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To study the consumer behaviour in Max lifestle retail, lucknow

To study the consumer behaviour in Max lifestle retail, lucknow

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ACKNOWLEDGEMENT
Concentration, dedication and application are necessary but not sufficient to achieve any goal. These must be awarded by guidance, assistance and co-operation of some person to make it enable. Many people have given their valuable time and ideas to enable me to complete the research and the report. I am deeply indebted to all for their ideas and assistance, while bearing the entire responsibility for weakness in the report. I am highly obliged to MR. NIKHIL RANJAN (STORE MANAGER) and MRS. RITA CHATTERJI (ASSISTANT STORE MANAGER), MAX LIFESTYLE, LUCKNOW for providing me an opportunity to undergo this project report. I am also indebted to MR. RAZAUR RAHMAN & ALL FACULTY MEMBERS of SRMCEM, LKO who have been a constant source of inspiration and provided guidance to me at every point of time. My gratitude to all those, who RESPONDED TO MY QUESTIONNAIRE in a well defined manner and helped me acquiring knowledge. Lastly, I thanks all those, who have directly or indirectly, helped me in this project..

ABHISHEK PANDEY
ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

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PGDM- I YEAR

DECLARATION
I, ABHISHEK PANDEY, student of POST GRADUATE DIPLOMA IN

MANAGEMENThereby declare that the project report entitled “A DETAIL STUDY OF CONSUMER BEHAVIOUR AND BUYING BEHAVIOVR OF CUSTOMERS IN MAX STORE OF LUCKNOW CITY” has been compiled by me on the basis of my project report and has not been submitted any where in any manner.

It is a report, which is based on various interviews, surveys that is conducted during my project report period in LUCKNOW as a student of P.G.D.M. from “SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW.”

ABHISHEK PANDEY PGDM- I YEAR

ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

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EXECUTIVE SUMMARY
This study is a modest effect at understanding the consumer behavior especially in retail store in Lucknow. Analysis to Lucknow people perception of retail store (survey only retail channel in Zee mall). The survey was constituted in visiting of Zee Mall Customers were interviewed by means of carefully prepared questionnaire to study and understand customer behaviour in depth. I study also the consumer decision making in retail store in Indian city and what effect consumer decision-making in retail store.

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PREFACE

The sea of change can pull customers in many directions. It is our responsibility to light the way and take care of them… before the competition does. RETAILING Means Re-tailing to the customers so that they comeback Retailing consists of all activities involved in selling goods and services to consumers for their personal, family, or household use. It covers sales of goods ranging from automobiles to apparel and food products, and services ranging from hair cutting to air travel and computer education. Sales of goods to intermediaries who resell to retailers or sales to manufacturers are not considered a retail activity. The retail sector in India is highly fragmented with organized retail contributing to only 2% of total retail sales. The retail sector in developed countries was also highly fragmented at the beginning of the last century but emergence of large chains like Wall Mart, Sears, and McDonald’s led to rapid growth of organized retail and growing consolidation of the retail industry in the developed countries. Organized retail is growing rapidly and we see the emergence of large organized retail chains like Shopper’s Stop, Lifestyle, and Westside. We also find retail malls mushrooming all over the
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country. The opportunities in retail industry in India will increase since Indian retailing is on the threshold of a major change. The study of retailing is very important to MBA students interested in employment opportunities with large retail chains.

The remarkable world of Retail

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Retailing including all activities involved in selling goods or services directly to the final consumers for personal, non business use Any organisation selling to final consumerswhether it is a manufacture, whole seller, or retailer – is doing retailing. Consumers today can shop for goods & services in a wide variety of retail Org. The best- known type of retail is the
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Retail, according to Concise Oxford English Dictionary, is "the sale of goods to the public for use or consumption rather than for resale." World over, the retail segment has performed exceptionally since its inception in the 20th century. Sample these facts: ➢ Retail is currently the biggest industry in the world with sales of $7.2 trillion ➢ Every 10th billionaire in the world is a retailer. ➢ 25 of the top 50 Fortune 500 companies are in retail. The Indian retail story couldn't have been more different. India has approx 12 million retail stores, more than rest of the world put together. But the per capita square feet area under retail is just 2 sq.ft or 0.2 sq. meters with fragmented keerana stores being the predominant players. Retailing in India has remained in the unorganized sector and largely untouched by corporate. The first decade of modern retail in India has been characterized by a shift from traditional channels to new formats including department stores, hypermarkets, supermarkets and specialty stores across a range of categories. Modern retail formats have mushroomed in metros and mini-metros, in the last few years modern retail has also established its presence in the second rung cities. Thus, exposing the residents of these cities to shopping options, they have never experienced before. It has been forecasted that the share of modern retail will increase from 2 per cent currently, to about 15-20 per cent over the next decade.

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To begin with, retailers today will have to support the large retail infrastructure in terms of Malls and Superstores that are being created. The challenge for leading retailers shall therefore shift from diverting demand to creating demand. With all the modern stores offering convenience in terms of an assortment of products, ambience, service and innovative products, the paradigm shall shift from competing with the kirana stores to an in-house demand creation. Relevant experiences from consumer goods companies, which have successfully crafted an explosion in demand in their sectors, through innovation, consumer driven strategies, will be head runner. Times are changing. With the GDP at an all time high and income levels shooting through the roof, the average Indian consumer has never had it so good. The propensity to consume has reached peaks that had never been scaled before. Credit cards are flashed with disdain and shopping baskets are getting bigger all the time. Here are some factors that indicate the potential of retail in India: ➢ At 271 million, one of the largest consuming base in the world, forming 27% of the total population. ➢ A high spending community below 45 years comprises 81 percent of the population. ➢ A young population with 54% population below 25 years ➢ Increased literacy from 44% in 1965 to 70% in 2003 ➢ Increase in working women from 1.3 million in 1961 to 4.8 million in 1998.
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➢ Increase in media penetration to 38-million cable household and 80-million TV household in 2001 The first decade of modern retail in India has been characterized by a shift from traditional kirana shops to new formats including department stores, hypermarkets, supermarkets and specialty stores across a range of categories. Modern retail formats have mushroomed in metros and minimetros. In the last few years, modern retail has also established its presence in the second-rung cities, exposing residents to shopping options like never before. However, even as modern retailers garner share from traditional channels, there is a larger role they would be required to play in boosting consumption levels. Figures suggest that the total turnover of the sector is around Rs 10 lakh crores, of which 4 per cent is contributed by the organised sector. During the last decade, India's middle- and high-income segment notched up an impressive 105 per cent growth. This segment has been triggering the demand for consumer goods. Increased awareness, free access to information and choice in competing products and services are making customers redefine the retail business. They are on the lookout for convenience, speed, efficiency and a wide range of products. Retailers need to explore different channels of retailing to cater to customers' needs. The days of brick-and-mortar's limited potential are fading and retailers need to tap the immense opportunities that other channels offer.

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Driven by increasingly intense competition in an increasingly global marketplace, retailers must seek new ways of capturing the hearts and minds of consumers. The traditional levers of price, selection and location — although still important — are no longer sufficient as bases for competitive differentiation. Retailers should be focused on improving the end-to-end shopping experience, boosting sales and winning customer loyalty by connecting to the shopper in every possible way. Multichannel retailing is all about giving the customer a choice of which shopping channel he or she wishes to purchase products through. The most popular shopping channels include the stores, Internet and catalogues and telemarkets (including mobile shopping). Retailers must provide a seamless multichannel experience for their customers. For this, they become the most valuable consumers within a retailer's customer base.

Multichannel retailing needs to be adopted:
• • • •

Grow market share Increase customer base Offer convenience Achieve cost reductions through economies of scale, supply chain efficiencies, and logistics

Improve customer analytics

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• • •

Opennew revenue streams by cross-sell & sell ups Reduce cycle time between order and delivery Lower fulfillment cost & Improve demand planning

However, going multichannel, the retailer should not ignore the critical part: the customer. Customers have become more sophisticated and expect a retailer to recognize them.

Evolution of Indian Retail
Traditional Rural Retail Fairs Traditional Family Run Convenience Stores

Traditional Rural Retail Fairs
Traditional rural retail fairs are a very big attraction to fo reign tourists. We have the Pushkar fair in Rajasthan which brings in a lot of revenue both from domestic buy ers and buyers from abroad. In the Pushkar fair live stock like camels, horses, cows, goats, and sheep are sold as well as bought. A range of exotic items are also available. The traditional ite ms here are handmade jewelry and other colorful memorabilia of Rajasthan. Traditional rural retail fairs in India deal in a good number of handcrafts ite ms which are mentioned below:
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• • • • • • • • • • • •

Hand painted wooden chest drawers Wooden wall brackets Embossed wooden table Hand painted chairs in chowki Wooden corner stand Wooden Hand painted table Embossed wooden chairs Brown wooden stool Camel bone Jewelry Metal jewelry Snake charmer puppets Handmade candles

The Suraj Kund mela is also a huge galore of Indian traditional ite ms. This fair is held at Haryana which is 8 kilometers from South Delhi. The fair has been held for the last 20 years. The fair deals in items categorized as

Indian arts Handicrafts Heritage Culture and tradition Huts of mud Thatched platforms lamps of wood String cots Plainness ground

• •

Traditional rural retail fairs have a ty pical rural set up like: • • • • •

The small thatched stores are a vibrant display of handcraft items. The focus every year is on a particular State for instance, in 2006 it was Maharashtra. The
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other group of ite ms representing the Indian Subcontinent available there are: • •

Classical Tribal art Folk art

As such Traditio nal Rural Retail fairs involve credit worthy artisans and weavers of over 350 in number and they are selected from across the country. Along with the county's rich cultural heritage being showcased, the fair is open to foreign traditiona l goods as well. The more rejuvenating side of these fairs would be listed as under: • • • • • • • • •

Indian Sweets Snacks Indian folk music Classical dance Bengal tiger show Elephant rides Tiger show and rides Giraffe tricks Balloon and Clay items Painting Games

Therefore, traditiona l rural retail fairs are a never ending occupation and the key to it lies in the originality and attractiveness of the items.

Traditional Family Run Convenience Stores
Traditional family run convenience stores are too well established in India than to be wiped out and besides there is uniqueness in the traditional items that represent the sub-continent. The retail stores in India are essentially dominated by the unorganized sector or traditional stores. Infact the traditional stores have taken up 98 percent of the Indian retail market. Now stores run by families are primarily food based and the set up is as Kirana or the 'corner
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grocer' stores. Basically they provide high service with low prices. If the stores are not food based then the ty pe of retail items available are local in nature. The traditional family run convenience stores can take pride in the fact that the Kirana is the most common outlet forms for the consumers. The tough competition for convenience stores are coming from organized retail stores dealing in food items, like: • • • • • Apna Bazaar Canteen stores Food World Subhiksha Food Bazaar • Convenience Stores are open for long hours and is one of the formats of the Indian retail stores that cater to basic needs of the consumer. A good example of such would be Convenio. These stores are found in both residential as well as commercial markets. The food products of traditional family run convenience stores are comprised of branded as well as non-branded items. The benefits of family run convenience stores is that they give importance to: • • Personal touch Facilities of credit • Quick home delivery Non-food based stock comprises of multiple and varieties of local brands. The future of such stores as they face competition from organized sector, would depend on the following particulars: • • • • • • Place and capacity Diligent area coverage Disciplined work schedule Managing turnover Revenue from assets Customer service and satisfaction

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The traditiona l family run convenience stores serves the purpose of the housewives who definitely wants to avoid traveling long distances to purchase daily needs. The convenience factor in terms of items, among people in general can be highlighted as below: • • • • Groceries Fru its Drug Store Necessary stationery

As such traditional family run convenience stores are here to stay and cannot be oversized by the organized retail sector besides, it represents the variety of India

Indian retail industry
India retail industry is the largest industry in India, with an employ ment of around 8% and contribu ting to over 10% of the country's GDP. Retail industry in India is expected to rise 25% y early being driven by strong income growth, changing lifesty les, and favorable demographic patterns. It is expected that by 2016 mo dern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. Shopping in India have witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in India which have become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof.
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India retail industry is expanding itself most aggressively, as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new shopping centers. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is try ing to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of non- branded items. India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort.

Indian organized retail market
Indian organized retail market is growing at a fast pace due to the boom in the India retail industry. In 2005, the retail industry in India amounted to Rs 10,000 billion accounting for about 10% to the country 's GDP. The organized retail market in India out of this total market accounted for Rs 350 billion which is about 3.5% of the total revenues. Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010. Traditionally the retail industry in India was largely unorganized, comprising of drug stores, medium, and small grocery stores. Most of the organized retailing in India have started recently and is concentrating mainly in metropolitan cities. The growth in the Indian organized retail market is mainly due to the change in the consumers behavior. This change has come in the consumer due to increased income, changing lifesty les, and patterns of demography which are favorable. Now the consumer wants to shop at a place where he can get food, entertainment, and shopping all under one roof. This has given Indian organized retail market a major boost.
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Retail market in the organized sector in India is growing can be seen from the fact that 1500 supermarkets, 325 departmental stores, and 300 new malls are being built. Many Indian companies are entering the Indian retail market which is giving Indian organized retail market a boost. One such company is the Reliance Industries Limited. It plans to invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500 supermarkets. Pantaloons is another Indian company which plans to increase its retail space to 30 million square feet with an investment of US$ 1 billion. Bharti Telecoms an Indian company is in talks with Tesco a global giant for a £ 750 million joint venture. A number of global retail giants such as Walmart, Carrefour, and Metro AG are also planning to set up shop in India. Indian organized retail market will definitely grow as a result of all this investments. Indian organized retail market is increasing and for this growth to continue the Indian retailers as well as government must make a combined effort.

The Global Retail Industry : An Overview
Retail has played a major role world over in increasing productivity across a wide range of consumer goods and services .The impact can be best seen in countries like U.S.A., U.K., Mexico, Thailand and more recently China. Economies of countries like Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily assisted by the retail sector.

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Retail is the second-largest industry in the United States both in number of establishments and number of employees. It is also one of the largest world wide. The retail industry employs more than 22 million Americans and generates more than $3 trillion in retail sale annually. Retailing is a U.S. $7 trillion sector. Wal-Mart is the world’s largest retailer. Already the world’s largest employer with over l million associates, Wal-Mart displaced oil giant Exxon Mobil as the world’s largest company when it posted $219 billion in sales for fiscal 2001. Wal-Mart has become the most successful retail brand in the world due its ability to leverage size, market clout, and efficiency to create market dominance. Wal-Mart heads Fortune magazine list of top 500 companies in the world. Forbes Annual List of Billionaires has the largest number (45/497) from the retail business.

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GLOBAL RETAIL
Total Retail (US$ Billion) Organized Retail (US$ Billion) % Share of Organized retail 1999 150 1.1 0.7 2002 180 3.3 1.8 2005 225 7 3.2

Rank 1. 2. 3. 4. 5.

Retailer Wal-Mart Stores, Inc. Carrefour Group The Kroger Co. The Home Depot. Inc. Metro

Home Country U.S.A. France U.S.A. U.S.A. Germany

(Source: STORES / Deloitte Touch Tomahastsu)

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The factors responsible for the development of the retail sector in India can be broadly summarized as follows: • Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes. Looking at income classification, the National Council of Applied Economic Research (NCAER) classified approximately 500Io of the Indian population as low income in 1994-95; this is expected to decline to 17 by 2006-07. • Liberalization of the Indian economy which has led to the opening up of the market for consumer goods has helped the MNC brands like Kellogs, Unilever, Nestle, etc. to make significant inroads into the vast consumer market by offering a wide range of choices to the Indian consumers. • Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc. • The internet revolution is making the Indian consumer more accessible to the growing influences of domestic and foreign retail chains. Reach of satellite LV. channels is helping in creating awareness about global products for local markets. About 47% of India’s population is under the age of 20; and this will increase to 55°h by 2015. This young population, which is technology-savvy, watch more than 50 TV satellite channels, and display the highest propensity to spend, will immensely contribute to the growth of the retail sector in the country.

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As India continues to get strongly integrated with the world economy riding the waves of globalization, the retail sector is bound to take big leaps in the years to come. The Indian retail sector is estimated to have a market size of about $ 180 billion; but the organised sector represents only 2% share of this market. Most of the organised retailing in the country has just started recently, and has been concentrated mainly in the metro cities. India is the last large Asian economy to liberalize its retail sector. In Thailand, more than 40% of all consumer goods are sold through the super markets and departmental stores. A similar phenomenon has swept through all other Asian countries. Organized retailing in India has a huge scope because of the vast market and the growing consciousness of the consumer about product quality and services. A study conducted by Fitch, expects the organized retail industry to continue to grow rapidly, especially through increased levels of penetration in larger towns and metros and also as it begins to spread to smaller cities and B class towns. Fuelling this growth is the growth in development of the retail-specific properties and malls. According to the estimates available with Fitch, close to 2Smn sq. ft. of retail space is being developed and will be available for occupation over the next 36-48 months. Fitch expects organized retail to capture l5%- 20% market share by 2010. A McKinsey report on India says organised retailing would increase the efficiency and productivity of entire gamut of economic activities, and would help in achieving higher GDP growth. At 6%, the share of employment of retail in India is low, even when compared to Brazil (l4%), and Poland (12%).

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Key Strategic Factors in Retailing
The key to success is identifying a superior value-promise and who is in a better position to do it than retailers? Retailers are the closest to the point of purchase and have access to a wealth of information on consumer shopping behaviour. Retailers have some unique advantages for managing brands such as continuous and actionable dialogue with consumers, control over brand presentation at point-of-sale, control over shopping environment, display location/adjacencies, and signage. And they have used this advantage with tremendous success.

The 3 stages of evolution of the trade channel are shown in the exhibit below :
Extended Limited Direct

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Manufacture Depo/CNF

Manufacture

Manufacture / Retailer

Depo/CNF Distributo r Retailer Shopper Shoppe r Retailer

Shopper

As seen, the role of the intermediary is being diminished gradually, which has obvious implication of backlash of the trade channel upwards towards the suppliers. This is more severe in countries such as India, where the channel economics in favour of the middlemen is still strong enough given the fragmentation of the retail sector. Therefore when FoodWorld, the largest grocer in India has a “direct supply” contract with over 20% of its key suppliers, it gives rise to conflict of interest with the distribution infrastructure that suppliers have painstakingly built over the years. Thus companies like HLL have evolved a distinct distribution channel altogether (called “Modern Trade”) to service the needs of such large grocers. Even the mom and pop stores (known as kirana shops) are affected due to this “unfair” back-end advantage extended by the suppiier to its leading accounts (the emerging supermarket chains).
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The strategies adopted by the retailer to compete with branded goods are illustrated by the following diagram. Branding the store and following a private label strategy is the key strategy which helps the retailer to compete with branded products.

FORMAL RETAILING SECTOR

1. Typically large retailers 2. Greater enforcement of taxation mechanisms
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3. High level of labor usage monitoring

Evolution of Indian retail
Historic/Rural Reach Traditional/Pervasive Reach Government Supported M odern Formats/ International

PDS Outlets Khadi Stores Cooperatives Weekly M arkets Village Fairs M elas
Source of Entertainment

Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls

Convenience Stores M om and Pop/Kiranas

Neighborhood Stores/Convenience

Availability/ Low Costs / Distribution

Shopping Experience/Efficiency

7

CATEGORIES OF INDIAN RETAIL
1. Corporate Houses
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Tatas: Tata Trent RPG group: Food World, Health and ITC: Wills Life Style Rahejas(ShoppersStop), Hiranandani(Haiko), DLF(DT cinemas) etc. 2. Dedicated brand outlets Nike, Reebok, Zodiac etc 3. Multi-brand outlets Vijay Sales, Viveks etc 4. Manufacturers/ Exporters Pantaloons, Bata, Weekender Glow, etc

Classifying Indian retail

(A)Modern Format retailers
1) Supermarkets 2) Hypermarkets 3) Department Stores 4) Specialty Chains

(Foodworld) (Big Bazaar) (S Stop) (Ikea)

5) Company Owned Company Operated
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(B)Traditional Format Retailers 1) Kiranas: Traditional Mom and Pop Stores 2) Kiosks 3) Street Markets
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4) Exclusive /Multiple Brand Outlets

(C)Large Indian retailers 1. Hypermarket 1) Big Bazaar 2) Giants 3) Shoprite 4) Star II Department store 1) Lifestyle
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2) Pantaloons 3) Piramyds 4) Shoppers Stop 5) Trent III Entertainment 1) Fame Adlabs 2) Fun Republic 3) Inox 4) PVR

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The Indian retail sector can be broadly classified into

a) FOOD RETAILERS

There are large number and variety of retailers in the food-retailing sector Traditional types of retailers, who operate small single-outlet businesses mainly using family labour, dominate this sector In comparison, super markets account for a small proportion of food sales in India However the growth rate of super market sales has being significant in recent years because greater numbers of higher income Indians prefer to shop at super markets due to higher standards of hygiene and attractive ambience.
b) HEALTH & BEAUTY PRODUCTS

With growth in income levels, Indians have started spending more on health and beauty products .Here also small, single-outlet retailers dominate the market .However in recent years, a few retail chains specializing in these products have come into the market. Although these retail chains account for only a small share of the total market their business is expected to grow significantly in the future due to the growing quality consciousness of buyers for these products

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C) CLOTHING & FOOTWEAR

Numerous clothing and footwear shops in shopping centers and markets operate all over India Traditional outlets stock a limited range of cheap and popular items; in contrast, modern clothing and footwear stores have modern products and attractive displays to lure customers. However, with rapid urbanization, and changing patterns of consumer tastes and preferences, it is unlikely that the traditional outlets will survive the test of time.
D) HOME FURNITURE & HOUSEHOLD GOODS

Small retailers again dominate this sector. Despite the large size of this market, very few large and modern retailers have established specialized stores for these products. However there is considerable potential for the entry or expansion of specialized retail chains in the country.
E) DURABLE GOODS

The Indian durable goods sector has seen the entry of a large number of foreign companies during the post liberalization period. A greater variety of consumer electronic items and household appliances became available to the Indian customer. Intense competition among companies to sell their brands provided a strong impetus to the growth for retailers doing business in this sector.
F) LEISURE & PERSONAL GOODS

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Increasing household incomes due to better economic opportunities have encouraged consumer expenditure on leisure and personal goods in the country. There are specialized retailers for each category of products (books, music products, etc.) in this sector. Another prominent feature of this sector is popularity of franchising agreements between established manufacturers and retailers.

Benefit to customer through retailer sector

There has been a significant change

in retail trading over the years, from small kiranawalas in the vicinity to big super markets; a transition is happening from the traditional retail sector to organized retailing. The unorganized sector still holds a dominant position in this industry. The organized segment holds just about 1.2% of the current US$ 245 billion retail market, which is expected to reach about US $ 385 billion by the middle of this decade. With consumers looking at

convenience with multiplicity of choice under one roof and expectations evolving over time, consumer demand is truly the driving force for organized retailing in the country. Food and beverages form the main chunk of the retail market. They are followed by apparel and footwear. The Indian textile industry, the backbone of the apparel segment, has a large share
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of the Indian economy, accounting for over 20% of industrial production as well as providing direct and indirect employment to around 65 million people. Despite the retail

store density in India with regard to population being the largest, it is estimated that over 90% of the stores are less than 500 sq. ft in size. Industry estimates put the number of retail outlets at 12 million. This is clearly indicative of small-shop ownership crowding the unorganized segment of retailing. While this fragmented market structure does pose significant challenges for organized retailing, potential does exist if modern information and supply chain management systems are to support the development of convenience shops that match customer expectations. Today trend is the development of integrated retail cum Entertainment centers or shopping malls. An increasing number of retailers are focusing on malls now as opposed to stand-alone developments. While the number of shopping malls has seen a massive surge in the recent past in the metros and their suburbs, the latest trend in this sector is the increasing focus on providing leisure activities such as multiplexes, facilities for kids' entertainment, eateries etc. within the mall premises. Customer less the time consumes and more entertainment with his family in malls because they within shopping mall number of retail shop and variety of products and selected the product they want. Good environment in mall. Less crowed and These are enclosed, air-conditioned, multi-level malls of at least 100,00 sq ft. Critical to these malls is the concept of the

anchor, the key outlet or store around which other outlets cluster. The most popular Indian
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anchors include Shoppers' Stop, Globus, Pantaloon, Lifestyle and hypermarkets like Big Bazaar and Giant. Cinemas also often anchor malls. Driven by the lucrative tax breaks, the old single screen theatres are being divided into three-five smaller screens, as was done in the US, years ago. Example for wave and PVR.

Landmark Group
The Landmark Group, founded in 1973 with a single store in Bahrain has grown into one of the largest retail conglomerates in the Middle East and is expanding rapidly in India. It currently operates over 750 stores across the region with a retail presence in China as well. In addition to its retail sector, the Group has also diversified into leisure, food, hotels and electronics and has created a comprehensive infrastructure including its own logistics and distribution division, to support its retail operations and other businesses. Key Facts 35 Years of retail experience. Turnover in excess of US$2.5bn. Total retail space over 10 million sq ft. Retail Presence across 12 countries: Bahrain, China, India, Jordan, Kingdom of Saudi Arabia, Kuwait, Oman, Qatar, Spain, UAE, Pakistan & Egypt. Operates over 825 stores. Employs 24,000 personnel.

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Core Values of Landmark Group
1. Passion for excellence – We are committed to setting industry benchmarks – be it our product or practices. Our doctrine is to strive and maintain the lead in whatever we do, with strict adherence to quality and delivering value for money. 2. Integrity in every thing we do - Our business is driven by trust, strong ethics and mutual respect. 3. E mpowering people to strive and deliver – Our core strength is our employees. We believe in giving our personnel the opportunity and responsibility that are integral to their professional development and our Group’s success. 4. Adapting to changing market and customer needs – We keep ourselves abreast with industry trends and dynamic consumer preferences. Our offerings keep evolving to address changing and discerning consumer needs.

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Look Good Feel Good
• • Max a value retail store for the family was launched in May 2004 in the UAE. With stores that ty pically measure between 25,000 to 30,000 sq. ft, Max retails its own label clothing for men, women and children as well as footwear and home ware. A pioneer in the Middle East of the global trend of delivering quality and value at very attractive prices, Max is being increasingly recognized as a key player in the value retail format. With 75 stores across UAE, Saudi Arabia, Jordan, Kuwait, Bahrain, Qatar, Oman & India, Max plans to expand its network in more potential markets within the Middle East, Turkey and India to build a significant presence for the brand by targeting to have 100 stores by 2009. A good shopping experience and great value is an assurance that translates into making customers “Look good. Feel good” with Max.

Key Facts
Established in 2004. 75 stores spread across 8 countries. The Largest Value Fashion Chain in the Middle East Products designed and developed exclusively for Max, by a large team of in-house designers and buyers.

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KIDSWEAR DEPARTMENT
INFANTS SECTION: BOYS (SIZES) 6-12 MONTHS 12-18 MONTHS 18-24 MONTHS TOTAL BOYS SECTION: SUB SECTION
1-8 YEARS
SIZES

PREPACK 3 3 3 9

GIRLS (SIZES) 6-12 MONTHS 12-18 MONTHS 18-24 MONTHS

PREPACK 3 3 3 9

PREPACK

8-14 YEARS
SIZES

PREPACK

2-3 YEARS

3

8-9 YEARS

3

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3-4 YEARS 5-6 YEARS 7-8 YEARS TOTAL GIRLS SECTION: SUB SECTION
1-8 YEARS
SIZES

3 3 3 12

9-10 YEARS 11-12 YEARS 13-14 YEARS

3 3 3 12

PREPACK

8-14 YEARS
SIZES

PREPACK

2-3 YEARS 3-4 YEARS 5-6 YEARS 7-8 YEARS TOTAL INFANTS GIRLS TUNIC V-NECK R- NECK COLLER FRONT OPEN SKIRT CAPRI SHIRT 2-8 BOYS T-SHIRT DENIM JEANS TROUSERS CARGO

3 3 3 3 12

8-9 YEARS 9-10 YEARS 11-12 YEARS 13-14 YEARS

3 3 3 3 12

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PAINTS ¾ CAPRI COTTON WOVEN KNITTED DENIM 2-8 GIRLS TUNIC SKIRTS T-SHIRT HALTER NECK POT SEGDE HALF SLEAVES CUT SLEAVES SLEAVELESS HOODED SKIRT SPORTS CAPRI LEGINGS ¾ LEGINGS FULL LEGINGS LONG TOPS MINI SKIRTS CALF LENGTH SKIRT DENIM JEANS CAPRI

STYLES: - KNIT TOP, KNIT BOTTOM, WOVEN TOP, WOVEN BOTTOM, SPEGDEE, HALTER

NECK TOP, DRESS, TUNIC, DENIM, CAPRI, DONGRIE, 3 PIECE PACK (SPORTS, SLEAVELESS, HALF SLEAVES), 2 PIECE PACK (NIGT WEAR, SKIRTS).

ETHNIC
FUSION KURTI ROUND NECK V-NECK ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

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HALTER NECK MATKA NECK CUT NECK SQUARE NECK CUT SLEAVES STEPS KURTI SKIRT STRAIGHT SKIRTS CRUSH SKIRTS CRUSH ANKLE SKIRTS FABRICS: - ACOBA, COTTON, GORGET, SHIFFON, LINEN, VISCOS. SIZES XS S M L TRADITIONAL KURTI SHORT LENGTH KURTI HE KURTA LONG KURTA DUPATTA COTTON SHIFFON SALWAR PATIALA NORMAL CHOORIDAR SIZES PREPACK S 2 M 3 L 3 XL 2 XXL 1 ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW PREPACK 1 2 2 2

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ETHNIC WEAR BASICS: KURTA SALWAR CHOORIDAR PATIALA DUPATTA PANTS BASICS SLIPS HOMES TABLE MAT TABLE RUNNER TABLE COVER DUBLE BED SHEET SINGLE BED SHEET DOUBLE BED COVER SINGLE BED COVER NAPPKIN TOWEL BATH MATS CUSHION COVERS

WESTERN WEAR
CORE KNIT TOP WOVEN TOP KNIT BOTTOM WOVEN BOTTOM SKIRTS YOUNG KNIT TOP WOVEN TOP KNIT BOTTOM ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

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WOVEN BOTTOM DENIM BOTTOM JACKET SHORTS SKIRTS SPORTY JACKET KNIT TOP WOVEN TOP KNIT BOTTOM WOVEN BOTTOM DENIM DENIM FULL LENGTH CAPRI NIGHT WEAR GOWNS SLEEPWEAR

MENSWEAR
CASUAL DENIM BOOT CUT REGULAR FIT SLIMFIT CASUAL NON- DENIM KNITTED TOP- FULL SLEAVES KNITTED TOP- HALF SLEAVES KNITTED TOP- SLEAVE LESS ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

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WOVEN TOP- FULL SLEAVES WOVEN TOP- HALF SLEAVES WOVEN TOP- SLEAVE LESS WOVEN TOP- H/S BASIC WOVEN TOP- F/S BASIC FORMAL WOVEN BOTTOM- FLAT FRONT WOVEN BOTTOM- PLEATED WOVEN TOP- FULL SLEAVES WOVEN TOP- HALF SLEAVES INNER WEAR TRUNK VALUE PACK WEST VALUE PACK Y FRONT VALUE PACK SEMI FORMAL WOVEN BOTTOM- FLAT FRONT WOVEN BOTTOM- PLEATED WOVEN TOP- FULL SLEAVES WOVEN TOP- HALF SLEAVES SPORTS WEAR KNITTED TOP- FULL SLEAVES KNITTED TOP- HALF SLEAVES KNITTED TOP- SLEAVELESS JACKET KNITTED TRACK BOTTOM WOVEN TRACK BOTTOM WOVEN TRACK SHORTS KNIT TRACK SHORTS SIZES- SHIRTS T-SHIRTS DENIM 39 to 44 S to XL 28 to 36

REGULAR FIT 28 to 36

SLIM FIT 28 to 38

FOOTWEAR
MENS FOOTWEAR ➢ ➢ ➢ ➢ CASUAL SHOES FORMAL SHOES CASUAL LACE UPS FORMAL LACE UPS

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➢ ➢ ➢ ➢ ➢

CASUAL SLIP UPS CASUAL SLIP ONES CASUAL SANDALS FORMAL SANDALS SPORT SHOES

LADIES FOOTWEAR ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ H-HEAL SANDAL M-HEAL SANDAL WEDGE HEAL SANDAL FLAT SANDAL CASUAL SANDAL SPORTS SANDAL COMFORT SANDAL FORMAL SANDAL EVA SANDAL

KIDS FOOTWEAR ➢ ➢ ➢ ➢ ➢ KIDS BOYS KIDS GIRLS INFANT BOYS INFANT GIRLS BOTIES

STORE OPENING
1. Check the lock before unlock. 2. unlock the door at 9:30 am. 3. Switch on optimum lights on floor.
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4. Security in place with complete uniform. 5. Adequate housekeeping staff sould be in store. 6. Select the housekeeping workdone, cleaning, moppng. 7. Switch on A.C. at 10:00 am. 8. Switch on the music. 9. Trials rooms are empty and clean before 10:30 am. 10. Floats issued in tills and dedicated cashier by 10:25 am. 11. Ensure that staff is complete uniform by 10:30 am. 12. Merchandise well present on the floor.

STORE CLOSING
1. All the tills closed. 2. Switch off sensomatic, E.D.C. machine, music at till point. 3. Recycling of Security ags and hangers. 4. Merchandise well present on the floor. 5. Trial rooms are empty. 6. Switch off A.C. 7. Switch off all lights. 8. Lock Manager’s room. 9. Lock I.T. room. 10. Switch off Sensomatic on both floors and at entrance. 11. Security in place with complete uniform at back door. 12. Manager signature. 13. Security signature.

DUTIES &RESPONSIBILITIES OF STORE MANAGER

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Duties & Responsibilities
Sales Forecasting & Budget Personnel Recruitment, selection, training, motivation and evaluation Merchandise Display, Inventory Management and merchandise reorders Handling store receipts, preparing bank transactions, opening and closing store ➢ Reviewing customer complaints ➢ Reviewing computer data forms ➢ Review of overall operations and reports to top management. ➢ ➢ ➢ ➢

DEPARTMENT MANAGERS DETAIL CHECKLIST
Cleaning and Dusting Floor cleaned and Mopped Fixture (Clean, Alignment & Breakage) Stock Replenishment All sty le displayed on floor. Size cubing on all merchandise Price tickets on all merchandise Security tag on all merchandise Merchandise well presented Shelf Talkers (Clean and Properly display ed) Ensure ironing of Merchandise is in process. Trial rooms clean Cash Counters Clean (Merchandise, hangers & tags) Daily sales register updation Daily grooming check Ensure that the adequate manpower on the floor on hourly basis Staff should try and attend each and every customer, greeting is very important ➢ Ensure that staff is regularly interacting with the customer by giving exceptional service for customer delight at all time ➢ Ensure the presence of one manager at any given time on each floor ➢ Time and again check that the villing check out is fast enough as per the standard norms ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢
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➢ Ensure that the lunch breaks should start by 1:00 pm and finished by max 4:00 pm ➢ Ensure the presence of all staff on the floor in peak hours between 5:00 pm to 9:30 pm ➢ Time and again check on walk-ins, average bill size, sales on hourly basis an accordingly ➢ Encourage the staff for further improvement ➢ Ensure your morning shift staff and weekly off for the next day is convey ed to all staff. ➢ Maintain DM’s log book on daily basis & acknowledge by SM, ASM on daily basis

CRE DETAIL CHECKLIST
➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ Cleaning and dusting of shelves, browsers, arms & back bars. Check at 10:30 am floor clean & mopped Fixture (Clean & Alignment) Have a walk on the floor after 10:30 am and check the replenishment require Stock replenishment for new lines & broken sizes on the floor Remove broken sizes from the floor if it is not available in back Ensure that all sty le displayed on floor Price tickets on all merchandise Start size cubing on all merchandise Security tags on all merchandise Merchandise well presented Start ironing of merchandise at 10:00am till 4:00 pm Trials rooms (clean, tokens and manned) by 10:30 am Try and attend each and every customer, greeting is very important.

Distribution Of Target In Departments
Let,

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Store target = Rs 50,00,000 Department Target = Rs. 9,50,000 Department Target in % = 19% One Month = 8 weekends and 23 week days One Weekend Target = Rs 9,50,000/23 = Rs 41304 Total weekend target = Rs 41304*8 = Rs 3,30,434 Total weekday target = Rs 9,50,000- Rs 3,30,434 = Rs 6,19,566 One weekday target = Rs 6,19,566/23 = Rs 26,937 CRE target (Monthly) = Rs 9,50,000/5 = Rs 1,90,000 One Weekend Target = Rs 41304 One Weekday Target = Rs 26937

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DIPSTICK PARAMETERS

Enable retailers to find out about the health of specific area of operation in an instant.

Customer Transactions
➢ ➢ ➢ ➢ ➢ Customer Conversion Ratio Return To Net Sales Transactions Per Hour Sales Per Transaction Hourly Customer Traffic

Stocks
➢ ➢ ➢ ➢ Average Selling Price Average Stock Price Stock Turnover/Inventory Turnover Rate Percentage Inventory Costs

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➢ Gross Margin Return on Inventory ➢ Markdown Goods Percentage ➢ Shrinkage to Net Sales

Space
➢ ➢ ➢ ➢ Occupancy Cost Per Square Foot Selling Space Sales Per Square Foot Stock Per Square Foot Percentage of Selling Space

Employees
➢ Net Sales Per Full Time Employ ee ➢ Labour Productivity ➢ Gross Margin Per Full Time Employ ee Customer Conversion Ratio Customer Conversion Ratio = Number Of Transactions x 100 Customer Traffic -Reflects Retailers ability to turn a potential customer into a buyer -Low figure means that promotional activities are not being converted into sales or that the overall sales effort needs to be assessed afresh -Automatic counting mechanisms or periodic survey s of customer traffic

Returns to Net Sales
Returns to Net Sales = Total Returns Net Sales
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-Indication of Customer satisfaction -Increase in value is an early warning indication -Quality of merchandise is a suspect

Transactions Per Hour
Transactions Per Hour = Number Of Transactions Number of Hours -Hourly variations in sales activities is important for setting store hours and staff schedules -Cash registers will give the time of sale

Sales Per Transaction
Sales Per Transaction = Net Sales Number Of Transactions -Reflects Retailers ability to turn a potential customer into a buyer -Low figure means that promotional activities are not being converted into sales or that the overall sales effort needs to be assessed afresh -Automatic counting mechanisms or periodic survey s of customer traffic

Hourly Customer Traffic
Hourly Customer Traffic = Customer Traffic In Number of Hours

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-Can be applied to an entire store or a single department to schedule hours and establish staff levels -Used to track customer traffic

Average Selling Price
Average Selling Price Total Values of Good Sold Total Quantity Sold

Average Stock Price
Average Stock Price = Total Values of Goods in Stock Total Quantity in Stock -Turning stocks around efficiently y ields better pro fits -If daily sales account for 2% sales it will take 50 days to sell stock and in 365 days the turnaround of the stock is 365/50 i.e 7.3 times

Stock Turnover / Inventory Rate Turnover
Stock Turnover / Inventory Rate Turnover = Net Sales Average Retail Value of Inventory -Indicates how often the inventory is sold and replaced in a given period of time -When this ratio declines there is a possibility that the inventory is excessive

Percentage Inventory Carrying Costs
Percentage Inventory Carry ing Costs
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=

Inventory Carry ing costs x 100 Net Sales

-Important measure as there is a rise in inventory carry ing costs due to higher interest rates -Important to reduce stock obsolescence and prevent blockage of working capital -Retailers use this measure to track the percentage of their net sales represented by the fixed costs of maintaining inventory.

Gross Margin Return on Inventory
Gross Margin Return on Inventory = Gross Margin Average Value of Inventory -GMROI compares the margin on sales with the original cost value of merchandise to y ield a return on merchandise investment -Preferably the inventory is to be valued at cost rather than retail value as it gives a better indication of investment

Markdown Goods percentage
Markdown Goods percentage = Net Sales at Markdown Total Net Sales

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-If the ratio increases, the retailer may need to take a closer look at merchandising practices, especially pricing -Markdowns may be symptoms of other problems like or buying, advertising or store layout.

Shrinkage to Net Sales
Shrinkage to Net Sales = Actual Inventory – Book Inventory x 100 Net Sales -Percentage of net sales lost due to shrinkage -Does not indicate cause of shrinkage but the magnitude of the problem.

Occupancy Cost Per Square Foot Selling Space
Occupancy Cost Per Square Foot Selling Space = Occupancy Cost Square Feet of Selling Space -Translates into occupancy cost per unit of selling space -In other words the amount that needs to be generated by that unit of space to justify occupancy costs -For multi-unit retailer it is a useful tool to compare the performance of units at different locations.

Sales Per Square Foot
Sales Per Square Foot = Net Sales

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Square Feet of Selling Space -Used to compare different departments or stores using a common standard -Important tool to decide alternate uses of the space

Percentage of Selling Space
Percentage of Selling Space = Selling Space x 100 Total Space -Efficiency of space utility -Ratio varies with merchandise departments or stores. and can be used to compare different

Net Sales Per Full Time Employee
Net Sales Per Full Time Employee = Net Sales Total Full Time Employ ees -Average Sales generated by each full time employee -Can be used to set performance targets.

Labour Productivity
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Labour Productivity = Total Labour Costs x 100 Net Sales -Tracks labour costs incurred to achieve a given sales volume -Can be applied purely to sales employ ees

Gross Margin Per Full Ti me Employee
Gross Margin Per Full Time Employ ee = Gross Margin Total Full Time Employees -Gross profit generated per employ ee, used to gauge performance of sales employees -Not the only measure but a starting tool.

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THE STORE LAYOUT
The store design and layout tells a customer what the store is all about. It is a very strong tool in the hands of the retailer for communicating and creating the image of the store in the minds of the customers. For a retailer store layout is: The primary considerations that the retailer takes into account while choosing the look for his store are his target audience, their needs, and buying habits and the merchandise that he is going to sell. Creating a store image is like giving a personality to the store For the consumer: A store needs to be simple to navigate; it must appeal to his sensory perceptions and must create a sense of belonging, a sense of relationship, a sense of security or assurance and a sense of pleasure in the shopping experience Finally it is the physical attribute of the store which affects the customer’s sensory perceptions, and makes him relate to the store in a particular manner. The store layout can be classified into • Grid • Race track • Free form.

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Grid layout: It is most commonly used in a supermarkets and discount stores. It Is a preferred layout in many retail stores that adopt self service. Race track layout: This layout is popularly found in department stores. The display is in the form of the race track or a loop with a major aisle running through the store. It links the various departments or the sections inside the store. Free form lay out: In a freeform, merchandise is arranged in an asy mmetrical manner. It allows for free movement and is often used in retail outlets to encourage people to browse and shop.

MAX STORE LAYOUT

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Baggage P 4 3 Cash 2 antry2 1 Ethnic Menswear Department Accessories Foot wearwear Department Kidsftft2 wear and Western 2234 1805 2315 1502 2350 700 CounterDepartment Department home Till

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Consumer Behavior and Marketing Strategy
The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how • • • • The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products); The the psy chology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media); The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome;

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How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and

How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. Understanding these issues helps us adapt our strategies by taking the consumer into consideration. For example, by understanding that a number of different messages compete for our potential customers’ attention, we learn that to be effective, advertisements must usually be repeated extensively. We also learn that consumers will sometimes be persuaded more by logical arguments, but at other times will be persuaded more by emotional or sy mbolic appeals. By understanding the consumer, we will be able to make a more informed decision as to which strategy to employ.

One "official" definition of consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." Although it is not necessary to memorize this definition, it brings up some useful points: • Behavior occurs either for the individual, or in the context of a group (e.g., friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use). Consumer behavior involves the use and disposal of products as well as the study of how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result from product disposal (e.g., motor oil being sent into sewage sy stems to save the recycling fee, or garbage piling up at landfills) this is also an area of interest. Consumer behavior involves services and ideas as well as tangible products. The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing

• •

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of easy credit, may have serious repercussions for the national health and economy.

There are four main applications of consumer behavior:

The most obvious is for marketing strategy—i.e., for making better marketing campaigns. Fo r example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, to the rest of the population, we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers, since they will in turn influence many subsequent customers ’ brand choices. A second application is public policy. In the 1980s, Accutane, a near miracle cure for acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this, a number still became pregnant while taking the drug. To get consumers’ attention, the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers. Social marketing involves getting ideas across to consumers rather than selling something. Marty Fishbein, a marketing professor, went on sabbatical to work for the Centers for Disease Control try ing to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This, however, was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic. As a final benefit, study ing consumer behavior should make consumers. Common sense suggests, for example, that if you liquid ounce bottle of laundry detergent, you should pay less than if y ou bought two 32 ounce bottles. In practice, however, us better buy a 64 per ounce you often

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pay a size premium by buying the larger quantity. In other words, in this case, knowing this fact will sensitize y ou to the need to check the unit cost labels to determine if y ou are really getting a bargain. There are several units in the market that can be analy zed. Our main thrust in this course is the consumer. However, we will also need to analy ze our own firm’s strengths and weaknesses and those of competing firms. Suppose, for example, that we make a product aimed at older consumers, a growing segment. A competing firm that targets babies, a shrinking market, is likely to consider repositioning toward our market. To assess a competing firm’s potential threat, we need to examine its assets (e.g., technology, patents, market knowledge, awareness of its brands) against pressures it faces from the market. Finally, we need to assess conditions (the marketing environment). For example, although we may have developed a product that offers great appeal for consumers, a recession may cut demand dramatically.

Segmentation
Segmentation is important in consumer analysis because understanding the consumer will allow us segment the market more meaningfully. Segmentation basically involves dividing consumers into groups such that members of a group (1) are as similar as possible to members of that same group but (2) differ as much as possible from members other segments. This enables us then to "treat" each segment differently—e.g., by: • Providing different products (e.g., some consumers like cola taste, while others prefer lime) • Offering different prices (some consumers will take the cheapest product available, while others will pay for desired features) • Distributing the products where they are likely to be bought by the targeted segment.

Culture
Culture is part of the external influences that impact the consumer. That is, culture represents influences that are imposed on the consumer by other individuals.
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• The definition of culture is "That complex whole which includes knowledge, belief, art, morals, custom, and any other capabilities and habits acquired by man person as a member of society." Culture has several important characteristics: (1) Culture is comprehensive. (2) Culture is learned rather than being something we are born with. (3) Culture is manifested within boundaries of acceptable behavior. (4) Conscious awareness of cultural standards is limited. (5) Cultures fall somewhere on a continuum between static and dynamic depending on how quickly they accept change. Different perspectives exist in different cultures on several issues; e.g.: • Monochronic cultures tend to value precise scheduling and doing one thing at a time; in polychronic cultures, in contrast, promptness is valued less, and multiple tasks may be performed simultaneously. (See text for more detail). • Space is perceived differently. Americans will feel crowded where people from more densely populated countries will be comfortable. • Symbols differ in meaning. For example, while white symbols purity in the U.S., it is a sy mbol of death in China. Colors that are considered masculine and feminine also differ by culture. • In terms of etiquette, some cultures have more rigid procedures than others. In some countries, for example, there are explicit standards as to how a gift should be presented. In some cultures, gifts should be presented in private to avoid embarrassing the recipient; in others, the gift should be made publicly to ensure that no perception of secret bribery could be made. The United States has undergone some changes in its predominant culture over the last several decades. Again, however, it should be kept in mind that there are great variations within the culture. For example, on the average, Americans have become less materialistic and have sought more leisure; on the other hand, the percentage of people working extremely long hours has also increased. The text discusses changes in values in more detail.

Demographics and Social Stratification
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Demographics are clearly tied to subculture and segmentation. Here, however, we shift our focus from analyzing specific subcultures to trying to understand the implications for an entire population of its makeup. Several issues are useful in the structure of a population. For example, in some rapidly growing countries, a large percentage of the population is concentrated among younger generations. In countries such as Korea, China, and Taiwan, this has helped stimulate economic growth, while in certain poorer countries, it puts pressures on society to accommodate an increasing number of people on a fixed amount of land. Other countries such as Japan and Germany, in contrast, experience problems with a "graying" society, where fewer non-retired people are around to support an increasing number of aging seniors. Because Germany actually hovers around negative population growth, the German government has issued large financial incentives, in the forms of subsidies, for women who have children. In the United States, population growth occurs both through births and immigration. Since the number of births is not growing, problems occur for firms that are dependent on population growth (e.g., Gerber, a manufacturer of baby food).

Family Decision Making
The Family Life Cycle . Individuals and families tend to go through a "life cycle." The simple life cycle goes from child/teenager ---> young single ---> young couple * ---> full nest ---> empty nest ---> widow(er). * For purposes of this discussion, a "couple" may either be married or merely involve living together. The breakup of a non-marital relationship involving cohabitation is similarly considered equivalent to a divorce. In real life, this situation is, of course, a bit more complicated. For example, many couples undergo divorce. Then we have the scenario: full nest ---> single parent

Family Decision Making : Individual members of families often serve
different roles in decisions that ultimately draw on shared family
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resources. Some individuals are information gatherers/holders, who seek out information about products of relevance. The decision maker(s) have the power to determine issues such as: ○ whether to buy; ○ which product to buy (pick-up or passenger car?); ○ which brand to buy; ○ where to buy it; and ○ when to buy.

Group Influences
Humans are inherently social animals, and individuals greatly influence each other. A useful framework of analysis of group influence on the individual is the so called reference group—the term comes about because an individual uses a relevant group as a standard of reference against which oneself is compared. Reference groups come in several different forms. The aspirational reference group refers to those others against whom one would like to compare oneself. For example, many firms use athletes as spokespeople, and these represent what many people would ideally like to be. Associative reference groups include people who more realistically represent the individuals’ current equals or near-equals—e.g., coworkers, neighbors, or members of churches, clubs, and organizations. Finally, the dissociative reference group includes people that the individual would not like to be like. For example, the store literally named The Gap came about because many younger people wanted to actively dissociate from parents and other older and "uncool" people. The Quality Paperback Book specifically suggests in its advertising that its members are "a breed apart" from conventional readers of popular books.

Diffusion of Innovation
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The diffusion of innovation refers to the tendency of new products, practices, or ideas to spread among people. Usually, when new products or ideas come about, they are only adopted by a small group of people initially; later, many innovations spread to other people. The bell shaped curve frequently illustrates the rate of adoption of a new product. Cumulative adoptions are reflected by the S-shaped curve. The saturation point is the maximum proportion of consumers likely to adopt a product. In the case of refrigerators in the U.S., the saturation level is nearly one hundred percent of households; it well below that for video games that, even when spread out to a large part of the population, will be of interest to far from everyone. Some cultures tend to adopt new products more quickly than others, based on several factors: ○ Modernity: The extent to which the culture is receptive to new things. In some countries, such as Britain and Saudi Arabia, tradition is greatly valued—thus, new products often don’t fare too well. The United States, in contrast, tends to value progress. ○ Homophily: The more similar to each other that members of a culture are, the more likely an innovation is to spread—people are more likely to imitate similar than different models. The two most rapidly adopting countries in the World are the U.S. and Japan. While the U.S. interestingly scores very low, Japan scores high. ○ Physical distance: The greater the distance between people, the
less likely innovation is to spread.
○ Opinion leadership: The more opinion leaders are valued and

respected, the more likely an opinion leaders moderates innovative countries, opinion i.e., to reflect the local norms

innovation is to spread. The style of this influence, however. In less leaders tend to be more conservative, of resistance.

Perception
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Background . Our perception is an approximation of reality. Our brain
attempts to make sense out of the stimuli to which we are exposed. This works well, for example, when we "see" a friend three hundred feet away at his or her correct height; however, our perception is sometimes "off"—for example, certain shapes of ice cream containers look like they contain more than rectangular ones with the same volume.

Factors in percpetion. Several sequential factors influence our perception.

Exposure involves the extent to which we encounter a stimulus. Fo r example, we are exposed to numerous commercial messages while driving on the freeway: bill boards, radio advertisements, bumper-stickers on cars, and signs and banners placed at shopping malls that we pass. Most of this exposure is random—we don’t plan to seek it out. However, if we are shopping for a car, we may deliberately seek out advertisements and "tune in" when dealer advertisements come on the radio.

Learning and Memory
Background. Learning involves "a change in the content or organization of
long term memory and/or behavior." The first part of the definition focuses on what we know (and can thus put to use) while the second focuses on concrete behavior. Fo r example, many people will avoid foods that they consumed shortly before becoming ill. Learning is not all knowledge based. For example, we may experience the sales people in one store being nicer to us than those in the other. We thus may develop a preference for the one store over the other; however, if pressed, we may not be able to give a conscious explanation as to the reason for our preference.

Motivation, Personality, and Emotion
Perspectives on Consumer Behavior and Motivation . We considered
several perspectives on behavior as a way to understand what motivates the consumer. Each of these perspectives suggests different things as to what the marketer should do and what can (and cannot) be controlled. Note that each perspective tends to contain a "grain" oftruth and that one should not be too dogmatic in emphasizing one over the others.

Maslow’s Hierarchy of Needs .

The late Abraham Maslow suggested the intuitively appealing notion that humans must satisfy the most basic
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objectives before they can move onto "higher level" ones. Thus, an individual must satisfy physiological needs (such as food and liquid) before he or she will be able to expend energy on less fundamental objectives such as safety. Only when basic objectives have been met will a person move on to seek such objectives as love and belonging, and only a small minority of people make it as far as seeking self-actualization. Maslow’s Hierarchy is useful in understanding different needs of consumers across the World. However, one must be careful not to take it too literally, since people may occasionally "swing" between needs. For example, a homeless person who currently does not have shelter may seek that out even though he or she is hungry. Properties of motivation. Motivation is described through several properties:

Motivation is composed of energy and direction. A person may or may
not have enough motivation to engage in a given activity. For example, a person may be motivated enough to go and shop fo r food, but not enough to engage in a comprehensive exercise program.

Motives may be overt, hidden, and multiple. Some motivations are
publicly expressed (e.g., the desire to buy an energy efficient house), while others (e.g., the desire to look wealthy by buy ing a fancy car) are not. Individuals may also hold multiple motivations (e.g., buy a car and save money for retirement) which may conflict.

• •

Many motivations are driven by the desire for tension reduction
(e.g., eliminate thirst or hunger).

Motivations can be driven by both internal and external factors.
That is, a person may want a painting either because he or she likes it (internal motivation) or because this will give her status among the artistic elite (external).

Motivations may have either a positive or negative valence -- people
may either be motivated to achieve something (e.g., get a promotion at work) or avoid something (e.g., being hospitalized without having adequate insurance).

Consumers are motivated to achieve goals. Achieving these goals may
require sustained activity over time (e.g., exercising every day for months or years) as opposed to just taking some action once.

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Consumers maintain a balance between the desires for stability and variety. Most consumers want some variety (e.g., they do not want to eat

the same meal every day ), but also want a certain stability (they do not want to try an entirely new food every day ).

Motivation reflects individual differences. Different consumers are
motivated to achieve different things, and it may be difficult to infer motivations from looking at actual behavior without understanding these differences in desired outcomes.

Self-Concept, Situational Influences, and Lifestyle
The self-concept . The consumer faces several possible selves. The actual
self reflects how the individual actually is, although the consumer may not be aware of that reality (e.g., many anorexic consumers who are dangerously thin believe that they are in fact fat). In contrast, the ideal self reflects a self that a person would like to have, but does not in fact have. For example, a couch potato may want to be a World famous athlete, but may have no actual athletic ability. The private self is one that is not intentionally exposed to others. For example, a police officer may like and listen to rap music in private, but project a public self-image of a country music enthusiast, playing country songs at work where police officers are portrayed as heroes. The key here is to keep in mind which kind of self we are try ing to reach in promotional messages. If we appeal to the hidden self, for example, we must be careful to make our appeals subtle and hint, if appropriate, on how the individual’s confidentiality and privacy can be enhanced. Individuals will often seek to augment and enhance their self concepts, and it may be possible to market products that help achieve this goal. For example, a successful attorney may want to wear (in politically correct terms) cowchild boots and a cowchild hat to bring home an image as a ranch enthusiast.

Lifestyles. Self-concept often translates into a person’s lifesty le, or the way

that he or she lives his or her life. For example, a person may be very materialistic, preferring to wear flashy clothes and drive expensive cars, or prefer instead a simpler life with fewer visible status symbols. Attempts have been made to classify consumers into various segments based on their lifestyles. The Values and Lifesty le (VA LS) Project, developed by the Stanford Research Institute (SRI), attempts to classify people based on a combination of values and resources. Thus, for example, both "Achievers" and "Strivers" want
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public recognition, but only the Achievers have the resources to bring this about. A global analogue is the Global Scan.

Situational influences . Specific circumstances often influence consumer
behavior. For example, consumers in a rush are likely to take the most convenient product available. Consumers whose attention is demanded elsewhere are likely to disregard commercial messages. Consumers shopping for a special occasion (e.g., a wedding) may buy different products.

Consumer Decision Making
Definitions . Consumer decision making comes about as an attempt to solve consumer problems. A problem refers to "a discrepancy between a desired state and an ideal state which is sufficient to arouse and activate a decision process." Thus, problems can be major (e.g., a consumer has been fired and is without a job) or minor (e.g., the consumer lacks an eraser necessary to take an exam the next day), and the broader and more ambiguous a problem is, the more potential solutions are generally available (see class slides for examples). Consu mer Problem Recognition. Consumers often note problems by comparing their current, or actual, situation, explicitly or implicitly, to some desired situation. In terms of the "big picture," what is compared may be the totality of one’s lifestyle. Once a discrepancy is found, a determination is found as to whether this is large enough to warrant action, in which case a search for solutions is initiated. Problems come in several different types. A problem may be an active one (e.g., you have a headache and would like as quick a solution as possible) or inactive-- you are not aware that your situation is a problem (e.g., a consumer is not aware that he or she could have more energy with a new vitamin). Problems may be acknowledged (e.g., a consumer is aware that his or her car does not accelerate well enough or unacknowledged (e.g., a consumer will not acknowledge that he or she consumes too much alcohol). Finally, needs can be relatively specific (generic), as in the need for
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enjoyment (which can be satisfied many different ways), or specific, as in the need for professional attire to wear at a new job. Several different methods can be used to detect consumer problems, which are discussed on pp. 508-509 in the text. Creating problems for consumers is a way to increase sales, albeit a questionably ethical one. One way to create new problems, and resultant needs, is to create a new ideal state. This is often done quite arbitrarily in the fashion industry, as skirt lengths and the appropriate number of buttons on a suit often change arbitrarily up and down. It may also be possible to create dissatisfaction with current states--e.g., a firm may publicize current crime statistics to increase the sales of handguns and alarms. Many vocational training schools advertise that better careers than the consumer ’s current one are available upon graduation (a promise on which, by the way, they may not deliver in the end). There are two main approaches to search. Internal searches are based on what consumers already know. Thus, it may be important for certain firms to advertise to consumers before they actually need the product. For example, one bail bond company advertised its existence to people "in case you ever find yourself in jail." As another example, if you decide to go out for fast food, you may not consult any directories, but instead search your memory for fast food restaurants conveniently located. A problem is that some excellent ones which are not remembered, or have never been heard of, are not considered. External searches get people to either speak to others (getting information by word of mouth) or use other sources (such as advertisements now sought out or yellow page listings). Because the yellow pages are often the first place to which people turn, this medium is able to charge very large advertising rates. Consumers often do not consider all alternatives. Some are not known (the "unawareness" set), some were once known but are not readily accessible in memory (the "inert" set), others are ruled out as unsatisfactory (the "inept" set--e.g., Glad bags attempts to get "bargain bags" into that set), and those that are considered represent the "evoked" set, from which one alternative is likely to be purchased. The amount of effort a consumer puts into searching depends on a number of factors such as the market (how many competitors are there, and how
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great are differences between brands expected to be?), product characteristics (how important is this product? How complex is the product? How obvious are indications of quality?), consumer characteristics (how interested is a consumer, generally, in analyzing product characteristics and making the best possible deal?), and situational characteristics (as previously discussed). Two interesting issues in decisions are variety seeking (where consumers seek to try new brands not because these brands are expected to be "better" in any way, but rather because the consumer wants a "change of pace," and "impulse" purchases. Impulse purchases are, generally speaking, unplanned, but represent a somewhat fuzzy group. For example, a shopper may plan to buy vegetables but only decide in the store to actually buy broccoli and corn. Alternatively, a person may buy an item which is currently on sale, or one that he or she remembers that is needed only once inside the store (remember the Wal-Mart article). Several different strategies for influencing consumer decision making are discussed in the text on pp. 537-541.

Consumer Outlet Selection
Retail evolution and consumer choice . For many products, consumers
frequently have numerous choices as to where they are going to actually obtain the product. Although we are used to thinking of buy ing automobiles only from dealerships, fo r example, it is today possible to buy them through brokers or fleet sales organizations that may both (1) offer a lower price and/or (2) provide the help of a neutral third party which does not have a vested interest in the sales of one make over the other. In general, the evolution of diversity in the retail scene has provided consumers with more choice. In the old day s, most consumers had access only to "general" stores for most products. Gradually, in urban environments, specialty and discount stores evolved. Today, a consumer may generally choose to buy most products either at a relatively high price, frequently with a significant amount of service, in a specialty store, or with lower service in a discount store. A special case of the discount store is the category killer--a store that tends to specialize in some limited area (e.g., electronics), lacking the breadth of a traditional discount store often undercutting the traditional discount store on price (which they are able to do because of the bargaining power that results
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from high buying volumes of a narrow assortment of merchandise from the same manufacturer).

"At home" shopping and electronic commerce . During the last
several decades, the incidence of "at home" shopping has increased. The growth of catalog sales can be traced to advances in computer technology and subsequent list availability (as we discussed in the section of direct marketing segmentation methods). A more recent development is Internet based marketing. Although sales are modest in this domain at the moment, it is too early to judge the total potential of this medium. Although many of the concerns that consumers hold about computer crime tend to be exaggerated and/or largely unwarranted, public fears are a major holdback. Another problem is the demographics of computer and Internet use--the majority of U.S. consumers, and certainly the great majority of residents of even highly industrialized countries, are not regular Internet users. Certain products specifically aimed at heavy Internet users (e.g., records, software) and products/services that require a high level of customization (e.g., airline tickets) may find good opportunities. An interesting problem with Internet commerce, which may well have spillover effects outside the realm of the Net, is the relative ease with which consumers may compare prices of different retailers, resulting in intense price competition. Note that recent legislation has limited taxation of Internet sales in the U.S., in a sense attempting to "jump start" this innovation.

Store positioning. Positioning of retail stores is essential. In general, stores

which excel on a significant dimension seem to perform better--for example, Nordstrom’s excels through its intense customer service, while Wal-Mart excels through its efficiency and low prices. (In a course on marketing strategy or retailing, you will probably discuss the issue of the importance of balanced markets--it is healthier if different firms have different strategies, so that everyone will not be competing intensely on the same variables). Stores which fall somewhere in between--e.g., Sears--tend to do less well since they get "stuck in the middle" and have to compete against both. Obviously, there is a limit to how strongly you can move toward one extreme. For example, if Nordstrom were to double its prices and even double its service, that position would be untenable, and certain extreme discount stores that offer lower prices than Wal-Mart tend not to be successful because they are ultimately not satisfactory to consumers.

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Consumer behaviour and retailing decisions
Does consumers' selection of retail outlets depend on the brands available or is it the retail outlet first and the brand next? Marketers need to do in-depth research on the various aspects that link brand and retail strategy.

DECISION-MAKING with regard to retail outlet selection is very similar to consumer decision-making on brands where the consumer goes through a process starting from identify ing needs to post-purchase issues. There are a few interesting and important dimensions associated with consumer behaviour and retail outlet selection. Does the retail outlet have psychological implications on the target segment? When Titan and Timex watches were retailed through exclusive shops, consumers wanting lower-end watches probably felt that a ty pical Titan showroom was too elitist, which could have had a negative impact. Does selection of outlets vary in accordance with ty pes of product categories? While buy ing a TV or a washing machine, would consumers visit an exclusive showroom of BPL, Onida or Sony, or would they visit a multi-brand outlet?

Would there be differences in the psychographic (and demographic) profiles of consumers choosing outlets? What is the sequence in which consumers are likely to go about their decisions? Will they select the brand or the category first before choosing the outlet?
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What is the impact of the image developed by a retail outlet? Is FoodWorld different from a neighbourhood grocery shop in the minds of consumers? What kind of perception are consumers likely to have with regard to shopping from an online outlet such as Fabmart vis-à-vis a brick-and-mortar outlet like Fountainhead or Landmark? Would consumers be interested in store or retail brands? Traditionally, retailers have been carry ing manufacturers' brands. But in recent times (at least to a significant extent in the foods category ), supermarkets such as FoodWorld have started carry ing retail or store brands. Nilgiri's is another example in the South which carries its own brands of chocolates, biscuits and other commodities. What contributes to retail equity or retail image or retail loy alty? How do retail outlets handle perceived risks? Marketers need in-depth knowledge about the various dimensions which link retailing and consumer behaviour. There is research required to handle retail decisions in a competitive context. McDonald's found that a major chunk of its consumers decide to eat a few minutes before they make the purchase decisions and hence it is building small outlets in large supermarkets such as Wal-Mart and Home Depot. It is providing play areas to ensure a number of families visit its outlets with children. A few companies also operate through kiosks in airports, malls and high-traffic areas. Sunglass Hut is a brand which operates kiosks at various places which displays about 1,000 different models along with their prices. Consumers could place an order through these kiosks and the product is home-delivered.

Retail outlet selection and brand selection

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There are three fundamental patterns, which a consumer can follow and they could be: (I) Brand first, retail outlet second (ii) Retail outlet first, brand second (iii) Brand and retail outlet simultaneously. A consumer wanting to buy a car may collect information on brands and purchase it fro m a retail outlet based on his perception of price offered or afte rsales service provided by the outlet (ty pically, search for information on brands is followed by retail outlet selection in durables). In certain product categories, especially where `category killers' exist, consumers may think of the retail outlet initially and then the brands (television, refrigerator and audio products retailed through outlets like Vivek and Co. in the South, could be an example). One more dimension may be to compare brands in the evoked set at retail outlets which also exist in an evoked set of their own. This is highly possible, especially in the Indian context where dealers develop a social relationship with consumers, especially in semi-urban and rural areas. Primary research could be used to discover the specific sequence involved in a situation of this kind. A `brand first' dimension may need feature-based advertising and a `retail outlet first' dimension may require a set of point-of-purchase (POP) materials and special training to sales personnel to recognise the needs of consumers.
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Further, if it is known that a number of consumers may be oriented to visit their favourite retailer (before obtaining info rmation on brands) in a geographical area, there would have to be more emphasis on regional/local advertising which highlights the retail shop rather than regular brand-based national advertising. Strategies and sequences Retail outlet first and brand second: When a number of consumers follow this sequence of decision-making, display of point-of-purchase material and building the image of the outlet becomes important. The manufacturer of the brand may have to ensure that the brand (and the variants demanded) will be available at the key outlets in a locality. Point-of-purchase materials which are to be used at the retail outlet may require primary research - should visuals be used, should product features be used, should the POP material be in the regional language. There may also be a need to monitor competition from other retail outlets to ensure that consumers are kept satisfied in terms of service, price, promotional deals and ambience. This is especially applicable to durables retailing in India (in cities). Retailers attempt to increase consumer traffic by providing a number of `add-ons'. Brand first and outlet second: The brand was probably thought of by the consumers because (i) the consumers may not have developed a relationship with any retailer which is strong enough to get into the `evoked retail set' or (ii) the brand has got into the evoked set because of advertising or positive word of mouth. Local advertising with the mention of brand names which have already got into the evoked set would enable consumers to be `pulled' to the outlet. Primary research may be required to identify the brands in the evoked set. This feedback may have to be provided by the manufacturers of a brand to retailers in various regions (especially if it is a brand with a major chunk of the market and one which is nationally advertised). Even multinational outlets could make use of this approach and mention the brands in the evoked set (in a given geographical area). This is likely to improve traffic to the outlet. Besides, the evoked set could also change from time to time depending on the strategies of brands. About two decades ago, brands like Solidaire, Dy anora and Crown may have been top-of-the-mind (in a specific geographical area) but slowly gave way to other brands - these changes should be captured (how often this happens, why, and the differences between markets) to formulate retail strategies. The local advertising could be different from the national advertising for the brand. A brand may be advertised on features nationally but the retail outlet in may
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prefer to highlight the effective afte r-sales service associated with the brand as this may be a priority of consumers. The combination of `push-pull' strategy is shown in the table. The interest generated in the brand would have to be backed by good pre-sale services at the outlet. Brand and retail outlet simultaneously : When consumers think of the brand and retail outlet together, it means that they have a certain preference for the outlet and would like to check the evoked set of brands there. The marketer would have to carry out primary research to find out specific markets where consumers have a very positive relationship with retailers. This is important because of the influence of retailers over the purchase behaviour of consumers in the Indian context. It may also be worthwhile to check if the evoked brands are carried by the retailers who have a positive relationship with the target segments. This is to ensure that the retailers who have a favourable perception among the target segment carry the desired brands. Failing this, consumers may turn to a different retailer, which would be to the disadvantage of a retailer who has already won the confidence of consumers. Retail sales personnel also become important in this situation. The prospective consumers are "carried over" to the purchase stage by the store personnel and hence there should be incentive programmes for the store personnel. If a company such as BPL or Videocon is dealing with a number of brands/subbrands, it has to ensure the availability of specific brands which may interest the consumers. If the retail outlet is a large one dealing with a number of brands (like Vivek), a shop-in-shop arrangement may be preferable. This model puts the brand in focus and reinforces the positive association a consumer may have about it. A considerable amount of pre-sale service would have to back up the shop-in-shop concept. The shop-in-shop concept creates an aura of exclusivity. Consumers tend to have higher expectations about the pre-sale service and the attention given to them. A large store also is likely to stock several brands and hence all brands in the evoked set would have to compete with each other to progress from the evoked set to choice set. Large outlets may also have a built-in provision for a lower price (because of volumes) and hence may be in a better position to
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clinch the deal with consumers who may simultaneously consider both the brand and the retail outlet.

THE STRIKING NEW FACE OF LUCKNOW Who says great retail is only for the metros? Check out Lucknow where residents are shopping like never before.This city in Utterpradesh has the state's largest shopping mall. It also holds the distinction of being one of India's cleanest cities. It is Utterpradesh’ capital with a population nudging 30 lakh as of 2001. This is LUCKNOW, which is now experiencing a retail revolution of sorts.Lucknow believes the general feeling that the retail revolution as we know occurs only in the metros. A walk along the main Hagaratganj, Aminabad, Gomtinagar Lines areas is like walking through a large shopping mall. Here, you'll find every brand, all kinds of products in every shape, shade and size and all types of food! You'll also find four of Lucknow's supermarkets here. All these are changing the way Lucknow shops. Two of the largest supermarkets in LUCKNOW are Saharaganj location Hagaratganj run by the Sahara group and wave location in gomti nagar,Fun Republic Family Entertainment

Centre,Location: Near Eldeco Greens, Gomti Nagar.Total area: 18,000 sq mtrs/ 4.5 hectares of prime land.Project deadline: March 2006. With a total of 74 shops, this is part of the Zee Groups master plan of 25 all-India malls. Touted as Lucknow’s biggest mall, not just in terms of size but owing to the names it is planning to bring
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into the city, the project is reportedly 95 per cent sold-out. Ladhani’s Taj Multiplex,Location: Near Hoteltaj Residency, Gomti Nagar.Total area: 20,000 sq ft.Project deadline: March 2006. Fortuna’s City Malllocation: Near Cms Gomti Nagar.Total Area: 70,000 Sq Ft.Project deadline: By 2007. Singapore mall,gomti nagar( work in progress) . Both offer valuable lessons in how organised retail in smaller towns can succeed. Despite dramatic changes in the retail scene, Lucknow’s retailers feel the need for a shift in mindset, habits, more modern restaurants and theatres to drive lifestyle changes. And this is already happening. Here we profile three leading retailers from Lucknow. Barista, the fast-growing espresso chain. At present two mall heart of Lucknow Saharaganj or Wave I analysis to Luck now people perception of retail store (survey only retail channel in Sahara gang, wave). The survey was constituted in visiting of Sahara gang and wave Customers were interviewed by means of carefully prepared questionnaire to study and understand customer’s psychology in depth.

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Sele cti on of the Topic

First of all our research topic was selected. The topic being “A DETAIL STUDY OF
CONSUMER BEHAVIOUR IN LIFESTYLE INTERNATIONAL Pvt. Ltd. MAX RETAIL DIVISION AT LUCKNOW”

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Ob jec tiv e o f resear ch

➢ To know the perception of customers towards the purchasing. ➢ To know the buying behavior of customers in retail store. ➢ To know the strategy of retail store for attracting customers ➢ To know the satisfaction level of customers.

Extens iv e liter atur e Sur vey
The yearly Journals and manuals & project reports provide by our institute were studied. Lots of valuable information regarding real estate industry was collected through Internet and necessary information regarding company through website of the organization.
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Samp lin g Des ign
⇒ Sampling unit ⇒ Size of sample ⇒ Sample Method ⇒ Types of questionnaire Respondents of Fun Mall 100 respondents Random Sampling Close ended

Type o f Data
Data type collected for analysis is PRIMARY i.e. data has been observed and recorded by the researchers for the first time to their knowledge. Data collected through journals, newspapers & internet is SECONDARY type.

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Me thod of da ta col lect ion

This study is a research which utilizes interrogation and observation method for data collection. Secondary data was obtained from intensive analysis & observation. The primary data are those, which are collected afresh and for the first time, and thus happen to be original in character. The secondary data, on the other hand, are those which have already been collected by some one else and which have already been passed through the statistical process. Method employed to collect data is Questionnaire. This is a simple survey conducted by filling in questionnaire from the people who visit malls.

Co llec tion of the Pr imar y da ta

As this study is of descriptive type, the primary data has been collected through Questionnaire.

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Ob ser vation method

Under the Observation method, the information is sought by way of direct observation without asking from the respondent. The main advantage of this method is that subjective bias is eliminated, if observation is done accurately.

Anal ys is of Da ta

Data collected through questionnaire is being processed .This processed data is represented by means of suitable graphs & diagrams.

➢ WHICH TYPE OF PLACE DO YOU VISIT FREQUENTLY FOR YOUR SHOPPING NEEDS ?:

a) b) c)

SHOPPING MALL UPSTREET MARKET LOCAL MARKET

[ 80 RESPONDENTS] [ 8 RESPONDENTS] [ 12 RESPONDENTS]

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➢ On the basis of above respondents the graph shows that maximum respondents i.e. 80 out of 100 are agree that they frequently visit shopping mall for their shopping needs. It means maximum no of customer are preferred Shopping Malls for purchasing.

➢ YOU PREFER TO GO IN STORE WITH:
a. FAMILY [52 RESPONDENTS]

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b. SPOUSE c. FRIENDS d. OTHERS

[12 RESPONDENTS] [ 36 RESPONDENTS] [ 0 RESPONDENTS]

➢ On the basis of above respondents the graph shows that maximum respondents i.e. 52 out of 100 are preferred to go in store with their family. It means maximum no of customers are family conscious for visiting retail store.

➢ FROM WHERE WOULD YOU PREFER TO BUY PRODUCTS:
a) SINGLE BRANDED STORE b) MULTI BRANDED STORE c) FACTORY OUTLET d) LOCAL BIG RETAIL OUTLET [ 24 RESPONDENTS ] [ 60 RESPONDENTS ] [ 4 RESPONDENTS ] [ 12 RESPONDENTS ]

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➢ On the basis of above respondents the graph shows that maximum respondents i.e. 60 out of 100 are preferred multi branded store for shopping. It means maximum no of customers are time conscious and desire for many brand under one roof.

➢ HOW OFTEN DO YOU ASK FOR ASSISTENCE FROM STORE STAFF IN SELECTING YOUR PURCHASE?
a) ALMOST ALWAYS b) FREQUENTLY c) SOMETIMES d) NEVER [ 12 RESPONDENTS ] [ 16 RESPONDENTS ] [ 60 RESPONDENTS] [ 12 RESPONDENTS ]

➢ On the basis of above respondents the graph shows that maximum respondents i.e. 60 out of 100 wanted sometime assistance from store staffs. It means maximum no of customers do not compromise with their choice.

➢ WHAT DO YOU LOOK FOR IN A PRODUCT DURING YOUR PURCHASE:
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a) FASHION b) COMFORT c) PRICE d) COLOURS AVAILABLE

[ 12 RESPONDENTS ] [ 16 RESPONDENTS ] [ 60 RESPONDENTS ] [ 12 RESPONDENTS ]

➢ On the basis of above respondents the graph shows that maximum respondents i.e. 60 out of 100 preferred price during their purchasing. It means maximum no of customers are price conscious so maximum customers belongs to middle class.

➢ WHEN DO YOU PREFER TO SHOP MOST IN STORE:
a) DURING SALE b) DURING FRESH SEASON STOCK c) DURING DISCOUNT d) WHEN REQUIRED [ 18RESPONDENTS ] [ 54RESPONDENTS] [ 24 RESPONDENTS ] [ 4 RESPONDENTS]

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➢ On the basis of above respondents the graph shows that maximum respondents i.e. 60 out of 100 are prefer shopping during fresh season stock. It means maximum no of customers did not compromise quality with discount and offers.

A) RANGE 1st OPTION 2nd OPTION 3rd OPTION 4th OPTION 5th OPTION 30 22 20 16 12

B) PRICE 20 32 18 17 13

C) SIZE 30 25 15 19 11

D) FASHION 8 10 14 32 36

E) BRAND 10 13 33 16 28

➢ WHAT INFLUENCES YOUR BUYING SELECTIONS:

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➢ On the basis of above respondents the graph shows that maximum respondents are attracted towards the Store due to this rankingFASHION BRAND PRICE RANGE, SIZE

It means maximum no of customers are prefer to the Malls for FASHION

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➢ HOW FREQUENTLY YOU VISIT THE STORE:

a) <1 MONTH b) 1-3 MONTH c) 1-6 MONTH d) 1 YEAR

[ 60 RESPONDENTS ] [ 28 RESPONDENTS ] [ 4 RESPONDENTS ] [ 8 RESPONDENTS ]

➢ On the basis of above respondents the graph shows that maximum respondents i.e. 60 out of 100 are visited the store with in one month. It means maximum no of customers are visiting the store monthly.

➢ WHAT IS AVERAGE MONEY YOU SPEND ON SHOPING?
a) <=999 b) 1000-1999 c) 2000-2999 d) >3000 [ 20 RESPONDENTS ] [ 52 RESPONDENTS ] [16 RESPONDENTS ] [ 12 RESPONDENTS ]

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➢ On the basis of above respondents the graph shows that maximum respondents i.e. 52 out of 100 are spend Rs 1000-1999 on shopping. It means maximum no of customers prefer middle class shopping.
➢ :HOW DO YOU RATE THE PRICING OF PRODUCT AT MAX? a) EXPENSIVE b) COMPETITIVE c) AFFORDABLE d) REASONABLE [ 10 RESPONDENTS ] [ 16 RESPONDENTS ] [ 34 RESPONDENTS ] [ 40 RESPONDENTS ]

➢ On the basis of above respondents the graph shows that maximum respondents i.e. 40 out of 10 are agree that price of products are reasonable. It means maximum no of customers are agree that price of products are equal to the other market rate.

➢ HOW DID YOU COME TO KNOW ABOUT MAX?
a) NEWSPAPER [ 12 RESPONDENTS]

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b) RADIO ADVERTISEMENT c) LEAFLET d) SMS e) WORLD OF MOUTH f) OTHERS

[ 12 RESPONDENTS] [ 20 RESPONDENTS] [ 6 RESPONDENTS] [ 46 RESPONDENTS] [ 4 RESPONDENTS]

➢ On the basis of above respondents the graph shows that maximum respondents i.e. 46 out of 100 are know about max store by reference group. It means maximum no of customers are know about the max store by other people reference.

➢ WHAT MORE FACILITY WOULD YOU LIKE TO GET AT MAX?
a) MEMBERSHIP CARD b) DISCOUNT MAILERS c) FREE PARKING OFFERS d) LUCKY DRAW OFFER [ 16 RESPONDENTS] [ 32 RESPONDENTS] [ 24 RESPONDENTS] [ 28 RESPONDENTS]

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➢ On the basis of above respondents the graph shows that maximum respondents i.e. 32 out of 100 want discount mailers facility. It means maximum no of customers want every information at their door step.

➢ WHICH CATEGORY OF PRODUCT DO YOU BUY MOST AT MAX?
a) MEN’S WEAR b) WOMEN’S WEAR c) ETHNIC WEAR d) KIDS WEAR e) FOOTWEAR f) ACCESSORIES [ 12 RESPONDENTS ] [ 36 RESPONDENTS ] [ 20 RESPONDENTS ] [ 12 RESPONDENTS ] [ 4 RESPONDENTS ] [16 RESPONDENTS]

➢ On the basis of above respondents the graph shows that maximum respondents i.e. 36 out of 100 are purchasing maximum from women’s wear. Customers prefer shopping according toWOMEN’S WEAR FOOTWEAR ETHENIC MEN’S, KID’S WEAR

ACCESSORIES

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➢ WHEN YOU THINK OF SHOPPING WHICH STORE COMES IN
YOUR MIND FIRSTA)PANTALOONS B) GLOBUS C) MAX D) WESTSIDE [ 16 RESPONDENTS ] [ 30 RESPONDENTS ] [ 44 RESPONDENTS ] [ 10 RESPONDENTS ]

➢ On the basis of above respondents the graph shows that maximum respondents i.e. 44 out of 100 prefer MAX for shopping. It means max retail targeting to the middle class customers.

➢ AGE WISE DISTRIBUTION
A) <20 B) 20-29 C) 30-39 D) >40 [ 12 RESPONDENTS ] [ 45 RESPONDENTS ] [25 RESPONDENTS ] [18 RESPONDENTS]

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➢ On the basis of above respondents the graph shows that maximum respondents i.e. 45 out of 100 are young age people. It means maximum no of customers belongs to young age group.

➢ GENDER WISE DISTRIBUTION
E) MALE F) FEMALE [ 58 RESPONDENTS ] [ 42 RESPONDENTS ]

➢ On the basis of above respondents the graph shows that maximum respondents i.e. 58 out of 100 are males. It means maximum no of customers are male in malls due to family responsibility.

➢ NO. OF FAMILY MEMBER WISE DISTRIBUTION
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A) <=2 B) 3-4 C) >4

[ 08 RESPONDENTS ] [ 54 RESPONDENTS ] [ 38 RESPONDENTS ]

➢ On the basis of above respondents the graph shows that maximum respondents i.e. 54 out of 100 having 3-4 members in their family. It means maximum no of customers having nucleur family.

➢ EDUCATION WISE DISTRIBUTION
A) HIGH SCHOOL B) LESS THAN GRADUATION B) GRADUATION C) POST GRADUATION D) PROFESIONAL QUALIFICATION [ 08 RESPONDENTS] [ 12 RESPONDENTS ] [ 32 RESPONDENTS ] [ 32 RESPONDENTS ] [ 16 RESPONDENTS ]

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➢ On the basis of above respondents the graph shows that maximum respondents i.e. 32 out of 100 are graduates and 32 out of 100 are post graduate. It means maximum no of customers are educated and aware about retail store.

➢ OCCUPATION WISE DISTRIBUTION
A) STUDENT B) GOV. SERVICE C) PVT. EMPLOYEE D) SELF EMPLOYEE E) HOUSE WIFE [ 33 RESPONDENTS ] [ 8 RESPONDENTS ] [ 40 RESPONDENTS ] [ 12 RESPONDENTS ] [ 07 RESPONDENTS]

➢ On the basis of above respondents the graph shows that maximum respondents i.e. 40 out of 100 are Pvt. Employee. It means maximum no of customers are self dependent.

➢ INCOME WISE DISTRIBUTION
A)LESS THAN Rs 20,000 B) BETWEEN Rs 30,000 TO 40,000 C)BETWEEN Rs 40,001 TO 50,000 [ 28 RESPONDENTS ] [ 48 RESPONDENTS ] [ 20 RESPONDENTS ]

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D)MORE THAN Rs 50,000

[ 12 RESPONDENTS ]

➢ On the basis of above respondents the graph shows that maximum respondents i.e. 48 out of 100 are having monthly income between Rs 30,000 to 40,000. It means maximum no of customers are belonging to upper middle class.

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1. Maximum no of middle class customers come to max for shopping. 2. Max retail targeting to the middle class customers. 3. Maximum no of customers belongs to young age group. 4. Maximum no of customers are male in malls due to family responsibility. 5. It means maximum no of customers having nucleur family. 6. Maximum no of customers are educated and aware about retail store. 7. Maximum no of customers are self dependent. 8. Maximum no of customers are belonging to upper middle class. 9. Maximum no of customer are preferred Shopping Malls for purchasing. 10.Maximum no of customers are family conscious for visiting retail store. 11.Maximum no of customers are time conscious and desire for many brand under one roof. 12.Maximum no of customers do not compromise with their choice.

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13.Maximum no of customers are price conscious so maximum customers belongs to middle class. 14.Maximum no of customers did not compromise quality with discount and offers. 15.Maximum respondents are attracted towards the Store due to this rankingFASHION BRAND PRICE RANGE, SIZE

16.Maximum no of customers are visiting the store monthly. 17.Maximum no of customers prefer middle class shopping. 18.Maximum no of customers are agree that price of products are equal to the other market rate. 19.Maximum no of customers are know about the max store by 20.Most of the customers know about the MAX retail through other people reference.

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LIM ITATI ONS

Every report has its pros and cons so mine also have some limitations. They can be pointed as:

1) Conclusions are for Lucknow City only. 2) Use of secondary data for analysis. 3) Only Zee Mall was present for collection of data so it was tough to collect more respondent.
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4) Respondents were not keen to give the answers of questionnaire.

CONCLUSION
The past 4-5 years have seen increasing activity in retailing. And, various business houses have already planned for few investments in the coming 2-3 years. And though the retailers will have to face increasingly demanding customers, and intensely competitive rivals, more investments will keep flow in. And the share of organized sector will grow rapidly. retailing in India is surely poised for a takeoff and will provide many opportunities both to existing players as well as new entrants.. The country is witnessing a period of boom in retail trade,
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mainly on account of a gradual increase in the disposable incomes of the middle and upper-middle class households. More and more corporate houses including large real estate companies are coming into the retail business, directly or indirectly, in the form of mall and shopping center builders and managers. New formats like super markets and large discount and department stores have started influencing the traditional looks of bookstores, furnishing stores and chemist shops. The retail revolution, apart from bringing in sweeping, positive changes in the quality of life in the metros and bigger towns, is also bringing in slow changes in lifestyle in the smaller towns of India. Increase in literacy, exposure to media, greater availability and penetration of a variety of consumer goods into the interiors of the country, have all resulted in narrowing down the spending differences between the consumers of larger metros and those of smaller towns. Lastly I want to conclude my project in some points➢ The customers are attracting towards shopping malls & retail outlets. ➢ The shopping malls & retail outlets are targeting to middle class customers because the purchasing power of this class are rapidly growing as well as the class is also growing.

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➢ The young generation is fashion & show-off conscious so retail outlets are mainly focused on them. ➢ Most of the family wants to purchase from big showrooms and malls because there are no bargaining system so the have a trust that there is no cheating. ➢ The main strength of most of the retail outlets are providing attractive offers to attract customers. ➢ Big retail stores are running customer loyalty programmes which has increased profits and no. of customers.

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RECOMMENDATIONS
My recommendations on the basis of the are: ➢ Grant industry status to retail ➢ Retail stores should use an area that is easily approachable. ➢ Invest in supply chain infrastructure ➢ Ease distribution – infrastructure creation
➢ It should take steps to convert the footfall in the Retail Stores into sales by offering,

“Catchy & Intelligent schemes”. ➢ The attitude of sales force must be helping & communication in formal way. ➢ Proper signage’s should be used in retail store ➢ Exchange Policies of retail store should be properly communicated to customers during Sale. ➢ Men’s Accessories like Sunglasses and Bracelets can be add up in Accessories section.
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➢ To solve the problem of alteration on Sunday, Company can provide the home delivery of Altered merchandise. ➢ Sizes of the merchandising should be standard. ➢ Sizes of merchandising should be easily visible or one rack can be made for each size of different style.

Bibliog raphy
BOOKS:➢ Marketing Management.

----Kotler & Keller

➢ Marketing Management in Indian Perspective ----V. S. Ramaswamy & S. Namakumari
➢ Research methodology

---C.R. Kothari ---B. M. Aggarwal. ---Levy & Weitzs

➢ Quantitative Methods ➢ Retail management

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MAGZINES:➢ Business worlds ➢ Indian retail ➢ Economics of India ➢ India today

WEBSITES:➢ www.goggle.com ➢ www.tataretail.com ➢ www.retailindia.net ➢ www.retailyatra.com ➢ www.retailbiz.com ➢ www.aboutus.com ➢ www.businessworld.in ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

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GENERAL QUESTIONNAIR NAME:-………………… DATE:-……/……/2008 PLACE:-………………. 1) Which type of place do you visit frequently for your shopping needs? a) Shopping mall b) Upstreet market c) Local markets 2) You prefer to go in Store with – a) Family b) Spouse c) Friends d) Others 3) What influences your buying selections? a) Availability of range b) Reasonable price c) Availability of size d) Fashion appeal e) Customer service f) Brand name 4) From where would you prefer to buy products? a) Single brand store b) Multi brand store c) Factory outlets d) Local Big Retail Store 5) How often do you ask for assistance from store staff in selecting your purchase? a) Almost always b) Frequently c) Sometimes d) Never 6) What do you look for in a product during your purchase? a) Fashion b) Comfort c) Price d) Colors Available 7) When do you prefer to shop Most in Store? a) During Sale c) During Discount b) During Fresh season stock d) When required

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8) How frequently you visit the Store? a) <1 month b) 1-3 month c) 1-6 month d) 1 year 9) What is average money you spend on Shopping? a) <= 999/b) 1000-1999 c) 2000-2999 d) >3000 (If not customer of Max leave question 10-13). 10) How do you rate the pricing of product at Max? a) Expensive b) Competitive c) Affordable d) Reasonable 11) How did you come to know about Max? a) Newspaper c) Leaflet e) Word of Mouth

b) Radio advertisement d) SMS f) others specify………

12) What more facility would you like to get at Max? a) Membership Card b) Discount Mailers c) Free Parking offers d) Lucky draw offer 13) Which Category of Product do you buy most at Max ? a) Men’s wear b) Women’s wear c) Ethnic wear d) Kids wear e) Foot wear f) Accessories 14) When you think of Shopping which Store comes in your mind firsta) Pantaloons b) Globus c) MAX d) Westside 15) Any suggestion ………………………………………………………….. ………………………………………………………………………………... ………………………………………………………………………………... ………………………………………………………………………………... Age group Gender No of Family Members Qualificatio n <20 Male <=2 High School 20-24 Female 3-4 Diploma Or pregraduate 25-29 >4 Graduate Postgraduate Professiona l course 30-34 35-39 >40

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Occupation Location Household Income (per month)

Studen t Gomti nagar Less Than 20,000

Gov. Service Mahanag ar 30,00040,000

Pvt. Employe e Aliganj 40,00150,000

Self Employe d Hazratga nj More then 50,000

House wife Indiranaga r

Retired Niralan agar o the r

THANK YOU

ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

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