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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, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW
PGDM- I YEAR
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
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.
ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW
It is our responsibility to light the way and take care of them… before the competition does. and services ranging from hair cutting to air travel and computer education. Lifestyle. or household use.4 PREFACE The sea of change can pull customers in many directions. We also find retail malls mushrooming all over the ABHISHEK PANDEY. and McDonald’s led to rapid growth of organized retail and growing consolidation of the retail industry in the developed countries. Sears. 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. The retail sector in India is highly fragmented with organized retail contributing to only 2% of total retail sales. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 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. Organized retail is growing rapidly and we see the emergence of large organized retail chains like Shopper’s Stop. It covers sales of goods ranging from automobiles to apparel and food products. and Westside. LUCKNOW . Sales of goods to intermediaries who resell to retailers or sales to manufacturers are not considered a retail activity.
The opportunities in retail industry in India will increase since Indian retailing is on the threshold of a major change.5 country. LUCKNOW . The remarkable world of Retail ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. The study of retailing is very important to MBA students interested in employment opportunities with large retail chains.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW .6 ABHISHEK PANDEY.
7 Retailing including all activities involved in selling goods or services directly to the final consumers for personal. Consumers today can shop for goods & services in a wide variety of retail Org. whole seller.known type of retail is the ABHISHEK PANDEY. non business use Any organisation selling to final consumerswhether it is a manufacture. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. or retailer – is doing retailing. LUCKNOW Department . The best.
meters with fragmented keerana stores being the predominant players. in the last few years modern retail has also established its presence in the second rung cities. Thus. Modern retail formats have mushroomed in metros and mini-metros. The Indian retail story couldn't have been more different. to about 15-20 per cent over the next decade.2 trillion ➢ Every 10th billionaire in the world is a retailer. ABHISHEK PANDEY. Sample these facts: ➢ Retail is currently the biggest industry in the world with sales of $7. exposing the residents of these cities to shopping options. But the per capita square feet area under retail is just 2 sq. India has approx 12 million retail stores.8 Retail.ft or 0. Retailing in India has remained in the unorganized sector and largely untouched by corporate. according to Concise Oxford English Dictionary. It has been forecasted that the share of modern retail will increase from 2 per cent currently." World over. hypermarkets. the retail segment has performed exceptionally since its inception in the 20th century. LUCKNOW . is "the sale of goods to the public for use or consumption rather than for resale. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. more than rest of the world put together. ➢ 25 of the top 50 Fortune 500 companies are in retail. they have never experienced before. The first decade of modern retail in India has been characterized by a shift from traditional channels to new formats including department stores. supermarkets and specialty stores across a range of categories.2 sq.
With all the modern stores offering convenience in terms of an assortment of products. service and innovative products. one of the largest consuming base in the world. ➢ A high spending community below 45 years comprises 81 percent of the population. the paradigm shall shift from competing with the kirana stores to an in-house demand creation. Relevant experiences from consumer goods companies. through innovation. will be head runner. ➢ 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. 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.9 To begin with. Here are some factors that indicate the potential of retail in India: ➢ At 271 million. which have successfully crafted an explosion in demand in their sectors. ABHISHEK PANDEY. 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. Times are changing. consumer driven strategies. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. With the GDP at an all time high and income levels shooting through the roof. LUCKNOW . forming 27% of the total population.8 million in 1998. the average Indian consumer has never had it so good. ambience.
speed. hypermarkets. 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. However. This segment has been triggering the demand for consumer goods.and high-income segment notched up an impressive 105 per cent growth. ABHISHEK PANDEY. Retailers need to explore different channels of retailing to cater to customers' needs. modern retail has also established its presence in the second-rung cities. They are on the lookout for convenience. In the last few years. exposing residents to shopping options like never before.10 ➢ 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. there is a larger role they would be required to play in boosting consumption levels. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. The days of brick-and-mortar's limited potential are fading and retailers need to tap the immense opportunities that other channels offer. Increased awareness. efficiency and a wide range of products. LUCKNOW . During the last decade. supermarkets and specialty stores across a range of categories. even as modern retailers garner share from traditional channels. Modern retail formats have mushroomed in metros and minimetros. free access to information and choice in competing products and services are making customers redefine the retail business. India's middle.
The most popular shopping channels include the stores. retailers must seek new ways of capturing the hearts and minds of consumers. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. boosting sales and winning customer loyalty by connecting to the shopper in every possible way. The traditional levers of price. Multichannel retailing needs to be adopted: • • • • Grow market share Increase customer base Offer convenience Achieve cost reductions through economies of scale. they become the most valuable consumers within a retailer's customer base. and logistics • Improve customer analytics ABHISHEK PANDEY. selection and location — although still important — are no longer sufficient as bases for competitive differentiation. LUCKNOW . Retailers should be focused on improving the end-to-end shopping experience.11 Driven by increasingly intense competition in an increasingly global marketplace. Internet and catalogues and telemarkets (including mobile shopping). supply chain efficiencies. Multichannel retailing is all about giving the customer a choice of which shopping channel he or she wishes to purchase products through. For this. Retailers must provide a seamless multichannel experience for their customers.
goats. the retailer should not ignore the critical part: the customer. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.12 • • • Opennew revenue streams by cross-sell & sell ups Reduce cycle time between order and delivery Lower fulfillment cost & Improve demand planning However. LUCKNOW . and sheep are sold as well as bought. We have the Pushkar fair in Rajasthan which brings in a lot of revenue both from domestic buy ers and buyers from abroad. cows. going multichannel. 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. horses. Customers have become more sophisticated and expect a retailer to recognize them. The traditional ite ms here are handmade jewelry and other colorful memorabilia of Rajasthan. In the Pushkar fair live stock like camels. Traditional rural retail fairs in India deal in a good number of handcrafts ite ms which are mentioned below: ABHISHEK PANDEY. A range of exotic items are also available.
LUCKNOW . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. This fair is held at Haryana which is 8 kilometers from South Delhi. The fair has been held for the last 20 years. The focus every year is on a particular State for instance.13 • • • • • • • • • • • • 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. The ABHISHEK PANDEY. in 2006 it was Maharashtra. 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.
14 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. Infact the traditional stores have taken up 98 percent of the Indian retail market. The retail stores in India are essentially dominated by the unorganized sector or traditional stores. the fair is open to foreign traditiona l goods as well. Along with the county's rich cultural heritage being showcased. 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. LUCKNOW . Now stores run by families are primarily food based and the set up is as Kirana or the 'corner ABHISHEK PANDEY. traditiona l rural retail fairs are a never ending occupation and the key to it lies in the originality and attractiveness of the items. 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. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
If the stores are not food based then the ty pe of retail items available are local in nature. Basically they provide high service with low prices. The food products of traditional family run convenience stores are comprised of branded as well as non-branded items. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. would depend on the following particulars: • • • • • • Place and capacity Diligent area coverage Disciplined work schedule Managing turnover Revenue from assets Customer service and satisfaction ABHISHEK PANDEY. These stores are found in both residential as well as commercial markets. The traditional family run convenience stores can take pride in the fact that the Kirana is the most common outlet forms for the consumers. 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. 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 tough competition for convenience stores are coming from organized retail stores dealing in food items. LUCKNOW .15 grocer' stores. The future of such stores as they face competition from organized sector. A good example of such would be Convenio.
Retail industry in India is expected to rise 25% y early being driven by strong income growth. rising incomes. Shopping in India have witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. It is expected that by 2016 mo dern retail industry in India will be worth US$ 175. and sprawling complexes which offer food. huge shopping centers. changing lifesty les. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas. and favorable demographic patterns. 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.5 billion. it represents the variety of India Indian retail industry India retail industry is the largest industry in India.stored malls. The convenience factor in terms of items.16 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. shopping. Industry of retail in India which have become modern can be seen from the fact that there are multi. with an employ ment of around 8% and contribu ting to over 10% of the country's GDP.5 billion by 2010 from the current size of US$ 7. and entertainment all under the same roof. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.200 billion. 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. LUCKNOW . It has further been predicted that the retailing industry in India will amount to US$ 21. and a steep rise in rural consumption. ABHISHEK PANDEY.
changing lifesty les. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. and small grocery stores. Indian organized retail market Indian organized retail market is growing at a fast pace due to the boom in the India retail industry. Now the consumer wants to shop at a place where he can get food. Most of the organized retailing in India have started recently and is concentrating mainly in metropolitan cities. The organized retail market in India out of this total market accounted for Rs 350 billion which is about 3. Traditionally the retail industry in India was largely unorganized. the retail industry in India amounted to Rs 10.5% of the total revenues. In the Indian retailing industry.branded items. In 2005. medium. India may have 600 new shopping centers. 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. Since at present 60% of the Indian grocery basket consists of non. and patterns of demography which are favorable. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. It is expected that by 2010. The branded food industry is try ing to enter the India retail industry and convert Indian consumers to branded food. and shopping all under one roof. food is the most dominating sector and is growing at a rate of 9% annually. This change has come in the consumer due to increased income. LUCKNOW . ABHISHEK PANDEY.000 billion accounting for about 10% to the country 's GDP. This has given Indian organized retail market a major boost. entertainment. Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010.17 India retail industry is expanding itself most aggressively. comprising of drug stores. as a result a great demand for real estate is being created. The growth in the Indian organized retail market is mainly due to the change in the consumers behavior.
A number of global retail giants such as Walmart. One such company is the Reliance Industries Limited. and 300 new malls are being built. Thailand and more recently China. 325 departmental stores. Carrefour. It plans to invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500 supermarkets. U. Indian organized retail market is increasing and for this growth to continue the Indian retailers as well as government must make a combined effort. and Metro AG are also planning to set up shop in India. Pantaloons is another Indian company which plans to increase its retail space to 30 million square feet with an investment of US$ 1 billion.. Economies of countries like Singapore. 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 . ABHISHEK PANDEY.A. Sri Lanka and Dubai are also heavily assisted by the retail sector. Hong Kong. Mexico. Indian organized retail market will definitely grow as a result of all this investments. LUCKNOW .The impact can be best seen in countries like U. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Bharti Telecoms an Indian company is in talks with Tesco a global giant for a £ 750 million joint venture.S.18 Retail market in the organized sector in India is growing can be seen from the fact that 1500 supermarkets..K. Malaysia. Many Indian companies are entering the Indian retail market which is giving Indian organized retail market a boost.
19 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. Wal-Mart displaced oil giant Exxon Mobil as the world’s largest company when it posted $219 billion in sales for fiscal 2001. Already the world’s largest employer with over l million associates. $7 trillion sector. Forbes Annual List of Billionaires has the largest number (45/497) from the retail business. LUCKNOW . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. The retail industry employs more than 22 million Americans and generates more than $3 trillion in retail sale annually. Wal-Mart is the world’s largest retailer.S. Wal-Mart has become the most successful retail brand in the world due its ability to leverage size. and efficiency to create market dominance. market clout. Retailing is a U. Wal-Mart heads Fortune magazine list of top 500 companies in the world. ABHISHEK PANDEY.
Inc. France U.7 2002 180 3.2 Rank 1.20 GLOBAL RETAIL Total Retail (US$ Billion) Organized Retail (US$ Billion) % Share of Organized retail 1999 150 1.S.S.A. Germany (Source: STORES / Deloitte Touch Tomahastsu) ABHISHEK PANDEY. LUCKNOW . The Home Depot. Metro Home Country U. Carrefour Group The Kroger Co. 2. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Inc.3 1.S.8 2005 225 7 3. Retailer Wal-Mart Stores. 5.A. U. 4. 3.1 0.A.
channels is helping in creating awareness about global products for local markets. Sony. About 47% of India’s population is under the age of 20. • 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. ABHISHEK PANDEY. Reach of satellite LV. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW . this is expected to decline to 17 by 2006-07. This young population. etc. will immensely contribute to the growth of the retail sector in the country. to make significant inroads into the vast consumer market by offering a wide range of choices to the Indian consumers. Nestle. Unilever. • Shift in consumer demand to foreign brands like McDonalds. etc. • The internet revolution is making the Indian consumer more accessible to the growing influences of domestic and foreign retail chains. Looking at income classification.21 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. and this will increase to 55°h by 2015. and display the highest propensity to spend. watch more than 50 TV satellite channels. the National Council of Applied Economic Research (NCAER) classified approximately 500Io of the Indian population as low income in 1994-95. which is technology-savvy. Panasonic.
Fitch expects organized retail to capture l5%. of retail space is being developed and will be available for occupation over the next 36-48 months. ft. Most of the organised retailing in the country has just started recently. close to 2Smn sq. A McKinsey report on India says organised retailing would increase the efficiency and productivity of entire gamut of economic activities. At 6%. 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. even when compared to Brazil (l4%). The Indian retail sector is estimated to have a market size of about $ 180 billion. and Poland (12%). SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. In Thailand. ABHISHEK PANDEY.20% market share by 2010. more than 40% of all consumer goods are sold through the super markets and departmental stores. Fuelling this growth is the growth in development of the retail-specific properties and malls. 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. but the organised sector represents only 2% share of this market. According to the estimates available with Fitch. the share of employment of retail in India is low. expects the organized retail industry to continue to grow rapidly.22 As India continues to get strongly integrated with the world economy riding the waves of globalization. LUCKNOW . and would help in achieving higher GDP growth. and has been concentrated mainly in the metro cities. A similar phenomenon has swept through all other Asian countries. the retail sector is bound to take big leaps in the years to come. India is the last large Asian economy to liberalize its retail sector.
and signage. Retailers have some unique advantages for managing brands such as continuous and actionable dialogue with consumers. control over brand presentation at point-of-sale. And they have used this advantage with tremendous success. control over shopping environment.23 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. LUCKNOW . display location/adjacencies. The 3 stages of evolution of the trade channel are shown in the exhibit below : Extended Limited Direct ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
Therefore when FoodWorld. the largest grocer in India has a “direct supply” contract with over 20% of its key suppliers. This is more severe in countries such as India. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. where the channel economics in favour of the middlemen is still strong enough given the fragmentation of the retail sector. the role of the intermediary is being diminished gradually. ABHISHEK PANDEY. 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). which has obvious implication of backlash of the trade channel upwards towards the suppliers.24 Manufacture Depo/CNF Manufacture Manufacture / Retailer Depo/CNF Distributo r Retailer Shopper Shoppe r Retailer Shopper As seen. it gives rise to conflict of interest with the distribution infrastructure that suppliers have painstakingly built over the years. LUCKNOW .
Greater enforcement of taxation mechanisms ABHISHEK PANDEY. Typically large retailers 2. FORMAL RETAILING SECTOR 1. LUCKNOW . Branding the store and following a private label strategy is the key strategy which helps the retailer to compete with branded products.25 The strategies adopted by the retailer to compete with branded goods are illustrated by the following diagram. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.26 3. Corporate Houses ABHISHEK PANDEY. 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. LUCKNOW .
Multi-brand outlets Vijay Sales. Manufacturers/ Exporters Pantaloons. DLF(DT cinemas) etc.27 Tatas: Tata Trent RPG group: Food World. Zodiac etc 3. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Viveks etc 4. Hiranandani(Haiko). 2. Dedicated brand outlets Nike. Reebok. 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 ABHISHEK PANDEY. Health and ITC: Wills Life Style Rahejas(ShoppersStop). LUCKNOW .
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.28 (B)Traditional Format Retailers 1) Kiranas: Traditional Mom and Pop Stores 2) Kiosks 3) Street Markets ABHISHEK PANDEY. LUCKNOW .
LUCKNOW .29 4) Exclusive /Multiple Brand Outlets (C)Large Indian retailers 1. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Hypermarket 1) Big Bazaar 2) Giants 3) Shoprite 4) Star II Department store 1) Lifestyle ABHISHEK PANDEY.
LUCKNOW .30 2) Pantaloons 3) Piramyds 4) Shoppers Stop 5) Trent III Entertainment 1) Fame Adlabs 2) Fun Republic 3) Inox 4) PVR ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
dominate this sector In comparison. LUCKNOW . a few retail chains specializing in these products have come into the market.31 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. single-outlet retailers dominate the market . b) HEALTH & BEAUTY PRODUCTS With growth in income levels. 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.However in recent years. Indians have started spending more on health and beauty products .Here also small. 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 ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. who operate small single-outlet businesses mainly using family labour.
Intense competition among companies to sell their brands provided a strong impetus to the growth for retailers doing business in this sector. modern clothing and footwear stores have modern products and attractive displays to lure customers. However. Despite the large size of this market. E) DURABLE GOODS The Indian durable goods sector has seen the entry of a large number of foreign companies during the post liberalization period. F) LEISURE & PERSONAL GOODS ABHISHEK PANDEY. However there is considerable potential for the entry or expansion of specialized retail chains in the country. D) HOME FURNITURE & HOUSEHOLD GOODS Small retailers again dominate this sector. in contrast. it is unlikely that the traditional outlets will survive the test of time. LUCKNOW . with rapid urbanization. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. very few large and modern retailers have established specialized stores for these products. A greater variety of consumer electronic items and household appliances became available to the Indian customer.32 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. and changing patterns of consumer tastes and preferences.
LUCKNOW . The Indian textile industry. consumer demand is truly the driving force for organized retailing in the country. There are specialized retailers for each category of products (books. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. They are followed by apparel and footwear. The organized segment holds just about 1. 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. etc. has a large share ABHISHEK PANDEY.) in this sector.2% of the current US$ 245 billion retail market. music products. the backbone of the apparel segment.33 Increasing household incomes due to better economic opportunities have encouraged consumer expenditure on leisure and personal goods in the country. With consumers looking at convenience with multiplicity of choice under one roof and expectations evolving over time. from small kiranawalas in the vicinity to big super markets. which is expected to reach about US $ 385 billion by the middle of this decade. Food and beverages form the main chunk of the retail market. The unorganized sector still holds a dominant position in this industry. a transition is happening from the traditional retail sector to 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. ft in size. 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. Today trend is the development of integrated retail cum Entertainment centers or shopping malls. Good environment in mall. Despite the retail store density in India with regard to population being the largest. While the number of shopping malls has seen a massive surge in the recent past in the metros and their suburbs. within the mall premises. The most popular Indian ABHISHEK PANDEY. the latest trend in this sector is the increasing focus on providing leisure activities such as multiplexes. accounting for over 20% of industrial production as well as providing direct and indirect employment to around 65 million people. Critical to these malls is the concept of the anchor. the key outlet or store around which other outlets cluster.00 sq ft.34 of the Indian economy. This is clearly indicative of small-shop ownership crowding the unorganized segment of retailing. it is estimated that over 90% of the stores are less than 500 sq. air-conditioned. LUCKNOW . While this fragmented market structure does pose significant challenges for organized retailing. Industry estimates put the number of retail outlets at 12 million. multi-level malls of at least 100. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Less crowed and These are enclosed. facilities for kids' entertainment. An increasing number of retailers are focusing on malls now as opposed to stand-alone developments. eateries etc.
Globus. Kuwait. to support its retail operations and other businesses. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Spain. UAE. In addition to its retail sector. the old single screen theatres are being divided into three-five smaller screens. Kingdom of Saudi Arabia. Landmark Group The Landmark Group. hotels and electronics and has created a comprehensive infrastructure including its own logistics and distribution division. Cinemas also often anchor malls. Example for wave and PVR. years ago. Turnover in excess of US$2. Pantaloon. It currently operates over 750 stores across the region with a retail presence in China as well. India. China. food. LUCKNOW . 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. Qatar. Employs 24. as was done in the US. Retail Presence across 12 countries: Bahrain. Operates over 825 stores. Lifestyle and hypermarkets like Big Bazaar and Giant. Driven by the lucrative tax breaks. the Group has also diversified into leisure.5bn. Total retail space over 10 million sq ft.35 anchors include Shoppers' Stop. Key Facts 35 Years of retail experience. ABHISHEK PANDEY. Pakistan & Egypt. Jordan. Oman.000 personnel.
LUCKNOW . We believe in giving our personnel the opportunity and responsibility that are integral to their professional development and our Group’s success. Our doctrine is to strive and maintain the lead in whatever we do. strong ethics and mutual respect. Our offerings keep evolving to address changing and discerning consumer needs. 4. ABHISHEK PANDEY. 2. with strict adherence to quality and delivering value for money.36 Core Values of Landmark Group 1. E mpowering people to strive and deliver – Our core strength is our employees. Integrity in every thing we do . 3.Our business is driven by trust. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Passion for excellence – We are committed to setting industry benchmarks – be it our product or practices. Adapting to changing market and customer needs – We keep ourselves abreast with industry trends and dynamic consumer preferences.
37 Look Good Feel Good • • Max a value retail store for the family was launched in May 2004 in the UAE. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Qatar.000 sq. Max plans to expand its network in more potential markets within the Middle East. A good shopping experience and great value is an assurance that translates into making customers “Look good. Max retails its own label clothing for men. 75 stores spread across 8 countries. Kuwait. With stores that ty pically measure between 25. Turkey and India to build a significant presence for the brand by targeting to have 100 stores by 2009. ft. Oman & India. The Largest Value Fashion Chain in the Middle East Products designed and developed exclusively for Max. Max is being increasingly recognized as a key player in the value retail format. women and children as well as footwear and home ware. Bahrain. With 75 stores across UAE. by a large team of in-house designers and buyers. Saudi Arabia.000 to 30. A pioneer in the Middle East of the global trend of delivering quality and value at very attractive prices. LUCKNOW . Feel good” with Max. ABHISHEK PANDEY. • • • Key Facts Established in 2004. Jordan.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.38 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 ABHISHEK PANDEY. LUCKNOW .
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW .39 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 ABHISHEK PANDEY.
HALTER NECK TOP. 2 PIECE PACK (NIGT WEAR.KNIT TOP. ETHNIC FUSION KURTI ROUND NECK V-NECK ABHISHEK PANDEY. SKIRTS). KNIT BOTTOM. SLEAVELESS. SPEGDEE. WOVEN BOTTOM. LUCKNOW . 3 PIECE PACK (SPORTS. HALF SLEAVES). CAPRI. WOVEN TOP. TUNIC. DENIM. DRESS. DONGRIE. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.40 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: .
LUCKNOW PREPACK 1 2 2 2 . COTTON. GORGET. SHIFFON. VISCOS. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LINEN.ACOBA.41 HALTER NECK MATKA NECK CUT NECK SQUARE NECK CUT SLEAVES STEPS KURTI SKIRT STRAIGHT SKIRTS CRUSH SKIRTS CRUSH ANKLE SKIRTS FABRICS: . 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 .42 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.HALF SLEAVES KNITTED TOP.DENIM KNITTED TOP. LUCKNOW .43 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.SLEAVE LESS ABHISHEK PANDEY.FULL SLEAVES KNITTED TOP.
HALF SLEAVES WOVEN TOP.H/S BASIC WOVEN TOP.FLAT FRONT WOVEN BOTTOM.HALF SLEAVES KNITTED TOP.SLEAVELESS JACKET KNITTED TRACK BOTTOM WOVEN TRACK BOTTOM WOVEN TRACK SHORTS KNIT TRACK SHORTS SIZES.FULL SLEAVES WOVEN TOP. LUCKNOW .FULL SLEAVES WOVEN TOP.PLEATED WOVEN TOP.PLEATED WOVEN TOP.44 WOVEN TOP.FULL SLEAVES KNITTED TOP.HALF SLEAVES INNER WEAR TRUNK VALUE PACK WEST VALUE PACK Y FRONT VALUE PACK SEMI FORMAL WOVEN BOTTOM.FLAT FRONT WOVEN BOTTOM. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.SLEAVE LESS WOVEN TOP.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 ABHISHEK PANDEY.F/S BASIC FORMAL WOVEN BOTTOM.FULL SLEAVES WOVEN TOP.HALF SLEAVES SPORTS WEAR KNITTED TOP.
unlock the door at 9:30 am. Check the lock before unlock. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW . ABHISHEK PANDEY. 3.45 ➢ ➢ ➢ ➢ ➢ 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. Switch on optimum lights on floor. 2.
Ensure that staff is complete uniform by 10:30 am. 12.T. Select the housekeeping workdone. E. Manager signature. DUTIES &RESPONSIBILITIES OF STORE MANAGER ABHISHEK PANDEY. 7. Lock I. Switch off A. 6. 8. Switch on the music. Switch off Sensomatic on both floors and at entrance. Merchandise well present on the floor. Trial rooms are empty. 13. 5. Security in place with complete uniform at back door. 11.C. Switch off all lights.46 4. music at till point. Adequate housekeeping staff sould be in store. 2. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Security in place with complete uniform. Switch on A.C. 12. 9. Merchandise well present on the floor. room. 3. Trials rooms are empty and clean before 10:30 am. at 10:00 am. STORE CLOSING 1. 6. Recycling of Security ags and hangers. Lock Manager’s room.D.C. 7. All the tills closed. cleaning. 4. Switch off sensomatic. 8. Floats issued in tills and dedicated cashier by 10:25 am. machine. moppng. Security signature. 10. 9. 10. 11. LUCKNOW . 5.
selection. motivation and evaluation Merchandise Display.47 Duties & Responsibilities Sales Forecasting & Budget Personnel Recruitment. preparing bank transactions. 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 ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ABHISHEK PANDEY. opening and closing store ➢ Reviewing customer complaints ➢ Reviewing computer data forms ➢ Review of overall operations and reports to top management. training. 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. ➢ ➢ ➢ ➢ DEPARTMENT MANAGERS DETAIL CHECKLIST Cleaning and Dusting Floor cleaned and Mopped Fixture (Clean. Trial rooms clean Cash Counters Clean (Merchandise. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Inventory Management and merchandise reorders Handling store receipts. 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. Alignment & Breakage) Stock Replenishment All sty le displayed on floor. LUCKNOW .
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. browsers. 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. ABHISHEK PANDEY. tokens and manned) by 10:30 am Try and attend each and every customer. average bill size. Distribution Of Target In Departments Let. ASM on daily basis CRE DETAIL CHECKLIST ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ Cleaning and dusting of shelves. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW . arms & back bars.48 ➢ 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. greeting is very important. ➢ Maintain DM’s log book on daily basis & acknowledge by SM.
000/5 = Rs 1.566 One weekday target = Rs 6. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.Rs 3.000 Department Target = Rs.434 Total weekday target = Rs 9.000.000/23 = Rs 41304 Total weekend target = Rs 41304*8 = Rs 3. LUCKNOW .50.49 Store target = Rs 50.00. 9.434 = Rs 188.8.131.52.184.108.40.206.30.937 CRE target (Monthly) = Rs 9.000 Department Target in % = 19% One Month = 8 weekends and 23 week days One Weekend Target = Rs 9.566/23 = Rs 26.000 One Weekend Target = Rs 41304 One Weekday Target = Rs 26937 ABHISHEK PANDEY.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW .50 ABHISHEK PANDEY.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW .51 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 ABHISHEK PANDEY.
LUCKNOW x 100 .52 ➢ 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 ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.53 -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 ABHISHEK PANDEY. LUCKNOW .
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.e 7.54 -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.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 ABHISHEK PANDEY. LUCKNOW .
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 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 ABHISHEK PANDEY.55 = 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. LUCKNOW .
advertising or store layout. 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.56 -If the ratio increases. 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. especially pricing -Markdowns may be symptoms of other problems like or buying. Sales Per Square Foot Sales Per Square Foot = Net Sales ABHISHEK PANDEY. LUCKNOW . the retailer may need to take a closer look at merchandising practices. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
LUCKNOW . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 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.57 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. Labour Productivity ABHISHEK PANDEY.
LUCKNOW . ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. used to gauge performance of sales employees -Not the only measure but a starting tool.58 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.
their needs. ABHISHEK PANDEY. The store layout can be classified into • Grid • Race track • Free form. and makes him relate to the store in a particular manner. LUCKNOW . and buying habits and the merchandise that he is going to sell. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. it must appeal to his sensory perceptions and must create a sense of belonging. Creating a store image is like giving a personality to the store For the consumer: A store needs to be simple to navigate.59 THE STORE LAYOUT The store design and layout tells a customer what the store is all about. 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. 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. 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. a sense of relationship.
60 Grid layout: It is most commonly used in a supermarkets and discount stores. 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. LUCKNOW . It links the various departments or the sections inside the store. Race track layout: This layout is popularly found in department stores. It Is a preferred layout in many retail stores that adopt self service. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. The display is in the form of the race track or a loop with a major aisle running through the store. Free form lay out: In a freeform. MAX STORE LAYOUT ABHISHEK PANDEY.
LUCKNOW .61 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 ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
g.g. ABHISHEK PANDEY.. feel. LUCKNOW . culture. signs. The behavior of consumers while shopping or making other marketing decisions.. Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome. media). reason. and select between different alternatives (e. family. brands.62 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. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. The the psy chology of how the consumer is influenced by his or her environment (e. products).
and How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer." Although it is not necessary to memorize this definition. The impact of consumer behavior on society is also of relevance. but at other times will be persuaded more by emotional or sy mbolic appeals. we will be able to make a more informed decision as to which strategy to employ.g. we learn that to be effective. Consumer behavior involves services and ideas as well as tangible products. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. it brings up some useful points: • Behavior occurs either for the individual. Since many environmental problems result from product disposal (e. Understanding these issues helps us adapt our strategies by taking the consumer into consideration. LUCKNOW .63 • How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer. or garbage piling up at landfills) this is also an area of interest. • One "official" definition of consumer behavior is "The study of individuals. advertisements must usually be repeated extensively. Product use is often of great interest to the marketer. or ideas to satisfy needs and the impacts that these processes have on the consumer and society. secure. By understanding the consumer. For example. We also learn that consumers will sometimes be persuaded more by logical arguments. Consumer behavior involves the use and disposal of products as well as the study of how they are purchased.. or in the context of a group (e. 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).g. aggressive marketing of high fat foods. and dispose of products. experiences. services.. or aggressive marketing • • • ABHISHEK PANDEY. motor oil being sent into sewage sy stems to save the recycling fee. by understanding that a number of different messages compete for our potential customers’ attention. because this may influence how a product is best positioned or how we can encourage increased consumption. For example. groups. or organizations and the processes they use to select. use.
a marketing professor. Marty Fishbein. since they will in turn influence many subsequent customers ’ brand choices. and then only gradually. us better buy a 64 per ounce you often • • • ABHISHEK PANDEY. by understanding that consumers are more receptive to food advertising when they are hungry. Social marketing involves getting ideas across to consumers rather than selling something. a near miracle cure for acne. may have serious repercussions for the national health and economy.64 of easy credit. The best solution. This. a goal that was believed to be more realistic. a number still became pregnant while taking the drug. was introduced. In practice. 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. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Common sense suggests. As a final benefit. for example. To get consumers’ attention. for making better marketing campaigns. study ing consumer behavior should make consumers. the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers. however. using knowledge of consumer attitudes. to the rest of the population. was deemed to be infeasible. There are four main applications of consumer behavior: • The most obvious is for marketing strategy—i. Dr. would be if we could get illegal drug users to stop. however.. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them. LUCKNOW . we learn to schedule snack advertisements late in the afternoon.e. In the 1980s. you should pay less than if y ou bought two 32 ounce bottles. Fo r example. that if you liquid ounce bottle of laundry detergent. By understanding that new products are usually initially adopted by a few consumers and only spread later. 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. Accutane. A second application is public policy. Unfortunately. obviously. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. Accutane resulted in severe birth defects if taken by pregnant women. As a result. Although physicians were instructed to warn their female patients of this.
65 pay a size premium by buying the larger quantity. However. technology.. Finally. For example. 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. we need to examine its assets (e.g. awareness of its brands) against pressures it faces from the market. ABHISHEK PANDEY. 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.g. we will also need to analy ze our own firm’s strengths and weaknesses and those of competing firms. that we make a product aimed at older consumers. market knowledge. a shrinking market.. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. is likely to consider repositioning toward our market. Suppose. A competing firm that targets babies. while others prefer lime) • Offering different prices (some consumers will take the cheapest product available. for example. although we may have developed a product that offers great appeal for consumers. while others will pay for desired features) • Distributing the products where they are likely to be bought by the targeted segment. patents. That is. in this case. LUCKNOW . a recession may cut demand dramatically. a growing segment.. To assess a competing firm’s potential threat. by: • Providing different products (e. In other words. There are several units in the market that can be analy zed. Segmentation Segmentation is important in consumer analysis because understanding the consumer will allow us segment the market more meaningfully.g. Culture Culture is part of the external influences that impact the consumer. Our main thrust in this course is the consumer. This enables us then to "treat" each segment differently—e. we need to assess conditions (the marketing environment). some consumers like cola taste. culture represents influences that are imposed on the consumer by other individuals.
in polychronic cultures. the gift should be made publicly to ensure that no perception of secret bribery could be made. (4) Conscious awareness of cultural standards is limited. Americans will feel crowded where people from more densely populated countries will be comfortable. • Symbols differ in meaning. there are explicit standards as to how a gift should be presented. however. in others. (2) Culture is learned rather than being something we are born with. and any other capabilities and habits acquired by man person as a member of society. The text discusses changes in values in more detail. In some countries. Colors that are considered masculine and feminine also differ by culture. Demographics and Social Stratification ABHISHEK PANDEY. For example. custom. morals. In some cultures. (See text for more detail). for example.g. art. gifts should be presented in private to avoid embarrassing the recipient. (5) Cultures fall somewhere on a continuum between static and dynamic depending on how quickly they accept change. • In terms of etiquette. the percentage of people working extremely long hours has also increased. Different perspectives exist in different cultures on several issues.: • Monochronic cultures tend to value precise scheduling and doing one thing at a time. Again.66 • The definition of culture is "That complex whole which includes knowledge. Americans have become less materialistic and have sought more leisure. LUCKNOW . • Space is perceived differently. in contrast. some cultures have more rigid procedures than others." Culture has several important characteristics: (1) Culture is comprehensive. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. on the average. on the other hand. (3) Culture is manifested within boundaries of acceptable behavior.. it is a sy mbol of death in China. For example. e. belief. promptness is valued less. and multiple tasks may be performed simultaneously. while white symbols purity in the U. it should be kept in mind that there are great variations within the culture. The United States has undergone some changes in its predominant culture over the last several decades.S.
China. Family Decision Making The Family Life Cycle . of course. in some rapidly growing countries. LUCKNOW . for women who have children.. Since the number of births is not growing.g. and Taiwan. In countries such as Korea. while in certain poorer countries. a large percentage of the population is concentrated among younger generations. it puts pressures on society to accommodate an increasing number of people on a fixed amount of land. Because Germany actually hovers around negative population growth. Here. many couples undergo divorce. experience problems with a "graying" society. The breakup of a non-marital relationship involving cohabitation is similarly considered equivalent to a divorce. In real life. however." The simple life cycle goes from child/teenager ---> young single ---> young couple * ---> full nest ---> empty nest ---> widow(er). where fewer non-retired people are around to support an increasing number of aging seniors. For example. Other countries such as Japan and Germany. In the United States. a "couple" may either be married or merely involve living together. this situation is. the German government has issued large financial incentives. a manufacturer of baby food). a bit more complicated. in the forms of subsidies. we shift our focus from analyzing specific subcultures to trying to understand the implications for an entire population of its makeup. 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 ABHISHEK PANDEY. population growth occurs both through births and immigration. Several issues are useful in the structure of a population. in contrast. * For purposes of this discussion. For example. Individuals and families tend to go through a "life cycle. this has helped stimulate economic growth. Gerber. problems occur for firms that are dependent on population growth (e.67 Demographics are clearly tied to subculture and segmentation. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
who seek out information about products of relevance. the dissociative reference group includes people that the individual would not like to be like.. clubs. For example. For example. Some individuals are information gatherers/holders. Reference groups come in several different forms. ○ where to buy it. and organizations. Group Influences Humans are inherently social animals. and individuals greatly influence each other. The decision maker(s) have the power to determine issues such as: ○ whether to buy.68 resources. ○ which product to buy (pick-up or passenger car?). and these represent what many people would ideally like to be. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW . the store literally named The Gap came about because many younger people wanted to actively dissociate from parents and other older and "uncool" people.g. Finally. and ○ when to buy. coworkers. The aspirational reference group refers to those others against whom one would like to compare oneself. Diffusion of Innovation ABHISHEK PANDEY. or members of churches. many firms use athletes as spokespeople. 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. ○ which brand to buy. neighbors. The Quality Paperback Book specifically suggests in its advertising that its members are "a breed apart" from conventional readers of popular books. Associative reference groups include people who more realistically represent the individuals’ current equals or near-equals—e.
e. The United States. the more likely an innovation is to spread—people are more likely to imitate similar than different models. ○ Opinion leadership: The more opinion leaders are valued and respected. interestingly scores very low. the less likely innovation is to spread. it well below that for video games that. based on several factors: ○ Modernity: The extent to which the culture is receptive to new things. Perception ABHISHEK PANDEY.69 The diffusion of innovation refers to the tendency of new products. however. even when spread out to a large part of the population. or ideas to spread among people. In some countries. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. ○ Physical distance: The greater the distance between people.. opinion i. Cumulative adoptions are reflected by the S-shaped curve.. they are only adopted by a small group of people initially. tends to value progress. Some cultures tend to adopt new products more quickly than others. The saturation point is the maximum proportion of consumers likely to adopt a product. tradition is greatly valued—thus. Japan scores high. The style of this influence. and Japan. ○ Homophily: The more similar to each other that members of a culture are. While the U. The bell shaped curve frequently illustrates the rate of adoption of a new product. In less leaders tend to be more conservative. the more likely an opinion leaders moderates innovative countries. Usually. to reflect the local norms innovation is to spread. in contrast.S. many innovations spread to other people. The two most rapidly adopting countries in the World are the U. practices. the saturation level is nearly one hundred percent of households. In the case of refrigerators in the U. later. will be of interest to far from everyone. new products often don’t fare too well. when new products or ideas come about.S.S. such as Britain and Saudi Arabia. LUCKNOW . of resistance.
LUCKNOW . Each of these perspectives suggests different things as to what the marketer should do and what can (and cannot) be controlled. we may experience the sales people in one store being nicer to us than those in the other. Fo r example. Learning involves "a change in the content or organization of long term memory and/or behavior. certain shapes of ice cream containers look like they contain more than rectangular ones with the same volume. The late Abraham Maslow suggested the intuitively appealing notion that humans must satisfy the most basic ABHISHEK PANDEY. our perception is sometimes "off"—for example.70 Background . Our brain attempts to make sense out of the stimuli to which we are exposed. Maslow’s Hierarchy of Needs . however. and Emotion Perspectives on Consumer Behavior and Motivation . if pressed. Exposure involves the extent to which we encounter a stimulus. Fo r example. we may not be able to give a conscious explanation as to the reason for our preference. Personality. radio advertisements. we are exposed to numerous commercial messages while driving on the freeway: bill boards. if we are shopping for a car. Several sequential factors influence our perception." The first part of the definition focuses on what we know (and can thus put to use) while the second focuses on concrete behavior. for example. and signs and banners placed at shopping malls that we pass. however. Factors in percpetion. Learning is not all knowledge based. when we "see" a friend three hundred feet away at his or her correct height. Most of this exposure is random—we don’t plan to seek it out. Motivation. We thus may develop a preference for the one store over the other. This works well. Our perception is an approximation of reality. We considered several perspectives on behavior as a way to understand what motivates the consumer. bumper-stickers on cars. many people will avoid foods that they consumed shortly before becoming ill. Learning and Memory Background. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Note that each perspective tends to contain a "grain" oftruth and that one should not be too dogmatic in emphasizing one over the others. we may deliberately seek out advertisements and "tune in" when dealer advertisements come on the radio. However. For example.
. a homeless person who currently does not have shelter may seek that out even though he or she is hungry. the desire to buy an energy efficient house). SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.. That is. one must be careful not to take it too literally. being hospitalized without having adequate insurance). hidden. Some motivations are publicly expressed (e.g. • • Many motivations are driven by the desire for tension reduction (e. the desire to look wealthy by buy ing a fancy car) are not. buy a car and save money for retirement) which may conflict. However. ABHISHEK PANDEY.. eliminate thirst or hunger). and multiple.g.. • Motivations may have either a positive or negative valence -. a person may be motivated enough to go and shop fo r food. since people may occasionally "swing" between needs. Motivations can be driven by both internal and external factors. Properties of motivation. 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.people may either be motivated to achieve something (e. Maslow’s Hierarchy is useful in understanding different needs of consumers across the World. A person may or may not have enough motivation to engage in a given activity.g.g. • Consumers are motivated to achieve goals. exercising every day for months or years) as opposed to just taking some action once.. LUCKNOW . Individuals may also hold multiple motivations (e.g.g. For example. Thus. 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). Achieving these goals may require sustained activity over time (e.71 objectives before they can move onto "higher level" ones. For example.g. while others (e. and only a small minority of people make it as far as seeking self-actualization. but not enough to engage in a comprehensive exercise program.. get a promotion at work) or avoid something (e. • Motives may be overt. Motivation is described through several properties: • Motivation is composed of energy and direction. Only when basic objectives have been met will a person move on to seek such objectives as love and belonging..
72 • Consumers maintain a balance between the desires for stability and variety.. developed by the Stanford Research Institute (SRI). 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. and it may be difficult to infer motivations from looking at actual behavior without understanding these differences in desired outcomes. for example. they do not want to eat the same meal every day ). both "Achievers" and "Strivers" want ABHISHEK PANDEY. although the consumer may not be aware of that reality (e. preferring to wear flashy clothes and drive expensive cars. Different consumers are motivated to achieve different things. LUCKNOW . we must be careful to make our appeals subtle and hint. Self-concept often translates into a person’s lifesty le. the ideal self reflects a self that a person would like to have. but may have no actual athletic ability. attempts to classify people based on a combination of values and resources. In contrast. Most consumers want some variety (e. For example. For example. Self-Concept. for example. and it may be possible to market products that help achieve this goal. or the way that he or she lives his or her life. many anorexic consumers who are dangerously thin believe that they are in fact fat). if appropriate. The key here is to keep in mind which kind of self we are try ing to reach in promotional messages. For example. The actual self reflects how the individual actually is. a police officer may like and listen to rap music in private. Situational Influences. Lifestyles. and Lifestyle The self-concept . Individuals will often seek to augment and enhance their self concepts. a person may be very materialistic. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. or prefer instead a simpler life with fewer visible status symbols. on how the individual’s confidentiality and privacy can be enhanced. • Motivation reflects individual differences. but also want a certain stability (they do not want to try an entirely new food every day ). but does not in fact have. The private self is one that is not intentionally exposed to others. For example. If we appeal to the hidden self. a couch potato may want to be a World famous athlete. playing country songs at work where police officers are portrayed as heroes. but project a public self-image of a country music enthusiast. The Values and Lifesty le (VA LS) Project.g. Thus. The consumer faces several possible selves. Attempts have been made to classify consumers into various segments based on their lifestyles.g..
a wedding) may buy different products.73 public recognition. A problem may be an active one (e. For example. a consumer has been fired and is without a job) or minor (e. In terms of the "big picture.g.g." what is compared may be the totality of one’s lifestyle.g. A global analogue is the Global Scan. Finally.. the more potential solutions are generally available (see class slides for examples). LUCKNOW . a consumer will not acknowledge that he or she consumes too much alcohol). SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Problems may be acknowledged (e.. Specific circumstances often influence consumer behavior... 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. Consu mer Problem Recognition. to some desired situation. the consumer lacks an eraser necessary to take an exam the next day). in which case a search for solutions is initiated. Consumer Decision Making Definitions .g. Problems come in several different types. and the broader and more ambiguous a problem is. a consumer is not aware that he or she could have more energy with a new vitamin). explicitly or implicitly.g. you have a headache and would like as quick a solution as possible) or inactive-. Consumers often note problems by comparing their current. situation. Consumers shopping for a special occasion (e. Once a discrepancy is found.. as in the need for ABHISHEK PANDEY.. Consumer decision making comes about as an attempt to solve consumer problems. problems can be major (e.g.. a determination is found as to whether this is large enough to warrant action. consumers in a rush are likely to take the most convenient product available.g. needs can be relatively specific (generic). or actual. a consumer is aware that his or her car does not accelerate well enough or unacknowledged (e. Consumers whose attention is demanded elsewhere are likely to disregard commercial messages. Situational influences .you are not aware that your situation is a problem (e. but only the Achievers have the resources to bring this about.
from which one alternative is likely to be purchased. LUCKNOW . and those that are considered represent the "evoked" set. For example. Some are not known (the "unawareness" set). Creating problems for consumers is a way to increase sales. 508-509 in the text. this medium is able to charge very large advertising rates. The amount of effort a consumer puts into searching depends on a number of factors such as the market (how many competitors are there. One way to create new problems. or specific. albeit a questionably ethical one. one bail bond company advertised its existence to people "in case you ever find yourself in jail. Internal searches are based on what consumers already know. Glad bags attempts to get "bargain bags" into that set). are not considered. Consumers often do not consider all alternatives. if you decide to go out for fast food. 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). There are two main approaches to search. A problem is that some excellent ones which are not remembered. as in the need for professional attire to wear at a new job. This is often done quite arbitrarily in the fashion industry. by the way. Several different methods can be used to detect consumer problems. some were once known but are not readily accessible in memory (the "inert" set).. It may also be possible to create dissatisfaction with current states--e. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. a firm may publicize current crime statistics to increase the sales of handguns and alarms. Because the yellow pages are often the first place to which people turn.74 enjoyment (which can be satisfied many different ways).g. it may be important for certain firms to advertise to consumers before they actually need the product. and resultant needs. as skirt lengths and the appropriate number of buttons on a suit often change arbitrarily up and down. which are discussed on pp. they may not deliver in the end). Thus. you may not consult any directories. others are ruled out as unsatisfactory (the "inept" set--e. Many vocational training schools advertise that better careers than the consumer ’s current one are available upon graduation (a promise on which. but instead search your memory for fast food restaurants conveniently located. and how ABHISHEK PANDEY..g. is to create a new ideal state. or have never been heard of." As another example.
but rather because the consumer wants a "change of pace. 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. or with lower service in a discount store. consumer characteristics (how interested is a consumer. frequently with a significant amount of service. A special case of the discount store is the category killer--a store that tends to specialize in some limited area (e. in a specialty store. Consumer Outlet Selection Retail evolution and consumer choice . Impulse purchases are. electronics). or one that he or she remembers that is needed only once inside the store (remember the Wal-Mart article). generally." and "impulse" purchases. 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 ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 537-541. Alternatively. Although we are used to thinking of buy ing automobiles only from dealerships. consumers frequently have numerous choices as to where they are going to actually obtain the product. Gradually. unplanned. For many products. in urban environments. LUCKNOW . product characteristics (how important is this product? How complex is the product? How obvious are indications of quality?).75 great are differences between brands expected to be?). and situational characteristics (as previously discussed). generally speaking. the evolution of diversity in the retail scene has provided consumers with more choice. but represent a somewhat fuzzy group. specialty and discount stores evolved. a shopper may plan to buy vegetables but only decide in the store to actually buy broccoli and corn. In the old day s. a person may buy an item which is currently on sale. 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. a consumer may generally choose to buy most products either at a relatively high price.g. Today. fo r example.. In general. most consumers had access only to "general" stores for most products. For example. Several different strategies for influencing consumer decision making are discussed in the text on pp. in analyzing product characteristics and making the best possible deal?).
that position would be untenable. Positioning of retail stores is essential. ABHISHEK PANDEY. are not regular Internet users. During the last several decades.76 from high buying volumes of a narrow assortment of merchandise from the same manufacturer).g. resulting in intense price competition. An interesting problem with Internet commerce. A more recent development is Internet based marketing. which may well have spillover effects outside the realm of the Net. (In a course on marketing strategy or retailing. Store positioning. public fears are a major holdback.. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Certain products specifically aimed at heavy Internet users (e.. and certainly the great majority of residents of even highly industrialized countries. Sears--tend to do less well since they get "stuck in the middle" and have to compete against both. For example. is the relative ease with which consumers may compare prices of different retailers.g. Although sales are modest in this domain at the moment. there is a limit to how strongly you can move toward one extreme.g. software) and products/services that require a high level of customization (e. Note that recent legislation has limited taxation of Internet sales in the U. the incidence of "at home" shopping has increased. Stores which fall somewhere in between--e. "At home" shopping and electronic commerce . stores which excel on a significant dimension seem to perform better--for example. consumers. so that everyone will not be competing intensely on the same variables). it is too early to judge the total potential of this medium.. records. 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.S. Obviously. if Nordstrom were to double its prices and even double its service. In general. 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).. Another problem is the demographics of computer and Internet use--the majority of U. while Wal-Mart excels through its efficiency and low prices. you will probably discuss the issue of the importance of balanced markets--it is healthier if different firms have different strategies. Nordstrom’s excels through its intense customer service. in a sense attempting to "jump start" this innovation. airline tickets) may find good opportunities.S. LUCKNOW . Although many of the concerns that consumers hold about computer crime tend to be exaggerated and/or largely unwarranted.
77 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. There are a few interesting and important dimensions associated with consumer behaviour and retail outlet selection. 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. consumers wanting lower-end watches probably felt that a ty pical Titan showroom was too elitist. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 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? ABHISHEK PANDEY. Onida or Sony. which could have had a negative impact. would consumers visit an exclusive showroom of BPL. LUCKNOW . Does selection of outlets vary in accordance with ty pes of product categories? While buy ing a TV or a washing machine. Does the retail outlet have psychological implications on the target segment? When Titan and Timex watches were retailed through exclusive shops.
Sunglass Hut is a brand which operates kiosks at various places which displays about 1. biscuits and other commodities. retailers have been carry ing manufacturers' brands. supermarkets such as FoodWorld have started carry ing retail or store brands. malls and high-traffic areas.000 different models along with their prices. 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. 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. But in recent times (at least to a significant extent in the foods category ). Nilgiri's is another example in the South which carries its own brands of chocolates. A few companies also operate through kiosks in airports.78 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. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. It is providing play areas to ensure a number of families visit its outlets with children. Consumers could place an order through these kiosks and the product is home-delivered. LUCKNOW . Retail outlet selection and brand selection ABHISHEK PANDEY. There is research required to handle retail decisions in a competitive context.
consumers may think of the retail outlet initially and then the brands (television. 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. refrigerator and audio products retailed through outlets like Vivek and Co. Primary research could be used to discover the specific sequence involved in a situation of this kind. especially where `category killers' exist. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. retail outlet second (ii) Retail outlet first. LUCKNOW . which a consumer can follow and they could be: (I) Brand first. This is highly possible. in the South. could be an example). brand second (iii) Brand and retail outlet simultaneously. especially in the Indian context where dealers develop a social relationship with consumers.79 There are three fundamental patterns. 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. ABHISHEK PANDEY. 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. especially in semi-urban and rural areas. search for information on brands is followed by retail outlet selection in durables). In certain product categories.
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.these changes should be captured (how often this happens. Dy anora and Crown may have been top-of-the-mind (in a specific geographical area) but slowly gave way to other brands . Strategies and sequences Retail outlet first and brand second: When a number of consumers follow this sequence of decision-making. There may also be a need to monitor competition from other retail outlets to ensure that consumers are kept satisfied in terms of service. the evoked set could also change from time to time depending on the strategies of brands. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. and the differences between markets) to formulate retail strategies. there would have to be more emphasis on regional/local advertising which highlights the retail shop rather than regular brand-based national advertising. Even multinational outlets could make use of this approach and mention the brands in the evoked set (in a given geographical area). Point-of-purchase materials which are to be used at the retail outlet may require primary research . 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. A brand may be advertised on features nationally but the retail outlet in may ABHISHEK PANDEY. should product features be used. promotional deals and ambience. The local advertising could be different from the national advertising for the brand. Retailers attempt to increase consumer traffic by providing a number of `add-ons'. price. Primary research may be required to identify the brands in the evoked set. 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. display of point-of-purchase material and building the image of the outlet becomes important. should the POP material be in the regional language. brands like Solidaire. why. This is especially applicable to durables retailing in India (in cities). About two decades ago. 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. Besides. LUCKNOW . This is likely to improve traffic to the outlet.80 Further.should visuals be used. 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).
This model puts the brand in focus and reinforces the positive association a consumer may have about it. The marketer would have to carry out primary research to find out specific markets where consumers have a very positive relationship with retailers. 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. The interest generated in the brand would have to be backed by good pre-sale services at the outlet. This is to ensure that the retailers who have a favourable perception among the target segment carry the desired brands. Brand and retail outlet simultaneously : When consumers think of the brand and retail outlet together. which would be to the disadvantage of a retailer who has already won the confidence of consumers. A considerable amount of pre-sale service would have to back up the shop-in-shop concept. Failing this. a shop-in-shop arrangement may be preferable. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 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. LUCKNOW . 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 ABHISHEK PANDEY. The combination of `push-pull' strategy is shown in the table. 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. consumers may turn to a different retailer. This is important because of the influence of retailers over the purchase behaviour of consumers in the Indian context. it has to ensure the availability of specific brands which may interest the consumers. 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.81 prefer to highlight the effective afte r-sales service associated with the brand as this may be a priority of consumers. If a company such as BPL or Videocon is dealing with a number of brands/subbrands. If the retail outlet is a large one dealing with a number of brands (like Vivek). it means that they have a certain preference for the outlet and would like to check the evoked set of brands there. Retail sales personnel also become important in this situation.
Project deadline: March 2006. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. It also holds the distinction of being one of India's cleanest cities. all kinds of products in every shape.Location: Near Eldeco Greens. Gomtinagar Lines areas is like walking through a large shopping mall. It is Utterpradesh’ capital with a population nudging 30 lakh as of 2001. Two of the largest supermarkets in LUCKNOW are Saharaganj location Hagaratganj run by the Sahara group and wave location in gomti nagar. With a total of 74 shops.5 hectares of prime land. this is part of the Zee Groups master plan of 25 all-India malls. All these are changing the way Lucknow shops.000 sq mtrs/ 4. Gomti Nagar.This city in Utterpradesh has the state's largest shopping mall. Touted as Lucknow’s biggest mall. LUCKNOW . 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.Lucknow believes the general feeling that the retail revolution as we know occurs only in the metros. Here. you'll find every brand.Fun Republic Family Entertainment Centre.Total area: 18. Aminabad. shade and size and all types of food! You'll also find four of Lucknow's supermarkets here. A walk along the main Hagaratganj. which is now experiencing a retail revolution of sorts. This is LUCKNOW. not just in terms of size but owing to the names it is planning to bring ABHISHEK PANDEY.82 clinch the deal with consumers who may simultaneously consider both the brand and the retail outlet.
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.000 Sq Ft. Gomti Nagar. more modern restaurants and theatres to drive lifestyle changes. 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. Despite dramatic changes in the retail scene.Location: Near Hoteltaj Residency. LUCKNOW . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.gomti nagar( work in progress) . the project is reportedly 95 per cent sold-out.83 into the city. habits. And this is already happening. Barista.Total area: 20. Here we profile three leading retailers from Lucknow. Ladhani’s Taj Multiplex. Both offer valuable lessons in how organised retail in smaller towns can succeed.Total Area: 70. the fast-growing espresso chain. Singapore mall. wave). Fortuna’s City Malllocation: Near Cms Gomti Nagar.Project deadline: By 2007. ABHISHEK PANDEY. Lucknow’s retailers feel the need for a shift in mindset.000 sq ft.Project deadline: March 2006.
ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW
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”
ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW
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.
ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW
87 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. LUCKNOW . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.e. Data collected through journals. ABHISHEK PANDEY. newspapers & internet is SECONDARY type. data has been observed and recorded by the researchers for the first time to their knowledge.
Method employed to collect data is Questionnaire. Secondary data was obtained from intensive analysis & observation. ABHISHEK PANDEY. LUCKNOW . which are collected afresh and for the first time. The primary data are those. This is a simple survey conducted by filling in questionnaire from the people who visit malls. are those which have already been collected by some one else and which have already been passed through the statistical process. and thus happen to be original in character. The secondary data. the primary data has been collected through Questionnaire. Co llec tion of the Pr imar y da ta As this study is of descriptive type.88 Me thod of da ta col lect ion This study is a research which utilizes interrogation and observation method for data collection. on the other hand. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Anal ys is of Da ta Data collected through questionnaire is being processed .This processed data is represented by means of suitable graphs & diagrams. if observation is done accurately. 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. LUCKNOW .89 Ob ser vation method Under the Observation method. ➢ 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] ABHISHEK PANDEY.
It means maximum no of customer are preferred Shopping Malls for purchasing.90 ➢ 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. ➢ YOU PREFER TO GO IN STORE WITH: a. FAMILY [52 RESPONDENTS] ABHISHEK PANDEY. LUCKNOW . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
It means maximum no of customers are family conscious for visiting retail store.e. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. SPOUSE c. OTHERS [12 RESPONDENTS] [ 36 RESPONDENTS] [ 0 RESPONDENTS] ➢ On the basis of above respondents the graph shows that maximum respondents i.91 b. LUCKNOW . 52 out of 100 are preferred to go in store with their family. ➢ 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 ] ABHISHEK PANDEY. FRIENDS d.
➢ 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. It means maximum no of customers do not compromise with their choice.92 ➢ On the basis of above respondents the graph shows that maximum respondents i.e. ➢ WHAT DO YOU LOOK FOR IN A PRODUCT DURING YOUR PURCHASE: ABHISHEK PANDEY. 60 out of 100 wanted sometime assistance from store staffs.e. It means maximum no of customers are time conscious and desire for many brand under one roof. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 60 out of 100 are preferred multi branded store for shopping. LUCKNOW .
It means maximum no of customers are price conscious so maximum customers belongs to middle class.93 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. ➢ 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] ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW . 60 out of 100 preferred price during their purchasing.
60 out of 100 are prefer shopping during fresh season stock.e. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. It means maximum no of customers did not compromise quality with discount and offers.94 ➢ On the basis of above respondents the graph shows that maximum respondents i. 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: ABHISHEK PANDEY. LUCKNOW .
SIZE It means maximum no of customers are prefer to the Malls for FASHION ABHISHEK PANDEY.95 ➢ On the basis of above respondents the graph shows that maximum respondents are attracted towards the Store due to this rankingFASHION BRAND PRICE RANGE. LUCKNOW . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.e. LUCKNOW . 60 out of 100 are visited the store with in one month. ➢ 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 ] ABHISHEK PANDEY.96 ➢ 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. It means maximum no of customers are visiting the store monthly.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.e.97 ➢ On the basis of above respondents the graph shows that maximum respondents i. ➢ HOW DID YOU COME TO KNOW ABOUT MAX? a) NEWSPAPER [ 12 RESPONDENTS] ABHISHEK PANDEY. ➢ :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. It means maximum no of customers prefer middle class shopping. 52 out of 100 are spend Rs 1000-1999 on shopping. LUCKNOW . It means maximum no of customers are agree that price of products are equal to the other market rate.e. 40 out of 10 are agree that price of products are reasonable.
98 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. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. It means maximum no of customers are know about the max store by other people reference. LUCKNOW . ➢ 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] ABHISHEK PANDEY.
Customers prefer shopping according toWOMEN’S WEAR FOOTWEAR ETHENIC MEN’S. 36 out of 100 are purchasing maximum from women’s wear. ➢ 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. 32 out of 100 want discount mailers facility.99 ➢ On the basis of above respondents the graph shows that maximum respondents i. LUCKNOW . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. It means maximum no of customers want every information at their door step. KID’S WEAR ACCESSORIES ABHISHEK PANDEY.e.
LUCKNOW . 44 out of 100 prefer MAX for shopping. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. ➢ AGE WISE DISTRIBUTION A) <20 B) 20-29 C) 30-39 D) >40 [ 12 RESPONDENTS ] [ 45 RESPONDENTS ] [25 RESPONDENTS ] [18 RESPONDENTS] ABHISHEK PANDEY.100 ➢ 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. It means max retail targeting to the middle class customers.
e. 58 out of 100 are males. 45 out of 100 are young age people. ➢ GENDER WISE DISTRIBUTION E) MALE F) FEMALE [ 58 RESPONDENTS ] [ 42 RESPONDENTS ] ➢ On the basis of above respondents the graph shows that maximum respondents i. It means maximum no of customers are male in malls due to family responsibility. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW .e.101 ➢ On the basis of above respondents the graph shows that maximum respondents i. OF FAMILY MEMBER WISE DISTRIBUTION ABHISHEK PANDEY. It means maximum no of customers belongs to young age group. ➢ NO.
54 out of 100 having 3-4 members in their 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 ] ABHISHEK PANDEY. It means maximum no of customers having nucleur family. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.102 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. LUCKNOW .e.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.001 TO 50. It means maximum no of customers are self dependent. Employee. 40 out of 100 are Pvt.e. LUCKNOW . ➢ OCCUPATION WISE DISTRIBUTION A) STUDENT B) GOV.000 [ 28 RESPONDENTS ] [ 48 RESPONDENTS ] [ 20 RESPONDENTS ] ABHISHEK PANDEY. ➢ INCOME WISE DISTRIBUTION A)LESS THAN Rs 20. It means maximum no of customers are educated and aware about retail store.000 TO 40.000 B) BETWEEN Rs 30.e.000 C)BETWEEN Rs 40. 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. SERVICE C) PVT. 32 out of 100 are graduates and 32 out of 100 are post graduate.103 ➢ On the basis of above respondents the graph shows that maximum respondents i.
48 out of 100 are having monthly income between Rs 30.000 [ 12 RESPONDENTS ] ➢ On the basis of above respondents the graph shows that maximum respondents i.e. LUCKNOW . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.000.000 to 40. It means maximum no of customers are belonging to upper middle class. ABHISHEK PANDEY.104 D)MORE THAN Rs 50.
Maximum no of customers are belonging to upper middle class.Maximum no of customers are family conscious for visiting retail store.105 1. Max retail targeting to the middle class customers. 2. 4. 6. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW . It means maximum no of customers having nucleur family.Maximum no of customers do not compromise with their choice.Maximum no of customers are time conscious and desire for many brand under one roof. Maximum no of customers are male in malls due to family responsibility. 8. Maximum no of customer are preferred Shopping Malls for purchasing. 7. 5. 12. 3. Maximum no of middle class customers come to max for shopping. Maximum no of customers belongs to young age group. 9. Maximum no of customers are educated and aware about retail store. 10. 11. ABHISHEK PANDEY. Maximum no of customers are self dependent.
LUCKNOW .Maximum no of customers are visiting the store monthly.Most of the customers know about the MAX retail through other people reference.Maximum no of customers are price conscious so maximum customers belongs to middle class. 14. SIZE 16.Maximum respondents are attracted towards the Store due to this rankingFASHION BRAND PRICE RANGE.Maximum no of customers are agree that price of products are equal to the other market rate.Maximum no of customers prefer middle class shopping.Maximum no of customers are know about the max store by 20.106 13. 15. ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 19. 17. 18.Maximum no of customers did not compromise quality with discount and offers.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 3) Only Zee Mall was present for collection of data so it was tough to collect more respondent.107 LIM ITATI ONS Every report has its pros and cons so mine also have some limitations. 2) Use of secondary data for analysis. ABHISHEK PANDEY. They can be pointed as: 1) Conclusions are for Lucknow City only. LUCKNOW .
108 4) Respondents were not keen to give the answers of questionnaire. CONCLUSION The past 4-5 years have seen increasing activity in retailing. ABHISHEK PANDEY. various business houses have already planned for few investments in the coming 2-3 years. And. LUCKNOW .. The country is witnessing a period of boom in retail trade. retailing in India is surely poised for a takeoff and will provide many opportunities both to existing players as well as new entrants. And the share of organized sector will grow rapidly. And though the retailers will have to face increasingly demanding customers. more investments will keep flow in. and intensely competitive rivals. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
furnishing stores and chemist shops. LUCKNOW . ABHISHEK PANDEY. have all resulted in narrowing down the spending differences between the consumers of larger metros and those of smaller towns. New formats like super markets and large discount and department stores have started influencing the traditional looks of bookstores. Increase in literacy. is also bringing in slow changes in lifestyle in the smaller towns of India. positive changes in the quality of life in the metros and bigger towns.109 mainly on account of a gradual increase in the disposable incomes of the middle and upper-middle class households. in the form of mall and shopping center builders and managers. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. ➢ 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. exposure to media. The retail revolution. apart from bringing in sweeping. directly or indirectly. More and more corporate houses including large real estate companies are coming into the retail business. Lastly I want to conclude my project in some points➢ The customers are attracting towards shopping malls & retail outlets. greater availability and penetration of a variety of consumer goods into the interiors of the country.
➢ The main strength of most of the retail outlets are providing attractive offers to attract customers. of customers. ABHISHEK PANDEY.110 ➢ 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. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. ➢ Big retail stores are running customer loyalty programmes which has increased profits and no. LUCKNOW .
“Catchy & Intelligent schemes”. ABHISHEK PANDEY. ➢ Proper signage’s should be used in retail store ➢ Exchange Policies of retail store should be properly communicated to customers during Sale. ➢ The attitude of sales force must be helping & communication in formal way. ➢ 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. ➢ Men’s Accessories like Sunglasses and Bracelets can be add up in Accessories section. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW .111 RECOMMENDATIONS My recommendations on the basis of the are: ➢ Grant industry status to retail ➢ Retail stores should use an area that is easily approachable.
M.R.112 ➢ To solve the problem of alteration on Sunday. ➢ Sizes of the merchandising should be standard. LUCKNOW . Company can provide the home delivery of Altered merchandise. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. ----Kotler & Keller ➢ Marketing Management in Indian Perspective ----V. Ramaswamy & S. ➢ Sizes of merchandising should be easily visible or one rack can be made for each size of different style. ---Levy & Weitzs ➢ Quantitative Methods ➢ Retail management ABHISHEK PANDEY. S. Namakumari ➢ Research methodology ---C. Kothari ---B. Bibliog raphy BOOKS:➢ Marketing Management. Aggarwal.
tataretail.com ➢ www.com ➢ www.in ABHISHEK PANDEY.aboutus. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.113 MAGZINES:➢ Business worlds ➢ Indian retail ➢ Economics of India ➢ India today WEBSITES:➢ www.retailyatra.retailbiz.net ➢ www.com ➢ www.goggle.com ➢ www.retailindia.businessworld.com ➢ www. LUCKNOW .
ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW
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
ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW
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
ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW
000 House wife Indiranaga r Retired Niralan agar o the r THANK YOU ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.00040. Employe e Aliganj 40.117 Occupation Location Household Income (per month) Studen t Gomti nagar Less Than 20.000 Pvt.000 Self Employe d Hazratga nj More then 50. LUCKNOW .000 Gov. Service Mahanag ar 30.00150.
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