sushil mandlekar

52
1 TO STUDY STORE CHOICE BEHAVIOR FOR GROCERY PRODUCTS IN ORGANIZED RETAIL OUTLET WITH RESPECT TO NAGPUR CITY A PROJECT REPORT Submitted To RASHTRASANT TUKDOJI MAHARAJ NAGPUR UNIVERSITY, NAGPUR SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MBA SUBMITTED BY SUSHIL KUMAR U. MANDLEKAR Project Guide AVINASH BHOWATE ASSISTANT PROFESOR March-2015 GREEN HEAVEN INSTITUTE OF MANAGEMENT AND RESEARCH, NAGPUR

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TO STUDY STORE CHOICE BEHAVIOR FOR

GROCERY PRODUCTS IN ORGANIZED

RETAIL OUTLET WITH RESPECT TO

NAGPUR CITY

A PROJECT REPORT

Submitted To RASHTRASANT TUKDOJI MAHARAJ NAGPUR UNIVERSITY, NAGPUR

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF

THE DEGREE OF MBA

SUBMITTED BY

SUSHIL KUMAR U. MANDLEKAR

Project Guide

AVINASH BHOWATE ASSISTANT PROFESOR

March-2015

GREEN HEAVEN INSTITUTE OF MANAGEMENT AND

RESEARCH, NAGPUR

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CERTIFICATE

This is to certify that Sushil Kumar u. Mandlekar is a bonafide student of

Master of Business Administration of Green Heaven Institute of

Management and Research, Nagpur. He / she has completed his / her project

entitled “To study store choice behavior for grocery products in

organized retail outlet with respect to Nagpur city”, submitted in partial

fulfillment of MBA program of the RASHTRASANT TUKADOJI

MAHARAJ NAGPUR UNIVERSITY, Nagpur, under my guidance and

supervision in the academic year 2014-15.

Project Guide Director

Prof. Avinash Bhowate Dr. T. Kalyani

Green Heaven Institute of Management and Research,

Near Hotel Sun & Sand, Wardha road, Nagpur.

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DECLARATION

I, Sushil Kumar u. Mandlekar hereby declare that the project

entitled To study store choice behavior for grocery products in

organized retail outlet with respect to Nagpur city has been carried out by

me under the guidance of Prof. Avinash Bhowate.

This project is submitted to RASHTRASANT TUKADOJI

MAHARAJ NAGPUR UNIVERSITY, Nagpur in partial fulfillment of the

academic requirement for Master of Business Administration during the

academic year 2014-15.

This is the outcome of my own research work based on personal study

and has not been submitted previously for award of any degree or diploma to

this university or any other university.

Sushil Kumar U. Mandlekar

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ACKNOWLEDGEMENT

Completing a task is never alone journey. It is often the result of a

valuable contribution from a number of individuals in every possible way,

which ultimately helps in achieving the objective.

Firstly I would like to thank Dr. T. Kalyani Director and Prof. Avinash

Bhowate Project Guide, for their kind support and giving me the

opportunity to present this project.

I am thankful to all the members of management of the college, who

provided me to all the information that I needed to complete this project.

This project would not have been accomplished without their valuable

support.

I would like to acknowledge the contribution of my parents and all my

friends who have been instrumental in successful completion of the project.

Place: Nagpur Sushil Kumar U. Mandlekar

Date:

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TABLE OF CONTENTS

Sr. No.

Particulars

Page No.

1 Introduction 1-4

2 Research Methodology

Introduction to research

Research Methodology

Problem statement

Aims and objectives

Scope and limitations

Hypothesis/Hypotheses

5-11

3 Literature of review 12-14

4 Data Collection

Primary Data

Secondary Data

15-37

5 Finding & Suggestions 38-41

6 Bibliographies & Annexure 42-46

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ABSTRACT

I did my project in store choice behavior for grocery products in organized retail outlet

with respect to Nagpur city. Project is mandatory by college and university.

Organized retailers actually work as a retail outlet catering to varied needs of the

customers. The purchasing pattern of the customer has changed recent days. Customer’s

buying behavior is influenced by social factors, such as the group to which the customers

belong and social status. In a group, several individuals may interact to influence the

purchase decision. Change in consumption pattern is due to outsourcing business per

capita, income of middle age, population in big cities is rising rapidly and easier access to

credit. Retail shopping space is also growing exponentially and has increased to 54

million square meters. The development of organized shopping malls has literally been a

revolution in India. Retailing is one of the largest business activities in India and one of

the largest sources of employment in the country. Due to drastic change in the behavior

of the consumer, in the view of growing economy, earning capacity, less time and fast

track life the emerging challenge for the retail in India and in Nagpur city is to maintain

the quality in competitive rate structure. Data was collected from questionnaire filled up

by the consumers visited to organized retail shops. 100 consumers were selected by

Random Sampling Method. Introduction of organized retailing has not been able to

replace traditional markets, which are still popular among the pocket conscious people,

but has definitely added a new adventure to the shopping experience.

I get more experience through survey. I have learnt lots of things like communication

skills and convincing power and also get an experience how to interact with the people. I

learned the actual market condition and sales environment.

We observed that Indian public is mostly unaware about retail industry and even not

giving any priority to shopping experience only 27% to 38% of the population has

purchased grocery product in Big Bazaar, reliance fresh, Westside, Apana Bhandar,

pantaloons etc.

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CHAPTER 1

INTRODUCTION

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Introduction:

India is one of the fastest growing economies in the world and one of the largest in term

of purchasing power parity. It has been called a nation of shopkeepers since centuries.

Trading is one of the most significant sectors of the Indian economy. The contribution of

this sector in the total Gross Domestic Product is 14 percent and near about 3 crores

peoples derives their income from this treading activities. Majority of them are laborers

involved in small retail treading activity. These small traders now will have to face

competition with organized large departmental stores like, Wal-Mart, Tesco, Metro,

Kasino, Big Bazar, Pyramid, Pantaloons, Westside, Apana Bhandar, Reliance Fresh,

Super General Shoppe etc.

With the changing demographics across the world the organized retailing is taking shape

where people buy their daily and monthly purchases. In a way, large area, usually lined

with many products, brands with width and depth. Organized retailers actually work as a

retail outlet catering to varied needs of the customers. The purchasing pattern of the

customer was changed recent days. Customer’s buying behavior is influence by social

factors, such as the group to which the customer belong and social status. In a group,

several individual may interact to influence the purchase decision. Up to 2002, consumers

even in India, top cities such as Mumbai, Delhi has no choice to purchase their daily

foods and consumers good from small scale Mom & Dad Stores. However, the shopping

experience for India’s urban consumers is now changing completely. Because of the

outsourcing business per capita income of middle age population in big cities is rising

fast and easier access to credit are bringing a change in consumption pattern. Retail

shopping space is also growing exponentially and has increased to 54 million square

meters.

The development of organized shopping malls has literally been a revolution in India.

The opening of the Indian Economy in the early 1990s brought a wide range of new

household’s appliances, stylish apparel, and other consumer goods, along with the plenty

of media exposure. But what the Indian consumer still lacked was a world-class shopping

experience: a pleasant, open, relaxing, air-conditioned place to compare prices, quality

and styles without other customers trying to squeeze through the shop doorway or shout

over one’s head to proprietor.

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India is the country having the most unorganized retail market. Traditionally it was a

family’s livelihood, with their shop in the front and house at the back, while they run the

retail business. More than 99 per cent retailers have a space less than 500 square feet of

shops. The Indian retail sector is estimated at around 900,000 crores, of which the

organized sector accounts for a mere 2 per cent indicating a huge potential market

opportunity that is laying in the waiting for the consumer. Purchasing power of Indian

urban consumer is growing and branded merchandise in categories like Apparels,

Cosmetics, Shoes, Watches, Beverages, Food and even jewelry, are slowly becoming

lifestyle products that are widely accepted by the urban Indian consumer. Indian retailers

need to advantage of this growth and aiming to grow, diversify and introduce new

formats have to pay more attention to the brand building process. The emphasis here is on

retail as a brand rather than retailers selling brands. The focus should be on branding the

retail business itself. A number of large corporate houses – Tata’s, Raheja’s, Piramal’s,

Goenka’s – have already made their foray into this arena, with beauty and health stores,

supermarkets, self-service music stores, new age book stores, every- day- low price

stores, computers and peripherals stores, office equipment stores and home-

building constructions stores. Today the organized players have attacked

every retail category.

Wal-Mart, the world’s biggest retailer, was established in 1962. Its founder

Sam Walton had expanded Wal-Mart into a chain of discount stores and all

its stores were built on the principle of attracting customers of the lower

income group by providing a variety of products under one roof at a low

price. Also the malls are providing the facilities for customers to pay the

higher amount on installment basis, and/or giving interest free finance, credit

card facility, gift hamper, free products and many other discount facilities.

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1. Indian Retailing can be classified in two sectors:

1) Organized Retailing, which has developed in India in following format.

Shopper stop — Departmental store format

Big Bazaar — Hyper market

Food world — Super market

Pantaloons and the home store — specially retailing

2) Un-organized Retailing.

Retailing is subjected to the constant changes, which increase both the risk and the

influenced by many forces such as:

Population

Mobility of consumer

Increased in personal income

Changes in the distribution of income

Consumer credit

Competitive changes

Technological innovation

Government policies, etc.

1. The essential elements for a successful retail trade can be classified as, a.

Selection of proper goods

b. Perfect knowledge about the goods

c. Sales policy

d. Adequate capital

e. Business location

f. Education and business

g. Attractive display and advertisement

h. Providing credit facility

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CHAPTER 2

RESEARCH METHODOLOGY

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2. Methodology

2.1. Significance of the Study

Retailing is one of the largest business activity in India and one of the largest sources of

employment in the country. According to a study by Industry Body FICCI, the total retail

trade in India was worth Rs. 11, 00,000 crores in the year 2003. Of the approximately 12

million retail shops, 96% occupy floor space less than 500 square feet. The large number

of retail shops is in the un-organized sector, such as Grocery, Vegetable shop etc. Only

about 2% of outlet in the organized sector, such as retail chains, departmental stores, and

special stores. The boom in India’s retail industry is mainly due to the rise in shopping

Malls across the country in the past 5-6 years even as their management has emerged as a

big challenge.

The Indian market comprises of three different types of consumer such as rich consumers

having tremendous purchasing capacity, middle class consumers having adequate

purchasing power, and the bottom line consumers who possess low purchasing power.

Big retailers would not reach up to the bottom; they would be concentrating their

attention towards the reach and middle classes. The Mall culture is affecting the small

retailers. There are the major reasons of which the challenge has arisen for the small

stores. Usually the mentality of average people in India, have the product in a cheap rate

and in addition it should also have the quality. Such behavior of consumer has made

market much more competitive, but it has many prospects, so the big companies like ITC,

Big Bazar, Tru Mart, Chaupal, Reliance etc. have jumped into the retail market. These

companies trying to attract the customer by providing the goods in discount rate, less than

MRP, certain gift hampers, free product on purchase etc. Due to such methods or

schemes of attracting the customer by the giant and organized players in retail trade, the

small and un- organized shopkeeper’s i.e. the sole traders are finding themselves difficult

to maintain the customer’s fluency. The mode of buying the product on credit by the

customer from the sole trader has also decreased. This happens especially with Grocery

shops, small readymade cloth stores and small other stores. As the economy in the boom

condition people do have enough money in their hand to purchase the product in cash, or

on credit cards, so they are getting attached towards such Big Bazaar, Tru-Mart. It also

because such retailers are able to maintain the quality and packed products. Due to drastic

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change in the behavior of the consumer in the view of growing economy, earning

capacity, less time and fast track life the emerging challenge for the retail in India and in

Nagpur city is to maintain the quality in competitive rate structure.

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2.2. Area of the Research

Attempts have taken to study the view of consumers regarding organized and un-

organized retailing and their preferences towards the consumer goods in Nagpur City. For

this research Nagpur City is considered as the area of research. It is one of the important

cities in Maharashtra, as well as in the country. It is second capital of Maharashtra. It is

located at geographical center of India and well connected by rail, road and air with rest

of the country and three national highways are also passing through the city. To cater the

need of increasing importance of city, Cargo Hub, Mihan project has already started and

some IT companies have already started functioning and like Infosys, Mahindra-Satyam

have decided to launch their projects in near future. The Mall culture was started in

Nagpur city 4-5 years back by setting up Westside and then Big Bazaar. Cooperative

consumer stores were started long back, but the culture remains same as small retailers.

More consumers are attracting towards Big Bazaar because of its publicity, big space,

marketing strategy, display of various products and discount facilities. Displaying various

products less than one roof makes the consumers convenient to choose the product freely

and can handle the products by themselves hence the consumers are purchasing some

products which are not of their prime importance. Markets in Sitabuldi, Sadar, Central

Avenue, and GandhiBaug meet the city’s shopping needs. Dharampeth and Itwari have

emerged as a popular alternative.

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The total area covered by shopping mall in Sitabuldi on 10lack sq. ft. with a hotel,

recreation Centre and multiplex theatres built in. Six new shopping malls in Nagpur will

come up by 2008-09 at an investment of Rs. 1,000 crores. The Nagpur Municipal

Corporation has allocated unused land to infrastructure development companies for a

twenty-year lease of Rs. 545 crores. BSEL infrastructure Realty and Unity Infra projects

have bagged the projects. These malls would be located in Netaji Market and Water

Works Department in Sitabuldi, in Gokulpeth Market, Grain Market in Wardhman Nagar,

in Jaripatka and in Pachpoli Flyover near Kamal Square. Some of the recently built

notable landmarks are MHKS Mall at Chaoni, Mangalam Marvel at W.H.C. Road, The

Triangle at Kingsway and Inland at Central Avenue.

Big Bazaar is first Mall and organized retail shop in the city and hence we have taken

into consideration for our research project as a case study.

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2.3. Objectives of the Study

Aim: To study store choice behavior for grocery products in organized retail outlet with

respect to Nagpur city‖

Objective:

To understand the consumer buying pattern of grocery.

To find out impact of promotional activities by the retail stores.

To find out the consumer preference for the retail outlets.

To find out the services provided by retail sector in Nagpur city

2.4. Technique of data collection

For conducting this research program, primary data was collected from the consumers

who visited and made purchases from Big Bazaar.

Primary data was collected through interview and questionnaire.

Data related with the retail shopkeepers was collected from the small retail shopkeepers

from Sitabuldi and Wardhman nagar area.

The secondary data have been use to know the different statistics regarding the

development of retail marketing and big retailers.

Books, journals, reports, articles published in the newspapers are the sources of

secondary data.

The secondary data was also collected from internet.

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2.5. Sampling

The consumers and small retailers are the universe of the research. It is very difficult to

collect information from every consumer, so we used the sampling method for research.

Big Bazaar has two outlets in Nagpur city (Ramdas Peth and Wardhman nagar), so data

was collected from the consumers visited to these outlets. 100 consumers were selected

by Random Sampling Method.

A Questionnaire was prepared for consumers and this was filled up by the way of

contacting the consumers and making some queries regarding their opinion.

Samples from Nagpur city was selected by Random Sampling method. Two outlets of

Big Bazaar are the places of observations. Specific sampling method have adopted for

Big Bazaar.

100 consumers from different locality and different economic status have selected for the

study. The total data collected, after filling up the questionnaires from 100 consumers, is

analyzed in this chapter. The presentation is with tabular form and its explanation and

using graphic presentation. The graphic presentations are self-explanatory hence tables

are not presented.

Total 100 consumers from Metropolitan Township of Nagpur city were administered the

preset purposive but small questionnaire and the responses recorded are presented here.

Here both secondary data as well as primary data is used for which research methodology

is taken as below:

Secondary data:-

A. Sample period: - 3 month.

B. Sources of data collection: Secondary sources are considered like:

1) Research Papers 2) Websites 3) Journals 4) Magazine

C. Reason for Secondary data: - Secondary sources like previous research papers

knowledge base which will help her in this project. So secondary data analysis is taken

into consideration in order to make the analysis.

Primary Data:-

A. Sample Size: - 100 Nos.

B. Sample city: - Nagpur city

C. Sampling Technique: - Convenience sampling technique will be used for project.

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CHAPTER 3

REVIEW OF LITERATURE

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3.1 Review of Literature

Organized retailing will lead to affect the traditional unorganized retailers. Furthermore

the comparative analysis regarding the acceptability of mall concept and the impact of

shopping malls on the general living standards of the society is being considered. There is

an increased customer shopping patterns which has led to emergency of big retail chains

in metros, mini metros and change in the customer’s tastes and preferences leading to

radical transformation in their life style and the spending pattern there by giving rise to

new business opportunities. This generic growth, driven by changing life style and strong

increment in income is to be supported by the favorable demographic patterns. The

development of mega malls in India is adding a new dimension to this booming retail

sector. The groups of visionary corporate working constantly to improve upon urban

shopping experience through the shopping malls concept is the latest move in the retail

sector.

Percentage Share of organized and unorganized sectors in retail industry

India is a nation of shopkeepers as well as shoppers. It is a common practice that retailers

and marketers often strive to learn how and why people shop. The decision making

regarding purchase of goods and services as become more complex and includes a

number of factors which are important for customers. There are wooed by advertising,

news articles and direct mailings providing information in this IT age along with the

mixed messages. The addition of a number of variety stores, goods stores and shopping

malls with the availability of multi component products and electronic purchasing

capabilities have played a crucial role in widening the choice for customers and have

complicated decision making.

The phenomenal growth of retail in India is reflected in the rapid increase in number of

super markets, departmental stores and hyper markets in the country. However, this

unpredicted growth trend has been challenged by the shadow of the current economic

slowdown, which has raised a fair of dip in consumption and slow down of growth for

Indian organized retailers. At a time when consumer spending is on decline, success will

lie with those retailers that can drive customer loyalty by responding to the demands of

the customer.

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The developing economies, specifically India are appearing on the world retail industry

radar due to the size and potential of their markets. As organized retail presents enormous

business opportunities, big names such as Reliance, Birla’s and Tata’s along with the

Foreign Super Market Chains (in partnership with Indian companies) have been making

an entry in to the sector. Fearing loss of business and employment, traders and hawkers

have held large –scale protests in various parts of the country. In the light of this, the

Ministry of Commerce and Industry commissioned the Indian council for research on

international economic relations (ICRIER) to analyze the impact of organized retailing on

unorganized retail, formers and intermediaries as a possible input to future policy-

making.

According to the author the process is classified into following frame:

1) focus on customer concerns,

2) enquiring front line employees so that the customers are properly treated,

3) express sincere understanding of customer’s desires, wants and means,

4) Apologize and rectify the situation where the customer feels that the retailer was

wrong.

Unless and until a retailer understands a specific class of factors that influences

customer’s satisfaction, induces to develop this loyalty towards a particular retail format

and liking for a particular buying behavior.

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CHAPTER 4

DATA COLLECTION

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Data Collection Tool Used:

Questionnaire: - The data collection tool used for the research is “Questionnaires” to

get the primary data for the empirical research to study store choice behavior for grocery

products in organized retail outlet with respect to Nagpur city.

No. of the respondents based on the age

Age

Frequency Percent Valid Percent Cumulative

Percent

Valid

11-20 18 18.0 18.0 18.0

21-30 35 35.0 35.0 53.0

31-40 32 32.0 32.0 85.0

41-Above 15 15.0 15.0 100.0

Total 100 100.0 100.0

Interpretation:

18% of respondents age lies up to age of 11-20

35% of respondent age lies between 21-30

32% of respondents age between 31-40

15% of respondents age is above 41-Above

No. of the respondents based on the Gender

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Gender

Frequency Percent Valid Percent Cumulative

Percent

Valid

Male 65 65.0 65.0 65.0

Female 35 35.0 35.0 100.0

Total 100 100.0 100.0

Interpretation:

65% of respondents are male

35% of respondent are female

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No. of the respondents based on the Qualification

Qualification

Frequency Percent Valid Percent Cumulative

Percent

Valid

10th 6 6.0 6.0 6.0

12th 20 20.0 20.0 26.0

Degree 57 57.0 57.0 83.0

Others 17 17.0 17.0 100.0

Total 100 100.0 100.0

Interpretation:

6% of respondents qualification is up to 10th

20% of respondents are 12th

.

57% of respondents are Degree.

17% of respondents are others.

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No. of the respondents based on the occupation

Occupation

Frequency Percent Valid Percent Cumulative

Percent

Valid

Student 34 34.0 34.0 34.0

Govt. employee 4 4.0 4.0 38.0

Private employee 34 34.0 34.0 72.0

Business 23 23.0 23.0 95.0

House wife 5 5.0 5.0 100.0

Total 100 100.0 100.0

Interpretation:

34% of respondents are students.

4% of respondents are Govt. employee.

34% of respondents are Private employee.

23% of respondents are Business.

23% of respondents are House wife.

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No. of the respondents based on the income

Interpretation:

21% of respondent’s income is up to 10000.

45% of respondent’s income lies between 11000-20000.

12% of respondent’s income lies between 21000-30000.

13% of respondent’s income lies between 30000-above.

Income

Frequency Percent Valid Percent Cumulative

Percent

Valid

Up to 10000 21 21.0 21.0 21.0

11000 – 20000 45 45.0 45.0 66.0

21000 – 30000 21 21.0 21.0 87.0

30000-Above 13 13.0 13.0 100.0

Total 100 100.0 100.0

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Customer feedback analysis: -

Interpretation:

30% of respondents prefer Big Bazaar for purchased grocery product.

2% of respondents prefer D-Mart for purchased grocery product.

22% of respondents prefer Reliance Fresh for purchased grocery product.

9% of respondents prefer Westside for purchased grocery product.

25% of respondents prefer ApanaBhandar for purchased grocery product

12% of respondents prefer Pantaloons for purchased grocery product

1. From where you purchased grocery product?

Frequency Percent Valid Percent Cumulative

Percent

Valid

BIG bazaar 30 30.0 30.0 30.0

D-Mart 2 2.0 2.0 32.0

Reliance Fresh 22 22.0 22.0 54.0

Westside 9 9.0 9.0 63.0

Apana Bhandar 25 25.0 25.0 88.0

Pantaloons 12 12.0 12.0 100.0

Total 100 100.0 100.0

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2. How often the do you purchased?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Once a week 44 44.0 44.0 44.0

Once in 15 days 15 15.0 15.0 59.0

Once a month 28 28.0 28.0 87.0

Twice in a month 13 13.0 13.0 100.0

Total 100 100.0 100.0

Interpretation:

44% of the people purchased in the once a week.

15% of the people purchased in the once in 15 days.

28% of the people purchased in the once a month.

13% of the people purchased in the twice in a month

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3. Why do you purchase grocery product in this particular retail store?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Ambience 41 41.0 41.0 41.0

Quality 17 17.0 17.0 58.0

Store image 19 19.0 19.0 77.0

Price 23 23.0 23.0 100.0

Total 100 100.0 100.0

Interpretation:

41% of the people prefer ambience in this particular retail store.

17% of the people prefer quality in this particular retail store.

19% of the people prefer store image in this particular retail store.

23% of the people prefer price in this particular retail store.

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4. Why do you select this particular retail store?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Nearby home town 16 16.0 16.0 16.0

Customer service 12 12.0 12.0 28.0

Low price 53 53.0 53.0 81.0

Others 19 19.0 19.0 100.0

Total 100 100.0 100.0

Interpretation:

16% of respondents select this particular store because it is nearby home town.

12% of respondents select this particular store because of customer service.

53% of respondents select this particular store because of low price.

19% of respondents select this particular store because of other reason.

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5. What is the mode of prefer payment to purchased grocery product in store?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Cash payment 72 72.0 72.0 72.0

Credit card 28 28.0 28.0 100.0

Total 100 100.0 100.0

Interpretation:

72% of the people prefer paid in cash payment.

28% of the people prefer paid in credit card.

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6. Do you come to know promotional scheme operate by this store?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Yes 65 65.0 65.0 65.0

No 35 35.0 35.0 100.0

Total 100 100.0 100.0

Interpretation:

65% of respondents consider promotional schemes while purchasing a product in

organized retail stores.

35% of respondents do not consider promotional schemes while purchasing a

product in organized retail stores.

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7. What you suggestion store to communicate the scheme

Frequency Percent Valid Percent Cumulative

Percent

Valid

Radio 5 5.0 5.0 5.0

News Paper 23 23.0 23.0 28.0

TV 39 39.0 39.0 67.0

Hording 10 10.0 10.0 77.0

Others 23 23.0 23.0 100.0

Total 100 100.0 100.0

Interpretation:

5% of the people radio recommend store to communicate the scheme.

23% of the people newspaper recommend store to communicate the scheme.

39% of the people TV recommend store to communicate the scheme.

10% of the people Hording recommend store to communicate the scheme.

23% of the people other recommend store to communicate the scheme

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8. Which sales promotional activity attracts you more?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Offers 39 39.0 39.0 39.0

Discount 33 33.0 33.0 72.0

Gift on purchase 16 16.0 16.0 88.0

Prices off 12 12.0 12.0 100.0

Total 100 100.0 100.0

Interpretation:

39% of respondents are attracted due to offer.

33% of respondents are attracted due to discount.

16% of respondents are attracted due to gift on purchase.

12% of respondents are attracted due to price off.

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9. What do you think about the price of the grocery products?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Highly satisfied 44 44.0 44.0 44.0

Satisfied 53 53.0 53.0 97.0

Moderate 3 3.0 3.0 100.0

Total 100 100.0 100.0

Interpretation:

44% of respondents are highly satisfied about the price of the grocery product.

53% of respondents are satisfied about the price of the grocery product.

3% of respondents are moderate about the price of the grocery product.

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10. In which sales promotional activities are you satisfied more in retail outlets?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Payback offer 18 18.0 18.0 18.0

Monthly saving offer 26 26.0 26.0 44.0

Gift voucher 13 13.0 13.0 57.0

Big day offer (SS5D) 32 32.0 32.0 89.0

Others if any 11 11.0 11.0 100.0

Total 100 100.0 100.0

Interpretation:

18% of the people are satisfied payback offer.

26% of the people are satisfied monthly saving offer.

13% of the people are satisfied gift vouchers.

32% of the people are satisfied big days offer (SS5D).

11% of the people are satisfied others if any.

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11. What do you think about the sales service of organized retail outlets?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Excellent 11 11.0 11.0 11.0

Good 54 54.0 54.0 65.0

Average 35 35.0 35.0 100.0

Total 100 100.0 100.0

Interpretation:

11% of respondents think excellent about the sales service.

54% of respondents think well about the sales services.

35% of respondents think average about the sales services.

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12. In which department you prefer to buy more products in retail outlet?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Food 16 16.0 16.0 16.0

clothing zone 10 10.0 10.0 26.0

grocery 37 37.0 37.0 63.0

durable items 37 37.0 37.0 100.0

Total 100 100.0 100.0

Interpretation:

16% of the people prefer to buy food products in retail outlet.

10% of the people prefer to buy clothing products in retail outlet.

37% of the people prefer to buy grocery products in retail outlet.

37% of the people prefer to buy durable products in retail outlet.

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13. What is your opinion about the advertisement in organized retail outlets?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Highly satisfied 62 62.0 62.0 62.0

Average 38 38.0 38.0 100.0

Total 100 100.0 100.0

Interpretation:

62% of respondents are highly satisfied about the advertisement in the

organized retail outlets.

38% of respondents are satisfied about the advertisement in the organized retail

outlets.

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14. What is your opinion about organized retail outlets on available of

product?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Excellent 57 57.0 57.0 57.0

Good 30 30.0 30.0 87.0

Average 13 13.0 13.0 100.0

Total 100 100.0 100.0

Interpretation:

57% of respondents are excellent about the opinion in the organized retail

outlets.

30% of respondents are good about the opinion in the organized retail outlets.

13% of respondents are average about the opinion in the organized retail outlets.

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15. What do you think about Big Day (SS5D) offer?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Excellent 22 22.0 22.0 22.0

Good 51 51.0 51.0 73.0

Average 27 27.0 27.0 100.0

Total 100 100.0 100.0

Interpretation:

22 % of respondents think excellent about the services after big day.

51% of respondents think well about the services after big day.

27% of respondents think average about the services after big day.

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Interpretation:

22% of respondent average billing range in organized retail outlets below-1000.

37% of respondent average billing range in organized retail outlets 1100-2000.

16% of respondent average billing range in organized retail outlets 2100-3000.

6% of respondent average billing range in organized retail outlets 3100-4000.

19% of respondent average billing range in organized retail outlets 4100-above.

16. May I know your average billing range in organized retail outlets?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Up to-1000 22 22.0 22.0 22.0

1100-2000 37 37.0 37.0 59.0

2100-3000 16 16.0 16.0 75.0

3100-4000 6 6.0 6.0 81.0

4100-Above 19 19.0 19.0 100.0

Total 100 100.0 100.0

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17. Are you satisfied to visit this particular store of organized retail outlets?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Highly satisfied 52 52.0 52.0 52.0

Average 48 48.0 48.0 100.0

Total 100 100.0 100.0

Interpretation:

52% of respondents are highly satisfied visit these particular organized retail

outlets.

48% of respondents are average visit these particular organized retail outlets.

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CHAPTER 5

FINDING

&

SUGGESTIONS

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Conclusion

There is no doubt the world is changing and consumer behavior is evolving faster than

what would have normally expected. Consumers and producers are brought together

electronically in ways we have never before experienced. One of the most exciting

aspects of the new digital world is that consumers can interact directly with other people

who live around the block or around the people.

Impact of Organized Retailing

The growth of corporate retail will take place by destroying the self-organized small

retail in India. Reliance and Big Bazaar are presenting themselves as friends and

liberators of farmers and they refer to small traders as middleman, as if they are not giant

middleman. At least in the case of small traders, farmers have a choice in the terms of

whom to sell. Reliance and Big Bazaar are monopolistic buyers who in due course of

time will drive down procurement prices of agriculture and manufactured products. They

claim that they are paying more to the farmers, but the truth is that they are at present

procuring from the existing Mandis (markets) all across the nation, and not straight from

the farmers, so there is no question of paying better returns to the farmers.

Benefits of organized retailing to consumer and society can be summarized as,

1. Beautiful interiors with entertainment facility

2. Extremely pleasing ambience

3. Mall offers you much more than just shopping

4. Huge gaming zone where kids can utilize the time at the optimum

5. Malls are always being constructed at prime location and in high profile areas. The

changing trend, convenience of shopping, getting variety of items under one roof attracts

and induces people of all age group to frequently visit malls.

6. Generates employment opportunities, direct and indirect, for thousands of people.

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2. Effects of Organized retailing in Nagpur city

1. All-in-one stores. With everything from groceries and vegetables to footwear, clothes,

cosmetics, furnishings and electrical items available less than one roof, a growing middle

class with higher disposable incomes is heading for the malls in droves.

2. For some, it is a way to chill out on movies and food in the added comfort of a fully

air-conditioned space. ―In short, it is a living room for most of them.‖

3. On festivals, the malls can undoubtedly compete with a meal what with the carnival-

like atmosphere and no elbow room for the visitors.

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Suggestions

From the above overall study I find that there are some differences in the study store

choice behavior for grocery products in organized retail outlet with respect to Nagpur

city‖

To improve more in there store choice behavior for grocery product in organized retail

outlets I can suggest that

Retail outlets should provide quick and fast service to the customer

Keeping the stock of the different verities of goods.

Applying various methods of demand creation.

Helping in the effective distribution of consumer goods.

Extending credit facilities to the consumers.

Providing many personal services to the consumers.

Providing essential data and information to the manufacturers about the trend

in marketing changes in fashion, tests, etc.

The making available the good according to the season.

Gives proper advice to the customer.

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BIBLIOGRAPHY

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Bibliography

Websites:

1. http://consumer-buying-behaviour-in-India/articleshow/

2. http://www.ipsos-retailperformance.com/

3. www.indianretailassociation.com/

Books reference: Consumer behavior – Michael R. Solomon

Principles of marketing – Neeru Kapoor

Marketing management- Philip kotler

Retail and service management- Himalaya Publication

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ANNEXURE

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QUESTIONNAIRE:

To study store choice behavior for grocery products in organized retail outlet

with respect to Nagpur city

Name:

Gender: Male Female

Age: 11 – 20 21 – 30 31 – 40 41- above

Qualification: 10th 12th Degree Others

Occupation: Student Govt. employee Private employee

Business House wife

Monthly Income: Up to 10000 11000 – 20000

21000 – 30000 31000 - ABOVE

1. From where you purchased grocery product?

Big Bazar Reliance Fresh Apna Bhanda Super general Shoppe

D-Mart Westside pantaloons

2. How often the do you purchased?

Once a week once in 15 days

• Once a month Twice in a month

3. Why do you purchase grocery product in this particular retail store?

• Ambience Quality Store image

• Price Others

4. Why do you select this particular retail store?

Nearby home town Customer service

Store image Low price Others

5. What is the mode of prefer payment to purchased grocery product in store?

Cash payment Credit card Debit card

6. Do you come to know promotional scheme operate by this store?

Yes (How_____________________________________)

No (if no then Q. No.7)

7. What you suggestion store to communicate the scheme

• Radio TV Newspaper

Hoarding Others

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8. Which sales promotional activity attracts you more?

Offer Discount

Gift on purchase Prices off

9. What do you think about the price of the grocery products?

• Highly satisfied Satisfied

• Moderate Dissatisfied Highly dissatisfied

10. In which sales promotional activities are you satisfied more in retail outlets?

• Payback offer Monthly saving offer

• Gift voucher Big day offer (SS5D)

• Others if any

11. What do you think about the sales service of organized retail outlets?

• Excellent Good

• Average Bad

• Very bad

12. In which department you prefer to buy more products in retail outlet?

• Food Toys and sports

• Home appliances Grocery

Others Durable product (soap, men, grooming)

13. What is your opinion about the advertisement in organized retail outlets?

• Highly satisfied Average

• Dissatisfied Highly Dissatisfied

14. What is your opinion about organized retail outlets on available of product?

Excellent Good Average Poor Very poor

15. What do you think about Big Day (SS5D) offer?

• Excellent Average Good Poor Very poor

16. May I know your average billing range in organized retail outlets?

• Below 1000 1100-2000 2100-3000

• 3100-4000 4100-Above

17. Are you satisfied to visit this particular store of organized retail outlets?

Highly satisfied

Average

Dissatisfied

Highly Dissatisfied