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DISSERTATION REPORT
                ON
      “CUSTOMERS PERCEPTION AND
        SATISFACTION TOWARDS
      ORGANIZED RETAIL OUTLETS”




     IN PARTIAL FULFILLMENT OF MASTER OF
           BUSINESS ADMINISTRATION

SUBMITTED TO:              SUBMITTED BY:
Mrs.ANITA CHATURVEDI       SUDEEP KUMAR SINGH
FACULTY GUIDE              MBA –IVTH SEM.
NAM, DEHRADUN              (2010-2012)

    NIMBUS ACADEMY OF MANAGEMENT,
              DEHRADUN
                                            Page1
DECLARATION

I, SUDEEP KUMAR SINGH student of M.B.A (Marketing) 20010-2012 batch
studying at NIMBUS ACADEMY OF MANAGEMENT, DEHRADUN, declare
that the project work entitled on “CUSTOMER PERCEPTION AND
SATISFACTION TOWARDS ORGANIZED RETAIL OUTLETS”
was carried by me in the partial fulfillment of M.B.A Programme. It is not been
copied from anywhere else.


                                                  SUDEEP KUMAR SINGH
                                                          MBA – IV SEM.
                                                       NAM, DEHRADUN




                                                                         Page 2
LIST OF CONTENTS
                      TITLE

•   ACKNOWLEDGEMENT

•   LIST OF TABLE AND ILLUSTRATION

•   ABSTRACT

•   INTRODUCTION

•   ABOUT RETAIL INDUSTRY IN INDIA

•   PRESENT INDIAN RETAIL SCENARIO

•   EVOLUTION AND TRENDS IN ORGANIZED
    RETAILING FORMATS AND RETAIL OUTLETS

•   MAJOR INDIAN RETAILERS

•   ORGANISED RETAIL OUTLET IN DEHRADUN

•   THEORITICAL BACKGROUND

•   REVIEW OF LITERATURE

•   STORE LAYOUT

•   INTERPRETATION & ANALYSES

•   FINDINGS

•   SUGGESTIONS

•   LIMITATIONS



                                           Page 3
•   CONCLUSION

•   QUESTIONNAIRE

•   BIBLIOGRAPHY




                    Page 4
ACKNOWLEDGEMENT


  “NO MAN IS COMPLETE IN KNOWLEDGE BUT SINGLE
   RAY OF KNOWLEDGE CAN BE HELPFUL TO MAN”.


The research on “CUSTOMERS PERCEPTION AND SATISFACTION
TOWARDS ORGANIZED RETAIL OUTLETS” has been given to me as
part of the curriculum in Two-Year Masters Degree in Business
Administration.


I have tried my best to present this information as clearly as possible using
basic terms that I hope will be comprehended by the widest spectrum of
researchers, analysts and students for further studies.



I have completed this study under the able guidance and supervision of Mr.
ANITA CHATURVADI I will be failed in my duty if I do not acknowledge
the esteemed scholarly guidance, assistance and knowledge. I have received
from them towards fruitful and timely completion of this work.

My acknowledgement may not redeem the debt I owe to my parents for their
direct/indirect support during the entire course of this project.

“GUIDANCE IS THE BEST IN THE WAY OF PROGRESS”.

I also thankful to my friend who helped me a lot in the completion of this
project.

                                                      SUDEEP KR. SINGH
                                                       MBA – IVTH SEM.
                                                         (MARKETING)




                                                                       Page 5
LIST OF TABLE AND ILLUSTRATIONS



1) Indian retail market

2) Retail formats available in India

3) Fastest growing retail formats in India

4) Fastest growing retail segment in India




                                             Page 6
ABSTRACT
This paper provides detailed information about the growth of
organized retail sector in Dehradun. It discusses about the emergence
of innovative practices that support the growth of the sector in a
highly competitive environment. Though this sector is one of the
fastest growing in the country but in Dehradun it is still in its nascent
stage, however it is fast spreading and making its presence felt in
different parts of the city. There is a vast untapped potential for
organized retailing in Dehradun which is the key attraction not only to
the domestic and global retailing chains operating here but also for the
customers who belong to different cross sections of the society and
visit them. An effort has been made, in the paper to know about the
customers’ perception and satisfaction towards these organized retail
stores in Dehradun so as to access their satisfaction level and decode
whether the sector will be able to do a meaningful business in
Dehradun.




                                                                   Page 7
INTRODUCTION

Objective


   The overall purpose of this endeavour is to investigate empirically

     customer’s perception and satisfaction towards organized retail outlets
     and kirana stores on the basis of various parameters.
   Moreover this study aims at finding the discriminating factors that lead to
     customers’ preference towards organized retailers.
   To understand the overall shopping habits of customer.
   To know the major factors considered by customers while shopping in
     unorganized retail shops.
   To know the different class of customers shopping in unorganized retail
     shops.
   To understand the various promotional activities undertaken by the
     unorganized retailers.
   To know the satisfaction level of customers shopping in unorganized
     retail shops.



Methodology

   The study involves the primary data which is collected through
     questionnaire, interview, and observation.


   It involves use of secondary sources such as web and other research
     articles printed by various financial institutions and other journals and
     magazine.

                                                                         Page 8
 It involves analysis and tabulation of data which is collected from
      customers is done by various means such as line graphs, pie charts and
      bar graphs.


    The project involves the study of customer’s perception.


Sampling Method and Sample Size:
Three retail outlets and two kirana stores in Dehradun were randomly selected
for this study. Fifty visiting customers from each outlet were personally
interviewed with the help of especially structured questionnaire. In this way 250
customers were interviewed for the study.
Research Instrument and Method:
The survey was conducted on customers with the help of MBA students who
were specially trained for the purpose. A well structured questionnaire was
developed for conducting the study. The questionnaire was divided into two
parts. First part was designed to obtain demographic information about the
respondents’ age, income, literacy level and gender. Second part contained
closed-ended questions relating to rating of retail outlets on various parameters.
Analysis of Data:
Customers’ perception towards different aspects of retail outlets and kirana
stores were compared using Analysis of Variance (ANOVA). Before going in
for analysis, the Likert Scale attributes were assigned weights as under:
Agree =1, Neutral =0, Disagree = -1 Satisfied = 1, Neutral = 0, Dissatisfied = -1
Most Important = 2, Important = 1, Neutral = 0, Unimportant = -1, Most
Unimportant = -2 and
The results obtained through data analysis have been discussed in the paper.




                                                                            Page 9
ABOUT RETAIL INDUSTRY IN INDIA

Retail is India's largest industry. It accounts for over 10 per cent of the India's
GDP and around 8 per cent of the employment. Retail sector is one of India's
fastest growing sectors with a 5 per cent compounded annual growth rate.
India's huge middle class base and its untapped retail industry are key
attractions for global retail giants planning to enter newer markets. Driven by
changing lifestyles, strong income growth and favourable demographic patterns,
Indian retail is expected to grow 25 per cent annually. It is expected that retail in
India could be worth US$ 175-200 billion by 2016.
The organized retail industry in India had not evolved till the early 1990s. Until
then, the industry was dominated by the un-organized sector. It was a seller’s
market, with a limited number of brands, and little choice available to
customers. Lack of trained manpower, tax laws and government regulations all
discouraged the growth of organized retailing in India during that period. Lack
of consumer awareness and restrictions over entry of foreign players into the
sector also contributed to the delay in the growth of organized retailing.
A number of factors are driving India's retail market. These include: increase in
the young working population, hefty pay-packets, nuclear families in urban
areas, increasing working women population, increase in disposable income and
customer aspiration, increase in expenditure for luxury items, and low share of
organized retailing. India's retail boom is manifested in sprawling shopping
centres, multiplex- malls and huge complexes that offer shopping, entertainment
and food all under one roof. But there is a flip side to the boom in the retail
sector. It is feared that the entry of global business giants into organized retail
would make redundant the neighbourhood Karana stores resulting in dislocation
in traditional economic structure. Also, the growth path for organized retail in
India is not hurdle free. The taxation system still favours small retail business.
With the intrinsic complexities of retailing such as rapid price changes, constant
                                                                             Page 10
threat of product obsolescence and low margins there is always a threat that the
venture may turn out to be a loss making one.
A perfect business model for retail is still in evolutionary stage. Procurement is
very vital cog in the retail wheel. The retailer has to fight issues like fragmented
sourcing, unpredictable availability, unsorted food provisions and daily
fluctuating prices as against consumer expectations of round-the-year steady
prices, sorted and cleaned food and fresh stock at all times.
Trained human resource for retail is another big challenge. The talent base is
limited and with the entry of big giants there is a cat fight among them to retain
this talent. This has resulted in big salary hikes at the level of upper and middle
management and thereby eroding the profit margin of the business. All the
companies have laid out ambitious expansion plans for themselves and they
may be hampered due lack of requisite skilled manpower.
But retail offers tremendous for the growth of Indian economy. If all the above
challenges are tackled prudently there is a great potential that retail may offer
employment opportunities to millions living in small town and cities and in the
process distributing the benefits of economic boom and resulting in equitable
growth.




                                                                            Page 11
PRESENT INDIAN RETAIL SCENARIO

The retail industry is divided into organized and unorganized sectors. Over 12
million outlets operate in the country and only 4% of them being larger than 500
sq ft (46m²) in size.
Organized retailing refers to trading activities undertaken by licensed retailers,
that is, those who are registered for sales tax, income tax, etc. These include the
corporate-backed hypermarkets and retail chains, and also the privately owned
large retail businesses.
Unorganized retailing, on the other hand, refers to the traditional formats of
low-cost retailing, for example, the local kirana shops, owner manned general
stores, paan/beedi shops, convenience stores, hand cart and pavement vendors,
etc.


   • Unorganized market: Rs. 583,000 cores
   • Organized market: Rs.5, 000 cores
   • 5X growth in organized retailing between 2000-2005
   • Over 4,000 new modern Outlets in the last 3 years
   • Over 5,000,000 sq. ft. of mall space under development
   • The top 3 modern retailers control over 750,000 sq. ft. of retail space
   • Over 400,000 shoppers walk through their doors every week
   •   47 global fortune companies & 25 of Asia's top 200 companies are
       retailers.


Growth in organized retailing on par with expectations and projections of the
last 5 Years: on course to touch Rs. 35,000 corers (US$ 7 Billion) or more by
2005-06The growth factors of the retail sector of Indian economy:

                                                                           Page 12
• Increase in per capita income which in turn increases the household
   consumption
• Demographical changes and improvements in the standard of living
• Change in patterns of consumption and availability of low-cost consumer
   credit
• Improvements in infrastructure and enhanced availability of retail space
   Entry to various sources of financing.




                                                                   Page 13
EVOLUTION AND TRENDS IN ORGANIZED RETAILING
          FORMATS AND RETAIL OUTLETS

Historical Indian retail market consisted of weekly markets, village fairs and
mela’s and the 19th century gave birth to the retail outlets which took the form
of convenience stores, Mom and Pop stores/ kirana stores. This helped the
consumers on to stick to a particular store for their day to day requirements and
also avail the credit purchasing facility. And in the 1980’s people have seen the
new formats like supermarket, departmental stores and discount stores entering
into the Indian retail space. In less than a decade hypermarkets have gained all
the applause of the retail market and stood above all the other formats by
bringing in the concept of “one stop shopping.” This stood as an opening door
for the new generation of the retail industry. And very soon the malls became
the trend setters in the new millennium.
This has coined the term of ‘shoppertainment’ (shopping and entertainment)
which can be attributed to the changing life styles of the people.


Hypermarket: It is the largest format in Indian retail so far is a one stop shop
for the modern Indian shopper.
Merchandise: food grocery to clothing to spots goods to books to stationery.
Space occupied: 50000 Square feet and above.
SKUs: 20000-30000.
Example: PETER ENGLAND retail’s Big Bazaar, RPG’s Spencer’s (Giant),
Vishal mega mart.


Supermarket: A subdued version of a hypermarket.
Merchandise: Almost similar to that of a hypermarket but in relatively smaller
proposition.
Space occupied: 5000 Sq. ft. or more.

                                                                          Page 14
SKUs: Around 10000.
Example: Nilgiris, Apna Bazaar, Trinethra/more.


Convenience store: A subdued version of a supermarket.
Merchandise: Groceries are predominantly sold.
Space occupied: Around 500 Sq. ft. to 3000 Sq. ft.
Example: stores located at the corners of the streets, Reliance Retail’s fresh.


Department store: A retail establishment which specializes in selling a wide
range of products without a single prominent merchandise line and is usually a
part of a retail chain.
Merchandise: Apparel, household accessories, cosmetics, gifts etc.
Space occupied: Around 10000 Sq. ft. – 30000 Sq. ft.
Example: Landmark Group’s LifeStyle, Trent India Ltd.’s Westside.


Discount store: Standard merchandise sold at lower prices with lower margins
and higher volumes.
Merchandise: A variety of perishable/ non perishable goods.
Example: Viswapriya Group’s Subiksha, Piramal’s TruMart.


Specialty store: It consists of a narrow product line with deep assortment.
Merchandise: Depends on the stores
Example: Bata store deals only with footwear, RPG’s Music World, Crossword.


MBO’s: Multi Brand outlets, also known as Category Killers. These usually do
well in busy market places and Metros.
Merchandise: Offers several brads across a single product category.




                                                                            Page 15
Kirana stores: The smallest retail formats which are the highest in number (15
million approx.) in India.
Merchandise: Mostly food and groceries.
Space occupied: 50 sq ft and even smaller ones exist.


Malls: The largest form of organized retailing today located mainly in metro
cities, in proximity to urban outskirts.
Merchandise: They lend an ideal shopping experience with an amalgamation of
product, service and entertainment, all under a common roof.
Space occupied: Ranges from 60,000 sq ft to 7, 00,000 sq ft.




                                                                       Page 16
In the above graph it shows that the in India the fastest growing retail segment
is food and grocery because in India people spend more on eating. Then
dressing because India is now turning to modern age and the people of modern
age like to dress well and look well.




                                                                         Page 17
In the above graph it shows that the there are many formats of retailing in India
but the specialty store and supermarket is fastest growing formats in India.


                Key part of the general corporate strategy

A marketing strategy is most effective when it is an integral component of
corporate strategy, defining how the organization will successfully engage
customers, prospects, and competitors in the market arena. It is partially derived
from broader corporate strategies, corporate missions, and corporate goals. As
the customer constitutes the source of a company's revenue, marketing strategy
is closely linked with sales. A key component of marketing strategy is often to
keep marketing in line with a company's overarching mission statement.

Basic theory:

   1) Target Audience
   2) Proposition/Key Element
   3) Implementation




                                                                           Page 18
MAJOR INDIAN RETAILERS
The low-intensity entry of the diversified Mahindra Group into retail is unique
because it plans to focus on lifestyle products. The Mahindra group is the fourth
large Indian business group to enter the business of retail after Reliance
Industries Ltd, the Aditya Birla Group, and Bharti Enterprises Ltd. The other
three groups are focusing either on perishables and groceries, or a range of
products, or both.


RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper,
Spencer’s Super, Daily & Fresh


The Tata Group-Formats: Westside, Star India Bazaar, Steel junction,
Landmark, and Titan Industries with World of Titans showrooms, Tanishq
outlets, Chroma.


K Raheja Corp Group-Formats: Shoppers’ Stop, Crossword, Hyper City, in
orbit


Lifestyle International-Lifestyle, Home Centre, Max, Fun City and
International Franchise brand stores.

Pyramid Retail-Formats: Pyramid Megastore, TruMart

Nilgiri’s-Formats: Nilgiri's’ supermarket chain

Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount
chain.



                                                                          Page 19
Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket
chain

Vishal Retail Group-Formats: Vishal Mega Mart

BPCL-Formats: In & Out

Reliance Retail-Formats: Reliance Fresh

Reliance ADAG Retail-Format: Reliance World

Shoprite Holdings-Formats: Shoprite Hyper




                                                               Page 20
ORGANISED RETAIL OUTLETS IN DEHRADUN

VISHAL MEGA MART




The glory of Vishal Group’s success is the ascent it has come to accomplish in
the field of manufacturing and retailing of readymade garments. The credit for
this radiance goes to its dynamic of directors Mr. Ram Chandra Agarwal & Mrs
Uma Agarwal who have transformed their foresightedness into an unending
saga of growth. Identifying the immense market in fashion garment for the
masses the Group has actually established benchmarks that many others are
inspired to follow. Not resting on its laurels, the Group is busy identifying new
avenues of growth and its companies are busy implementing the expansion
plans to cash in on emerging potentials in the changing business environment of
modern India’s enterprise.


The jewel in Vishal Group’s crown is its flagship company Vishal Retail Ltd. a
company engaged in Hyper market stores with an average area of 25,000 to
30,000 sq. ft. through an impressive chain of 172 fully integrated stores in
spread over the area of more than 24,00,000 sq. ft. in around 110 cities across
India in 24 states. The turnover of the company for 09-10 was 1105 Crore.
Maintaining the highest standards in quality and design, these stores have come
to offer the finest fashion garments at down-to-earth price structure. A fact that
                                                                          Page 21
is better visible in the constant flow of shoppers all through the year. Under the
title of Vishal Mega Mart these stores have emerged as the regular haunts for
the bargain-hunters and fashion enthusiasts alike.


The saga of Vishal Group dates back to 2001 when its directors foresaw the
emerging potentials in the retail industry which is indeed the largest sector in
the global economy. Imbibing its innovative concepts and techniques the Group
identified the vast scope of growth in retailing for the common man. Its stores
have gained an enviable prominence as being the ideal store for the common
man where an extensive variety and quality is offered at a very, very reasonable
price structure. The Group’s expertise in the field of retail marketing over the
years and its focus on regions, cities and exact customer preferences have
earned the Group an undisputed leadership status to Vishal Group.


Bharti Retail




Bharti Retail is a wholly owned subsidiary of Bharti Enterprises. The Company
operates easy day neighbourhood stores and compact hypermarket stores called
easy day Market. Bharti Retail provides consumers a wide range of good quality

                                                                           Page 22
products at affordable prices. easy day stores are one stop shops that cater to
every family's day-to-day needs. Merchandise at easyday Market stores include
apparels, home furnishings, appliances, mobile phones, meat shop, general
merchandise, fruits and vegetables among others.
Created on the neighbourhood shop format, the much-awaited retail operations
‘EasyDay‘was introduced by Bharti Retail Limited at Dehradun in Uttrakhnad.
Bharti Retail Limited happens to be a wholly-owned subsidiary of Bharti
Enterprises and its Easy Day retail operations will act as a one-stop shop
catering to a family’s day-to-day needs.


As such, the Easy Day Stores will provide Indian consumers a wide range of
products of excellent quality apart from proffering a nice ambience and service.
Among the range of items you can look forward to buying from the EasyDay
stores include personal care products, stationery, household articles, hosiery
items, daily-need groceries like staples, processed foods, bakery and dairy
products, meat and poultry and fresh produce.


It was announced by the company that EasyDay will gives jobs to the locals in
the Ludhiana area where it has been set up. Further on those who will be
selected for the job will be trained by Bharti Academy of Retail, which has been
established by Bharti Retail Limited. This academy has already trained about
1,800 local people from different sections of the society.


KUMAR STORES


4, Neshvilla Road
Dehradun, Uttarakhand, 248001
Phone No: +91-135-2653145 +91-9837034784


                                                                         Page 23
Email: Samraat@Vsnl.Com


Directions: It Is Located On Neshvilla Road, 800 Metres From Clock Tower
Hours of Operation: 8:30 Am To 8:30 Pm
Closed: Sunday
Payment Type: Cash, Visa, Master Card


Business Description
It Deals In All Kinds Of Cosmetics, Gift Novelties, White Metal, Toys,
Decorative Pieces, Home Appliances, Stationery And All Other Items Of Daily
Need.




Kaveri Departmental Store


38, Arhat Bazar,
Saharanpur Chowk
Saharanpur Road
Dehradun,
Uttarakhand, 248001
Phone No: +91-135-2625514


Directions: It Is Located At Saharanpur Chowk, 550 Metres from Dehradun
Hours of Operation: 10:00 Am To 8:30 Pm
Closed: Sunday
Payment Type: Cash, Visa, Master Card
Business Description



                                                                     Page 24
All Types Of Utility Items Of Domestic Purposes Can Be Purchased From
Here.




                                                               Page 25
AMARTEX




From The Director's Desk Amartex was born in 1988 as a small cloth-
manufacturing unit, established by the Grover family of Chandigarh. Set up
with a modest capital, it is today a fully integrated manufacturing Company,
boasting of an impressive turnover of Rs. 250 Crores and targeting 1000 Crores
in coming two years.
Mr. Arun Grover, the Managing Director, was quick to spot the discrepancies in
the prevalent manufacturing to retail process. By the time the product reached
the stories, the consumer paid a lot more than justified.
Amartex revolutionized whole textile industry in north India with a swift and
thorough process of backward integration which led to the setting up of every
link in the chain. Today, the company has completed all in-house facilities,
from manufacturing to retailing and is fastest growing.
Amartex is a fully integrated manufacturing Company with a balanced mix of
manufacturing and marketing. The Company is well equipped with modern
manufacturing and marketing infrastructure, such as, weaving to processing,
designing and garments manufacturing and is the fastest growing company in
the region. All products rolling out of our premises find their way to every nook
and corner in this region through 34 Company owned retail outlets. The
Company provides consumers with a wide variety of apparel products and
services to suit their individual needs. We have carved out a niche and name in
the industry and cater. Amartex was brought into existence in 1988 by a team of
competent promoters viz-a-viz The Grover Family. The core promoters have

                                                                          Page 26
more than two decades of experience in manufacturing and marketing of textile
products. The management of the Company comprises of an appropriate mix of
qualified and competent Directors and Managerial Staff.


                  THEORETICAL BACKGROUND


Unique Customer Perception (UCP)


Marketing is a domain which is dynamic i.e. involves change, an important
phenomenon not to be overlooked. We have come across a term “Unique
Selling Proposition” (USP) which companies feel as a constant factor. Every
organization is an open system of management which means change is
inevitable and is associated with environmental factors. Companies need to
focus not only on USP of their products but also on the “Unique Customer
Perception” (UCP) of the final end users.
The prop of marketing is based on the need identification and the USP's are
prepared based on the identified needs. If the needs are wrongly identified then
even the USP's which are unique to the product would not serve the purpose.
USP identifies a product/service from its competitors while UCP is the
perception or picture a customer develops from all types of promotional inputs
from the company about their product or service. It is often seen that some
brands do extremely well compared to other brands having the same resources.
The reason for the brands not to do well is probably the communications which
does not reflect the customer’s perception. So it is not the USP but UCP that
plays an important role .This has lead to the concept - “Customer Perception is
the Rule and not Customer Satisfaction”.
Remember that a customer always buys a product or service with a lot of
expectations which he has derived from the promotional inputs of the company


                                                                         Page 27
or other sources including word of mouth. So a customer would be satisfied
when Performance is equal to Expectation while would not be satisfied when
Performance does not match with Expectations. Now this expectation is what
has been derived from perception.
Perception is not good or bad, right or wrong, it is just the way someone judges
an experience based on their value system of what they believe should happen.
Since people are unique, each of their perceptions are unique .On the other hand
each situation is a "point of contact" with an employee that will tell the
customer a "truth" about the company's idea of customer service. Each situation
will create expectations’ of what the next experience will probably be like.
Companies spend considerable amount on advertisement and in this world of
competitive advantage advertisement has to be repetitive in nature. So
companies need to understand the Unique Customer Perception to facilitate
advertising and Sales Promotional (ASP) efforts towards a better bargain. The
cost incurred on advertisement is huge i.e. if we refer to the 5 M's of
advertising, Money is a budgetary constrain for an ideal advertising campaign.
Thus UCP has to be rightly analyzed for better results by the company to match
performance and expectation.




                                                                          Page 28
– An analysis of Indian Retail sector
PJ GERMAIN
The customer's perception: Customer perception is an important component
of our relationship with our customers. Given that 90% plus of our orders at
some point involve the phone, how we handle the telephone is essential to
creating a perception for our customer that aligns with the company mission of
service. Smiling stretches your vocal cords, and gives a more upbeat
presentation to the customer. Slowing down ensures that the customers
perception is of an organized systematic company that can handle their project.
Getting it done right and on time consistently.
Article source: http://www.fibre2fashion.com


BY SOUMEN CHATTERJEE
Unique customer perception (UCP): According to soumen, Unique Customer
Perception is what is required by companies instead of Unique Selling
Proposition. It is ultimately that customer look for satisfaction based on the
picture of perception derived from various sources. If these perceptions of
customer can be analyzed then promotion would be easier for customer centric
marketing. This has lead to the concept - “Customer Perception is the Rule and
not Customer Satisfaction”.
Article Source: http://EzineArticles.com/?expert=Soumen_Chatterjee
BY JEN B
Brand recognition will change customer perception: According to JenB, for
a bigger stronger business you have to get some serious brand recognition



                                                                          Page 29
happening. People need to know your name before any thing else. You want
people to thing of you a certain way too.
This is the ticket to getting the image that you want. If you get a lot of blank
looks from people that are not current customers then you probably have no
recognition at all. That means it is time for an advertising switch. Even if people
don’t buy the product they will recognized the name. Remembering a business
is one step closer to trusting a business. Brand recognition is accomplished only
by people seeing your logo and business name over and over again. This will
create the repetition that your customers and future customers need to pick your
product out of a crowd time and time again.
Article Source: http://www.a1articles.com/article_1035917_15.html


HUAWEI
Satisfy customers perception is the biggest challenge: In meeting customers'
requirements and measuring customers' satisfaction indexes, customer
perception should be definitely a key consideration. Qualified services in the
operation execution layer, technical management layer and business
development layer are necessary. It is more important to understand customer
expectations and make efforts to exceed their expectations. In customer
satisfaction management, the biggest challenge is customer perception
management, or customer perception satisfaction. The major characteristics of
service is intangible, hence the core value of services is not like a physical
product but the spiritual experience and perception of customers. The final aim
and ideal effect of service provisioning is to have customers perceive and enjoy
the service. Such perception is both at psychological and behaviour levels, and
it is the contents of high quality life in the modern society. Customers are
seeking for material deliverables as well as perceptive enjoyment when
purchasing a service product.


                                                                           Page 30
Since perceptive enjoyment is a vital service objective, one of the key service
management objectives shall be meeting customers' perceptive enjoyment.
Article source: Huawei Technologies Co. Ltd


MORGAN STANLEY
Quick Comment – Impact on our views: We met Rakesh Biyani, Director
Future Group, who heads the retail business. Our investment thesis regarding
improving business outlook and availability of capital to fund growth plans
continues to hold good. Management has consciously shifted focus to growth
quality rather than just growth. We reiterate our Overweight rating and believe
that any volatility in the stock price should be viewed as an entry opportunity.
Here are the key takeaways from the meeting: Aggressive growth and margin
targets: PRIL has set an aggressive 16-17% same store growth (SSG) target for
F2010. This compares with F2009 SSG of 7.0%. The company plans to achieve
this target by adopting active merchandise management. First, the company is
likely to ensure that its fastest-selling products don’t go out of stock. It has
increased its order per SKU range from 900-1,400 to 600-6,000 to ensure
reduced stock outs for fast-selling products. Second, it has put in place a system
to continuously monitor underperforming categories/segments/SKUs so that
they can be immediately replaced. Third, it has improved product quality and
pricing across its merchandise (particularly private label) to ensure market share
gains. Fourth, it has now set store-wise, product-wise and SKU-wise,
daily/weekly sales targets so that the monitoring and feedback system improves
significantly.


Focus on efficiency to improve margins: The management is targeting 200-
250 bps improvement in gross profit margin, a 30% reduction in logistic costs,
and a reduction in nonstore inventory during F2010. Gross margin improvement
is likely to be driven by improvement in sell-through ratio (% of products sold
                                                                           Page 31
through the primary store), from 79% in F2009 to 89% in F2010. The company
achieved 79% in F2009, which was an improvement from 64% in F2008.
Significant improvement in private label contribution, particularly in the apparel
segment, may also help the overall mix improvement.


TRENT LEYSHAN
Creating the right ‘Value Perception’ for your Customers
According to Trent Leyshan Value Perception (VP) is the opinion your potential
and current customers have of your product or service. This perception
determines the value it adds to them in line with the problems it needs to solve
or aspirations they want it to fulfil. Irrespective of your customer’s opinion
being right of wrong in your mind, their opinion matters none the less, in fact,
critically so. Some may suggest; “But the customer my have it wrong” In this
instance we respond: whose fault is that: the customer, sales person, sales
manager, marketing dept or Company Directors? One this is for sure, it
certainly isn’t the customers fault. Value cascades down the value deliver
system into the customer. A breakdown on any level can be detrimental to a
company’s success. The customer’s positive perception, along with an effective
sales process will help the customer make the appropriate buying decision.

Article source: www.trentleyshan.com |




                                                                          Page 32
MERCHANDISE ASSORTMENT PLANNING


The retailer must make decisions regarding the merchandise offered depending
on the sales targets and financial objectives of the store.
Retailer should be very careful while deciding on the amount of stock to be
maintained in each category; if large stocks are maintained in a particular
category, there may not be sufficient resources left for providing a deeper
assortment of goods. By taking into consideration this phenomenon all Peter
England specialty stores are maintained on the basis of the per square foot
SKUs. It means that as shown into the figures of assortment, every SKU are
replenished in the fix quantity.


                              STORE LAYOUT
There are some key factors that a retailer should take into account, while
developing a layout prototype. The following are the optimizing factors:
   • Increasing sales
   • Maximizing returns per square foot
   •   Coordinating the merchandise with the store format.
   •   Allowing flexibility in store design.
   • Recognizing the needs and safety of the customers
The store lay out should enable and incite the customers to move around the
store to purchase more products than they have actually planned for.
The store layout should tempt customer to walk along the inexpensive
merchandise display section for impulse buying and then move on to expensive
merchandise.
There are three types of store layout
1. Grid layout
2. Race track layout

                                                                           Page 33
3. Free-form layout
                             STORE EXTERIORS


Generally, the first impression of a customer about a store is formed by its
exteriors. The exterior of a store plays a vital role in attracting new customers
and retaining existing customers. Retailer while planning their store exterior
may consider any of the following option.
1. Modular structure
2. Prefabricated structure
3. Prototype structure
4. Recessed structure
5. Distinct structure


Marquee: typically carries store name along with the trade marks. Here you
can see Peter England marquee is not much blowy and outside signboard is put
which matching with its positioning tag line “Honestly Impressive”.


Entrance and display window: From the photograph we can clearly make out
that there is only one entrance in the store which shows the display of
merchandise which store offers, so that it can attract the pedestrians easily.


Door type and walk away: the door is of push-pull type which eases traffic
congestion at the entrance and allows the customer to see interiors. There is
ample of space available for the customer to freely move inside the store but
because of the smaller parking space available, which is outside the store, it
becomes very congested sometimes.




                                                                            Page 34
STORE INTERIORS
The principal objective of any retailer is to maximize its sales and customer
satisfaction, and to minimize the operational costs. Therefore, the interior of the
store should be designed in such a way that it serves.


Lighting and Fragrance
In the store lighting is used intelligently to highlight the merchandise and attract
customers to specific departments in the store.
Some of the main objectives they have achieved with lighting are following:
   • Highlighting the displayed product.
   • Capturing customer’s mood.
   • Masking the unattractive features or places of the store.
There is also a mild fragrance available into the store to influence the
Purchasing decisions of the target market.




                                                                            Page 35
INTERPRETATION
      &
   ANALYSES




             Page 36
RESEARCH AND METHODOLOGY

The study focuses on DEHRADUN city, as it is the industrial capital of
UTTARAKHAND, and it portrays cross-sections of the society. Five mega
marts, namely, Vishal Mega Mart, Easy day, Amartex, Kumar’s stores and
Kaveri departmental stores, were randomly selected for the study. Fifty visiting
customers from each mega mart were personally interviewed with the help of a
specially structured questionnaire. In this way, 250 customers were interviewed
for the study.

Customers' perceptions towards different aspects of mega marts were compared
by using Analysis of Variance (ANOVA).

Socioeconomic Characteristics of the Customers

Age: The data given in Table 1 shows that half of the customers belonged to the
age group of 16-25 years. This shows that younger people visit mega marts
more frequently as compared to their older counterparts. This proportion
becomes 32.00% in the age group of 26-35 years. This shows that the older
people enjoyed their old set pattern of marketing.

Sex: Majority, i.e., 57.20% of the customers were female, while only 42.80% of
them were male. This may be due to the now female domination in the decision
making process in the family.

Place of Residence: As high as 71.20% of the customers belonged to the urban
areas, while 28.80% of them came from rural areas. Thus, the urban population
dominates the quantum of customers at mega marts.

Education: The analysis shows that the customers with educational level up to
graduation, accounted for 40.80%, while the customers with higher educational

                                                                         Page 37
level, came to be 30.80% only. The highest proportions of customers (44.40%)
were enjoying medium level of education. This indicates that among the highly
educated customers, mega marts could not become popular, and they might
have preferred to go to malls keeping with their educational status.

Family Income: The data shows that the proportion of customers visiting mega
marts was inversely related with the family income. It came down from 62.20%
of customers with low family income up to Rs. 25,000 per month to 6.40% of
them having family income of more than Rs. 50,000 per month. This shows that
mega marts could not attract the very rich class. They may instead prefer malls
for shopping. Thus, people with high education and income do not visit the
mega marts frequently.

    Table 1 : Socioeconomic Characteristics of Customers of Mega Marts

      Socio-Economic            Number of Customers           Percentage ( % )
      Characteristics

Age (Years) :
16 – 25                         114                       45.60
26 – 35                         80                        32.00
36 – 45                         30                        12.00
46 – 55                         12                        4.80
56 – 65                         14                        5.60
Above 65                        0                         0.00

Place of residence
rural                           72                        28.80
urban                           178                       71.20

Gender :
Male                            107                       42.80
Female                          143                       57.20

Education :
Matriculate                     6                         2.40

                                                                         Page 38
Intermediate                   35                        14.00
Graduate                       102                       40.80
Post Graduate                  77                        30.80
Above Post Graduate            30                        12.00

Family Income (Rs/
Month ) :
Up to 10,000                   63                        25.20
10,000 – 20,000                94                        37.60
20,000 – 50,000                77                        30.80
Above 50,000                   16                        6.40

Decision Maker :
Self                           187                       74.80
Others                         63                        25.20

Decision Maker: Majority, i.e., 74.80% of the customers were decision makers
themselves, while only 25.20% of them belonged to those families where the
decision maker was some other family member. Thus, self decision making
dominates the purchasing scenario at the mega marts.

Therefore, it can be said that majority of the customers of mega marts were
young female from urban areas, with medium level of education, and low level
of family income.

Perceptions of the Customers Towards Mega Marts

The perceptions of the customers towards different aspects related to mega
marts were observed through a number of Likert scale-based, ranking-based and
multiple choice-based questions.

Preference for Mega Marts

The data given in Table 2 shows that the highest proportion, i.e., 42.40% of the
customers assigned 1st rank to Vishal Mega Mart, while on the other hand, as
high as 37.60% of them assigned the lowest rank, i.e., 5th rank to kaveri
                                                                         Page 39
departmental stores. The overall ranking came to be 1st in favour of Vishal
Mega Mart, followed by easyday, Amartex and Kumar stores, while kaveri
departmental stores could only secure the least preference of the customers.
Vishal Mega Mart's first position may be due to its easy approach location and
parking facilities, compared to other mega marts. The Critical Difference (C.D.)
value indicated that though there were some differences in the overall ranking
of different mega marts, but statistically Vishal Mega Mart, V-Mart and
easyday were at par. These three mega marts acquired the 1 st preference, while
easy day and Kumar stores could secure the 2nd preference of the customers.




                                                                         Page 40
Ranking of Mega Marts in Order of Preference for Shopping
                        Rank Assigned                   Mean     Overall
   Malls   1       2      3         4         5
                                                        Rank     Rank
Vishal     106     57     51        22        14        2.30     I
mega mart     (42.40) (22.80 (20.40)      (8.80)    (5.60)
                       )
Easy day      64       89       56        23        18        2.83    I
              (25.60) (35.60 (22.40)      (9.20)    (7.20)
                       )
Amartex       46       69       74        38        23        3.56    II
              (18.40) (27.60 (29.60)      (15.20)   (9.20)
                       )
Kumar’s       23       35       45        69        78        2.57    I
stores        (9.20)   (14.00 (18.00)     (27.60)   (31.20)
                       )
Kaveri        11       13       36        96        94        3.83    II
department    (4.40)   (5.20)   (14.40)   (38.40)   (37.60)
al stores
F-ratio                                                       7.89    -
C.D.                                                          .7892   -
Note: Overall rank is based on the value of C.D.




                                                                      Page 41
Reasons for Preferring a Mega Mart

A perusal of Table 3 shows that the vast majority, i.e., 79.20% of the customers
agreed upon the convenience of the mega mart responsible for their preference.
This agreement on convenience was followed by reasons like less time
consuming (77.60%), safety (71.20%) and location (70.00%), while the lowest
proportion, i.e., 62.40% of the customers agreed upon the uniqueness of the
mega mart responsible for their preference for a mega mart.

   Extent of Agreement on Different Reasons for Preferring a Particular
                               Mega Mart
Reasons                  Agree Neutral Disagre          Mean        Overall
                                             e          Score       Preference
Safety                   178       45        27         0.60        I
(%)                      (71.20) (18.00)     (10.80)
Convenience              198     48          4          0.77         I
(%)                      (79.20) (19.20)     (1.60)
Uniqueness               156     59          35         0.48        II
(%)                      (62.40) (23.60)     (14.00)
Less Time Consuming      194     34          22         0.68        I
(%)                      (77.60) (13.60)     (8.80)
Location                 175     65          10         0.66        I
(%)                     (70.00) (26.00) (4.00)
F-ratio                                                 9.21        -
C.D.                                                    0.1892      -
Note: Overall performance is based on the value of C.D.



Overall preference for a particular mega mart came to be the highest of the
order of 0.79 (79%) in favour of convenience of the mega mart, while the
lowest preference was found to be in case of uniqueness of the mega mart. The

                                                                         Page 42
C.D. value indicates that the customers preferred a particular mega mart
keeping in view the convenience and location at the 1 st place, followed by
safety, uniqueness and less time-consuming status at the 2nd place. Thus, the
mega marts should be convenient in terms of space, product range, billing
system, multiple choice, etc., and should be located within an easy approach.

Safety and Parking Facilities

The customer’s opinion regarding safety and parking facilities at the mega
marts is contained in Table 4. As much as 51.20% of the customers were
satisfied over the safety at mega marts, while 30.80% of the customers
expressed dissatisfaction over the same. About 19% of them could not comment
on the safety status at the mega marts. Overall safety could secure only 0.20
(20%) score by the customers. This shows that safety at the mega marts is poor.




                                                                         Page 43
Extent of Customers’ Satisfaction on Safety and Parking Facilities at
                                Mega Marts
A.     Safety              Number of Customers                   %
Satisfied                  128                         51.20
Neutral                    45                          18.00
Dissatisfied               77                          30.80
Mean Score                 0.20                        -
B. Parking Facilities
Satisfied                  96                          38.40
Neutral                    67                          26.80
Dissatisfied               87                          34.80
Mean Score                 0.04                        -

As far as parking facilities at the mega marts are concerned, only 38.40% of the
customers were satisfied, while 34.80% of them expressed their dissatisfaction
over the parking facilities. The mean level of satisfaction over parking facilities
at mega marts came to be 0.04(4%), indicating an overall dissatisfaction of
customers over parking facilities at the mega marts.

Utility of Mega Marts

The customers were asked about their extent of agreement over different utility
aspects of mega marts in terms of `agree', `neutral', and `disagree', and the same
are presented in Table 5. It shows that the highest proportion, i.e., 98.00% of the
customers agreed upon mega marts as a place to shop, while the least
proportion, i.e., 42.00% took the mega marts as a place to socialize. The mean
score of agreement ranged between 0.98 in favour of mega marts as a place to
shop, and 0.19 in favour of mega marts as a place to socialize. The CD value
conveys that the extent of agreement as a place to shop significantly came to be
the highest, followed by a place to compare. The mega marts as a place of
enjoyment and a place to experience, could secure the third rating, while 4 th and
the lowest stage rating was found to be in case of mega marts as a place to

                                                                           Page 44
socialize. Thus, the mega marts are generally taken to be a place to shop and to
compare.

    Extent of Agreement on Different Utility Aspects of Mega Marts
Utility Aspects   Agree Neutral       Disagree Mean         Overall
                                                       Score     Rating
A Place to Shop     245      5            0            0.98      I
(%)                 (98.00) (2.00)        (0)
A Place to          105     88            57           0.19      IV
Socialize           (42.00) (35.20)       (22.8)
(%)
A Place to Enjoy    150      67           33           0.47      II
(%)                 (60.00) (26.80)       (13.2)
A Place to          176     45            29           0.59      II
Experience          (70.40) (18.00)       (11.6)
(%)
A Place to          120      104          26           0.38      III
Compare             (48.00) (41.60)       (10.40)
(%)
F-ratio                                                13.05
C.D.                                                   .0932
Note: Overall rating is based on the value of C.D.




                                                                          Page 45
Spending on Different Items

The data given in Table 6 show that the highest proportion, i.e., 35.90% of the
customers' total spending was incurred on clothing’s, followed by 16.56% on
footwear’s, 14.98% on grocery and 12.98% on cosmetics. The lowest
proportion, i.e., 0.82% of the total spending at mega marts was incurred on
communication instruments, followed by 2.08% on artificial jewellery and
7.82% on cosmetics. Thus, it can be said that the mega marts emerged as the
most common shopping centres for clothing’s.

  Average Proportion of Spending on Different Items at Mega Marts
         Items                Mean                  Position (%)
Grocery               14.98                    III
Cosmetics             12.28                    IV
Jewellery             2.08                     VII
Clothing              35.90                    I
Eatables              9.56                     V
Footwear              16.56                    II
Consumer Durables     7.82                     VI
Communications        .82                      VIII
Total                 100.00




                                                                        Page 46
Preference for Different Sale Promotion Schemes

A perusal of Table 7 leads to the fact that majority, i.e., 62.40% of the
customer’s assigned 1st rank to cash discount offered at mega marts, while the
least rank was assigned to guarantee/warranty by as high as 45.60% of the
customers. The overall ranking based on C.D. value came to be 1 st in favour of
cash discount, followed by free gifts schemes and financing facilities, while the
least and the fifth rank was found to be in case of guarantee/warranty, preceded
by lucky draw schemes. This shows that cash discount and free gifts schemes
emerged as the most common sale promotion schemes amongst customers at
mega marts.

 Ranking of Different Sale Promotion Schemes Attracting Customers Most
Promotional                 Rank Assigned               Mean Overall
              1        2       3        4       5
Schemes                                                 Rank Rank
Cash          156      46      24       15      9       1.89    I
Discount (%)    (62.40) (18.40) (9.60)      (6.00)   (3.60)
Lucky Draw      13      35      54          71       77        3.54     IV
Schemes (%)     (5.20)   (14.00) (21.40) (28.40) (30.80)
Free Gifts      59       114     61      15      1       2.19           II
Schemes (%)     (23.60) (45.60) (24.40) (6.00)       (0.40)
Financing       14      28      83      106          19        3.34     III
Facility (%)    (5.60)   (11.20) (33.20) (42.40) (7.60)
Guarantee/      32       38      18      48      114           3.94     V
Warranty (%) (12.80) (15.20) (7.20) (19.20) (45.60)
F-ratio                                             8.78                -
C.D.                                                .1869               -
Note: Overall rank is based on the value of C.D.




                                                                            Page 47
Importance of Different Factors for Purchase Decision

Some factors were identified which influence the decision making for purchase
by the customers. The factors were rated as per the level of importance. The
results are presented in Table 8. It is obvious from Table 8 that the highest
proportion, i.e., 74.80% of the customers considered the quality of products as
most important, followed by 63.60% in favour of discount. Ambience was the
most important factor only for 8.40% of them, while only for 11.20%, the
pressure from family members came to be the most important factor while
making a purchase decision. The mean rating of factors in terms of importance
came to be significantly the highest for quality and discount, followed by value
for money. The 3rd rating factors were fixed prices and need-based purchases,
while there were wide range of products and display of products which acquired
4th level of importance. The next level of importance, i.e., 5 th level, was secured
by international brands, socioeconomic status and behaviour of the staff, while
packaging stood at the 6th level of importance. Advertisement influenced the
purchase decision of customers at the 7th level, while pressure from family
members and ambience could secure only 8th and 9th level of importance,
respectively.

Thus, quality and discount emerged as the most important factors influencing
customers' purchase decision, while family members' pressure and ambience
came to be the least important factors in this regard.




                                                                            Page 48
Importance of Factors Considered by Customers while taking a Purchase
Decision
      Factors




                                                                                                                               Overall Position
                                                                                                            Mean Rating
                                                       Neutral
                     Most


                                      Important




                                                                      Unimportant


                                                                                        MostUnimportant
                     Important




Quality         187              56               7              0                  0                     1.65            I
(%)             (74.80) (22.40) (2.80)                           (0.00)             (0.00)
Wide Product    89      91      42                               20                 8      0.87                           IV
Range (%)       (35.60) (36.40) (16.80) (8.00)                                      (3.20)
International   56      66      87      35                                          6      0.45                           V
Brands (%)      (22.40) (26.40) (34.80) (14.00) (2.40)
Discount        159     77      10      4       0      1.53                                                               I
(%)             (63.60) (30.80) (4.00)                           (1.60)             (0.00)
Packaging       47      90      50                               59                 4      0.42                           VI
(%)             (18.80) (36.00) (20.00) (23.60) (1.60)
Advertisement   36      89      66      59      0      0.30                                                               VII
(%)             (14.4)           (35.60) (26.40) (23.6)                             (0.00)
Product         86               117     22      20                                 5      0.91                           IV
Display         (34.40) (46.80) (8.80)                           (8.00)             (2.00)
(%)
Ambience        21               41               98             62                 28                    -0.14           IX
(%)             (8.40)           (16.40) (39.20) (24.80) (11.20
                                                                                    )
Value for       108              112              30             0                  0                     1.27            II
Money (%)       (43.20) (44.80) (12.00) (0.00)                                      (0.00)
Need-Based      118     66      47      19                                          0      1.12                           III

                                                                                                                  Page 49
Purchases (%)     (47.20) (26.40) (18.8)      (7.60)   (0.00)
Family            28      71      94          57       0      0.19       VIII
Members’          (11.20) (28.40) (37.60) (22.80) (0.00)
Influence (%)
Socio-            54       89       62        40       5        0.51     V
Economic          (21.60) (35.60) (24.80) (16.00) (2.00)
Status (%)
Behaviour of      67       93       60        33       7        0.59     V
the Staff         (26.80) (37.20) (24.00) (13.20) (2.80)
(%)
Fixed Prices      72       98       55        20       5        1.07     III
(%)               (28.80) (39.20) (22.00) (8.00)       (2.00)
F-ratio                                                         11.12
C.D.                                                            0.1191
Note: Overall position is based on the value of C.D.




                                                                   Page 50
FINDINGS


1. In this study it is found that 60% customers prefer to purchase from

   organized retail outlets as compare to unorganized retail outlets.
2. During the study it comes to know that customers spend 40% - 50% of

   their monthly budget at organized retail outlets.
3. In this study it is found that organized retail outlets provide better quality,
   product range as compare to unorganized retail outlets.
4. In this study it is observed that in future the market share of unorganized

   retail will reduce 60% - 80%, because Customers shifting from
   unorganized retail outlets to organized retail outlets.
5. During study it is observed that these organized retail outlets attracting

   the middle & upper class customers, the lower class person still prefer to
   purchase from the local Kirana Stores.
6. The findings of the study conclude that 80% of the customers are

   youngsters aged between 16-25 and among them more males from the
   urban sector visit mega marts.
7. From the utility point of view, 90% of customers were more oriented

   towards safety and parking facilities.
8. About 35% - 40% of peoples are least bothered about guarantee and

   warrantee as compared to quality and discount that they prefer more.




                                                                          Page 51
SUGGESTIONS



1. The organized retail outlets should improve the quality of Vegetables &
   fruits they provide to customers.
2. The organized retail outlets should provide the free home delivery
   facility.
3. The organized retail outlets should increase the no. of billing counters in
   their outlets.
4. The organized retail outlets should also provide the credit facility to the
   lower class customers so that they can increase their market share.
5. The organized retail outlets should also provide the mobile van facility in
   the areas which are far away from the stores.
6. to attract the rural sector customers, mega marts may extend their
   advertisements offering special sale promotion schemes to the rural areas.
7. The customers are dissatisfied with the safety and parking facilities at the
   mega marts. Therefore, they should concentrate on developing these
   aspects properly, besides extending more cash discount and free gifts
   schemes to attract the customers at a higher level.
8. The mega marts should focus on quality, discount and attractive display
   of products, as these are very important factors considered by the
   customers while making purchase decisions.




                                                                         Page 52
LIMITATION



 Due to the constraints of time, the study was confined to DEHRADUN
  city.
 The sample was taken on the basis of convenience; therefore the
  shortcomings of the convenience sampling may also be present in this
  study.
 The sample size chosen for the purpose was only indicative and not
  exhaustive owing to time constraints.
 There were some inherent limitations as far as collection of data is
  concerned. The respondents replied may be biased in favour of their
  centres.




                                                               Page 53
CRUX OF
THE STUDY



        Page 54
CONCLUSION

The crux of the study is that most of the customers
prefer to purchase from organized retail outlets as
compare to unorganized outlets. Also its found that
most of the respondents are satisfied with the quality,
price and product range of the goods provided by
organized retail outlets. In this study it is found that
customers want to spend more at organized retail outlets
in comparison to other local Kirana stores. During the
study its also found that customers were happy from the
services provided by organized outlets.
This study also revealed that customer prefers the
organized retailing over unorganized retailing, due to
which the organized retailing become a threat to the
local kirana stores & street hawkers.




                                                   Page 55
ANNEXURE




           Page 56
Questionnaire
Note: Tick your Responses


Q.1   “I belong to the age group”


                  16 – 25 years            26 – 35 years              36 – 45 years


                  46 – 55 years            56 – 65 years              Above 65 years


  --------------------------------------------------------------------------------------------

Q.2   Gender :


                 Male           Female


  --------------------------------------------------------------------------------------------

Q.3   “I have obtained education till this level”.


               Matriculate               Intermediate                Graduate


               Post Graduate             Beyond PG

  --------------------------------------------------------------------------------------------

Q.4   “My monthly income range is”


               Up to Rs. 10,000             Rs. 10 – 20,000


               Rs. 20 – 50,000              Above Rs. 50,000

                                                                                      Page 57
Q.5   Which sources of promotional mix method used by the company
      attracts you most ?

      (a) Yes                         ( )
      (b) No                          ( )

Q.6   Are you aware of promotional scheme of this company’s services?

      (a) Yes           ( )
      (b) No            ( )

Q.7   Did the company advertisement meet the performance ?

      (a) Yes           ( )
      (b) No.           ( )

Q.8   Do you buy services on the basis of its brand image ?

      (a) Yes           ( )
      (b) No.           ( )

Q.9   Are you satisfied with the pricing polices of this company ?

      (a) Yes           ( )
      (b) No.           ( )

Q.10 Which company provide better services ?

      (a) Yes           ( )
      (b) No.           ( )

Note: Circle your Responses
Q.11 “Please indicate how important or unimportant each of the following
      characteristics is”

                              Important                              Unimportant
          (a) Safety             5          4        3        2          1
          (b) Uniqueness         5          4        3        2          1
          (c) Less Time          5          4        3        2          1
              Consumption
          (d) Location            5         4        3        2           1
          (e) Parking             5         4        3        2           1

                                                                     Page 58
Q.12 “Please indicate the extent to which you agree or disagree with the
     following utility aspects of organized Retail Outlets.”

                                   Strongly                                 Strongly
                                    Agree                                   Disagree
          (a) A place to               5           4        3       2           1
              shop
          (b) A place to                5          4        3       2          1
              socialize
          (c) A place to                5          4        3       2          1
              Enjoy
          (d) A place to                5          4        3       2          1
              experience

   --------------------------------------------------------------------------------------------

Q.13 “Please rank the following sales promotion schemes as per the degree
     of attractiveness.”

                                      Attractive                        Unattractiveness
           (a) Cash Discount              5           4 3         2            1
           (b) Lucky Draw                 5           4 3         2            1
                 Scheme
           (c) Free Gift                    5         4 3         2              1
                 Scheme
           (d) Financing                    5         4 3         2              1
                 Facility
           (e) Guarantee /                  5         4 3         2              1
                 Warranty
   --------------------------------------------------------------------------------------------

Q.14. “Kindly indicate the importance of each of the following while
      making a purchase decision.”

                                          Most                                  Most
                                        Important                            Unimportant
          (a) Quality                      5            4       3       2        1
          (b) Wide Product                 5            4       3       2        1
              Assortment
          (c) Fixed Price                    5          4       3       2          1

                                                                                       Page 59
(d) Presence of       5   4   3   2   1
    International
    Brands
(e) Discounts         5   4   3   2   1
(f) Packaging         5   4   3   2   1
(g) Advertisement     5   4   3   2   1
(h) Display of        5   4   3   2   1
    Products
(i) Ambience          5   4   3   2   1
(j) Value for Money   5   4   3   2   1
(k) Socio Economic    5   4   3   2   1
    Status
(l) Behaviour of      5   4   3   2   1
    Staff




                                          Page 60
BIBLIOGRAPHY


WEBSITES:

www.imagesretailing.com
www.reportbuyer.com
www.reportbuyers.com
www.thirdeyesite.in
www.google.com
www.datamonitar.com
www.rediff.com
www.scribd.com

Books
Kothari.C.R, Research Methodology, New Age (P) Limited, Second
Edition, 2004.
Pillai & Bagavathi, Marketing management, New Delhi, sultan Chand &
Sons, 1999.
David Gilbert, Retail Marketing Management, Prentice Hall, Second
Edition, 2003.




                                                               Page 61
Page 62

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Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02

  • 1. DISSERTATION REPORT ON “CUSTOMERS PERCEPTION AND SATISFACTION TOWARDS ORGANIZED RETAIL OUTLETS” IN PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION SUBMITTED TO: SUBMITTED BY: Mrs.ANITA CHATURVEDI SUDEEP KUMAR SINGH FACULTY GUIDE MBA –IVTH SEM. NAM, DEHRADUN (2010-2012) NIMBUS ACADEMY OF MANAGEMENT, DEHRADUN Page1
  • 2. DECLARATION I, SUDEEP KUMAR SINGH student of M.B.A (Marketing) 20010-2012 batch studying at NIMBUS ACADEMY OF MANAGEMENT, DEHRADUN, declare that the project work entitled on “CUSTOMER PERCEPTION AND SATISFACTION TOWARDS ORGANIZED RETAIL OUTLETS” was carried by me in the partial fulfillment of M.B.A Programme. It is not been copied from anywhere else. SUDEEP KUMAR SINGH MBA – IV SEM. NAM, DEHRADUN Page 2
  • 3. LIST OF CONTENTS TITLE • ACKNOWLEDGEMENT • LIST OF TABLE AND ILLUSTRATION • ABSTRACT • INTRODUCTION • ABOUT RETAIL INDUSTRY IN INDIA • PRESENT INDIAN RETAIL SCENARIO • EVOLUTION AND TRENDS IN ORGANIZED RETAILING FORMATS AND RETAIL OUTLETS • MAJOR INDIAN RETAILERS • ORGANISED RETAIL OUTLET IN DEHRADUN • THEORITICAL BACKGROUND • REVIEW OF LITERATURE • STORE LAYOUT • INTERPRETATION & ANALYSES • FINDINGS • SUGGESTIONS • LIMITATIONS Page 3
  • 4. CONCLUSION • QUESTIONNAIRE • BIBLIOGRAPHY Page 4
  • 5. ACKNOWLEDGEMENT “NO MAN IS COMPLETE IN KNOWLEDGE BUT SINGLE RAY OF KNOWLEDGE CAN BE HELPFUL TO MAN”. The research on “CUSTOMERS PERCEPTION AND SATISFACTION TOWARDS ORGANIZED RETAIL OUTLETS” has been given to me as part of the curriculum in Two-Year Masters Degree in Business Administration. I have tried my best to present this information as clearly as possible using basic terms that I hope will be comprehended by the widest spectrum of researchers, analysts and students for further studies. I have completed this study under the able guidance and supervision of Mr. ANITA CHATURVADI I will be failed in my duty if I do not acknowledge the esteemed scholarly guidance, assistance and knowledge. I have received from them towards fruitful and timely completion of this work. My acknowledgement may not redeem the debt I owe to my parents for their direct/indirect support during the entire course of this project. “GUIDANCE IS THE BEST IN THE WAY OF PROGRESS”. I also thankful to my friend who helped me a lot in the completion of this project. SUDEEP KR. SINGH MBA – IVTH SEM. (MARKETING) Page 5
  • 6. LIST OF TABLE AND ILLUSTRATIONS 1) Indian retail market 2) Retail formats available in India 3) Fastest growing retail formats in India 4) Fastest growing retail segment in India Page 6
  • 7. ABSTRACT This paper provides detailed information about the growth of organized retail sector in Dehradun. It discusses about the emergence of innovative practices that support the growth of the sector in a highly competitive environment. Though this sector is one of the fastest growing in the country but in Dehradun it is still in its nascent stage, however it is fast spreading and making its presence felt in different parts of the city. There is a vast untapped potential for organized retailing in Dehradun which is the key attraction not only to the domestic and global retailing chains operating here but also for the customers who belong to different cross sections of the society and visit them. An effort has been made, in the paper to know about the customers’ perception and satisfaction towards these organized retail stores in Dehradun so as to access their satisfaction level and decode whether the sector will be able to do a meaningful business in Dehradun. Page 7
  • 8. INTRODUCTION Objective  The overall purpose of this endeavour is to investigate empirically customer’s perception and satisfaction towards organized retail outlets and kirana stores on the basis of various parameters.  Moreover this study aims at finding the discriminating factors that lead to customers’ preference towards organized retailers.  To understand the overall shopping habits of customer.  To know the major factors considered by customers while shopping in unorganized retail shops.  To know the different class of customers shopping in unorganized retail shops.  To understand the various promotional activities undertaken by the unorganized retailers.  To know the satisfaction level of customers shopping in unorganized retail shops. Methodology  The study involves the primary data which is collected through questionnaire, interview, and observation.  It involves use of secondary sources such as web and other research articles printed by various financial institutions and other journals and magazine. Page 8
  • 9.  It involves analysis and tabulation of data which is collected from customers is done by various means such as line graphs, pie charts and bar graphs.  The project involves the study of customer’s perception. Sampling Method and Sample Size: Three retail outlets and two kirana stores in Dehradun were randomly selected for this study. Fifty visiting customers from each outlet were personally interviewed with the help of especially structured questionnaire. In this way 250 customers were interviewed for the study. Research Instrument and Method: The survey was conducted on customers with the help of MBA students who were specially trained for the purpose. A well structured questionnaire was developed for conducting the study. The questionnaire was divided into two parts. First part was designed to obtain demographic information about the respondents’ age, income, literacy level and gender. Second part contained closed-ended questions relating to rating of retail outlets on various parameters. Analysis of Data: Customers’ perception towards different aspects of retail outlets and kirana stores were compared using Analysis of Variance (ANOVA). Before going in for analysis, the Likert Scale attributes were assigned weights as under: Agree =1, Neutral =0, Disagree = -1 Satisfied = 1, Neutral = 0, Dissatisfied = -1 Most Important = 2, Important = 1, Neutral = 0, Unimportant = -1, Most Unimportant = -2 and The results obtained through data analysis have been discussed in the paper. Page 9
  • 10. ABOUT RETAIL INDUSTRY IN INDIA Retail is India's largest industry. It accounts for over 10 per cent of the India's GDP and around 8 per cent of the employment. Retail sector is one of India's fastest growing sectors with a 5 per cent compounded annual growth rate. India's huge middle class base and its untapped retail industry are key attractions for global retail giants planning to enter newer markets. Driven by changing lifestyles, strong income growth and favourable demographic patterns, Indian retail is expected to grow 25 per cent annually. It is expected that retail in India could be worth US$ 175-200 billion by 2016. The organized retail industry in India had not evolved till the early 1990s. Until then, the industry was dominated by the un-organized sector. It was a seller’s market, with a limited number of brands, and little choice available to customers. Lack of trained manpower, tax laws and government regulations all discouraged the growth of organized retailing in India during that period. Lack of consumer awareness and restrictions over entry of foreign players into the sector also contributed to the delay in the growth of organized retailing. A number of factors are driving India's retail market. These include: increase in the young working population, hefty pay-packets, nuclear families in urban areas, increasing working women population, increase in disposable income and customer aspiration, increase in expenditure for luxury items, and low share of organized retailing. India's retail boom is manifested in sprawling shopping centres, multiplex- malls and huge complexes that offer shopping, entertainment and food all under one roof. But there is a flip side to the boom in the retail sector. It is feared that the entry of global business giants into organized retail would make redundant the neighbourhood Karana stores resulting in dislocation in traditional economic structure. Also, the growth path for organized retail in India is not hurdle free. The taxation system still favours small retail business. With the intrinsic complexities of retailing such as rapid price changes, constant Page 10
  • 11. threat of product obsolescence and low margins there is always a threat that the venture may turn out to be a loss making one. A perfect business model for retail is still in evolutionary stage. Procurement is very vital cog in the retail wheel. The retailer has to fight issues like fragmented sourcing, unpredictable availability, unsorted food provisions and daily fluctuating prices as against consumer expectations of round-the-year steady prices, sorted and cleaned food and fresh stock at all times. Trained human resource for retail is another big challenge. The talent base is limited and with the entry of big giants there is a cat fight among them to retain this talent. This has resulted in big salary hikes at the level of upper and middle management and thereby eroding the profit margin of the business. All the companies have laid out ambitious expansion plans for themselves and they may be hampered due lack of requisite skilled manpower. But retail offers tremendous for the growth of Indian economy. If all the above challenges are tackled prudently there is a great potential that retail may offer employment opportunities to millions living in small town and cities and in the process distributing the benefits of economic boom and resulting in equitable growth. Page 11
  • 12. PRESENT INDIAN RETAIL SCENARIO The retail industry is divided into organized and unorganized sectors. Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46m²) in size. Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. • Unorganized market: Rs. 583,000 cores • Organized market: Rs.5, 000 cores • 5X growth in organized retailing between 2000-2005 • Over 4,000 new modern Outlets in the last 3 years • Over 5,000,000 sq. ft. of mall space under development • The top 3 modern retailers control over 750,000 sq. ft. of retail space • Over 400,000 shoppers walk through their doors every week • 47 global fortune companies & 25 of Asia's top 200 companies are retailers. Growth in organized retailing on par with expectations and projections of the last 5 Years: on course to touch Rs. 35,000 corers (US$ 7 Billion) or more by 2005-06The growth factors of the retail sector of Indian economy: Page 12
  • 13. • Increase in per capita income which in turn increases the household consumption • Demographical changes and improvements in the standard of living • Change in patterns of consumption and availability of low-cost consumer credit • Improvements in infrastructure and enhanced availability of retail space Entry to various sources of financing. Page 13
  • 14. EVOLUTION AND TRENDS IN ORGANIZED RETAILING FORMATS AND RETAIL OUTLETS Historical Indian retail market consisted of weekly markets, village fairs and mela’s and the 19th century gave birth to the retail outlets which took the form of convenience stores, Mom and Pop stores/ kirana stores. This helped the consumers on to stick to a particular store for their day to day requirements and also avail the credit purchasing facility. And in the 1980’s people have seen the new formats like supermarket, departmental stores and discount stores entering into the Indian retail space. In less than a decade hypermarkets have gained all the applause of the retail market and stood above all the other formats by bringing in the concept of “one stop shopping.” This stood as an opening door for the new generation of the retail industry. And very soon the malls became the trend setters in the new millennium. This has coined the term of ‘shoppertainment’ (shopping and entertainment) which can be attributed to the changing life styles of the people. Hypermarket: It is the largest format in Indian retail so far is a one stop shop for the modern Indian shopper. Merchandise: food grocery to clothing to spots goods to books to stationery. Space occupied: 50000 Square feet and above. SKUs: 20000-30000. Example: PETER ENGLAND retail’s Big Bazaar, RPG’s Spencer’s (Giant), Vishal mega mart. Supermarket: A subdued version of a hypermarket. Merchandise: Almost similar to that of a hypermarket but in relatively smaller proposition. Space occupied: 5000 Sq. ft. or more. Page 14
  • 15. SKUs: Around 10000. Example: Nilgiris, Apna Bazaar, Trinethra/more. Convenience store: A subdued version of a supermarket. Merchandise: Groceries are predominantly sold. Space occupied: Around 500 Sq. ft. to 3000 Sq. ft. Example: stores located at the corners of the streets, Reliance Retail’s fresh. Department store: A retail establishment which specializes in selling a wide range of products without a single prominent merchandise line and is usually a part of a retail chain. Merchandise: Apparel, household accessories, cosmetics, gifts etc. Space occupied: Around 10000 Sq. ft. – 30000 Sq. ft. Example: Landmark Group’s LifeStyle, Trent India Ltd.’s Westside. Discount store: Standard merchandise sold at lower prices with lower margins and higher volumes. Merchandise: A variety of perishable/ non perishable goods. Example: Viswapriya Group’s Subiksha, Piramal’s TruMart. Specialty store: It consists of a narrow product line with deep assortment. Merchandise: Depends on the stores Example: Bata store deals only with footwear, RPG’s Music World, Crossword. MBO’s: Multi Brand outlets, also known as Category Killers. These usually do well in busy market places and Metros. Merchandise: Offers several brads across a single product category. Page 15
  • 16. Kirana stores: The smallest retail formats which are the highest in number (15 million approx.) in India. Merchandise: Mostly food and groceries. Space occupied: 50 sq ft and even smaller ones exist. Malls: The largest form of organized retailing today located mainly in metro cities, in proximity to urban outskirts. Merchandise: They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Space occupied: Ranges from 60,000 sq ft to 7, 00,000 sq ft. Page 16
  • 17. In the above graph it shows that the in India the fastest growing retail segment is food and grocery because in India people spend more on eating. Then dressing because India is now turning to modern age and the people of modern age like to dress well and look well. Page 17
  • 18. In the above graph it shows that the there are many formats of retailing in India but the specialty store and supermarket is fastest growing formats in India. Key part of the general corporate strategy A marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. It is partially derived from broader corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. Basic theory: 1) Target Audience 2) Proposition/Key Element 3) Implementation Page 18
  • 19. MAJOR INDIAN RETAILERS The low-intensity entry of the diversified Mahindra Group into retail is unique because it plans to focus on lifestyle products. The Mahindra group is the fourth large Indian business group to enter the business of retail after Reliance Industries Ltd, the Aditya Birla Group, and Bharti Enterprises Ltd. The other three groups are focusing either on perishables and groceries, or a range of products, or both. RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper, Spencer’s Super, Daily & Fresh The Tata Group-Formats: Westside, Star India Bazaar, Steel junction, Landmark, and Titan Industries with World of Titans showrooms, Tanishq outlets, Chroma. K Raheja Corp Group-Formats: Shoppers’ Stop, Crossword, Hyper City, in orbit Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International Franchise brand stores. Pyramid Retail-Formats: Pyramid Megastore, TruMart Nilgiri’s-Formats: Nilgiri's’ supermarket chain Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain. Page 19
  • 20. Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain Vishal Retail Group-Formats: Vishal Mega Mart BPCL-Formats: In & Out Reliance Retail-Formats: Reliance Fresh Reliance ADAG Retail-Format: Reliance World Shoprite Holdings-Formats: Shoprite Hyper Page 20
  • 21. ORGANISED RETAIL OUTLETS IN DEHRADUN VISHAL MEGA MART The glory of Vishal Group’s success is the ascent it has come to accomplish in the field of manufacturing and retailing of readymade garments. The credit for this radiance goes to its dynamic of directors Mr. Ram Chandra Agarwal & Mrs Uma Agarwal who have transformed their foresightedness into an unending saga of growth. Identifying the immense market in fashion garment for the masses the Group has actually established benchmarks that many others are inspired to follow. Not resting on its laurels, the Group is busy identifying new avenues of growth and its companies are busy implementing the expansion plans to cash in on emerging potentials in the changing business environment of modern India’s enterprise. The jewel in Vishal Group’s crown is its flagship company Vishal Retail Ltd. a company engaged in Hyper market stores with an average area of 25,000 to 30,000 sq. ft. through an impressive chain of 172 fully integrated stores in spread over the area of more than 24,00,000 sq. ft. in around 110 cities across India in 24 states. The turnover of the company for 09-10 was 1105 Crore. Maintaining the highest standards in quality and design, these stores have come to offer the finest fashion garments at down-to-earth price structure. A fact that Page 21
  • 22. is better visible in the constant flow of shoppers all through the year. Under the title of Vishal Mega Mart these stores have emerged as the regular haunts for the bargain-hunters and fashion enthusiasts alike. The saga of Vishal Group dates back to 2001 when its directors foresaw the emerging potentials in the retail industry which is indeed the largest sector in the global economy. Imbibing its innovative concepts and techniques the Group identified the vast scope of growth in retailing for the common man. Its stores have gained an enviable prominence as being the ideal store for the common man where an extensive variety and quality is offered at a very, very reasonable price structure. The Group’s expertise in the field of retail marketing over the years and its focus on regions, cities and exact customer preferences have earned the Group an undisputed leadership status to Vishal Group. Bharti Retail Bharti Retail is a wholly owned subsidiary of Bharti Enterprises. The Company operates easy day neighbourhood stores and compact hypermarket stores called easy day Market. Bharti Retail provides consumers a wide range of good quality Page 22
  • 23. products at affordable prices. easy day stores are one stop shops that cater to every family's day-to-day needs. Merchandise at easyday Market stores include apparels, home furnishings, appliances, mobile phones, meat shop, general merchandise, fruits and vegetables among others. Created on the neighbourhood shop format, the much-awaited retail operations ‘EasyDay‘was introduced by Bharti Retail Limited at Dehradun in Uttrakhnad. Bharti Retail Limited happens to be a wholly-owned subsidiary of Bharti Enterprises and its Easy Day retail operations will act as a one-stop shop catering to a family’s day-to-day needs. As such, the Easy Day Stores will provide Indian consumers a wide range of products of excellent quality apart from proffering a nice ambience and service. Among the range of items you can look forward to buying from the EasyDay stores include personal care products, stationery, household articles, hosiery items, daily-need groceries like staples, processed foods, bakery and dairy products, meat and poultry and fresh produce. It was announced by the company that EasyDay will gives jobs to the locals in the Ludhiana area where it has been set up. Further on those who will be selected for the job will be trained by Bharti Academy of Retail, which has been established by Bharti Retail Limited. This academy has already trained about 1,800 local people from different sections of the society. KUMAR STORES 4, Neshvilla Road Dehradun, Uttarakhand, 248001 Phone No: +91-135-2653145 +91-9837034784 Page 23
  • 24. Email: Samraat@Vsnl.Com Directions: It Is Located On Neshvilla Road, 800 Metres From Clock Tower Hours of Operation: 8:30 Am To 8:30 Pm Closed: Sunday Payment Type: Cash, Visa, Master Card Business Description It Deals In All Kinds Of Cosmetics, Gift Novelties, White Metal, Toys, Decorative Pieces, Home Appliances, Stationery And All Other Items Of Daily Need. Kaveri Departmental Store 38, Arhat Bazar, Saharanpur Chowk Saharanpur Road Dehradun, Uttarakhand, 248001 Phone No: +91-135-2625514 Directions: It Is Located At Saharanpur Chowk, 550 Metres from Dehradun Hours of Operation: 10:00 Am To 8:30 Pm Closed: Sunday Payment Type: Cash, Visa, Master Card Business Description Page 24
  • 25. All Types Of Utility Items Of Domestic Purposes Can Be Purchased From Here. Page 25
  • 26. AMARTEX From The Director's Desk Amartex was born in 1988 as a small cloth- manufacturing unit, established by the Grover family of Chandigarh. Set up with a modest capital, it is today a fully integrated manufacturing Company, boasting of an impressive turnover of Rs. 250 Crores and targeting 1000 Crores in coming two years. Mr. Arun Grover, the Managing Director, was quick to spot the discrepancies in the prevalent manufacturing to retail process. By the time the product reached the stories, the consumer paid a lot more than justified. Amartex revolutionized whole textile industry in north India with a swift and thorough process of backward integration which led to the setting up of every link in the chain. Today, the company has completed all in-house facilities, from manufacturing to retailing and is fastest growing. Amartex is a fully integrated manufacturing Company with a balanced mix of manufacturing and marketing. The Company is well equipped with modern manufacturing and marketing infrastructure, such as, weaving to processing, designing and garments manufacturing and is the fastest growing company in the region. All products rolling out of our premises find their way to every nook and corner in this region through 34 Company owned retail outlets. The Company provides consumers with a wide variety of apparel products and services to suit their individual needs. We have carved out a niche and name in the industry and cater. Amartex was brought into existence in 1988 by a team of competent promoters viz-a-viz The Grover Family. The core promoters have Page 26
  • 27. more than two decades of experience in manufacturing and marketing of textile products. The management of the Company comprises of an appropriate mix of qualified and competent Directors and Managerial Staff. THEORETICAL BACKGROUND Unique Customer Perception (UCP) Marketing is a domain which is dynamic i.e. involves change, an important phenomenon not to be overlooked. We have come across a term “Unique Selling Proposition” (USP) which companies feel as a constant factor. Every organization is an open system of management which means change is inevitable and is associated with environmental factors. Companies need to focus not only on USP of their products but also on the “Unique Customer Perception” (UCP) of the final end users. The prop of marketing is based on the need identification and the USP's are prepared based on the identified needs. If the needs are wrongly identified then even the USP's which are unique to the product would not serve the purpose. USP identifies a product/service from its competitors while UCP is the perception or picture a customer develops from all types of promotional inputs from the company about their product or service. It is often seen that some brands do extremely well compared to other brands having the same resources. The reason for the brands not to do well is probably the communications which does not reflect the customer’s perception. So it is not the USP but UCP that plays an important role .This has lead to the concept - “Customer Perception is the Rule and not Customer Satisfaction”. Remember that a customer always buys a product or service with a lot of expectations which he has derived from the promotional inputs of the company Page 27
  • 28. or other sources including word of mouth. So a customer would be satisfied when Performance is equal to Expectation while would not be satisfied when Performance does not match with Expectations. Now this expectation is what has been derived from perception. Perception is not good or bad, right or wrong, it is just the way someone judges an experience based on their value system of what they believe should happen. Since people are unique, each of their perceptions are unique .On the other hand each situation is a "point of contact" with an employee that will tell the customer a "truth" about the company's idea of customer service. Each situation will create expectations’ of what the next experience will probably be like. Companies spend considerable amount on advertisement and in this world of competitive advantage advertisement has to be repetitive in nature. So companies need to understand the Unique Customer Perception to facilitate advertising and Sales Promotional (ASP) efforts towards a better bargain. The cost incurred on advertisement is huge i.e. if we refer to the 5 M's of advertising, Money is a budgetary constrain for an ideal advertising campaign. Thus UCP has to be rightly analyzed for better results by the company to match performance and expectation. Page 28
  • 29. – An analysis of Indian Retail sector PJ GERMAIN The customer's perception: Customer perception is an important component of our relationship with our customers. Given that 90% plus of our orders at some point involve the phone, how we handle the telephone is essential to creating a perception for our customer that aligns with the company mission of service. Smiling stretches your vocal cords, and gives a more upbeat presentation to the customer. Slowing down ensures that the customers perception is of an organized systematic company that can handle their project. Getting it done right and on time consistently. Article source: http://www.fibre2fashion.com BY SOUMEN CHATTERJEE Unique customer perception (UCP): According to soumen, Unique Customer Perception is what is required by companies instead of Unique Selling Proposition. It is ultimately that customer look for satisfaction based on the picture of perception derived from various sources. If these perceptions of customer can be analyzed then promotion would be easier for customer centric marketing. This has lead to the concept - “Customer Perception is the Rule and not Customer Satisfaction”. Article Source: http://EzineArticles.com/?expert=Soumen_Chatterjee BY JEN B Brand recognition will change customer perception: According to JenB, for a bigger stronger business you have to get some serious brand recognition Page 29
  • 30. happening. People need to know your name before any thing else. You want people to thing of you a certain way too. This is the ticket to getting the image that you want. If you get a lot of blank looks from people that are not current customers then you probably have no recognition at all. That means it is time for an advertising switch. Even if people don’t buy the product they will recognized the name. Remembering a business is one step closer to trusting a business. Brand recognition is accomplished only by people seeing your logo and business name over and over again. This will create the repetition that your customers and future customers need to pick your product out of a crowd time and time again. Article Source: http://www.a1articles.com/article_1035917_15.html HUAWEI Satisfy customers perception is the biggest challenge: In meeting customers' requirements and measuring customers' satisfaction indexes, customer perception should be definitely a key consideration. Qualified services in the operation execution layer, technical management layer and business development layer are necessary. It is more important to understand customer expectations and make efforts to exceed their expectations. In customer satisfaction management, the biggest challenge is customer perception management, or customer perception satisfaction. The major characteristics of service is intangible, hence the core value of services is not like a physical product but the spiritual experience and perception of customers. The final aim and ideal effect of service provisioning is to have customers perceive and enjoy the service. Such perception is both at psychological and behaviour levels, and it is the contents of high quality life in the modern society. Customers are seeking for material deliverables as well as perceptive enjoyment when purchasing a service product. Page 30
  • 31. Since perceptive enjoyment is a vital service objective, one of the key service management objectives shall be meeting customers' perceptive enjoyment. Article source: Huawei Technologies Co. Ltd MORGAN STANLEY Quick Comment – Impact on our views: We met Rakesh Biyani, Director Future Group, who heads the retail business. Our investment thesis regarding improving business outlook and availability of capital to fund growth plans continues to hold good. Management has consciously shifted focus to growth quality rather than just growth. We reiterate our Overweight rating and believe that any volatility in the stock price should be viewed as an entry opportunity. Here are the key takeaways from the meeting: Aggressive growth and margin targets: PRIL has set an aggressive 16-17% same store growth (SSG) target for F2010. This compares with F2009 SSG of 7.0%. The company plans to achieve this target by adopting active merchandise management. First, the company is likely to ensure that its fastest-selling products don’t go out of stock. It has increased its order per SKU range from 900-1,400 to 600-6,000 to ensure reduced stock outs for fast-selling products. Second, it has put in place a system to continuously monitor underperforming categories/segments/SKUs so that they can be immediately replaced. Third, it has improved product quality and pricing across its merchandise (particularly private label) to ensure market share gains. Fourth, it has now set store-wise, product-wise and SKU-wise, daily/weekly sales targets so that the monitoring and feedback system improves significantly. Focus on efficiency to improve margins: The management is targeting 200- 250 bps improvement in gross profit margin, a 30% reduction in logistic costs, and a reduction in nonstore inventory during F2010. Gross margin improvement is likely to be driven by improvement in sell-through ratio (% of products sold Page 31
  • 32. through the primary store), from 79% in F2009 to 89% in F2010. The company achieved 79% in F2009, which was an improvement from 64% in F2008. Significant improvement in private label contribution, particularly in the apparel segment, may also help the overall mix improvement. TRENT LEYSHAN Creating the right ‘Value Perception’ for your Customers According to Trent Leyshan Value Perception (VP) is the opinion your potential and current customers have of your product or service. This perception determines the value it adds to them in line with the problems it needs to solve or aspirations they want it to fulfil. Irrespective of your customer’s opinion being right of wrong in your mind, their opinion matters none the less, in fact, critically so. Some may suggest; “But the customer my have it wrong” In this instance we respond: whose fault is that: the customer, sales person, sales manager, marketing dept or Company Directors? One this is for sure, it certainly isn’t the customers fault. Value cascades down the value deliver system into the customer. A breakdown on any level can be detrimental to a company’s success. The customer’s positive perception, along with an effective sales process will help the customer make the appropriate buying decision. Article source: www.trentleyshan.com | Page 32
  • 33. MERCHANDISE ASSORTMENT PLANNING The retailer must make decisions regarding the merchandise offered depending on the sales targets and financial objectives of the store. Retailer should be very careful while deciding on the amount of stock to be maintained in each category; if large stocks are maintained in a particular category, there may not be sufficient resources left for providing a deeper assortment of goods. By taking into consideration this phenomenon all Peter England specialty stores are maintained on the basis of the per square foot SKUs. It means that as shown into the figures of assortment, every SKU are replenished in the fix quantity. STORE LAYOUT There are some key factors that a retailer should take into account, while developing a layout prototype. The following are the optimizing factors: • Increasing sales • Maximizing returns per square foot • Coordinating the merchandise with the store format. • Allowing flexibility in store design. • Recognizing the needs and safety of the customers The store lay out should enable and incite the customers to move around the store to purchase more products than they have actually planned for. The store layout should tempt customer to walk along the inexpensive merchandise display section for impulse buying and then move on to expensive merchandise. There are three types of store layout 1. Grid layout 2. Race track layout Page 33
  • 34. 3. Free-form layout STORE EXTERIORS Generally, the first impression of a customer about a store is formed by its exteriors. The exterior of a store plays a vital role in attracting new customers and retaining existing customers. Retailer while planning their store exterior may consider any of the following option. 1. Modular structure 2. Prefabricated structure 3. Prototype structure 4. Recessed structure 5. Distinct structure Marquee: typically carries store name along with the trade marks. Here you can see Peter England marquee is not much blowy and outside signboard is put which matching with its positioning tag line “Honestly Impressive”. Entrance and display window: From the photograph we can clearly make out that there is only one entrance in the store which shows the display of merchandise which store offers, so that it can attract the pedestrians easily. Door type and walk away: the door is of push-pull type which eases traffic congestion at the entrance and allows the customer to see interiors. There is ample of space available for the customer to freely move inside the store but because of the smaller parking space available, which is outside the store, it becomes very congested sometimes. Page 34
  • 35. STORE INTERIORS The principal objective of any retailer is to maximize its sales and customer satisfaction, and to minimize the operational costs. Therefore, the interior of the store should be designed in such a way that it serves. Lighting and Fragrance In the store lighting is used intelligently to highlight the merchandise and attract customers to specific departments in the store. Some of the main objectives they have achieved with lighting are following: • Highlighting the displayed product. • Capturing customer’s mood. • Masking the unattractive features or places of the store. There is also a mild fragrance available into the store to influence the Purchasing decisions of the target market. Page 35
  • 36. INTERPRETATION & ANALYSES Page 36
  • 37. RESEARCH AND METHODOLOGY The study focuses on DEHRADUN city, as it is the industrial capital of UTTARAKHAND, and it portrays cross-sections of the society. Five mega marts, namely, Vishal Mega Mart, Easy day, Amartex, Kumar’s stores and Kaveri departmental stores, were randomly selected for the study. Fifty visiting customers from each mega mart were personally interviewed with the help of a specially structured questionnaire. In this way, 250 customers were interviewed for the study. Customers' perceptions towards different aspects of mega marts were compared by using Analysis of Variance (ANOVA). Socioeconomic Characteristics of the Customers Age: The data given in Table 1 shows that half of the customers belonged to the age group of 16-25 years. This shows that younger people visit mega marts more frequently as compared to their older counterparts. This proportion becomes 32.00% in the age group of 26-35 years. This shows that the older people enjoyed their old set pattern of marketing. Sex: Majority, i.e., 57.20% of the customers were female, while only 42.80% of them were male. This may be due to the now female domination in the decision making process in the family. Place of Residence: As high as 71.20% of the customers belonged to the urban areas, while 28.80% of them came from rural areas. Thus, the urban population dominates the quantum of customers at mega marts. Education: The analysis shows that the customers with educational level up to graduation, accounted for 40.80%, while the customers with higher educational Page 37
  • 38. level, came to be 30.80% only. The highest proportions of customers (44.40%) were enjoying medium level of education. This indicates that among the highly educated customers, mega marts could not become popular, and they might have preferred to go to malls keeping with their educational status. Family Income: The data shows that the proportion of customers visiting mega marts was inversely related with the family income. It came down from 62.20% of customers with low family income up to Rs. 25,000 per month to 6.40% of them having family income of more than Rs. 50,000 per month. This shows that mega marts could not attract the very rich class. They may instead prefer malls for shopping. Thus, people with high education and income do not visit the mega marts frequently. Table 1 : Socioeconomic Characteristics of Customers of Mega Marts Socio-Economic Number of Customers Percentage ( % ) Characteristics Age (Years) : 16 – 25 114 45.60 26 – 35 80 32.00 36 – 45 30 12.00 46 – 55 12 4.80 56 – 65 14 5.60 Above 65 0 0.00 Place of residence rural 72 28.80 urban 178 71.20 Gender : Male 107 42.80 Female 143 57.20 Education : Matriculate 6 2.40 Page 38
  • 39. Intermediate 35 14.00 Graduate 102 40.80 Post Graduate 77 30.80 Above Post Graduate 30 12.00 Family Income (Rs/ Month ) : Up to 10,000 63 25.20 10,000 – 20,000 94 37.60 20,000 – 50,000 77 30.80 Above 50,000 16 6.40 Decision Maker : Self 187 74.80 Others 63 25.20 Decision Maker: Majority, i.e., 74.80% of the customers were decision makers themselves, while only 25.20% of them belonged to those families where the decision maker was some other family member. Thus, self decision making dominates the purchasing scenario at the mega marts. Therefore, it can be said that majority of the customers of mega marts were young female from urban areas, with medium level of education, and low level of family income. Perceptions of the Customers Towards Mega Marts The perceptions of the customers towards different aspects related to mega marts were observed through a number of Likert scale-based, ranking-based and multiple choice-based questions. Preference for Mega Marts The data given in Table 2 shows that the highest proportion, i.e., 42.40% of the customers assigned 1st rank to Vishal Mega Mart, while on the other hand, as high as 37.60% of them assigned the lowest rank, i.e., 5th rank to kaveri Page 39
  • 40. departmental stores. The overall ranking came to be 1st in favour of Vishal Mega Mart, followed by easyday, Amartex and Kumar stores, while kaveri departmental stores could only secure the least preference of the customers. Vishal Mega Mart's first position may be due to its easy approach location and parking facilities, compared to other mega marts. The Critical Difference (C.D.) value indicated that though there were some differences in the overall ranking of different mega marts, but statistically Vishal Mega Mart, V-Mart and easyday were at par. These three mega marts acquired the 1 st preference, while easy day and Kumar stores could secure the 2nd preference of the customers. Page 40
  • 41. Ranking of Mega Marts in Order of Preference for Shopping Rank Assigned Mean Overall Malls 1 2 3 4 5 Rank Rank Vishal 106 57 51 22 14 2.30 I mega mart (42.40) (22.80 (20.40) (8.80) (5.60) ) Easy day 64 89 56 23 18 2.83 I (25.60) (35.60 (22.40) (9.20) (7.20) ) Amartex 46 69 74 38 23 3.56 II (18.40) (27.60 (29.60) (15.20) (9.20) ) Kumar’s 23 35 45 69 78 2.57 I stores (9.20) (14.00 (18.00) (27.60) (31.20) ) Kaveri 11 13 36 96 94 3.83 II department (4.40) (5.20) (14.40) (38.40) (37.60) al stores F-ratio 7.89 - C.D. .7892 - Note: Overall rank is based on the value of C.D. Page 41
  • 42. Reasons for Preferring a Mega Mart A perusal of Table 3 shows that the vast majority, i.e., 79.20% of the customers agreed upon the convenience of the mega mart responsible for their preference. This agreement on convenience was followed by reasons like less time consuming (77.60%), safety (71.20%) and location (70.00%), while the lowest proportion, i.e., 62.40% of the customers agreed upon the uniqueness of the mega mart responsible for their preference for a mega mart. Extent of Agreement on Different Reasons for Preferring a Particular Mega Mart Reasons Agree Neutral Disagre Mean Overall e Score Preference Safety 178 45 27 0.60 I (%) (71.20) (18.00) (10.80) Convenience 198 48 4 0.77 I (%) (79.20) (19.20) (1.60) Uniqueness 156 59 35 0.48 II (%) (62.40) (23.60) (14.00) Less Time Consuming 194 34 22 0.68 I (%) (77.60) (13.60) (8.80) Location 175 65 10 0.66 I (%) (70.00) (26.00) (4.00) F-ratio 9.21 - C.D. 0.1892 - Note: Overall performance is based on the value of C.D. Overall preference for a particular mega mart came to be the highest of the order of 0.79 (79%) in favour of convenience of the mega mart, while the lowest preference was found to be in case of uniqueness of the mega mart. The Page 42
  • 43. C.D. value indicates that the customers preferred a particular mega mart keeping in view the convenience and location at the 1 st place, followed by safety, uniqueness and less time-consuming status at the 2nd place. Thus, the mega marts should be convenient in terms of space, product range, billing system, multiple choice, etc., and should be located within an easy approach. Safety and Parking Facilities The customer’s opinion regarding safety and parking facilities at the mega marts is contained in Table 4. As much as 51.20% of the customers were satisfied over the safety at mega marts, while 30.80% of the customers expressed dissatisfaction over the same. About 19% of them could not comment on the safety status at the mega marts. Overall safety could secure only 0.20 (20%) score by the customers. This shows that safety at the mega marts is poor. Page 43
  • 44. Extent of Customers’ Satisfaction on Safety and Parking Facilities at Mega Marts A. Safety Number of Customers % Satisfied 128 51.20 Neutral 45 18.00 Dissatisfied 77 30.80 Mean Score 0.20 - B. Parking Facilities Satisfied 96 38.40 Neutral 67 26.80 Dissatisfied 87 34.80 Mean Score 0.04 - As far as parking facilities at the mega marts are concerned, only 38.40% of the customers were satisfied, while 34.80% of them expressed their dissatisfaction over the parking facilities. The mean level of satisfaction over parking facilities at mega marts came to be 0.04(4%), indicating an overall dissatisfaction of customers over parking facilities at the mega marts. Utility of Mega Marts The customers were asked about their extent of agreement over different utility aspects of mega marts in terms of `agree', `neutral', and `disagree', and the same are presented in Table 5. It shows that the highest proportion, i.e., 98.00% of the customers agreed upon mega marts as a place to shop, while the least proportion, i.e., 42.00% took the mega marts as a place to socialize. The mean score of agreement ranged between 0.98 in favour of mega marts as a place to shop, and 0.19 in favour of mega marts as a place to socialize. The CD value conveys that the extent of agreement as a place to shop significantly came to be the highest, followed by a place to compare. The mega marts as a place of enjoyment and a place to experience, could secure the third rating, while 4 th and the lowest stage rating was found to be in case of mega marts as a place to Page 44
  • 45. socialize. Thus, the mega marts are generally taken to be a place to shop and to compare. Extent of Agreement on Different Utility Aspects of Mega Marts Utility Aspects Agree Neutral Disagree Mean Overall Score Rating A Place to Shop 245 5 0 0.98 I (%) (98.00) (2.00) (0) A Place to 105 88 57 0.19 IV Socialize (42.00) (35.20) (22.8) (%) A Place to Enjoy 150 67 33 0.47 II (%) (60.00) (26.80) (13.2) A Place to 176 45 29 0.59 II Experience (70.40) (18.00) (11.6) (%) A Place to 120 104 26 0.38 III Compare (48.00) (41.60) (10.40) (%) F-ratio 13.05 C.D. .0932 Note: Overall rating is based on the value of C.D. Page 45
  • 46. Spending on Different Items The data given in Table 6 show that the highest proportion, i.e., 35.90% of the customers' total spending was incurred on clothing’s, followed by 16.56% on footwear’s, 14.98% on grocery and 12.98% on cosmetics. The lowest proportion, i.e., 0.82% of the total spending at mega marts was incurred on communication instruments, followed by 2.08% on artificial jewellery and 7.82% on cosmetics. Thus, it can be said that the mega marts emerged as the most common shopping centres for clothing’s. Average Proportion of Spending on Different Items at Mega Marts Items Mean Position (%) Grocery 14.98 III Cosmetics 12.28 IV Jewellery 2.08 VII Clothing 35.90 I Eatables 9.56 V Footwear 16.56 II Consumer Durables 7.82 VI Communications .82 VIII Total 100.00 Page 46
  • 47. Preference for Different Sale Promotion Schemes A perusal of Table 7 leads to the fact that majority, i.e., 62.40% of the customer’s assigned 1st rank to cash discount offered at mega marts, while the least rank was assigned to guarantee/warranty by as high as 45.60% of the customers. The overall ranking based on C.D. value came to be 1 st in favour of cash discount, followed by free gifts schemes and financing facilities, while the least and the fifth rank was found to be in case of guarantee/warranty, preceded by lucky draw schemes. This shows that cash discount and free gifts schemes emerged as the most common sale promotion schemes amongst customers at mega marts. Ranking of Different Sale Promotion Schemes Attracting Customers Most Promotional Rank Assigned Mean Overall 1 2 3 4 5 Schemes Rank Rank Cash 156 46 24 15 9 1.89 I Discount (%) (62.40) (18.40) (9.60) (6.00) (3.60) Lucky Draw 13 35 54 71 77 3.54 IV Schemes (%) (5.20) (14.00) (21.40) (28.40) (30.80) Free Gifts 59 114 61 15 1 2.19 II Schemes (%) (23.60) (45.60) (24.40) (6.00) (0.40) Financing 14 28 83 106 19 3.34 III Facility (%) (5.60) (11.20) (33.20) (42.40) (7.60) Guarantee/ 32 38 18 48 114 3.94 V Warranty (%) (12.80) (15.20) (7.20) (19.20) (45.60) F-ratio 8.78 - C.D. .1869 - Note: Overall rank is based on the value of C.D. Page 47
  • 48. Importance of Different Factors for Purchase Decision Some factors were identified which influence the decision making for purchase by the customers. The factors were rated as per the level of importance. The results are presented in Table 8. It is obvious from Table 8 that the highest proportion, i.e., 74.80% of the customers considered the quality of products as most important, followed by 63.60% in favour of discount. Ambience was the most important factor only for 8.40% of them, while only for 11.20%, the pressure from family members came to be the most important factor while making a purchase decision. The mean rating of factors in terms of importance came to be significantly the highest for quality and discount, followed by value for money. The 3rd rating factors were fixed prices and need-based purchases, while there were wide range of products and display of products which acquired 4th level of importance. The next level of importance, i.e., 5 th level, was secured by international brands, socioeconomic status and behaviour of the staff, while packaging stood at the 6th level of importance. Advertisement influenced the purchase decision of customers at the 7th level, while pressure from family members and ambience could secure only 8th and 9th level of importance, respectively. Thus, quality and discount emerged as the most important factors influencing customers' purchase decision, while family members' pressure and ambience came to be the least important factors in this regard. Page 48
  • 49. Importance of Factors Considered by Customers while taking a Purchase Decision Factors Overall Position Mean Rating Neutral Most Important Unimportant MostUnimportant Important Quality 187 56 7 0 0 1.65 I (%) (74.80) (22.40) (2.80) (0.00) (0.00) Wide Product 89 91 42 20 8 0.87 IV Range (%) (35.60) (36.40) (16.80) (8.00) (3.20) International 56 66 87 35 6 0.45 V Brands (%) (22.40) (26.40) (34.80) (14.00) (2.40) Discount 159 77 10 4 0 1.53 I (%) (63.60) (30.80) (4.00) (1.60) (0.00) Packaging 47 90 50 59 4 0.42 VI (%) (18.80) (36.00) (20.00) (23.60) (1.60) Advertisement 36 89 66 59 0 0.30 VII (%) (14.4) (35.60) (26.40) (23.6) (0.00) Product 86 117 22 20 5 0.91 IV Display (34.40) (46.80) (8.80) (8.00) (2.00) (%) Ambience 21 41 98 62 28 -0.14 IX (%) (8.40) (16.40) (39.20) (24.80) (11.20 ) Value for 108 112 30 0 0 1.27 II Money (%) (43.20) (44.80) (12.00) (0.00) (0.00) Need-Based 118 66 47 19 0 1.12 III Page 49
  • 50. Purchases (%) (47.20) (26.40) (18.8) (7.60) (0.00) Family 28 71 94 57 0 0.19 VIII Members’ (11.20) (28.40) (37.60) (22.80) (0.00) Influence (%) Socio- 54 89 62 40 5 0.51 V Economic (21.60) (35.60) (24.80) (16.00) (2.00) Status (%) Behaviour of 67 93 60 33 7 0.59 V the Staff (26.80) (37.20) (24.00) (13.20) (2.80) (%) Fixed Prices 72 98 55 20 5 1.07 III (%) (28.80) (39.20) (22.00) (8.00) (2.00) F-ratio 11.12 C.D. 0.1191 Note: Overall position is based on the value of C.D. Page 50
  • 51. FINDINGS 1. In this study it is found that 60% customers prefer to purchase from organized retail outlets as compare to unorganized retail outlets. 2. During the study it comes to know that customers spend 40% - 50% of their monthly budget at organized retail outlets. 3. In this study it is found that organized retail outlets provide better quality, product range as compare to unorganized retail outlets. 4. In this study it is observed that in future the market share of unorganized retail will reduce 60% - 80%, because Customers shifting from unorganized retail outlets to organized retail outlets. 5. During study it is observed that these organized retail outlets attracting the middle & upper class customers, the lower class person still prefer to purchase from the local Kirana Stores. 6. The findings of the study conclude that 80% of the customers are youngsters aged between 16-25 and among them more males from the urban sector visit mega marts. 7. From the utility point of view, 90% of customers were more oriented towards safety and parking facilities. 8. About 35% - 40% of peoples are least bothered about guarantee and warrantee as compared to quality and discount that they prefer more. Page 51
  • 52. SUGGESTIONS 1. The organized retail outlets should improve the quality of Vegetables & fruits they provide to customers. 2. The organized retail outlets should provide the free home delivery facility. 3. The organized retail outlets should increase the no. of billing counters in their outlets. 4. The organized retail outlets should also provide the credit facility to the lower class customers so that they can increase their market share. 5. The organized retail outlets should also provide the mobile van facility in the areas which are far away from the stores. 6. to attract the rural sector customers, mega marts may extend their advertisements offering special sale promotion schemes to the rural areas. 7. The customers are dissatisfied with the safety and parking facilities at the mega marts. Therefore, they should concentrate on developing these aspects properly, besides extending more cash discount and free gifts schemes to attract the customers at a higher level. 8. The mega marts should focus on quality, discount and attractive display of products, as these are very important factors considered by the customers while making purchase decisions. Page 52
  • 53. LIMITATION  Due to the constraints of time, the study was confined to DEHRADUN city.  The sample was taken on the basis of convenience; therefore the shortcomings of the convenience sampling may also be present in this study.  The sample size chosen for the purpose was only indicative and not exhaustive owing to time constraints.  There were some inherent limitations as far as collection of data is concerned. The respondents replied may be biased in favour of their centres. Page 53
  • 54. CRUX OF THE STUDY Page 54
  • 55. CONCLUSION The crux of the study is that most of the customers prefer to purchase from organized retail outlets as compare to unorganized outlets. Also its found that most of the respondents are satisfied with the quality, price and product range of the goods provided by organized retail outlets. In this study it is found that customers want to spend more at organized retail outlets in comparison to other local Kirana stores. During the study its also found that customers were happy from the services provided by organized outlets. This study also revealed that customer prefers the organized retailing over unorganized retailing, due to which the organized retailing become a threat to the local kirana stores & street hawkers. Page 55
  • 56. ANNEXURE Page 56
  • 57. Questionnaire Note: Tick your Responses Q.1 “I belong to the age group” 16 – 25 years 26 – 35 years 36 – 45 years 46 – 55 years 56 – 65 years Above 65 years -------------------------------------------------------------------------------------------- Q.2 Gender : Male Female -------------------------------------------------------------------------------------------- Q.3 “I have obtained education till this level”. Matriculate Intermediate Graduate Post Graduate Beyond PG -------------------------------------------------------------------------------------------- Q.4 “My monthly income range is” Up to Rs. 10,000 Rs. 10 – 20,000 Rs. 20 – 50,000 Above Rs. 50,000 Page 57
  • 58. Q.5 Which sources of promotional mix method used by the company attracts you most ? (a) Yes ( ) (b) No ( ) Q.6 Are you aware of promotional scheme of this company’s services? (a) Yes ( ) (b) No ( ) Q.7 Did the company advertisement meet the performance ? (a) Yes ( ) (b) No. ( ) Q.8 Do you buy services on the basis of its brand image ? (a) Yes ( ) (b) No. ( ) Q.9 Are you satisfied with the pricing polices of this company ? (a) Yes ( ) (b) No. ( ) Q.10 Which company provide better services ? (a) Yes ( ) (b) No. ( ) Note: Circle your Responses Q.11 “Please indicate how important or unimportant each of the following characteristics is” Important Unimportant (a) Safety 5 4 3 2 1 (b) Uniqueness 5 4 3 2 1 (c) Less Time 5 4 3 2 1 Consumption (d) Location 5 4 3 2 1 (e) Parking 5 4 3 2 1 Page 58
  • 59. Q.12 “Please indicate the extent to which you agree or disagree with the following utility aspects of organized Retail Outlets.” Strongly Strongly Agree Disagree (a) A place to 5 4 3 2 1 shop (b) A place to 5 4 3 2 1 socialize (c) A place to 5 4 3 2 1 Enjoy (d) A place to 5 4 3 2 1 experience -------------------------------------------------------------------------------------------- Q.13 “Please rank the following sales promotion schemes as per the degree of attractiveness.” Attractive Unattractiveness (a) Cash Discount 5 4 3 2 1 (b) Lucky Draw 5 4 3 2 1 Scheme (c) Free Gift 5 4 3 2 1 Scheme (d) Financing 5 4 3 2 1 Facility (e) Guarantee / 5 4 3 2 1 Warranty -------------------------------------------------------------------------------------------- Q.14. “Kindly indicate the importance of each of the following while making a purchase decision.” Most Most Important Unimportant (a) Quality 5 4 3 2 1 (b) Wide Product 5 4 3 2 1 Assortment (c) Fixed Price 5 4 3 2 1 Page 59
  • 60. (d) Presence of 5 4 3 2 1 International Brands (e) Discounts 5 4 3 2 1 (f) Packaging 5 4 3 2 1 (g) Advertisement 5 4 3 2 1 (h) Display of 5 4 3 2 1 Products (i) Ambience 5 4 3 2 1 (j) Value for Money 5 4 3 2 1 (k) Socio Economic 5 4 3 2 1 Status (l) Behaviour of 5 4 3 2 1 Staff Page 60
  • 61. BIBLIOGRAPHY WEBSITES: www.imagesretailing.com www.reportbuyer.com www.reportbuyers.com www.thirdeyesite.in www.google.com www.datamonitar.com www.rediff.com www.scribd.com Books Kothari.C.R, Research Methodology, New Age (P) Limited, Second Edition, 2004. Pillai & Bagavathi, Marketing management, New Delhi, sultan Chand & Sons, 1999. David Gilbert, Retail Marketing Management, Prentice Hall, Second Edition, 2003. Page 61