SYNOPSIS

ON

A STUDY ON CHANGING CONSUMER PREFERENCES TOWARDS ORGANIZED FMCGs RETAIL OUTLETS FROM UNORGANIZED RETAIL OUTLETS (AGRA region)
TO STUDY THE CONSUMER BUYING BEHAVIOR TOWARDS ORGANIZED FMCG R

TO STUDY THE CONSUMER BUYING BEHAVIOR TOWARDS ORGANIZED FMCG RETAIL OUTLETS. TO STUDY THE CONSUMER BUYING BEHAVIOR TOWARDS ORGANIZED FMCG RETAIL OUTLETS.

TO STUDY THE CONSUMER BUYING BEHAVIOR TOWARDS ORGANIZED FMCG RETAIL OUTLETS.

Submitted by : ABHISHEK CHAUDHARY MBA 2 SEM

ABSTRACT

This study on the retail industry, attempts to rigorously analyze the factors which influence the consumers to move towards the organized retailing from unorganized retailing. The study also helps the retailers by revealing the facts regarding the most prioritized attributes of the retail stores which attract the consumers towards them. Objectives of the Study are: to analyze the factors which influence the consumers to prefer organized retailing from unorganized retailing; to analyze the external forces which influence the choice of consumers and how these forces can be accounted for in future to ascertain how are organized retailers perceived; to analysis the most favored retail attributes by consumers and how will they change in future. The organized retailers must give importance to all the attributes like variety, service, discount, mode of payment with special attention to variety of products. The organized retailers must focus on additional facilities like Kids Park, restaurant etc as additional facilities are the one which more fascinates the consumers; consumers are looking for corporate image of the shop, flexibility, infrastructure, layout and display, self service, after sale service and all other similar facilities and so organized retailers must focus on all these areas. Satisfaction level about price in organized formats is comparatively low and so it must be focused. It is also to be noted that in the next level of cities, only departmental stores and supermarkets alone given more priority in organized formats. This study will help the retailers to make an analysis of them and understand where they stand, and in order to move forward in what areas they must focus. It also helps them by providing consumers expectations towards the organized formats so that they can make appropriate arrangements

Selection of Topic
# Selection of Topic This research project Study on changing consumer preferences towards Organised retailing from un-organised retailing (AGRA) is an attempt to find out the change in consumers purchasing behavior, which is shifting towards organized retailing like malls, shopping complexes etc from traditional kirana stores.

OBJECTIVES OF THE STUDY: To analyze the factors which influence the consumers to prefer organized retailing from unorganized retailing. To study the different services provided by the organized and unorganized retail traders. To find out the consumers satisfaction level from organized retail stores as well an unorganized retail stores.

# Purpose and Significance of the study:

Organized retail has started to spread its roots in the Indian market since past one decade and is gradually making mark among all sections of the society. This project report tries to explore the way organized retail has dramatically changed not only the Indian traditional retailing structure by also the consumption behavior. The consumption behavior will examined with the help of a structured questionnaire. The Indian market has seen vast changes in political, economical and social environment, which has a great impact on consumption. With the Indian as well as international corporate entering into the Indian retail scenario the market has been divided between the traditional and the organized sector. The Indian retail scenario is presently facing the similar situations as the mom and pop stores in the developing nations faced at the emergence big box retailers. There are various issues that need to be addressed, like what would be future patterns of consumption, which formats of retail would be preferred by consumers and will the rise of organized retail affect the traditional retailers.

This study will contributes to the understanding that consumers and retailers in most cases have different perceptions in relation to store image and shopping habits, justifying the need for consumer marketing research, which is important in helping retailers, implement in a real marketing orientation. The study will examines the choice of format the consumer has when he or she decides to buy a particular product and also describes the development of organized retail in the future, focusing on aspects with potential effect on purchasing behavior among the consumers. The focus is on consumer expectations. The questions will formulated to capture the overall behavior of the consumers and with the help of the survey questionnaire the analyses will be done. An attempt has been made to explore the way organized retail has dramatically changed not only the Indian traditional retailing structure but also the consumption behavior.

Literature Review

# Literature Review:

Mathew Joseph and Manisha Gupta_September 2008: The Indian retail sector is booming and modernizing rapidly in line with Indias economic growth. In this review the author talked about the impact of organized retailing on traditional retailing. With the increase in number of various formats for shopping like malls, departmental stores, hypermarkets etc the Indian consumers preferences are changing towards and thats the reason foreign investors like the king of retail Wal-Mart also came into the Indian retail ground in collaboration with Bharti. There is a huge untapped market is present in India right now which contains a number of opportunities for retailers.

Sen-2000: Store Image and Consumer Shopping Habits: Indian Context: In India, some empirical studies provide important information about consumer behavior and its responses to the development of organized retail. Economical and social changes are major contributors for a growing fragmentation of consumers into multiple segments with different values and buying priorities. Consumers have become more pragmatic, educated and demanding, learning how to manage money and time more efficiently. The focus on low prices was gradually replaced by a value for money perspective. The study developed by ETIG (Economic Times Intelligence Group, 2002) confirms these tendencies. Concerning food, the most important attribute mentioned was quality, followed by price. Indian consumer has different reasons for preferring different store formats, either modern or traditional; Sen (2000) confirms this in the study undertaken in Indian context. He confirms that in the case of hypermarkets, the main motives for

preferences, in decreasing order are low prices, the possibility of buying everything in the same place and the general appearance of the store. Several investigations emphasize the possible coexistence of different store formats (Chandrasekhar, 2001) and others point out the relationship between the type of store and the type of products. These studies show that, while specialized and traditional stores are preferred for fresh products, hypermarkets are preferred for shopping in general, and also for frozen food, groceries and beverages. The purchase of perishables in hypermarkets is reduced.

Radhakrishnan, 2003: Traditional Retailers Perceptions about Organized Retail As already mentioned, organized retail has deeply changed the Indian commercial structure. However, it is not exclusively responsible, as other changes (economical, social and cultural ones) have occurred simultaneously. Concerning the more direct effects of organized retail on different types of commerce, it is possible to verify that the major impact is felt on traditional retail and, in particular, on the food sector. The impact of organized retail is also significant on other types of retail, namely toys, stationery goods and household appliances; moreover, it is probable that competition gets more intense in other sectors, such as clothing and furniture.

RNCOS (March 15, 2009/24-7 press releases): Increasing trend of organized retailing will drive the growth of convenience-store industry in the world. By 2011, Asia remains the fastest growing convenience store market in the world as the major Asian retail markets registered explosive growth in opening up of new convenience store. Changing consumer preferences, lifestyle and rising income level, which is heavily influenced by economic growth, remains the major driving force for c-store industry in the Asian region. as per "Global Convenience Store Market Analysis".

ICICIdirect.com - March 25, 2011 research report The Indian retail sector is expected to see a transition from unorganized to the organized sector. The share of organized retail is expected to increase from 6% (FY10) to 12.4% in FY14E. Growing purchasing power of the middle class, increasing urbanization as well as population (28%) in the median age group would fuel discretionary spends.

Mathew Joseph and Manisha Gupta, September 2008 The Indian retail sector is booming and modernizing rapidly in line with Indias economic growth. In this review the author talked about the impact of organized retailing on traditional retailing. With the increase in number of various formats for shopping like malls, departmental stores, hypermarkets etc the Indian consumers preferences are changing towards and thats the reason foreign investors like the king of retail Wal-Mart also came into the Indian retail ground in collaboration with Bharti (Since FDI is not allowed in India in retail sector). There is a huge untapped market is present in India right now which contains a number of opportunities for retailers.

RNCOS (March 15, 2009/24-7 press releases) Increasing trend of organized retailing will drive the growth of convenience-store industry in the world. By 2011, Asia remains the fastest growing convenience store market in the world as the major Asian retail markets registered explosive growth in opening up of new convenience store. Changing consumer preferences, lifestyle and rising income level, which is heavily influenced by economic growth, remains the major driving force for c-store industry in the Asian region. as per "Global Convenience Store Market Analysis".

Sarimul Islam Choudhury (Coimbatore: Gearing up for retail revolution 01 Jul 2009) Organized retail in Coimbatore so far is a high street story. Although Coimbatore is the second largest city in Tamil Nadu after Chennai, but it is yet to get attention from large number of retailers the way other cities in India have been receiving. The reason behind, according to the industry sources, is that there is no real catalyst in the form of shopping mall to boost the retail growth in the city. But this long wait has almost come to an end as the city will witness the opening of two gigantic shopping malls during the early part of 2010. With the opening of these two malls Fun Republic and Brookfield Plaza people in Coimbatore

will experience organised retail boom and find quality space for shopping and entertainment.

Research Methodology

# Sampling Design:

1. Sampling unit Respondents of (few malls) 2. Size of sample 100 respondents 3. Sample Method Random Sampling 4. Types of questionnaire Close ended

# Type of Data:

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

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

#Collection of the Primary data:

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

# Sampling Element The study is carried out in AGRA region. The consumers visiting Malls & mom-&-pop shops in these cities were the target respondents.

# Sampling Unit The urban consumers shopping at different mall are the primary unit of analysis. The behavior of these consumers is observed and data is collected through questionnaire method. The individual & family regularly visiting the Malls and mom-&-pop shops for purchase were considered as a sampling unit for the research work. In many cases house wife is the key decision maker and hence she has been selected one of the target respondents for the collection of data.

FORMULATION OF HYPOTHESIS
1. H1:- There is a certain section of the society which prefer to buy from Organised Retail Stores.

H1.1:- The Income of the consumer affects the preference of consumer to buy from an Organised Retail Store. H1.2:- The Economic status of the consumer affects the preference of consumer to buy from an Organised Retail Store. H1.3:- The Age of the consumer affects the preference of consumer to buy from an Organised Retail Store.

H1.4:- The Gender of the consumer affects the preference of consumer to buy from an Organised Retail Store. 2. H2:- The Flexibility and Convenience have effect on the buying potential of the consumer.

Read more: http://www.ukessays.co.uk/essays/management/the-organised-retailindustry.php#ixzz2JrJS2yqq

Objectives To study the different services provided by the organized and unorganized retail traders. To compare the services on the basis of customer's opinion 5.1) Hypothesis of the study H0:- Services offered by organized retail trade are not better than unorganized retail trade.

H1:- Services offered by organized retail trade are better than unorganized retail trade.

SCOPE OFTHE STUDY 1. Geographical scope- The study is covers Kolhapur city as one geographical unit. 2. The time period for this study The retail initiatives during 2000-2009 is taken for the study. 3. Only hypermarkets in Kolhapur city are taken for the study. 4. Registered small grocery shops - Small grocery shops having the registration (shop act license) are taken for the study and the shop keepers having the area less than 400 sq. ft. are taken for the study. 5. Wholesalers in Kolhapur city are taken for the study

Defining Research Variables (Operationalization)

An important step in designing all quantitative research projects is defining or identifying the variables that will be manipulated, measured, described, or controlled. Although qualitative researchers do not define variables to the same extent that quantitative researchers do, they still must outline what kinds of phenomena they are studying. The major types of variables, or phenomena of interest, are described briefly here, with common examples from service-learning research provided. These are presented in terms of labels from the quantitative research approach, but the qualitative tradition includes analogous examples.

Independent Variable (IV): A variable that is selected or controlled by the researcher, to determine its relationship to the observed outcome of the researchalso called explanatory, predictor, or manipulated variable. A common example is whether or not a course section involves service-learning pedagogy. The nature of what is varied should be carefully described so that the attributes of the different interventions or experiences are clear. Dependent Variable (DV): The variable being measured as an outcomealso called outcome, response, criterion, or explained variable. Many examples of dependent variables (variables of interest) are presented in Table 2. Intervening (Mediating) Variables: a hypothetical concept that attempts to explain the relationship between the independent and dependent variables (Baron & Kenny, 1986). Mediating variables, also called process variables, explore why the independent variable is linked to the dependent variable. For example, this might be a concept such as altruism or social responsibility that is presumed to explain why a service-learning course influenced subsequent volunteer behavior. There are statistical methods for evaluating the role of a mediating variable (see David A. Kenny's page on mediation:davidakenny.net/cm/mediate.htm). Moderator Variable: A variable that is related to the direction or strength of the relationship between the independent and dependent variables (Baron & Kenny, 1986). A moderator variable may be qualitative (such as student gender, type of community organization, or type of college) or quantitative (e.g., number of service visits). In addition, it may be related to the strength or the direction of a correlation, or it may interact with the independent variable and the dependent variable. In either case, a moderator variable describes an "it depends" relationship (e.g., the strength of the correlation between two variables depends on the past volunteer experience of the

student). Generally, moderator variables are variables that exist prior to data collection, as opposed to mediating variables that are assumed to occur during the phenomena being studied.

A variable is something that can be changed, such as a characteristic or value. Variables are generally used in psychology experiments to determine if changes to one thing result in changes to another.