PROJECT REPORT ON "CUSTOMER PERCEPTOIN & SATISFACTION SURVEY OF

ORGANIZED FMCG RETAIL OUTLETS IN LUDHIANA”

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

PREFACE The project report on " CUSTOMER PERCEPTOIN & SATISFACTION SURVEY OF ORGANIZED FMCG RETAIL OUTLETS IN LUDHIANA " is the key task to fulfillment requirement of my Bachelor of Business Administration degree. This report is concerned with "Customers Satisfaction Survey". The study was conducted by Research Methodology with specific questionnaire was prepared and survey was conducted. This report is prepared by me and suggestions of some very experienced and intellectual persons.

CONTENTS
TOPICS PAGE NO.

• • • •

Introduction Organized Retail in India FMCG retail in India Organized Retail outlets in Ludhiana • Objective of the study • Research Methodology • Analysis & Interpretation • Findings & Conclusion
• • • •

Crux of the Study
Limitation of the study Annexure Bibliography

1. 3. 5. 6. 13. 15. 18. 49. 52. 54. 56. 62.

Though it will be too early for them to start counting their chickens as the government policy is still hazy and huge amount of expertise is required to run a panIndia retail network. So much so that every conglomerate wants a piece of the pie. No wonder that every business house from Birlas to Ambanis is busy chalking out their retail plans. Though organized retail is in practice around the globe for many decades now. organized retail is something which tests your operational and logistics skill rather than entrepreneurship abilities. While Reliance retail. Also the fact that organized retail accounts for only 3% of retail sales in India there’s a huge untapped potential. Wal-Mart etc. The bleak chances of FDI in retail have forced foreign retail giants to look for local partners. 25.000 crore in its retail venture.Introduction Organized retail is definitely a sunrise sector in India but to say that it is a sunrise sector for entrepreneurship would be wrong. it’s only now that it is making an entry into India in a big way. The reasons for this are many.Local retailers who already have a huge presence in India include Future Group (former Pantaloons). Shopper’s stop has inked a deal with UK’s Home Retail group to develop Argos retail stores. Bombay Dyeing has tied up with France’s Auchen. Malls and multiplexes and making headway into tier II and tier III cities also after mushrooming in the metros. Entrepreneurship is required in those fields in which an individual can go in with small capital and his expertise and go on to create a company which usually yields returns of the order of 10x or more. With Mukesh Ambani in driving seat there’s little doubt that reliance will change how Indians shop. With a booming economy and burgeoning middle class the shopping habits of Indians are changing fast. 1 The most bullish of them all is Reliance with plans to invest Rs. The ‘natural barriers’ to enter into organized retail are so large that it would not be wise for and an entrepreneur to jump into it and think that he will be able to compete with the likes of Reliance. Tata. Bharti has joined hands with Wal-Mart after failed talks with UK giant Tesco. RPG group. Of course local giants are keen to put their plans in place before foreign players are allowed to move in. Shopper’s Stop. His plans include selling everything from vegetables to cars . Bharti. There is huge pressure on government from foreign multinationals to allow FDI in retail. Bharti and Aditya Birla group are soon to start rolling out their retail plans. The government is still in process of studying the effect of organized retail on ‘mom-npop’ stores and the economy as a whole. Subhiksha. Also. There is scarce managerial talent in retail business and salaries are already skyrocketing.

To keep the prices low the retailers are doing everything from buying cargo planes to sourcing fruits and vegetables directly from farmers. Reliance plans to launch 1000 stores by this year end. A massive churn is already taking place in retail space while real estate prices in prime locations are going over the roof.under one roof and even deploying cargo planes to make sure that you get fruits and vegetables ‘farm-fresh’. As a result of hyper growth plans and rushed hiring. When there is a huge competition in market it’s always a win-win for consumers. While Bharti will also offer telecom services in its retail stores. 2 . Some are just buying the land and then building their stores while others are buying finished commercial space or just renting it. Reliance Retail will launch its hypermarket. After all. Also the retail stores promise to give the consumers more choices and a better shopping experience. nobody is complaining about the money being put in behind these retail ventures. Reliance has already opened 50 ‘Reliance Fresh’ stores with the very first in Hyderabad. Reliance and Bharti also have plans to set up Micro Finance Institutions along with their retail chains. With the economy growing at 10%. They can expect better services from ‘mom-n-pop’ stores and great bargains at their local mall. most retail ventures are struggling to keep pace. it’s all about the customers. Though. Most retail ventures are going in for mixed strategy when acquiring retail space. initially there will be a few surprises and a few new lessons learnt the long term story looks promising. supermarket and specialty formats in April-June quarter this year.

However. The number of department stores is growing much faster than overall retail. and announced development plans project at least 150 new shopping malls by 2008. Shopping malls are becoming increasingly common in large cities. both as a global base and as a domestic market. Growing consumer credit will also help in boosting consumer demand. The structure of retailing will also develop rapidly. which have to be maintained at an unusually high level. located in residential areas. It’s a lot easier to cut manufacturing costs than it is to cut distribution and marketing costs. Retail growth in the coming five years is expected to be stronger than GDP growth. Indian Retail sector consists of small familyowned stores. It has allowed 51% FDI in “single brand” retail. However. driven by changing lifestyles and by strong income growth. Distribution continues to improve. which in turn will be supported by favorable demographic patterns and the extent to which organized retailers succeed in reaching lower down the income scale to reach potential consumers towards the bottom of the consumer pyramid.RETAIL IN INDIA India represents an economic opportunity on a massive scale. at an annual 24%. and inventories. Poor quality of infrastructure. while retailing currently remains closed to FDI. coupled with poor quality of the distribution sector. 3 . results in logistics costs that are very high as a proportion of GDP. Also. government has relaxed regulatory controls on foreign direct investment (FDI) considerably in recent years. Supermarkets have been taking an increasing share of general food and grocery trade over the last 2 decades. but it still remains a major inefficiency. At present the organized sector accounts for only 2 to 4% of the total market although this is expected to rise by 20 to 25% on YOY basis. Distribution and marketing is a huge cost in Indian consumer markets. the Indian government has indicated in 2005 that liberalization of direct investment in retailing is under active consideration. with a shop floor of less than 500 square feet.

most companies believe that will not be for long. but foreign players will come in and challenge the locals by sheer cash power. the power to drive down prices. Indian companies know Indian markets better.The next cycle of change in Indian consumer markets will be the arrival of foreign players in consumer retailing. This report discusses the scenario of organized retail industry in Ludhiana city of Punjab and the opportunities available for companies based on key statistics. Although FDI remains highly restricted in retailing. I have answered Key questions like: • • • What is the market size and scope of the Organized retail industry in Ludhiana? What is the size of organized market segment wise & its growth prospects? Who are the major players of Retail Industry in Ludhiana. their impact on the unorganized retail outlets? 4 . That will be the coming struggle.

FMCG RETAIL IN INDIA India is one of the largest emerging markets. policy makers and smaller retailers that the presence of bigger organized retailers would lead to the elimination of the smaller shop keepers leading to a large scale problem of unemployment and maybe even social problems. Around 70 per cent of the total households in India reside in the rural areas. operated by single person and runs on the basis of consumer familiarity with the owner. Till now. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million. with a population of over one billion. where mostly traditional retail outlets. recently organized retailing has become more popular in big cities in India and most of the metropolitan cities and other big cities are flooded by modern organized retail stores. commonly called kirana stores exist. However. the prospects of foreign players entering India became high. These are unorganized. The entry of major retailers in the country has raised passions among the politicians. But recently. entry of foreign retailers was restricted in Indian retail market because of the ban on Foreign Direct Investment in Indian Retail Sector. India is called a nation of shop keepers and organized retail which has just made an entry has a very small share estimated between 2-4% of total retail in the country. 5 . Many semi-urban areas also witnesses entry of such organized retail outlets. as government has changed its policy and the cabinet has allowed 51 per cent FDI in single-brand retail.

ICICI Venture Capital has a 24% stake in Subhiksha. on all days and irrespective of whether they make a small or a big purchase. Subhiksha was founded by Mr. it is now present nationally with 1000 outlets and spread across more than 90 cities. Maharashtra. Derived from the Sanskrit word. 365 days a year. the low prices at Subhiksha are not limited to a few goods or to a few specific days. His vision to deliver consistently better value to Indian consumers. 6 . pharmacy and telecom chain. Punjab. Customers can get the same discounted prices on all items. it is a multi-locational. Hariyana. Karnataka and TN. IIT-Chennai & IIM-A alumni. without any compromise on quality of goods purchased. Subramanian. Today. In fact. professionally managed and vibrant organization that is poised to change the lives of millions of Indians. R. Subhiksha now has the pan Indian presence with stores across Delhi. the discounts and customer savings at Subhiksha are 4-5 times that offered by other small and big retailers. UP. Unlike other stores. Started in 1997 as a single store entity in South Chennai. faster than ever before! Lowest Prices & Great Savings Everyday! Subhiksha offers all goods at sharply discounted prices so that consumers can genuinely save in every transaction. AP. Gujarat. has guided Subhiksha to deliver savings to all consumers on each and every item that they need in their daily lives.Organized Retail outlets in Ludhiana SUBHIKSHA Subhiksha is India's largest supermarket. Subhiksham or "giver of all things good".

The group’s philosophy is integration and towards this end has initiated backward integration in the field of high fashion by setting up a state of the art manufacturing facility to support its retail endeavors. Each store gives you international quality goods and prices hard to match. in 18 state across India.VISHAL Group What started as a humble one store enterprise in 1986 in Kolkata(erstwhile. The Vishal stores offer affordable family fashion at prices to suit every pocket. Calcutta) is today a conglomerate encompassing 91 showrooms in 62 cities / 20 states.Ram Chandra Aggarwal . 7 . and can be catered to under one roof. Vishal is one of fastest growing retailing groups in India. The showrooms have over 70. under the dynamic leadership of Mr. Situated in the national capital Delhi this store boasts of the singe largest collection of goods and commodities sold under one roof in India. The group had a turnover of Rs.000 products range which fulfills all your household needs. 1463. 6026. India’s first hyper-market has also been opened for the Indian consumer by Vishal. Its outlets cater to almost all price ranges.12 million for fiscal 2005. ft. It is covering about 1996592 lac sq. The cost benefits that is derived from the large central purchase of goods and services is passed on to the consumer. The group had of turnover Rs 2884.43 million for fiscal 2006 and Rs.53 million for fiscal 2007 The group’s prime focus is on retailing.

music and books. The company operates through the following formats: Spencer’s Hypermarkets: a fast growing retail network of hypermarkets with large format stores in Mumbai.Spencer’S Spencer’s Retail is one of India’s fastest growing retail stores with multiple formats and retailing food. hypermarkets and dailies spread all over India. Hyderabad. apparel. Operations Spencer’s has retail footage of over 1. lifestyle products. electronics. Gurgaon.3 million square feet and over 350 Spencer’s stores in 50 cities. Spencer’s Daily: small format stores conveniently located with a range of products to meet your daily household needs. Ludhiana. Aurangabad Durgapur and Kolkata. Spencer’s Super: one of the largest supermarket chains in the food and grocery segment in India. Established in 1996. Vijayawada. Spencer’s has become a popular destination for shoppers in India with supermarkets. Vizag. Calicut. fashion. Ghaziabad. Lucknow. Spencer’s Express : food and grocery store next door 8 .

The more.: Aditya Birla Retail Ltd is the retail arm of the Aditya Birla Group. The more. The rapid growth of this industry is confirmation that the idea of orgranised retailing has taken root in India. All Fabmall stores were re-branded to more in January 2007. the new stores will continue to be built around the proposition of quality. 9 . Trinethra and FabCity by Aditya Birla Retail in January 2007. As a result of the integration process. Tamil Nadu and Kerala. The re-branding follows the acquisition of the Trinethra Super Retail that includes the retail brands Fabmall. in Pune and currently has 100 stores across the country. food and groceries account for around 14 per cent of the total market with potential to garner an even bigger share of the market.. The acquisition of Trinethra Super Retail has provided Aditya Birla Retail with a strong retail footprint in South India extending to 275 stores and over more than half a million square feet in Andhra Pradesh.5 billion and in the league of Fortune 500 companies. a US$ 24 billion corporation with a market capital of US$ 31. the leading international retail design firm. 68 Fabmall stores in Karnataka will be re-branded under the umbrella of more. Demographic movements in India over the last two decades have made organised retail a necessity. home care. Aditya Birla Retail Ltd launched its first store. With the underlying objective to enhance the shopping experience for consumers. stores will offer a wide range of product categories including fruits and vegetables. Within the organised retail sector. Aditya Birla Retail Limited re-brands its Fabmall grocery supermarkets to more.MORE “MORE’s mission is to change the way people shop”. where it is the leading food and grocery retailer. eight stores in Mysore and 10 stores in Mangalore. the retail brand from the Aditya Birla Group. personal care. The stores have been designed by Fitch. Currently Aditya Birla Retail has 60 stores in Bangalore. the company will increase its retail foothold to 300 plus stores with re-branding of Trinethra and Fabmall stores in South India. The industry is today valued at around US$ 320 billion.more. The project display is well-orgranised and facilitates ease of choice. About Aditya Birla Retail Ltd. affordability and convenience with new in-store merchandise and a whole new retail experience. In May 2007. With the acquisition of Trinethra Super Retail. household general merchandise and dairy products. Karnataka. staples. a name reflective of its commitment to offering consumers a more fulfilling retail experience. chain of supermarkets is spread over convenient locations and with layouts that allow ease of navigation.

Each store is said to be within a radius of 12 km of each other. Reliance Fresh recently (24th Jan. The super marts will sell fresh fruits and vegetables. Though Reliance Fresh is not exiting the fruit and vegetable business altogether. West Bengal and Orissa. groceries. it has decided not to compete with local vendors partly due to political reasons. In a dramatic change due circumstances prevaling in UP. The company may not stock fruit and vegetables in some states. Orissa being one of them. New Delhi. this is only the entry roll-out that the company has planned. staples. Reliance plans to invest Rs 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country. with food accounting for the bulk of the business. The Reliance Fresh supermarket chain is RIL’s Rs 25.000 crore venture and it plans to add more stores across different g. Reliance has entered into this segment by openingnew retail stores into almost every metropolitan and regional area of India.Reliance Fresh Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by Mukesh Ambani. home. Bangalore is said to have 40 stores in all by the end of the year. 2007) opened several "Fresh" outlets in Chennai. Reliance is still testing its retail concepts by controlled entry beginning in the southern states The company is planning on opening new stores with store-size varying from 1. wellness and auto accessories. and partly due to its inability to create a robust supply chain.Jaipur.000 sq ft. Besides. the stores would provide direct employment to 5 lakh young Indians and indirect job opportunities to a million people. and eventually have a pan-India footprint by year 2011. which will stock fresh fruits and vegetables. The company also has plans to train students and housewives in customer care and quality services for part-time jobs. IT. Mumbai. However. staples. fresh juice bars and dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian products. Reliance Retail is moving out stocking. in relation to the concept of a neighbour store.500 sq ft to 3. according to the company. Ludhiana increasing its total store count to 40. FMCG products and dairy products. consumer durables. FMCG. It was mentioned recently in News Dailies that. Reliance Retail has decided to minimise its exposure in the fruit and vegetable business and position Reliance Fresh as a pure play super market focusing on categories like food. Hyderabad. Chandigarh. 10 .

Reliance Retail has entered into an alliance with Apple for setting up a chain of Apple Specialty Stores branded as iStore. Reliance Digital. Reliance Fresh. In addition. not only did the company said the store’s main focus would be fresh produce like fruits and vegetables at a much lower price. Reliance may exit some businesses If the business does not increases by March 2008. Reliance Jewels. When the first Reliance Fresh store opened in Hyderabad last October. Reliance Footprint. starting with Bangalore. Reliance Trendz. Reliance Wellness. The idea the company spoke about was to source from farmers and sell directly to the consumer removing middlemen out of the way. but also spoke at length about its “farm-tofork’’ theory.This is quite different from what the firm had originally planned. Reliance Timeout and Reliance Super are various formats that Reliance has rolled out. 11 . Reliance Mart.

6Ten. REI Agro said: "With organised retailing growing at more than 30% annually. FMCG products and fruits & vegetables.Ludhiana. 6Ten stores are speciality food stores offering products such as grocery items. Sandip Jhunjhunwala. We are targeting the space across states like Punjab & Harayana to deliver world-class products and shopping experience to consumers. The company is planning to open more than 50 stores across the two states in one year. The chain started operations with the simultaneous opening of five stores in Chandigarh.6TEN RETAIL Mumbai: REI Agro had launched of its retail chain. in Punjab and Haryana. there is a huge untapped market for these stores in India." 12 . managing director. Mohali Panchkula and.

OBJECTIVES OF THE STUDY 13 .

To undertake a competitive analysis of all the Organized FMCG Retail Outlets in the city.Objectives 1. To study satisfaction level of customers about Organized FMCG Retail being provided by Relaince Fresh. To suggest improvements to these Organized FMCG Retail Outlets in the city. 8. product range provided by these Organized FMCG Retail Outlets.V Mart. To know about the quality.Subhiksha. 2. 3. More. 14 . 5. 4. 7. To study about the future prospects of Organized FMCG Retail in the city . services. Vishal Mega Mart. To elicit customers views regarding Organized FMCG Retail . To find out the effectiveness of Organized FMCG Retail in the Ludhiana city. Spencer’s. 6Ten. 6. To study about the changes that customers wants in these Organized FMCG Retail Outlets.

RESEARCH METHODOLOGY 15 Research Methodology .

related to organized FMCG retail outlets in the city. close-ended and open-ended questions. The questionnaire was designed to keep objectives of the study with the aim of collecting important information for the study. Research Instrument: A standard questionnaire was prepared for the collection of data from the various respondents. For broader perspective the customers were contacted directly and by there association. Primary Data: Students were personally contacted and the data was collected with the help of questionnaire. COLLECTION OF DATA: For this research project. websites. The questionnaire was so designed so as to contain appropriate no. Sampling technique: All the respondents were selected on random basis.This study is based on survey and fact-findings inquiries with the customers purchasing from organized FMCG retail outlets in Ludhiana. data was collected both from the Primary and Secondary sources. of questions and to satisfy all the research objectives. 1. the respondents are an essential prerequisite.The survey was conducted in Ludhiana only. The questionnaire contained both. magazines. 2. Special care was taken to ensure that questions were simple & sequential. records and. Sample Size: Sample size of 50 respondents was taken. It is aimed to collecting all the relevant data and its optimal usage keeping in mind objectives of the research. 16 . So far every surveyed entity. Secondary Data: The secondary data was collected from catalogues.

Data Usage: For analysis and interpretations only primary data is used. though they are outside the parameters of questionnaire were also included. The data collected from these sources was analyzed using various tools like percentage and weight age analysis method is applied throughout the study for the formulation and analysis of tables 17 . However for the conclusion and recommendations both primary and the secondary data along with the verbal knowledge and information although obtained from students.

INTERPRETATION & ANALYSES 18 Gender wise Distribution of respondents: .

19 Occupation/Profession Of Respondents: .Gender wise Distribution 38% Male Female 62% As FMCG organized retail is concerned more with home managers (women) so no. Out of total respondents 62% are female & 38% are male. of female respondents are taken more as compared with male respondents.

In the profession wise distribution it is found that maximum respondents are housewives.1 Are you aware about the Organized FMCG Retail Outlets in Ludhiana? . 20 Q. Govt. 6% are govt. 18% belong to business background. because they are more related with FMCG goods. 2% are engineers.6% are from private job. employees. 8% are from other backgrounds. Employee Any other Business Doctor After dividing the respondents on the basis of gender. they are further divided according to their profession.House Wife 8% 6% 2% 6% 30% Teacher Private Job 26% 4% 18% Engg. In this it is found that out of total respondents 30% are housewives. 26% are teachers.4% are doctors.

Awareness About Organized FMCG Outlets

Yes No

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

21

Q2 Which Organized FMCG Retail outlets are you aware about?

120% 100% 80% 60% 40% 20% 0%
or e M ar M eg t a M ar S t Re pen ce la in ce r 's Fr Su esh bh ik sh a 6T en M

Aware Not aware

Vi

sh al

V

Aware Relaince Fresh Vishal Mega Mart 6Ten V Mart Spencer's Subhiksha MORE 100% 100% 64% 70% 82% 100% 70%

Not Awarwe 0% 0% 36% 30% 18% 0% 30%

This question was asked from the respondents to find out the individual awareness of the organized FMCG retail outlets. In this it is found that all the respondents are aware about the Reliance Fresh, Subhiksha & Vishal mega mart, because these are older outlets in the city as compare to another .Also most of the people were not aware about one of the bigger brand i.e. MORE, because it launched recently in the city. The percentage of awareness of different organized FMCG brands is shown in the above table. 22

Q3 Out of these which you have visited?

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
or e M M ar eg t a M ar S Re pen t ce la in ce r 's Fr Su esh bh ik sh a 6T en M

Visited Not Visited

Vi

sh al

V

Aware Relaince Fresh Vishal Mega Mart 6Ten V Mart Spencer's Subhiksha MORE 86% 92% 62% 56% 72% 82% 36%

Not Awarwe 14% 8% 38% 44% 28% 18% 64%

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

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4 Have you bought any FMCG products from these outlets? Awareness About Organized FMCG Outlets Yes No This question was asked from the respondents to check that either they purchased from these organized retail outlets or not. As the exit interview was conducted in the starting of the project so all the respondents were the customers of these organized retail outlets. 24 .Q.

Subhiksha & Vishal Mega Mart because these were the oldest in the market & had made good reputation in the Ludhiana market.Q5 Out of these organized FMCG retail outlets where do you generally purchase from? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% R e V i l ai sh n c al e F M re eg s a h M a 6T rt e V n Sp M e a Su nce rt bh r's ik s M ha O R E Aware Not Awarwe Aware Relaince Fresh Vishal Mega Mart 6Ten V Mart Spencer's Subhiksha MORE 78% 86% 62% 14% 66% 72% 28% Not Awarwe 22% 14% 38% 86% 34% 63% 72% In this question it was asked from the respondents that from where they generally purchase. 25 Q. In this question it was also found that respondents purchased very less from MORE because it is new in the market. In this it is found that most of the respondents purchased from Relaince Fresh. The purchase pattern of respondents explained in the above table.6 Where were you shopping before buying from these organized FMCG retail outlets? .

26 .34% respondents told that they purchased from nearer karyana store for their FMCG needs.10% 4% 34% Neighbourhood Karyana store Wholesale Market Store which is convenient Any other 52% This question was asked to study past purchase behavior of the respondents. In this 52% respondents told that initially they purchased from wholesale market. In this they were asked that from where were they purchased before buying from these organized FMCG outlets.

7 How much of your monthly budget grocery products are you shopping from these organized FMCG retail outlets? 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 0%-20% 20%-40% 40%-60% 60%-80% More than 80% 1 12% 18% 42% 22% 6% 0%-20% 20%-40% 40%-60% 60%-80% More than 80% This question was asked from the respondents to find out that how much out of their monthly budget were they shopping from these organized FMCG retail outlets. 27 . In this it is found that 42% of the respondents spend 40%-60% of their monthly budget.Q. while only 6% respondents spend more than 80% of their monthly budget.

Q. 28 . In this it is found that 26% of the respondents spent 15%-30% on the food products. how much they spent to purchase food products from the organized retail outlets. while only 6% respondents spent more than 75% to purchase food products from these organized retail outlets.8 Out of the total shopping specify %age expenditure in the following categories at Organized FMCG retail outlets? A) Food Products 8% 12% 6% 24% 0-%15% 15%-30% 30%-45% 45%-60% 60%-75% 24% 26% More than 75% This question was asked from the respondents to find out that out of their total budget in food products.

how much they spent to purchase confectionery from the organized retail outlets. In this it is found that 24% of the respondents spent 30%-45% on confectionery. while only 8% respondents spent more than 75% to purchase confectionery from these organized retail outlets. 29 C)Detergents .B) Confectionery 8% 10% 22% 0%-15% 15%-30% 30%-45% 20% 45%-60% 16% 60%-75% More than75% 24% This question was asked from the respondents to find out that out of their total budget in confectionery.

6% 10% 14% 0%-15% 15%-30% 30%-45% 45%-60% 60%-75% More than75% 26% 28% 16% This question was asked from the respondents to find out that out of their total budget in detergents. while only 6% respondents spent more than 75% to purchase detergents from these organized retail outlets. In this it is found that 28% of the respondents spent 45%-60% on confectionery. 30 D) Vegetables &Fruits . how much they spent to purchase detergents from the organized retail outlets.

In this it is found that 28% of the respondents spent 45%-60% on confectionery. 31 E) Soaps & Sanitary Products: . how much they spent to purchase fruits & vegetables from the organized retail outlets. while only 12% respondents spent 60%-75% to purchase Fruits & detergents from these organized retail outlets.12% 0% 0% -15% 22% 15% -30% 30% -45% 45% -60% 60% -75% M ore than75% 28% 18% 20% This question was asked from the respondents to find out that out of their total budget in vegetables & fruits.

while only 4% respondents spent more than 75% to purchase sanitary products from these organized retail outlets.9What is your average one time purchase at FMCG retail outlets in rupees? . how much %age they spent to purchase sanitary products from the organized retail outlets. 32 Q. In this it is found that 24% of the respondents spent 45%-60% on confectionery.8% 4% 24% 0%-15% 15%-30% 30%-45% 45%-60% 60%-75% More than75% 24% 18% 22% This question was asked from the respondents to find out that out of their total budget in Soaps & sanitary products.

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Below10 00 10001500 15002000 More than 2000 1 16% 44% 26% 14% Below1000 1000-1500 1500-2000 More than 2000 This question was asked to the respondents in order to find out their average one time purchase at the organized retail outlets.14% said that they spent more than 2000 at one purchase. while 16% said that they purchase below INR1000 on an average purchase at organized retail outlets. In this 44% of the respondents told that they purchase between 1000-1500 Rs.26% of the respondents told that they spent 1500-2000 at one time purchase at organized retail outlets. 33 . At one time.

34 . The exact %age is shown in the above table. In this question most of the respondents visit the organized retail outlets 2-4 times in a month.10 How many time do you visit the organized FMCG retail outlets in a month? 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Once 2-3 times 3-4 times more than 5 times 1 14% 46% 32% 8% 3-4 times more than 5 times Once 2-3 times In this question I tried to find out the frequency of respondents to visit the organized retail outlets in a month.Q.

decreased or remain same. 35 . Increased 2.11 Do you think by shopping at organized FMCG Retail outlets your monthly Expenditure: 1. While remaining 28% said that their expenditure were reduced by purchasing from organized retail outlets.34% of the respondents replied that their expenditure remain same. In this 38% of the respondents replied that their total expenditure increased by purchasing from the organized retail outlets.Q.Decreased 40% 35% 30% 25% 20% 15% 10% 5% 0% Reduced Remain same Increase d 1 28% 34% 38% Reduced Remain same Increased In this question the respondents were asked that by purchasing from organized retail outlets their monthly expenditures increased.Remain same 3.

18% purchased due to reasonable price.13 Are you satisfied with the quality of goods offered by the organized FMCG Retail outlets from where you generally purchase? .Q. 36 Q. 14% purchased from organized retail outlets because it save time. then 26% of the respondents told that they purchased due to product range. 8% prefer the display of the products & remaining 4% liked the enviournment of the organized retail outlets.18% due to good quality.12 What are your reasons for purchasing from these organized FMCG retail outlets? Better Quality Reasonable Price 12% 8% 14% 4% 26% Display Of Products Discounts&Pro motional Schemes 18% Good Enviournment Time Saving 18% Product Range When the respondents were asked to specify the reasons which influence them to purchase from these organized FMCG retail outlets.12% liked the discounts & promotional schemes.

37 Q14 Are you satisfied with the range offered by organized FMCG retail outlets from where you generally purchase? .60% 50% 40% 30% 20% 10% 0% Highly Satisfied Satisfied Neutral Dissatisfi ed Highly Dissatisfi ed Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied 1 28% 54% 10% 8% 0% In this question the respondents were asked that are they satisfied with the quality of the goods offered by these organized retail outlets.10% neutral. In this 54% of the respondents replied that they are satisfied with the quality. In this it is found that most of the respondents were satisfied with the quality of the goods. 28% were highly satisfied. & 8% are dissatisfied with the quality provided by organized by FMCG retail outlets.

In this question it was found that 48% of the respondents are highly satisfied with the range offered and only 2% respondents were there who were not satisfied with the range of products offered.2% 14% 0% 36% Highly Satisfied Satisfied Neutral Dissatisfied 48% Highly Dissatisfied This question is asked from the respondents in order to find out that what kind of range are they offer as well as to check either customers are satisfied or dissatisfied with the range of products offered by organized retail outlet.15 What do you think the service provided by these organized FMCG outlets in comparison to other stores are: . 38 Q.

In this 52% of the respondents were highly satisfied while only 6% of the respondents were dissatisfied from the services provided by these retail outlets. 39 Q.Highly Satisfied 6% 10% 0% 32% Satisfied Neutral Dissatisfied Highly Dissatisfied 52% When respondents were asked to give feedback on the basis of service provided by the organized retail outlets then it was found that most of the respondents were satisfied.16 What are the problems you faced when you shop from these organized FMCG Retail Outlets? .

6% need goods on credit.In this 54% of the respondents told that billing counters are insufficient while 34% said that they need free home delivery. 4% told that sometimes vegetables were not fresh while remaining 2% said that the range is not complete.2%4% 34% 54% 6% Range is not complete Green grocery is not fresh Home delivery is not provided Do not grant credit Insufficient billing counters This question was asked from the respondents in order to found the problems which they had faced while purchasing from the organized retail outlets.17 In future will you spend more at organized FMCG retail outlets? . In this maximum number of respondents said that they faced the problems at billing counters due to long queues. 40 Q.

Definitely Increase 2. Remain Same 4. Only 16% of the respondents said that they don’t want to spend more at organized retail outlets. 41 Q. Definitely Decrease . In this 34% of the respondents told that they will spend more at organized more at organized retail outlets.18 Do you think the market share of unorganized retail will: 1.12% said definitely purchase more from organized retail outlets. Increase 3. 34% were not sure about it. Decrease 5.100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Definitely No No Can't Say Yes Definitely Yes 1 4% 16% 34% 34% 12% Definitely No No Can't Say Yes Definitely Yes This question is asked from the respondents to find out that in future will they spend more at organized retail outlets.

They were asked that what they think market share of unorganized retail outlets in the city will fall down or will increase.19 A) Ranking on the basis of Quality: . In this 47% of the respondents said that market share of unorganized share will decrease while 22% said that it will increase and 15% said that it will remain same. Only 16% of the respondents said that it may increase. In this most of the respondents replied that market share of unorganized retail will definitely decrease.22% 0% 16% Definitely Increase Increase 15% Remain Same Decrease 47% Definitely Decreaese This question was asked from the respondents in order to check their perception about unorganized retail outlets in the city. 42 Q.

Ranking on the basis of Quality 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Subhiksha V Mart Spencer's 6Ten Vishal mega mart More Relaince Fresh 22% 2% 14% 8% 6% 6% 42% Subhiksha V Mart Spencer's 6Ten Vishal mega mart More Relaince Fresh In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Quality. of respondents ranked MORE the big brand launched by Aditya Birla group because its not become so popular in the city yet. The 2nd position is occupied by Subhiksha as 22% respondents spoke in its favor. On the basis of quality most of the respondents ranked Reliance Fresh as no. 1 as 42% of respondents favors it.19 B) Ranking on the basis of Service: . 43 Q. A very less no. In case of quality the third position is occupied by Spencer’s as 14% respondents speaks in its favor.

On the basis of Service 35% 30% 25% 20% 15% 10% 5% 0% Subhiksha V Mart Spencer's 6Ten Vishal mega mart More Relaince Fresh 32% 6% 16% 12% 8% 6% 20% Subhiksha V Mart Spencer's 6Ten Vishal mega mart More Relaince Fresh In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Service provided by them. 44 Q.19 C) Ranking on the basis of Product range: . 1 as 32% of respondents favors it. In case of service the third position is occupied by Spencer’s as 16% respondents speaks in its favor. On the basis of service most of the respondents ranked Subhiksha as no. The 2nd position is occupied by Reliance Fresh as 20% respondents spoke in its favor.

45 Q. The 2nd position is occupied by Subhiksha as 24% respondents spoke in its favor. 1 as 28% of respondents favors it. In case of Product range the third position is occupied by MORE as 18% respondents speaks in its favor.30% 25% 20% 15% Relaince Fresh V-mart Subhiksha 6Ten Spencer's Vishal mega mart more 1 28% 6% 24% 6% 8% 10% 18% 10% 5% 0% Relaince Fresh V-mart Subhiksha 6Ten Spencer's Vishal mega mart more In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Product Range provided by them. On the basis of Product Range most of the respondents ranked Reliance Fresh as no.19 D) Ranking on the basis of Price: .

On the basis of price 30% 25% 20% 15% Relaince Fresh 10% V-mart Subhiksha 5% 6Ten Spencer's Vishal mega mart 0% Relaince Fresh V-mart Subhiksha 6Ten Spencer's Vishal mega mart more 1 26% 10% 24% 8% 8% 12% 12% more In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Prices charged by them. The 2nd position is occupied by Subhiksha as 24% respondents spoke in its favor. 1 as 26% of respondents favors it.19 E) Ranking on the bases of Product Display: . On the basis of Price most of the respondents ranked Reliance Fresh as no. In case of Price the third position is occupied by MORE & Vishal Mega Mart as 12% respondents speaks in each favor. 46 Q.

Ranking on the basis of display 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Relaince Fresh v mart Spencer's 6Ten more Vishal mega mart Spencer's Subhiksha 1 18% 4% 18% 16% 8% 20% 16% Relaince Fresh v mart Spencer's 6Ten more Vishal mega mart Spencer's Subhiksha In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Display of the outlets. 47 Q. On the basis of Display most of the respondents ranked Spencer’s as no.19 F) Ranking on the basis of Time saving: . The 2nd position is occupied by 6TEN & Reliance Fresh as each was supported by 18% respondents. In case of Display the third position is occupied by MORE & Subhiksha as each was supported by 16% of the respondents. 1 as 20% of respondents favors it.

48 .25% 20% 15% 10% Relaince Fresh 5% v mart Spencer's 6Ten more 0% Relaince Fresh v mart Spencer's 6Ten more Vishal mega mart Spencer's Subhiksha Vishal mega mart 1 20% 4% 22% 14% 14% Spencer's Subhiksha 10% 16% In this question the respondents were asked to rank the main organized FMCG retail outlets in the city on the basis of Time saver. 1 as 22% of respondents favors it.The 2nd position is occupied by Reliance Fresh as 20% respondents spoke in its favor. On this basis most of the respondents ranked 6Ten as no. In case of Time saving the third position is occupied by Subhiksha 16% respondents speaks in its favor.

FINDINGS & SUGGESTIONS 49 .

6. the lower class person still prefer to purchase from the local karyana stores. because Customers shifting from unorganized retail outlets to organized retail outlets. 50 . 3. 4. 5. In this study it is found that the customers prefer to purchase from Organized FMCG retail outlets as compare to unorganized retail outlets.FINDINGS 1. product range AS compare to unorganized retail outlets. During the study it come to know that customers spend 40%-50% of their monthly budget at organized FMCG retail outlets. In this study it is found that organized FMCG retail outlets provide better quality. In this study it is also found that organized FMCG retail outlets lacks in the segment of Green Grocery as compare to un organized sector(street hawkers). During study it is observed that these organized retail outlets attracting the middle & upper class customers. 2. In this study it is observed that in future the market share of unorganized retail will reduce.

The organized FMCG retail outlets should also provide the mobile van facility in the areas which are far away from the stores. The organized FMCG retail outlets should also provide the credit facility to the lower class customers so that they can increase their market share. The organized FMCG retail outlets should increase the no. 5. 51 . 2. of billing counters in their outlets.SUGGESTIONS 1. The organized FMCG retail outlets should provide the free home delivery facility. The organized retail outlets should improve the quality of Vegetables & fruits they provide to customers. 3. 4.

CRUX OF THE STUDY 52 .

due to which the organized FMCG retiling become a threat to the local karyana stores & street hawkers. This study also revealed that customer prefer the organized FMCG retailing over unorganized FMCG retailing. Also its found that most of the respondents are satisfied with the quality . 53 . price and product range of the goods provided by organized retail outlets.CONCLUSION The crux of the study is that most of the customers prefer to purchase from organized FMCG retail outlets as compare to unorganized FMCG outlets. During the study its also found that customers were happy from the services provided by organized FMCG outlets. In this study it is found that customers want to spend more at organized retail outlets in comparison to other local Karyana stores.

LIMITATIONS OF THE STUDY 54 .

2. the study was confined to Ludhiana city. The sample was taken on the basis of convenience. The sample size chosen for the purpose was only indicative and not exhaustive owing to time constraints. and every study has some limitations. The respondents replied may be biased in favor of their centers. however good it may be. therefore the shortcomings of the convenience sampling may also be present in this study.LIMITATIONS OF THE STUDY No study is complete by itself. The limitations of this study can be summarized below: 1. 4. 3. Due to the constraints of time. . There were some inherent limitations as far as collection of data is concerned.

55 ANNEXURE .

employee Teacher Any other 1) Are you aware about the organized Retail Outlets in Ludhiana? Yes No 2) Which organized FMCG Retail outlets are you aware about ? Subhiksha 6Ten Spencer’s Reliance Fresh Vishal Mega Mart More V Mart 3) Out of these which you have visited? Subhiksha 6Ten Spencer’s 4) Have you bought any FMCG product from these outlets? Reliance Fresh Vishal Mega Mart More V Mart . Doctor Govt.: _______________________________ GENDER: Male Female PROFESSION/OCCUPATION :HouseWife Private job Business Engg.56 NAME: _______________________________________ CONTACT NO.

Yes No 57 5) Out of these organized FMCG Retail Outlets where do you generally purchase from ? Subhiksha 6Ten Spencer’s 6) Where were you shopping before buying from these organized FMCG Retail Outlets Neighborhood Karyana Store Store which is convenient to you Wholesale Mkt. Any Other Reliance Fresh Vishal Mega Mart More V Mart 7) How much of your monthly budget grocery products are you shopping from these Organized FMCG Retail Outlet ? 10-20% 40-50% More than 70% 8) Out of the total shopping specify %age expenditure in the following categories at organized FMCG retail outlets? 0%-15% Food Products Confectionery Detergents Vegetables & fruits Soaps &Sanitary products 15%-30% 30%-45% 45%-60% 60%-75% 75%-100% 20-30% 50-60% 30-40% 60-70% .

500-2000 1.58 9) What’s your average one time purchase at FMCG Retail Outlets in Rupees ? Below 1000 1.000-1500 2.000-2500 10) How many time do you visit the organized FMCG Retail Outlets in a month ? Once times 11) Do you think by shopping at organized FMCG Retail Outlets your monthly expenditure: Reduced Remain Same Increased 2-3 times 3-5 times more than 5 12) What are your reasons for purchasing from these organized FMCG Retail Outlets ? (mark only 3) Better Quality Good environment Reasonable price Time Saving Product range Display of products Discounts and Promotional schemes 13) Are you satisfied with the quality of goods offered by the organized FMCG Retail Outlets ? Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied 14) Are you satisfied with the range offered by organized FMCG Retail Outlets from where you purchase ? .

please rank players in organized retail in the city on the following parameters (Rank only top 3) Parameters Reliance Fresh Quality Service Product Range Price Subhiksha V-Mart 6Ten Vishal Mega Mart Spencer's More .Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied 59 15) What do you think the service provided by these organized FMCG outlets in comparison to other stores are: Excellent Good Average Poor Very Poor 16) What are the problems you face when you shop from these organized FMCG retail outlets? (specify) Range is not complete Home delivery is not provided Insufficient Billing Counters 17) In future will you spend more at organized FMCG retail outlets ? Definitely Yes Probably Yes Can’t Say Probably Not Definitely No Vegetables/Fruits are not fresh Do not grant credit 18) Do you think the market share of unorganized retail will: Definitely increase Increase Remain same Decrease Definitely decrease 19) On the basis of your perception.

please Mention: 1) _________________________________________________________________ _ 2) _________________________________________________________________ _ 3) _________________________________________________________________ _ THANKS A LOT FOR VALUABLE INFORMATION .Display Time Saving 60 20) What kind of improvements required in these organized FMCG retail outlets.

reportbuyer.61 BIBLIOGRAPHY WEBSITES: www.com www.subhiksha.com www.in www.thirdeyesite.com www. .google.com BOOKS: C R Kothari Research Methodology PUBLISHED CATALOUGES OF DIFFERENT ORGANIZED FMCG RETAIL OUTLETS IN LUDHIANA.com www.reportbuyers.imagesretailing.

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