PROJECT REPORT

ON
"CUSTOMER PERCEPTOIN & SATISFACTION SURVEY OF
ORGANIZED FMCG RETAIL OUTLETS IN LUDHIANA”

Submitted to:
PUNJAB TECHNICAL UNIVERSITY
In partial fulfillment of the requirement for the award of the
Degree of
BECHLOR OF BUSINESS ADMINISTRATION
 PREFACE

The project report on " CUSTOMER PERCEPTOIN & SATISFACTION

SURVEY OF ORGANIZED FMCG RETAIL OUTLETS IN LUDHIANA "
is the key task to fulfillment requirement of my Bachelor of Business
Administration degree.

This report is concerned with "Customers Satisfaction

Survey". The study was conducted by Research Methodology with specific
questionnaire was prepared and survey was conducted. This report is
prepared by me and suggestions of some very experienced and intellectual
persons.
 CONTENTS

TOPICS PAGE NO.

• Introduction 1.
• Organized Retail in India 3.
• FMCG retail in India 5.
• Organized Retail outlets in Ludhiana 6.
• Objective of the study 13.
• Research Methodology 15.
• Analysis & Interpretation 18.
• Findings & Conclusion 49.
• Crux of the Study 52.
• Limitation of the study 54.
• Annexure 56.
• Bibliography 62.
Introduction
Organized retail is definitely a sunrise sector in India but to say that it is a sunrise sector
for entrepreneurship would be wrong. Entrepreneurship is required in those fields in
which an individual can go in with small capital and his expertise and go on to create a
company which usually yields returns of the order of 10x or more.

The ‘natural barriers’ to enter into organized retail are so large that it would not be wise
for and an entrepreneur to jump into it and think that he will be able to compete with the
likes of Reliance, Bharti, Wal-Mart etc. Also, organized retail is something which tests
your operational and logistics skill rather than entrepreneurship abilities.

Though organized retail is in practice around the globe for many decades now, it’s only
now that it is making an entry into India in a big way. The reasons for this are many.
With a booming economy and burgeoning middle class the shopping habits of Indians are
changing fast. Malls and multiplexes and making headway into tier II and tier III cities
also after mushrooming in the metros. Also the fact that organized retail accounts for
only 3% of retail sales in India there’s a huge untapped potential. So much so that every
conglomerate wants a piece of the pie.

No wonder that every business house from Birlas to Ambanis is busy chalking out their
retail plans. Though it will be too early for them to start counting their chickens as the
government policy is still hazy and huge amount of expertise is required to run a pan-
India retail network. There is scarce managerial talent in retail business and salaries are
already skyrocketing.

The government is still in process of studying the effect of organized retail on ‘mom-n-
pop’ stores and the economy as a whole. There is huge pressure on government from
foreign multinationals to allow FDI in retail. Of course local giants are keen to put their
plans in place before foreign players are allowed to move in. The bleak chances of FDI in
retail have forced foreign retail giants to look for local partners. Bharti has joined hands
with Wal-Mart after failed talks with UK giant Tesco. Shopper’s stop has inked a deal
with UK’s Home Retail group to develop Argos retail stores. Bombay Dyeing has tied up
with France’s Auchen.Local retailers who already have a huge presence in India include
Future Group (former Pantaloons), Subhiksha, Shopper’s Stop, RPG group. While
Reliance retail, Tata, Bharti and Aditya Birla group are soon to start rolling out their
retail plans.

The most bullish of them all is Reliance with plans to invest Rs. 25,000 crore in its retail
venture. With Mukesh Ambani in driving seat there’s little doubt that reliance will
change how Indians shop. His plans include selling everything from vegetables to cars
under one roof and even deploying cargo planes to make sure that you get fruits and
vegetables ‘farm-fresh’. Reliance has already opened 50 ‘Reliance Fresh’ stores with the
very first in Hyderabad. Reliance plans to launch 1000 stores by this year end. Reliance
Retail will launch its hypermarket, supermarket and specialty formats in April-June
quarter this year. Reliance and Bharti also have plans to set up Micro Finance Institutions
along with their retail chains. While Bharti will also offer telecom services in its retail
stores.

As a result of hyper growth plans and rushed hiring, most retail ventures are struggling to
keep pace. A massive churn is already taking place in retail space while real estate prices
in prime locations are going over the roof. Most retail ventures are going in for mixed
strategy when acquiring retail space. Some are just buying the land and then building
their stores while others are buying finished commercial space or just renting it.
When there is a huge competition in market it’s always a win-win for consumers. They
can expect better services from ‘mom-n-pop’ stores and great bargains at their local mall.
After all, it’s all about the customers. To keep the prices low the retailers are doing
everything from buying cargo planes to sourcing fruits and vegetables directly from
farmers. Also the retail stores promise to give the consumers more choices and a better
shopping experience.

With the economy growing at 10%, nobody is complaining about the money being put in
behind these retail ventures. Though, initially there will be a few surprises and a few new
lessons learnt the long term story looks promising.

2
RETAIL IN INDIA

India represents an economic opportunity on a massive scale, both as a global

base and as a domestic market. Indian Retail sector consists of small family-
owned stores, located in residential areas, with a shop floor of less than 500
square feet. At present the organized sector accounts for only 2 to 4% of the total
market although this is expected to rise by 20 to 25% on YOY basis.

Retail growth in the coming five years is expected to be stronger than GDP
growth, driven by changing lifestyles and by strong income growth, which in turn
will be supported by favorable demographic patterns and the extent to which
organized retailers succeed in reaching lower down the income scale to reach
potential consumers towards the bottom of the consumer pyramid. Growing
consumer credit will also help in boosting consumer demand.

The structure of retailing will also develop rapidly. Shopping malls are becoming
increasingly common in large cities, and announced development plans project
at least 150 new shopping malls by 2008. The number of department stores is
growing much faster than overall retail, at an annual 24%. Supermarkets have
been taking an increasing share of general food and grocery trade over the last 2
decades.

However, Distribution continues to improve, but it still remains a major

inefficiency. Poor quality of infrastructure, coupled with poor quality of the
distribution sector, results in logistics costs that are very high as a proportion of
GDP, and inventories, which have to be maintained at an unusually high level.
Distribution and marketing is a huge cost in Indian consumer markets. It’s a lot
easier to cut manufacturing costs than it is to cut distribution and marketing
costs.

Also, government has relaxed regulatory controls on foreign direct investment

(FDI) considerably in recent years, while retailing currently remains closed to
FDI. However, the Indian government has indicated in 2005 that liberalization of
direct investment in retailing is under active consideration. It has allowed 51%
FDI in “single brand” retail.

3
The next cycle of change in Indian consumer markets will be the arrival of foreign
players in consumer retailing. Although FDI remains highly restricted in retailing,
most companies believe that will not be for long. Indian companies know Indian
markets better, but foreign players will come in and challenge the locals by sheer
cash power, the power to drive down prices. That will be the coming struggle.

This report discusses the scenario of organized retail industry in Ludhiana city of
Punjab and the opportunities available for companies based on key statistics. I
have answered Key questions like:

• What is the market size and scope of the Organized retail industry in
Ludhiana?
• What is the size of organized market segment wise & its growth
prospects?
• Who are the major players of Retail Industry in Ludhiana, their impact on
the unorganized retail outlets?

4
FMCG RETAIL IN INDIA

India is one of the largest emerging markets, with a population of over one billion.
India is one of the largest economies in the world in terms of purchasing power
and has a strong middle class base of 300 million.

Around 70 per cent of the total households in India reside in the rural areas,
where mostly traditional retail outlets, commonly called kirana stores exist. These
are unorganized, operated by single person and runs on the basis of consumer
familiarity with the owner. However, recently organized retailing has become
more popular in big cities in India and most of the metropolitan cities and other
big cities are flooded by modern organized retail stores. Many semi-urban areas
also witnesses entry of such organized retail outlets. Till now, entry of foreign
retailers was restricted in Indian retail market because of the ban on Foreign
Direct Investment in Indian Retail Sector. But recently, as government has
changed its policy and the cabinet has allowed 51 per cent FDI in single-brand
retail, the prospects of foreign players entering India became high. India is called
a nation of shop keepers and organized retail which has just made an entry has a
very small share estimated between 2-4% of total retail in the country. The entry
of major retailers in the country has raised passions among the politicians, policy
makers and smaller retailers that the presence of bigger organized retailers
would lead to the elimination of the smaller shop keepers leading to a large scale
problem of unemployment and maybe even social problems.

5
Organized Retail outlets in Ludhiana

SUBHIKSHA

Subhiksha is India's largest supermarket, pharmacy and telecom chain. Started

in 1997 as a single store entity in South Chennai, it is now present nationally with
1000 outlets and spread across more than 90 cities. ICICI Venture Capital has a
24% stake in Subhiksha.
Derived from the Sanskrit word, Subhiksham or "giver of all things good",
Subhiksha was founded by Mr. R. Subramanian, IIT-Chennai & IIM-A alumni. His
vision to deliver consistently better value to Indian consumers, has guided
Subhiksha to deliver savings to all consumers on each and every item that they
need in their daily lives, 365 days a year, without any compromise on quality of
goods purchased.
Subhiksha now has the pan Indian presence with stores across Delhi, UP,
Punjab, Hariyana, Gujarat, Maharashtra, AP, Karnataka and TN. Today, it is a
multi-locational, professionally managed and vibrant organization that is poised
to change the lives of millions of Indians, faster than ever before!

Lowest Prices & Great Savings Everyday!

Subhiksha offers all goods at sharply discounted prices so that consumers can
genuinely save in every transaction. Unlike other stores, the low prices at
Subhiksha are not limited to a few goods or to a few specific days. Customers
can get the same discounted prices on all items, on all days and irrespective of
whether they make a small or a big purchase. In fact, the discounts and customer
savings at Subhiksha are 4-5 times that offered by other small and big retailers.

6
VISHAL Group

What started as a humble one store enterprise in 1986 in Kolkata(erstwhile, Calcutta) is

today a conglomerate encompassing 91 showrooms in 62 cities / 20 states. India’s first
hyper-market has also been opened for the Indian consumer by Vishal. Situated in the
national capital Delhi this store boasts of the singe largest collection of goods and
commodities sold under one roof in India.

The group had a turnover of Rs. 1463.12 million for fiscal 2005, under the dynamic
leadership of Mr.Ram Chandra Aggarwal . The group had of turnover Rs 2884.43 million
for fiscal 2006 and Rs. 6026.53 million for fiscal 2007

The group’s prime focus is on retailing. The Vishal stores offer affordable family fashion
at prices to suit every pocket.

The group’s philosophy is integration and towards this end has initiated backward
integration in the field of high fashion by setting up a state of the art manufacturing
facility to support its retail endeavors.

Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all
price ranges. The showrooms have over 70,000 products range which fulfills all your
household needs, and can be catered to under one roof. It is covering about 1996592 lac
sq. ft. in 18 state across India. Each store gives you international quality goods and prices
hard to match. The cost benefits that is derived from the large central purchase of goods
and services is passed on to the consumer.

7
Spencer’S

Spencer’s Retail is one of India’s fastest growing retail stores with multiple formats and
retailing food, apparel, fashion, electronics, lifestyle products, music and books.
Established in 1996, Spencer’s has become a popular destination for shoppers in India
with supermarkets, hypermarkets and dailies spread all over India.
Operations
Spencer’s has retail footage of over 1.3 million square feet and over 350 Spencer’s stores
in 50 cities.
The company operates through the following formats:

Spencer’s Hypermarkets: a fast growing retail network of hypermarkets with large format
stores in Mumbai, Gurgaon, Ghaziabad, Lucknow, Ludhiana, Calicut, Hyderabad, Vizag,
Vijayawada, Aurangabad Durgapur and Kolkata.

Spencer’s Super: one of the largest supermarket chains in the food and grocery segment
in India.
Spencer’s Daily: small format stores conveniently located with a range of products to
meet your daily household needs.
Spencer’s Express : food and grocery store next door

8
MORE

“MORE’s mission is to change the way people shop”.

Aditya Birla Retail Limited re-brands its Fabmall grocery supermarkets to more. a
name reflective of its commitment to offering consumers a more fulfilling retail
experience. The re-branding follows the acquisition of the Trinethra Super Retail
that includes the retail brands Fabmall, Trinethra and FabCity by Aditya Birla
Retail in January 2007. As a result of the integration process, 68 Fabmall stores
in Karnataka will be re-branded under the umbrella of more., the retail brand from
the Aditya Birla Group.
With the underlying objective to enhance the shopping experience for
consumers, the new stores will continue to be built around the proposition of
quality, affordability and convenience with new in-store merchandise and a whole
new retail experience. The more. stores will offer a wide range of product
categories including fruits and vegetables, staples, personal care, home care,
household general merchandise and dairy products.
The acquisition of Trinethra Super Retail has provided Aditya Birla Retail with a
strong retail footprint in South India extending to 275 stores and over more than
half a million square feet in Andhra Pradesh, Karnataka, Tamil Nadu and Kerala,
where it is the leading food and grocery retailer. Currently Aditya Birla Retail has
60 stores in Bangalore, eight stores in Mysore and 10 stores in Mangalore.
All Fabmall stores were re-branded to more in January 2007.
The more. chain of supermarkets is spread over convenient locations and with
layouts that allow ease of navigation. The project display is well-orgranised and
facilitates ease of choice. The stores have been designed by Fitch, the leading
international retail design firm. Demographic movements in India over the last
two decades have made organised retail a necessity. The rapid growth of this
industry is confirmation that the idea of orgranised retailing has taken root in
India. The industry is today valued at around US$ 320 billion. Within the
organised retail sector, food and groceries account for around 14 per cent of the
total market with potential to garner an even bigger share of the market.
About Aditya Birla Retail Ltd.: Aditya Birla Retail Ltd is the retail arm of the
Aditya Birla Group, a US$ 24 billion corporation with a market capital of US$ 31.5
billion and in the league of Fortune 500 companies. In May 2007, Aditya Birla
Retail Ltd launched its first store,more. in Pune and currently has 100 stores
across the country. With the acquisition of Trinethra Super Retail, the company
will increase its retail foothold to 300 plus stores with re-branding of Trinethra and
Fabmall stores in South India. 9
Reliance Fresh

Reliance Fresh is the retail chain division of Reliance Industries of India which is
headed by Mukesh Ambani. Reliance has entered into this segment by
openingnew retail stores into almost every metropolitan and regional area of
India. Reliance plans to invest Rs 25000 crores in the next 4 years in their retail
division and plans to begin retail stores in 784 cities across the country. The
Reliance Fresh supermarket chain is RIL’s Rs 25,000 crore venture and it plans
to add more stores across different g, and eventually have a pan-India footprint
by year 2011. The super marts will sell fresh fruits and vegetables, staples,
groceries, fresh juice bars and dairy products and also will sport a separate
enclosure and supply-chain for non-vegetarian products. Besides, the stores
would provide direct employment to 5 lakh young Indians and indirect job
opportunities to a million people, according to the company. The company also
has plans to train students and housewives in customer care and quality services
for part-time jobs.

Reliance Fresh recently (24th Jan, 2007) opened several "Fresh" outlets in
Chennai, New Delhi, Hyderabad,Jaipur, Mumbai, Chandigarh, Ludhiana
increasing its total store count to 40. Reliance is still testing its retail concepts by
controlled entry beginning in the southern states

The company is planning on opening new stores with store-size varying from
1,500 sq ft to 3,000 sq ft, which will stock fresh fruits and vegetables, staples,
FMCG products and dairy products. Each store is said to be within a radius of 1-
2 km of each other, in relation to the concept of a neighbour store. However, this
is only the entry roll-out that the company has planned. Bangalore is said to have
40 stores in all by the end of the year.

In a dramatic change due circumstances prevaling in UP, West Bengal and

Orissa, It was mentioned recently in News Dailies that, Reliance Retail is moving
out stocking. Reliance Retail has decided to minimise its exposure in the fruit and
vegetable business and position Reliance Fresh as a pure play super market
focusing on categories like food, FMCG, home, consumer durables, IT, wellness
and auto accessories, with food accounting for the bulk of the business. The
company may not stock fruit and vegetables in some states, Orissa being one of
them. Though Reliance Fresh is not exiting the fruit and vegetable business
altogether, it has decided not to compete with local vendors partly due to political
reasons, and partly due to its inability to create a robust supply chain. 10
This is quite different from what the firm had originally planned. When the first
Reliance Fresh store opened in Hyderabad last October, not only did the
company said the store’s main focus would be fresh produce like fruits and
vegetables at a much lower price, but also spoke at length about its “farm-to-
fork’’ theory. The idea the company spoke about was to source from farmers and
sell directly to the consumer removing middlemen out of the way. Reliance may
exit some businesses If the business does not increases by March 2008.

Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance

Footprint, Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance
Super are various formats that Reliance has rolled out.

In addition, Reliance Retail has entered into an alliance with Apple for setting up
a chain of Apple Specialty Stores branded as iStore, starting with Bangalore.

11
6TEN RETAIL

Mumbai: REI Agro had launched of its retail chain, 6Ten, in Punjab and Haryana.

The chain started operations with the simultaneous opening of five stores in
Chandigarh, Mohali Panchkula and,Ludhiana.

6Ten stores are speciality food stores offering products such as grocery items,
FMCG products and fruits & vegetables. The company is planning to open more
than 50 stores across the two states in one year.

Sandip Jhunjhunwala, managing director, REI Agro said: "With organised

retailing growing at more than 30% annually, there is a huge untapped market for
these stores in India. We are targeting the space across states like Punjab &
Harayana to deliver world-class products and shopping experience to
consumers."

12
OBJECTIVES OF THE
STUDY

13
 Objectives

1. To find out the effectiveness of Organized FMCG Retail in the Ludhiana city.

2. To study about the future prospects of Organized FMCG Retail in the city .

3. To elicit customers views regarding Organized FMCG Retail .

4. To study satisfaction level of customers about Organized FMCG Retail being

provided by Relaince Fresh, More, Spencer’s, Vishal Mega Mart,V Mart,
6Ten,Subhiksha.

5. To study about the changes that customers wants in these Organized FMCG
Retail Outlets.

6. To know about the quality, services, product range provided by these Organized
FMCG Retail Outlets.

7. To undertake a competitive analysis of all the Organized FMCG Retail Outlets in

the city.

8. To suggest improvements to these Organized FMCG Retail Outlets in the city.

14
 RESEARCH
METHODOLOGY

15

Research Methodology
This study is based on survey and fact-findings inquiries with the customers purchasing
from organized FMCG retail outlets in Ludhiana. It is aimed to collecting all the relevant
data and its optimal usage keeping in mind objectives of the research.

Sample Size: -
Sample size of 50 respondents was taken.The survey was conducted in
Ludhiana only.

Sampling technique: -
All the respondents were selected on random basis. So far every surveyed
entity, the respondents are an essential prerequisite. For broader perspective the
customers were contacted directly and by there association.

Research Instrument: -
A standard questionnaire was prepared for the collection of data from the
various respondents. The questionnaire was designed to keep objectives of the study with
the aim of collecting important information for the study.

COLLECTION OF DATA: For this research project, data was collected both from
the Primary and Secondary sources.

1. Primary Data:

Students were personally contacted and the data was collected with the help of
questionnaire. The questionnaire was so designed so as to contain appropriate no. of
questions and to satisfy all the research objectives. The questionnaire contained both;
close-ended and open-ended questions. Special care was taken to ensure that questions
were simple & sequential.

2. Secondary Data:
The secondary data was collected from catalogues, magazines, records and,
websites, related to organized FMCG retail outlets in the city.

16
Data Usage:
For analysis and interpretations only primary data is used. However for the
conclusion and recommendations both primary and the secondary data along with the
verbal knowledge and information although obtained from students, though they are
outside the parameters of questionnaire were also included. The data collected from these
sources was analyzed using various tools like percentage and weight age analysis method
is applied throughout the study for the formulation and analysis of tables

17
 INTERPRETATION
&
ANALYSES

18
Gender wise Distribution of respondents:
 Gender wise Distribution

38%
Male
Female
62%

As FMCG organized retail is concerned more with home managers (women) so no. of
female respondents are taken more as compared with male respondents. Out of total
respondents 62% are female & 38% are male.

19

Occupation/Profession Of Respondents:
 House Wife

8% Business

6%
Doctor
2% 30%
6% Teacher

Private Job

26%
18% Engg.
4%
Govt.
Employee
Any other

After dividing the respondents on the basis of gender, they are further divided according
to their profession. In the profession wise distribution it is found that maximum
respondents are housewives, because they are more related with FMCG goods. In this it
is found that out of total respondents 30% are housewives, 26% are teachers, 18% belong
to business background,4% are doctors,6% are from private job, 2% are engineers, 6%
are govt. employees, 8% are from other backgrounds.

20

Q.1 Are you aware about the Organized FMCG Retail Outlets in Ludhiana?
 Awareness About Organized FMCG Outlets

Yes
No

This is the first question which is asked from the respondents in order to check the
awareness of organized FMCG retail. In this question I tried to find out how many
respondents are aware about organized FMCG retail. In this survey as I include the
educated professionals (Through Exit Interview) from different backgrounds, so everyone
is aware about organized FMCG Retail. Hence 100% respondents are aware about
organized FMCG Retail.

21

Q2 Which Organized FMCG Retail outlets are you aware about?

 120%

100%

80%

Aware
60%
Not aware

40%

20%

0%

en
ce r 's

a
t
e

Su esh
t
ar
ar
or

sh
ce

6T
M
M
M

ik
Fr
Re pen
a

bh
V
eg

in
M

la
al
sh
Vi

Aware Not Awarwe

Relaince Fresh 100% 0%
Vishal Mega Mart 100% 0%
6Ten 64% 36%
V Mart 70% 30%
Spencer's 82% 18%
Subhiksha 100% 0%
MORE 70% 30%

This question was asked from the respondents to find out the individual awareness of the
organized FMCG retail outlets. In this it is found that all the respondents are aware about
the Reliance Fresh, Subhiksha & Vishal mega mart, because these are older outlets in the
city as compare to another .Also most of the people were not aware about one of the
bigger brand i.e. MORE, because it launched recently in the city. The percentage of
awareness of different organized FMCG brands is shown in the above table.

22

Q3 Out of these which you have visited?

 100%
90%
80%
70%
60%
Visited
50%
Not Visited
40%
30%
20%
10%
0%
en
ce r 's

a
Re pen t
e

Su esh
t
ar
ar
or

sh
ce

6T
M
M
M

ik
Fr
a

bh
V
eg

in
M

la
al
sh
Vi

Aware Not Awarwe

Relaince Fresh 86% 14%
Vishal Mega Mart 92% 8%
6Ten 62% 38%
V Mart 56% 44%
Spencer's 72% 28%
Subhiksha 82% 18%
MORE 36% 64%

In this question I tried to find out that how many respondents visited all the organized
retail outlets and which outlet is mostly visited by respondents. In this it was found that
almost all the respondents had visited Reliance Fresh, Subhiksha & Vishal Mega Mart.
The percentage of respondents visited different retail outlets is shown in the above table.

23
Q.4 Have you bought any FMCG products from these outlets?

Awareness About Organized FMCG Outlets

Yes
No

This question was asked from the respondents to check that either they purchased from
these organized retail outlets or not. As the exit interview was conducted in the starting of
the project so all the respondents were the customers of these organized retail outlets.

24
Q5 Out of these organized FMCG retail outlets where do you generally purchase
from?

100%
90%
80%
70%
60% Aware
50%
40% Not Awarwe
30%
20%
10%
0%
6T rt
a h

Su nce rt

M ha
bh r's
V n

E
a
eg s

e a
e
M

R
M re

s
Sp M

O
ik
al e F
sh n c
V i l ai
e
R

Aware Not Awarwe

Relaince Fresh 78% 22%
Vishal Mega Mart 86% 14%
6Ten 62% 38%
V Mart 14% 86%
Spencer's 66% 34%
Subhiksha 72% 63%
MORE 28% 72%

In this question it was asked from the respondents that from where they generally
purchase. In this it is found that most of the respondents purchased from Relaince Fresh,
Subhiksha & Vishal Mega Mart because these were the oldest in the market & had made
good reputation in the Ludhiana market. In this question it was also found that
respondents purchased very less from MORE because it is new in the market. The
purchase pattern of respondents explained in the above table.

25

Q.6 Where were you shopping before buying from these organized FMCG retail
outlets?
 4%
10%
Neighbourhood
34% Karyana store
Wholesale Market

Store which is
convenient
Any other
52%

This question was asked to study past purchase behavior of the respondents. In this they
were asked that from where were they purchased before buying from these organized
FMCG outlets. In this 52% respondents told that initially they purchased from wholesale
market,34% respondents told that they purchased from nearer karyana store for their
FMCG needs.

26
Q.7 How much of your monthly budget grocery products are you shopping from
these organized FMCG retail outlets?

45%
40%
35%
30%
25%
20%
0%-20%
15%
20%-40%
10%
40%-60%
5% 60%-80%
0% More than 80%
1
0%-20% 12%
20%-40% 18%
40%-60% 42%
60%-80% 22%
More than 6%
80%

This question was asked from the respondents to find out that how much out of their
monthly budget were they shopping from these organized FMCG retail outlets. In this it
is found that 42% of the respondents spend 40%-60% of their monthly budget. while only
6% respondents spend more than 80% of their monthly budget.

27
Q.8 Out of the total shopping specify %age expenditure in the following categories
at Organized FMCG retail outlets?

A) Food Products

6%
8% 24% 0-%15%
15%-30%
12%
30%-45%
45%-60%
60%-75%
24% 26% More than 75%

This question was asked from the respondents to find out that out of their total budget in
food products, how much they spent to purchase food products from the organized retail
outlets. In this it is found that 26% of the respondents spent 15%-30% on the food
products, while only 6% respondents spent more than 75% to purchase food products
from these organized retail outlets.

28
B) Confectionery

8%
22%
10%
0%-15%
15%-30%
30%-45%
45%-60%
20%
16% 60%-75%
More than75%

24%

This question was asked from the respondents to find out that out of their total budget in
confectionery, how much they spent to purchase confectionery from the organized retail
outlets. In this it is found that 24% of the respondents spent 30%-45% on confectionery,
while only 8% respondents spent more than 75% to purchase confectionery from these
organized retail outlets.

29

C)Detergents
 6%
14%
10%
0%-15%
15%-30%
30%-45%
26% 45%-60%
28% 60%-75%
More than75%

16%

This question was asked from the respondents to find out that out of their total budget in
detergents, how much they spent to purchase detergents from the organized retail outlets.
In this it is found that 28% of the respondents spent 45%-60% on confectionery, while
only 6% respondents spent more than 75% to purchase detergents from these organized
retail outlets.

30

D) Vegetables &Fruits
 0% -15%
12% 0% 22% 15% -30%
30% -45%
28% 45% -60%
20%
60% -75%
18%
M ore than75%

This question was asked from the respondents to find out that out of their total budget in
vegetables & fruits, how much they spent to purchase fruits & vegetables from the
organized retail outlets. In this it is found that 28% of the respondents spent 45%-60% on
confectionery, while only 12% respondents spent 60%-75% to purchase Fruits &
detergents from these organized retail outlets.

31

E) Soaps & Sanitary Products:

 4%
8%
24%
0%-15%
15%-30%
24% 30%-45%
45%-60%
60%-75%
18% More than75%

22%

This question was asked from the respondents to find out that out of their total budget in
Soaps & sanitary products, how much %age they spent to purchase sanitary products
from the organized retail outlets. In this it is found that 24% of the respondents spent
45%-60% on confectionery, while only 4% respondents spent more than 75% to purchase
sanitary products from these organized retail outlets.

32

Q.9What is your average one time purchase at FMCG retail outlets in rupees?
 45%
40%

35%
30%
25%

20%
15%
10% Below1000
1000-1500
5%
1500-2000
0% More than 2000
1
Below10 16%
00
1000- 44%
1500
1500- 26%
2000
More 14%
than
2000

This question was asked to the respondents in order to find out their average one time
purchase at the organized retail outlets. In this 44% of the respondents told that they
purchase between 1000-1500 Rs. At one time.26% of the respondents told that they spent
1500-2000 at one time purchase at organized retail outlets.14% said that they spent more
than 2000 at one purchase, while 16% said that they purchase below INR1000 on an
average purchase at organized retail outlets.

33
Q.10 How many time do you visit the organized FMCG retail outlets in a month?

50%
45%
40%
35%
30%
Once
25%
20% 2-3 times
15%
10% 3-4 times

5%
more than 5
0% times
1
Once 14%
2-3 times 46%
3-4 times 32%
more than 8%
5 times

In this question I tried to find out the frequency of respondents to visit the organized
retail outlets in a month. In this question most of the respondents visit the organized retail
outlets 2-4 times in a month. The exact %age is shown in the above table.

34
Q.11 Do you think by shopping at organized FMCG Retail outlets your monthly
Expenditure:
1. Increased 2.Remain same 3.Decreased

40%
35%
30%
25%
20%
15%
Reduced
10% Remain same
5% Increased

0%
1
Reduced 28%
Remain 34%
same
Increase 38%
d

In this question the respondents were asked that by purchasing from organized retail
outlets their monthly expenditures increased, decreased or remain same. In this 38% of
the respondents replied that their total expenditure increased by purchasing from the
organized retail outlets.34% of the respondents replied that their expenditure remain
same. While remaining 28% said that their expenditure were reduced by purchasing from
organized retail outlets.

35
Q.12 What are your reasons for purchasing from these organized FMCG retail
outlets?

Better Quality

Reasonable
Price When the respondents
were asked to specify the
12% 18% Product Range reasons which influence
them to purchase from
8% these organized FMCG
Good retail outlets, then 26%
Enviournment of the respondents told
14% 18% that they purchased due
to product range.18%
Time Saving
4% purchased due to
reasonable price,18% due
26% to good quality, 14%
Display Of purchased from
Products organized retail outlets
because it save time,12%
Discounts&Pro liked the discounts &
motional promotional schemes,
Schemes 8% prefer the display of
the products & remaining
4% liked the enviournment of the organized retail outlets.

36

Q.13 Are you satisfied with the quality of goods offered by the organized FMCG
Retail outlets from where you generally purchase?
 60%

50%

40%

30%
Highly Satisfied

20%
Satisfied

10% Neutral

0% Dissatisfied
1
Highly 28% Highly
Satisfied Dissatisfied
Satisfied 54%
Neutral 10%
Dissatisfi 8%
ed
Highly 0%
Dissatisfi
ed

In this question the respondents were asked that are they satisfied with the quality of the
goods offered by these organized retail outlets. In this it is found that most of the
respondents were satisfied with the quality of the goods. In this 54% of the respondents
replied that they are satisfied with the quality, 28% were highly satisfied,10% neutral, &
8% are dissatisfied with the quality provided by organized by FMCG retail outlets.

37

Q14 Are you satisfied with the range offered by organized FMCG retail outlets from
where you generally purchase?
 2%
Highly Satisfied
14% 0%

Satisfied
36%
Neutral

Dissatisfied

48% Highly
Dissatisfied

This question is asked from the respondents in order to find out that what kind of range
are they offer as well as to check either customers are satisfied or dissatisfied with the
range of products offered by organized retail outlet. In this question it was found that
48% of the respondents are highly satisfied with the range offered and only 2%
respondents were there who were not satisfied with the range of products offered.

38

Q.15 What do you think the service provided by these organized FMCG outlets in
comparison to other stores are:
 Highly Satisfied

6%
0% Satisfied
10%
32%
Neutral

52% Dissatisfied

Highly
Dissatisfied

When respondents were asked to give feedback on the basis of service provided by the
organized retail outlets then it was found that most of the respondents were satisfied. In
this 52% of the respondents were highly satisfied while only 6% of the respondents were
dissatisfied from the services provided by these retail outlets.

39

Q.16 What are the problems you faced when you shop from these organized FMCG
Retail Outlets?
 Range is not
complete
Green grocery
2%4%
is not fresh
34% Home delivery
54% is not provided
6% Do not grant
credit
Insufficient
billing counters

This question was asked from the respondents in order to found the problems which they
had faced while purchasing from the organized retail outlets. In this maximum number of
respondents said that they faced the problems at billing counters due to long queues.In
this 54% of the respondents told that billing counters are insufficient while 34% said that
they need free home delivery, 6% need goods on credit, 4% told that sometimes
vegetables were not fresh while remaining 2% said that the range is not complete.

40

Q.17 In future will you spend more at organized FMCG retail outlets?
 100%
90%
80%
70%
60%
50%
40% Definitely No
30% No
20% Can't Say
10% Yes
0% Definitely Yes
1
Definitely 4%
No
No 16%
Can't Say 34%
Yes 34%
Definitely 12%
Yes

This question is asked from the respondents to find out that in future will they spend
more at organized retail outlets. In this 34% of the respondents told that they will spend
more at organized more at organized retail outlets, 34% were not sure about it,12% said
definitely purchase more from organized retail outlets. Only 16% of the respondents said
that they don’t want to spend more at organized retail outlets.

41

Q.18 Do you think the market share of unorganized retail will:

1. Definitely Increase 2. Increase 3. Remain Same 4. Decrease 5. Definitely

Decrease
 Definitely
0%
22% 16% Increase
Increase

15% Remain Same

Decrease

47% Definitely
Decreaese

This question was asked from the respondents in order to check their perception about
unorganized retail outlets in the city. They were asked that what they think market share
of unorganized retail outlets in the city will fall down or will increase. In this most of the
respondents replied that market share of unorganized retail will definitely decrease. In
this 47% of the respondents said that market share of unorganized share will decrease
while 22% said that it will increase and 15% said that it will remain same. Only 16% of
the respondents said that it may increase.

42

Q.19 A) Ranking on the basis of Quality:

 Ranking on the basis of Quality

45%

40%

35%

30%

25%

20%
Subhiksha
15% V Mart
Spencer's
10%
6Ten
5% Vishal mega mart
0% More
Relaince Fresh
Subhiksha 22%
V Mart 2%
Spencer's 14%
6Ten 8%
Vishal mega 6%
mart
More 6%
Relaince Fresh 42%

In this question the respondents were asked to rank the main organized FMCG retail
outlets in the city on the basis of Quality. On the basis of quality most of the respondents
ranked Reliance Fresh as no. 1 as 42% of respondents favors it. The 2nd position is
occupied by Subhiksha as 22% respondents spoke in its favor. In case of quality the third
position is occupied by Spencer’s as 14% respondents speaks in its favor. A very less no.
of respondents ranked MORE the big brand launched by Aditya Birla group because its
not become so popular in the city yet.
43

Q.19 B) Ranking on the basis of Service:

 On the basis of Service

35%

30%

25%

20%

15% Subhiksha
V Mart
10%
Spencer's
6Ten
5%
Vishal mega mart
0% More
Relaince Fresh
Subhiksha 32%
V Mart 6%
Spencer's 16%
6Ten 12%
Vishal mega 8%
mart
More 6%
Relaince Fresh 20%

In this question the respondents were asked to rank the main organized FMCG retail
outlets in the city on the basis of Service provided by them. On the basis of service most
of the respondents ranked Subhiksha as no. 1 as 32% of respondents favors it. The 2nd
position is occupied by Reliance Fresh as 20% respondents spoke in its favor. In case of
service the third position is occupied by Spencer’s as 16% respondents speaks in its
favor.
44

Q.19 C) Ranking on the basis of Product range:

 30%

25%

20%

15%

Relaince Fresh
10% V-mart
Subhiksha
6Ten
5% Spencer's
Vishal mega mart
more
0%
1
Relaince 28%
Fresh
V-mart 6%
Subhiksha 24%
6Ten 6%
Spencer's 8%
Vishal mega 10%
mart
more 18%

In this question the respondents were asked to rank the main organized FMCG retail
outlets in the city on the basis of Product Range provided by them. On the basis of
Product Range most of the respondents ranked Reliance Fresh as no. 1 as 28% of
respondents favors it. The 2nd position is occupied by Subhiksha as 24% respondents
spoke in its favor. In case of Product range the third position is occupied by MORE as
18% respondents speaks in its favor.
45

Q.19 D) Ranking on the basis of Price:

 On the basis of price

30%

25%

20%

15%

Relaince Fresh
10% V-mart
Subhiksha
6Ten
5%
Spencer's
Vishal mega mart
0% more
1
Relaince 26%
Fresh
V-mart 10%
Subhiksha 24%
6Ten 8%
Spencer's 8%
Vishal 12%
mega mart
more 12%

In this question the respondents were asked to rank the main organized FMCG retail
outlets in the city on the basis of Prices charged by them. On the basis of Price most of
the respondents ranked Reliance Fresh as no. 1 as 26% of respondents favors it. The 2nd
position is occupied by Subhiksha as 24% respondents spoke in its favor. In case of Price
the third position is occupied by MORE & Vishal Mega Mart as 12% respondents speaks
in each favor.

46

Q.19 E) Ranking on the bases of Product Display:

 Ranking on the basis of display

20%
18%
16%
14%
12%
10%
8%
Relaince Fresh
6%
v mart Spencer's
4% 6Ten
2% more
0% Vishal mega mart
1 Spencer's
Relaince 18% Subhiksha
Fresh
v mart 4%
Spencer's
6Ten 18%
more 16%
Vishal 8%
mega mart
Spencer's 20%
Subhiksha 16%

In this question the respondents were asked to rank the main organized FMCG retail
outlets in the city on the basis of Display of the outlets. On the basis of Display most of
the respondents ranked Spencer’s as no. 1 as 20% of respondents favors it. The 2nd
position is occupied by 6TEN & Reliance Fresh as each was supported by 18%
respondents. In case of Display the third position is occupied by MORE & Subhiksha as
each was supported by 16% of the respondents.

47

Q.19 F) Ranking on the basis of Time saving:

 25%

20%

15%

10%
Relaince Fresh
v mart Spencer's
5% 6Ten
more
Vishal mega mart
0%
1 Spencer's
Relaince 20% Subhiksha
Fresh
v mart 4%
Spencer's
6Ten 22%
more 14%
Vishal 14%
mega
mart
Spencer's 10%
Subhiksha 16%

In this question the respondents were asked to rank the main organized FMCG retail
outlets in the city on the basis of Time saver. On this basis most of the respondents
ranked 6Ten as no. 1 as 22% of respondents favors it.The 2nd position is occupied by
Reliance Fresh as 20% respondents spoke in its favor. In case of Time saving the third
position is occupied by Subhiksha 16% respondents speaks in its favor.

48
 FINDINGS
&
SUGGESTIONS

49
 FINDINGS

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

Organized FMCG retail outlets as compare to unorganized retail
outlets.

2. During the study it come to know that customers spend

40%-50% of their monthly budget at organized FMCG
retail outlets.

3. In this study it is found that organized FMCG 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, 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 karyana stores.

6. In this study it is also found that organized FMCG retail

outlets lacks in the segment of Green Grocery as compare
to un organized sector(street hawkers).

50
 SUGGESTIONS

1. The organized retail outlets should improve the quality of

Vegetables & fruits they provide to customers.

2. The organized FMCG retail outlets should provide the free

home delivery facility.

3. The organized FMCG retail outlets should increase the no.

of billing counters in their outlets.

4. The organized FMCG retail outlets should also provide the

credit facility to the lower class customers so that they
can increase their market share.

5. The organized FMCG retail outlets should also provide the

mobile van facility in the areas which are far away from
the stores.

51
CRUX OF THE
STUDY

52
 CONCLUSION
The crux of the study is that most of the customers prefer to purchase from
organized FMCG retail outlets as compare to unorganized FMCG 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 Karyana stores. During the study its also found that
customers were happy from the services provided by organized FMCG outlets.

This study also revealed that customer prefer the

organized FMCG retailing over unorganized FMCG retailing, due to which the
organized FMCG retiling become a threat to the local karyana stores & street
hawkers.

53
LIMITATIONS OF
THE STUDY

54
 LIMITATIONS OF THE STUDY

No study is complete by itself, however good it may be, and every study has some
limitations. The limitations of this study can be summarized below:

1. Due to the constraints of time, the study was confined to Ludhiana city.

2. The sample was taken on the basis of convenience; therefore the shortcomings of
the convenience sampling may also be present in this study.

3. The sample size chosen for the purpose was only indicative and not exhaustive
owing to time constraints.

4. There were some inherent limitations as far as collection of data is concerned. The
respondents replied may be biased in favor of their centers.
 55

ANNEXURE
 56

NAME: _______________________________________

CONTACT NO.: _______________________________

GENDER: Male Female

PROFESSION/OCCUPATION :-

HouseWife Business Doctor Teacher

Private job Engg. Govt. employee Any other

1) Are you aware about the organized Retail Outlets in Ludhiana?

Yes No

2) Which organized FMCG Retail outlets are you aware about ?

Subhiksha Reliance Fresh More

6Ten Vishal Mega Mart V Mart
Spencer’s

3) Out of these which you have visited?

Subhiksha Reliance Fresh More
6Ten Vishal Mega Mart V Mart
Spencer’s

4) Have you bought any FMCG product from these outlets?

 Yes No

57

5) Out of these organized FMCG Retail Outlets where do you generally purchase from ?
Subhiksha Reliance Fresh More
6Ten Vishal Mega Mart V Mart
Spencer’s

6) Where were you shopping before buying from these organized FMCG Retail Outlets

Neighborhood Karyana Store Wholesale Mkt.

Store which is convenient to you Any Other

7) How much of your monthly budget grocery products are you shopping from these
Organized FMCG Retail Outlet ?

10-20% 20-30% 30-40%

40-50% 50-60% 60-70%

More than 70%

8) Out of the total shopping specify %age expenditure in the following categories at
organized FMCG retail outlets?

0%-15% 15%-30% 30%-45% 45%-60% 60%-75% 75%-100%

Food Products
Confectionery
Detergents
Vegetables & fruits
Soaps &Sanitary
products
 58

9) What’s your average one time purchase at FMCG Retail Outlets in Rupees ?

Below 1000 1,000-1500

1,500-2000 2,000-2500

10) How many time do you visit the organized FMCG Retail Outlets in a month ?

Once 2-3 times 3-5 times more than 5

times

11) Do you think by shopping at organized FMCG Retail Outlets your monthly
expenditure:

Reduced Remain Same Increased

12) What are your reasons for purchasing from these organized FMCG Retail Outlets ?
(mark only 3)

Better Quality Reasonable price Product range

Good environment Time Saving Display of products

Discounts and Promotional schemes

13) Are you satisfied with the quality of goods offered by the organized FMCG Retail
Outlets ?

Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

14) Are you satisfied with the range offered by organized FMCG Retail Outlets from
where you purchase ?
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

59

15) What do you think the service provided by these organized FMCG outlets in
comparison to other stores are:

Excellent Good Average Poor Very Poor

16) What are the problems you face when you shop from these organized FMCG retail
outlets? (specify)

Range is not complete Vegetables/Fruits are not fresh

Home delivery is not provided Do not grant credit

Insufficient Billing Counters

17) In future will you spend more at organized FMCG retail outlets ?

Definitely Yes Probably Yes Can’t Say Probably Not Definitely No

18) Do you think the market share of unorganized retail will:

Definitely increase Increase Remain same Decrease Definitely decrease

19) On the basis of your perception, please rank players in organized retail in the city
on the following parameters (Rank only top 3)

Parameters Reliance Subhiksha V-Mart 6Ten Vishal Spencer's More

Fresh Mega
Mart
Quality
Service
Product
Range
Price
Display
Time
Saving
60

20) What kind of improvements required in these organized FMCG retail outlets, please
Mention:

1) _________________________________________________________________
_
2) _________________________________________________________________
_
3) _________________________________________________________________
_

THANKS A LOT FOR VALUABLE INFORMATION

 61

BIBLIOGRAPHY

WEBSITES:

www.imagesretailing.com
www.reportbuyer.com
www.reportbuyers.com
www.thirdeyesite.in
www.subhiksha.com
www.google.com

BOOKS:

C R Kothari Research Methodology

PUBLISHED CATALOUGES OF DIFFERENT ORGANIZED FMCG RETAIL

OUTLETS IN LUDHIANA.
62