. A pantaloon, one of India’s first formal trouser brands, is launched.
Riteverses:
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Future Group was founded on a simple idea: Rewrite rules, retain values. This fundamental belief created a new kind of marketplace, forever transforming Indian retail. Today our core values continue to guide how we do business and improve the quality of life of the people we serve. At Future Group we are committed to being a catalyst of positive change in the communities, societies and business sectors in which we operate. We envision India’s transformation into the legendary 'Sone Ki Chidiya' (golden bird), taking wings once again to reach greater heights. We take pride in our Indianness. Our belief in inclusiveness for long-term sustainable growth and economic prosperity evokes trust among consumers, employees, suppliers, partners, shareholders and the community.
BIG BAZAAR
Big Bazaar was launched in September, 2001 with the opening of its first four stores in Calcutta, Indore, Bangalore and Hyderabad in 22 days. Within a span of ten years, there are now 148 Big Bazaar stores in 80 cities and towns across India. Big Bazaar is designed as an agglomerating of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products,
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general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections. Food Bazaar, a supermarket format was incorporated within Big Bazaar in 2002 and is now present within every Big Bazaar as well as in independent locations. A typical Big Bazaar is spread across around 50,000 square feet of retail space. While the larger metropolises have Big Bazaar Family centers measuring between 75,000 square feet and 1, 60,000 square feet, Big Bazaar Express stores in smaller towns measure around 30,000 square feet. Most of the Big Bazaar stores are multi-level and are located in stand-alone buildings in city centers as well as within shopping malls. These stores offer over 200,000 SKUs in a wide range of categories led primarily by fashion and products. In 2006-2007, more Indian discovered the value of shopping in Big Bazaar. And with the launch of each store, we discovered more value in terms of operational efficiency. Big Bazaar launched 27 new stores, in 22 cities, covering over 1.40 million square feet. As of June 2007, there were 56 Big Bazaar stores across 43 cities. While Big Bazaar continued to expand in the large cities, it also tapped consumption potential in smaller cities like Agra, Allahabad, Coimbatore, Surat, Panipat, Palakad, Kanpur and Kolhapur. The Year under review also witnessed realigning of business teams with shared experience in category management, sourcing, front-end operations and business planning. In addition, separate teams have been formed to look into all aspects of new store launches and to manage mature stores. This provides more flexibility and focus in expansion plans. The increase in SKUs in existing categories and the introduction of new categories encouraged the opening of larger stores or Super Centers, measuring 100,000 square feet or more. There are now 5 Big Bazaar Super Centers. Considering this scale of expansion, technology plays a significant facilitating role. The introducing of SAP in 2005-06 and its roll out during the year positively impacted the business. Big Bazaar has initiated the process of Auto Replenishments Systems, thus improving operational efficiencies and productivity. The company has also rationalized
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nearly 250 vendors through better vendor management in terms of potential to expand, and for inclusion and up gradation to the online B2B platform.
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ORGANIZATION STRUCTURE
Store Manager
Assistant Store Manager
Department Manager
Assistant Department Manager
Team Leader
Team Members
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MANAGEMENT STYLE: The organization structure for Big Bazaar is flat in nature. For Big Bazaar, the divisions are apparel, non-apparel and the new business division, which includes gold, footwear and the shop-n-shops. For Food Bazaar, a separate team has been created which again works independently. About 1,800 people work for Big Bazaar directly. Support and ancillary services comprise another 400 people. A new trainee is put through a basic three day training program before going on the shop floor. Evaluation is done every six months. THE STRATEGY: Saving is key to the Indian middle class consumer. The store, which would be created, had to offer value to the consumer. Keeping this in mind, the concept of big bazaar was created. In India when a customer needs something for the home, a typical thought is to seek it from the bazaar. A bazaar is a place where a complete range of products is always available to the consumer. This is true across India. As the store would offer a large mix of products at a discounted price, the name Big Bazaar was finalized. The idea was to recreate a complete bazaar, with a large product offering (at times modified to suit local needs) and to offer a good depth and width in terms of range. The mind to market for the first store was just six months. Price was the basic value proposition at Big Bazaar. The Big bazaar outlets sold a variety of products at prices, which were 5 to 60 percent lower than the market price. The line “Isse sasta aur achha kahin nahin” Emphasized this.
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OBJECTIVE AND RESEARCH METHODOLOGY OBJECTIVES:
? Primary Objective • • To study Consumer Buying Behaviour at ‘Fashion at Big Bazaar’. To compare the service and quality of ‘Big Bazaar and Vishal Mega Mart.’ ? Secondary Objective • • To understand the quality of brands in the store. To understand the quality of services provided in the store
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RESEARCH METHODOLOGY Research is a systematic and continues method of defining a problem, collecting the facts and analyzing them, reaching conclusion forming generalizations. Research methodology is a way to systematically solve the problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that all generally adopted by a researcher in studying his research problem along with the logic behind them. The scope of research methodology is wider than that of research method. Thus when we talk of research methodology we not only talk of research methods but also consider the logic behind the method we use in the context of our research study and explain why we are using a particular method. RESEARCH DESIGN A research is the arrangement of the conditions for the collections and analysis of the data in a manner that aims to combine relevance to the research purpose with economy in procedure. In fact, the research is design is the conceptual structure within which research is conducted; it constitutes the blue print of the collection, measurement and analysis of the data. As search the design includes an outline of what the researcher will do from writing the hypothesis and its operational implication to the final analysis of data. The design is such studies must be rigid and not flexible and most focus attention on the following; o What is the study about? o Why is the study being made? o Where will the study be carried out? o What type of data is required? o Where can be required data be found? o What period of time will the study include? o What will be sample design? o What techniques of data collection will be used?
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1 OBSERVATION Broad area of research interest identified
3 PROBLEM DEFINITION Research Problem Delineated
4 THEORETICAL FRAMEWORK Variables clearly identified and labelled
5 GENERATION OF HYPOTHESES
6 SCIENTIFIC RESEARCH DESIGN
7 DATA COLLECTION, ANALYSIS AND INTERPRETATION
2 PRELIMINARY DATA GATHERING Interviewing Literature Survey Research
Process
8 DEDUCTION Hypotheses substantiated? Research question answered? NO Yes 11 Manager ial decision making
9 Report writing
10 Report Presentat ion
TYPES OF RESEARCH DESIGN
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EXPLORATORY RESEARCH DESIGN: Exploratory research design is termed as formulating research studies. The main purpose of study is that of formulating a problem. The major emphasis in such study is on discovery of new idea’s and insights. As such the research design appropriate for such studies must be flexible enough to provide opportunity for considering different aspects of problem.
DESCRIPTIVE AND DIAGNOSTIC RESEARCH DESIGN: Descriptive research design is the design which is concerned with describing the characteristics of particular individual or of the group. Descriptive research includes surveys and fact finding enquires of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. Researcher has no control over the variables of this type of research. EXPERIMENTAL RESEARCH DESIGN: These are those studies where the researcher tests the hypothesis of casual relationship between variables. Such study requires procedure that will not only reduce biasness and increase reliability but will permit drawing influence about causality. Usually 54
experiments meets this requirement, hence these research designs are prepared for experiment. RESEARCH DESIGN IN STUDY: In the study I have applied Exploratory Research Design.. The main purpose of study is that of formulating a problem. The major emphasis in such study is on discovery of new ideas and insights. As such the research design appropriate for such studies must be flexible enough to provide opportunity for considering different aspects of problem. . DATA COLLECTION: After the research problem has been identified and selected the next step is to gather the requisite data. While deciding about the method of data collection to be used for the the researcher should keep in mind two types of data VIZ. primary and secondary.
PRIMARY DATA:
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The primary data are those, which are collected afresh and for the first time, and thus happened to be original in character. We can obtain primary data either through observation or through direct communication with respondent in one form or another or through personal interview. SECONDARY DATA: The secondary data on the other hand, are those which have already been collected by someone else and which have already been passed through the statistical processes. When the researcher utilizes secondary data then he has to look into various sources from where he can obtain them. For eg: Books, magazine, newspaper, Internet, publications and reports.
SAMPLE DESIGN: “A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting item for the sample” Generally Sample designs are two types 1. PROBABILITY RESEARCH DESIGN: Probabilistic sampling is characterized by the fact that each element of the population is known & non-zero chance of being included in the sample. 2. NON PROBABILITY RESEARCH DESIGN: It is that type of sampling which is according to the convenience of researcher therefore it is called convenience research also. SAMPLING UNITS:
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Sampling unit may be a geographical one, such as state, district, village etc. The researcher will have to decide one or more of such units that he has to select for his study. RESEARCH INSTRUMENT: Research instrument is used for collecting the data. This relates to the tools used for collection of data and other information required for the purpose of the project.
I) Research Design Type of Research- Descriptive Type of data – Primary data II) III) Data analysis tool – Bar chart, pie charts Sampling Framework
Sampling Technique-Non Probability i.e. convenient sampling Sample size – 50 Sampling Unit- Individuals IV) Data Collection Methods
Primary data is collected through survey conducted in the store with help of questionnaire.
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Limitations of the Study
No study is without limitations, whether it is of any type & so researcher study does have certain limitations Limitations are those difficulties which are faced by the researcher while his research works. The limitation Researcher has faced during research. 1. TIME CONSTRAINTS: The time period for the study is very less because the study is so complex. . 2. INFORMATION NOT SUFFICIENTLY AVAILABLE: The source of data collection is secondary so the information available is not sufficient. Moreover there is heterogeneity of information available at different sources. 3. RESPONDANTS WERE NOT WILLING TO SHARE INFORMATION: Employee were not ready to share much especially the negative points. 4. COMPLEX CALCULATIONS: The calculations are so complex that it needs expertise and tedious task. Other Limitations1. 2. 3. 4. Some respondents refuse to co-operate. Some respondents replied half heartedly. Some respondents gave incomplete information. The survey was conducted in very general way as no other variable such as their education level, occupation and sex.
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ANALYSIS AND INTERPRETATION OF DATA Age group of the respondents 0-18 A)
6%
B)
19-30
71%
C)
30-50 18%
D)
50 above 4% Table-6.1
Figure- 6.1
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INTERPRETATION:
Out of 50 respondents,6% people come under the age category of 0-18, 71% people come under the age category of 19-30 ,18% come under 30-50 category,4% come under category of 50 above.
Gender of the respondents Males A)
56%
B)
Females
44%
Table- 6.2
Figure- 6.2
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INTERPRETATION:
Out of 50 respondents, 56% are males and 44% are females. MAXIMUM MALES COME IN FBB STORE Q1. Had you been earlier at Fashion at Big Bazaar?
A) B)
YES NO
54% 46%
Table-6.3
Figure- 6.3
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INTERPRETATION:
Out of 50 respondents , 54% people had visited in the FBB store earlier and 46% people had visited first time in the FBB store. Maximum number of know about the FBB store earlier
Q2. How do you know FBB?
A)
By seeing 49%
B) C) D)
By ads By experience By friends or peers 10% 10% 10%
Table- 6.4
Figure- 6.4
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INTERPRETATION:
Out of 50 respondents 49% of people know fbb by seeing or by passing through the roads 10% of people know fbb by seeing ads,10% of people know by experience and 16% people know fbb Maximum number of know fbb by seeing or by passing through the roads. Q3. In your opinion is quality of brands at FBB is upto mark?
A) B)
YES NO
92%
8%
Table- 6.5
Figure- 6.5
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INTERPRETATION:
Out 50 respondents ,92% people said that quality of apparels in the FBB store is upto mark and 8% people said that quality is not upto mark. Maximum people said that quality of apparels in the FBB store are good . Q4. In your opinion is the service provided by FBB is upto mark?
A) B)
YES NO
Table- 6.6
96% 4%
Figure-6.6
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INTERPRETATION:
Out of 50 respondents, 96% people said that services provided in the FBB store is upto mark and 4% said that service is not upto mark. Maximum number of people are satisfied with the services provided by the FBB store. Q5.Apart from FBB, which retail outlets do you prefer?
A) B) C) D)
Local Market Vishal Megamart Westside OTHERS
35% 40% 15% 10%
Table- 6.7
Figure- 6.7
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INTERPRETATION:
Out of 50 respondents, 40% people visit Vishal mega mart for shopping and rest of the respondents visit local market, Westside for shopping. Maximum number of people visit Vishal mega mart for shopping.
Q6. The proportion of quality of brands at Vishal Megamart. A) B) SATISFACTORY 37% UNSATISFACTORY 63%
Table- 6.8
Figure- 6.8
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INTERPRETATION:
Through observation,37% number of people are satisfied with quality of brands in the vishal mega mart and 63% are dissatisfied Maximum number of people are dissatisfied with quality of brands in the vishal megamart. Q7. The proportion of quality of services at Vishal Megamart
A) B)
SATISFACTORY UNSATISFACTORY
27% 73%
Table- 6.9
Figure- 6.9
INTERPRETATION:
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Through observation,27% number of people are satisfied with quality of brands in the vishal mega mart and 73% are dissatisfied . Maximum number of people are dissatisfied with quality of services provided at the vishal megamart.
FINDINGS Objective1:To study the consumer buying behaviour at ‘Fashion at Big Bazaar’. Findings:
o People were very much familiar with fbb. o Store performing well in attracting the customers. o Fashion at big bazaar(FBB) provides better shopping experience.
Objective2: To compare the service and quality of ‘Big Bazaar and Vishal Mega Mart’. Findings:
o Quality of brands are better than vishal mega mart. o Quality of services provided by the fbb store is better than vishal mega mart.
Secondary objectives: Findings:
o Sales persons/ promoters behave well with customers. o Brands availabilty in FBB is upto mark. o Service provided at fbb is upto the mark.
Other Findings:
o Discount and offers doing well in the store. o Product display and signange board is good. o Location of fbb is very convenient. o Parking facility is good in fbb. o Cleanliness and hygiene maintained in the store is upto the mark.
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SUGGESTIONS
o More variety in jean wear, formal shirts is required, and size problem must try to be sorted out. o Sitting place is required for old aged person. o Discount boards should be made properly visible. o Announcement devices were in need to be repaired. o The numbers of Cash tills should be increased in weekends. o Sizes in jeans specially no. 34 and 32 must be made available. o More Brands should be made available. o Customer entry and exit point should be same. o Formal wearings for girls in need to be provided. o Some area should be added for the children to play so that parents can easily shop. o Music should be of customer choice.
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CONCLUSION
Behaviour is a mirror in which every one shows his or her image. Behaviour is the process of responding to stimuli. Consumer behaviour provides invaluable dues and guidelines to market on new technological frontiers, which they should explore to better meet the needs of specific groups of consumers, most marketers adopted a policy of market segmentation & successfully market to different segments the marketing manager needs appropriate marketing strategies, which account for these difference in consumer’s behaviour. After analyzing the findings of the research,I conclude that FBB store doing well inattracting the customers, store provide better shopping experience.The `quality of apparels in the FBB store is very good and service provided by the FBB store to the customers coming in the store is good.The brand availability of apparels in the store is well. It also concluded that,”discount and offers provided by the FBB store is good.The product display and signage board is good.
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