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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
and McDonald’s led to rapid growth of organized retail and growing consolidation of the retail industry in the developed countries. It is our responsibility to light the way and take care of them… before the competition does. and Westside. Organized retail is growing rapidly and we see the emergence of large organized retail chains like Shopper’s Stop. 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.4 PREFACE The sea of change can pull customers in many directions. or household use. family. Lifestyle. 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. We also find retail malls mushrooming all over the ABHISHEK PANDEY. LUCKNOW . It covers sales of goods ranging from automobiles to apparel and food products. and services ranging from hair cutting to air travel and computer education. Sales of goods to intermediaries who resell to retailers or sales to manufacturers are not considered a retail activity. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Sears. The retail sector in India is highly fragmented with organized retail contributing to only 2% of total retail sales.
The remarkable world of Retail ABHISHEK PANDEY. The opportunities in retail industry in India will increase since Indian retailing is on the threshold of a major change.5 country. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. The study of retailing is very important to MBA students interested in employment opportunities with large retail chains. LUCKNOW .
6 ABHISHEK PANDEY. LUCKNOW . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
Consumers today can shop for goods & services in a wide variety of retail Org. non business use Any organisation selling to final consumerswhether it is a manufacture. whole seller.7 Retailing including all activities involved in selling goods or services directly to the final consumers for personal. LUCKNOW Department . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. The best. or retailer – is doing retailing.known type of retail is the ABHISHEK PANDEY.
India has approx 12 million retail stores. Modern retail formats have mushroomed in metros and mini-metros. The Indian retail story couldn't have been more different. The first decade of modern retail in India has been characterized by a shift from traditional channels to new formats including department stores. hypermarkets. according to Concise Oxford English Dictionary. the retail segment has performed exceptionally since its inception in the 20th century.ft or 0. exposing the residents of these cities to shopping options.8 Retail.2 trillion ➢ Every 10th billionaire in the world is a retailer. But the per capita square feet area under retail is just 2 sq. to about 15-20 per cent over the next decade. Thus. is "the sale of goods to the public for use or consumption rather than for resale. ➢ 25 of the top 50 Fortune 500 companies are in retail. in the last few years modern retail has also established its presence in the second rung cities. Sample these facts: ➢ Retail is currently the biggest industry in the world with sales of $7. LUCKNOW . more than rest of the world put together. Retailing in India has remained in the unorganized sector and largely untouched by corporate. supermarkets and specialty stores across a range of categories. ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. meters with fragmented keerana stores being the predominant players.2 sq. It has been forecasted that the share of modern retail will increase from 2 per cent currently." World over. they have never experienced before.
➢ 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. one of the largest consuming base in the world. the paradigm shall shift from competing with the kirana stores to an in-house demand creation. consumer driven strategies.8 million in 1998. forming 27% of the total population. The challenge for leading retailers shall therefore shift from diverting demand to creating demand. Relevant experiences from consumer goods companies. which have successfully crafted an explosion in demand in their sectors. LUCKNOW . the average Indian consumer has never had it so good. With the GDP at an all time high and income levels shooting through the roof. through innovation. ambience. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Credit cards are flashed with disdain and shopping baskets are getting bigger all the time. The propensity to consume has reached peaks that had never been scaled before. retailers today will have to support the large retail infrastructure in terms of Malls and Superstores that are being created. Here are some factors that indicate the potential of retail in India: ➢ At 271 million.9 To begin with. service and innovative products. ABHISHEK PANDEY. Times are changing.3 million in 1961 to 4. will be head runner. With all the modern stores offering convenience in terms of an assortment of products. ➢ A high spending community below 45 years comprises 81 percent of the population.
India's middle. LUCKNOW . During the last decade. Retailers need to explore different channels of retailing to cater to customers' needs.and high-income segment notched up an impressive 105 per cent growth. This segment has been triggering the demand for consumer goods. supermarkets and specialty stores across a range of categories. there is a larger role they would be required to play in boosting consumption levels. However. even as modern retailers garner share from traditional channels. The days of brick-and-mortar's limited potential are fading and retailers need to tap the immense opportunities that other channels offer. hypermarkets. In the last few years. They are on the lookout for convenience. efficiency and a wide range of products. Figures suggest that the total turnover of the sector is around Rs 10 lakh crores. Modern retail formats have mushroomed in metros and minimetros. Increased awareness. exposing residents to shopping options like never before. modern retail has also established its presence in the second-rung cities. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. ABHISHEK PANDEY. speed.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. free access to information and choice in competing products and services are making customers redefine the retail business. of which 4 per cent is contributed by the organised sector.
Retailers must provide a seamless multichannel experience for their customers. 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. retailers must seek new ways of capturing the hearts and minds of consumers. For this. The traditional levers of price. The most popular shopping channels include the stores.11 Driven by increasingly intense competition in an increasingly global marketplace. Retailers should be focused on improving the end-to-end shopping experience. Multichannel retailing is all about giving the customer a choice of which shopping channel he or she wishes to purchase products through. boosting sales and winning customer loyalty by connecting to the shopper in every possible way. supply chain efficiencies. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. selection and location — although still important — are no longer sufficient as bases for competitive differentiation. Internet and catalogues and telemarkets (including mobile shopping). LUCKNOW .
going multichannel. the retailer should not ignore the critical part: the customer. In the Pushkar fair live stock like camels. goats. Customers have become more sophisticated and expect a retailer to recognize them. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. cows. We have the Pushkar fair in Rajasthan which brings in a lot of revenue both from domestic buy ers and buyers from abroad.12 • • • Opennew revenue streams by cross-sell & sell ups Reduce cycle time between order and delivery Lower fulfillment cost & Improve demand planning However. A range of exotic items are also available. Traditional rural retail fairs in India deal in a good number of handcrafts ite ms which are mentioned below: ABHISHEK PANDEY. LUCKNOW . The traditional ite ms here are handmade jewelry and other colorful memorabilia of Rajasthan. 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. and sheep are sold as well as bought. horses.
in 2006 it was Maharashtra.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. This fair is held at Haryana which is 8 kilometers from South Delhi. LUCKNOW . The focus every year is on a particular State for instance. The fair has been held for the last 20 years. The fair deals in items categorized as • Indian arts Handicrafts Heritage Culture and tradition Huts of mud Thatched platforms lamps of wood String cots Plainness ground • • • Traditional rural retail fairs have a ty pical rural set up like: • • • • • The small thatched stores are a vibrant display of handcraft items. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
LUCKNOW . 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 fair is open to foreign traditiona l goods as well. Now stores run by families are primarily food based and the set up is as Kirana or the 'corner ABHISHEK PANDEY.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. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Along with the county's rich cultural heritage being showcased. Infact the traditional stores have taken up 98 percent of the Indian retail market. Traditional Family Run Convenience Stores Traditional family run convenience stores are too well established in India than to be wiped out and besides there is uniqueness in the traditional items that represent the sub-continent. The retail stores in India are essentially dominated by the unorganized sector or traditional stores. 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.
The tough competition for convenience stores are coming from organized retail stores dealing in food items. The traditional family run convenience stores can take pride in the fact that the Kirana is the most common outlet forms for the consumers. The food products of traditional family run convenience stores are comprised of branded as well as non-branded items. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. The future of such stores as they face competition from organized sector. If the stores are not food based then the ty pe of retail items available are local in nature. 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. A good example of such would be Convenio. LUCKNOW .15 grocer' stores. 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. Basically they provide high service with low prices. 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.
changing lifesty les.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. It has further been predicted that the retailing industry in India will amount to US$ 21. The convenience factor in terms of items. among people in general can be highlighted as below: • • • • Groceries Fru its Drug Store Necessary stationery As such traditional family run convenience stores are here to stay and cannot be oversized by the organized retail sector besides. Industry of retail in India which have become modern can be seen from the fact that there are multi. 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. and favorable demographic patterns. shopping. and a steep rise in rural consumption. with an employ ment of around 8% and contribu ting to over 10% of the country's GDP. it represents the variety of India Indian retail industry India retail industry is the largest industry in India. and entertainment all under the same roof. huge shopping centers. ABHISHEK PANDEY.200 billion. It is expected that by 2016 mo dern retail industry in India will be worth US$ 175.stored malls. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas.5 billion. Shopping in India have witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. LUCKNOW . and sprawling complexes which offer food.5 billion by 2010 from the current size of US$ 7. rising incomes. Retail industry in India is expected to rise 25% y early being driven by strong income growth.
This has given Indian organized retail market a major boost. the retail industry in India amounted to Rs 10. medium. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. The branded food industry is try ing to enter the India retail industry and convert Indian consumers to branded food. In the Indian retailing industry. Since at present 60% of the Indian grocery basket consists of non.17 India retail industry is expanding itself most aggressively. entertainment. LUCKNOW . India may have 600 new shopping centers. In 2005. Indian organized retail market Indian organized retail market is growing at a fast pace due to the boom in the India retail industry. This change has come in the consumer due to increased income. The organized retail market in India out of this total market accounted for Rs 350 billion which is about 3. The growth in the Indian organized retail market is mainly due to the change in the consumers behavior. ABHISHEK PANDEY.branded items. as a result a great demand for real estate is being created. changing lifesty les. and small grocery stores. comprising of drug stores. It is expected that by 2010.5% of the total revenues. food is the most dominating sector and is growing at a rate of 9% annually. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010. and patterns of demography which are favorable. Most of the organized retailing in India have started recently and is concentrating mainly in metropolitan cities.000 billion accounting for about 10% to the country 's GDP. and shopping all under one roof. 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. Now the consumer wants to shop at a place where he can get food. Traditionally the retail industry in India was largely unorganized.
U.The impact can be best seen in countries like U.A. Malaysia. Indian organized retail market will definitely grow as a result of all this investments. Hong Kong. One such company is the Reliance Industries Limited.K. A number of global retail giants such as Walmart. Bharti Telecoms an Indian company is in talks with Tesco a global giant for a £ 750 million joint venture. LUCKNOW . Indian organized retail market is increasing and for this growth to continue the Indian retailers as well as government must make a combined effort.. Pantaloons is another Indian company which plans to increase its retail space to 30 million square feet with an investment of US$ 1 billion. Sri Lanka and Dubai are also heavily assisted by the retail sector. and Metro AG are also planning to set up shop in India. Economies of countries like Singapore. and 300 new malls are being built.S. It plans to invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500 supermarkets. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Mexico. 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. Carrefour. 325 departmental stores. Many Indian companies are entering the Indian retail market which is giving Indian organized retail market a boost.18 Retail market in the organized sector in India is growing can be seen from the fact that 1500 supermarkets. Thailand and more recently China..
It is also one of the largest world wide. Wal-Mart heads Fortune magazine list of top 500 companies in the world.19 Retail is the second-largest industry in the United States both in number of establishments and number of employees. Retailing is a U. LUCKNOW . ABHISHEK PANDEY. Wal-Mart has become the most successful retail brand in the world due its ability to leverage size. Forbes Annual List of Billionaires has the largest number (45/497) from the retail business.S. The retail industry employs more than 22 million Americans and generates more than $3 trillion in retail sale annually. Already the world’s largest employer with over l million associates. Wal-Mart is the world’s largest retailer. $7 trillion sector. Wal-Mart displaced oil giant Exxon Mobil as the world’s largest company when it posted $219 billion in sales for fiscal 2001. market clout. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. and efficiency to create market dominance.
Inc.S. Carrefour Group The Kroger Co. U.2 Rank 1. 5.S. Metro Home Country U. Germany (Source: STORES / Deloitte Touch Tomahastsu) ABHISHEK PANDEY.A.8 2005 225 7 3. 4.3 1. Inc.7 2002 180 3. 3. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.1 0. LUCKNOW .S.20 GLOBAL RETAIL Total Retail (US$ Billion) Organized Retail (US$ Billion) % Share of Organized retail 1999 150 1. 2.A. France U. Retailer Wal-Mart Stores. The Home Depot.A.
etc. this is expected to decline to 17 by 2006-07. • Shift in consumer demand to foreign brands like McDonalds. About 47% of India’s population is under the age of 20. Looking at income classification. Nestle. • The internet revolution is making the Indian consumer more accessible to the growing influences of domestic and foreign retail chains. Panasonic. and display the highest propensity to spend. watch more than 50 TV satellite channels. to make significant inroads into the vast consumer market by offering a wide range of choices to the Indian consumers. the National Council of Applied Economic Research (NCAER) classified approximately 500Io of the Indian population as low income in 1994-95. LUCKNOW . and this will increase to 55°h by 2015. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. which is technology-savvy.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. will immensely contribute to the growth of the retail sector in the country. channels is helping in creating awareness about global products for local markets. Reach of satellite LV. This young population. • 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. Sony. Unilever. ABHISHEK PANDEY. etc.
ABHISHEK PANDEY. Most of the organised retailing in the country has just started recently. the retail sector is bound to take big leaps in the years to come. close to 2Smn sq.22 As India continues to get strongly integrated with the world economy riding the waves of globalization. ft. India is the last large Asian economy to liberalize its retail sector. A similar phenomenon has swept through all other Asian countries. LUCKNOW . even when compared to Brazil (l4%). but the organised sector represents only 2% share of this market. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. and would help in achieving higher GDP growth. Fuelling this growth is the growth in development of the retail-specific properties and malls. and Poland (12%). At 6%.20% market share by 2010. of retail space is being developed and will be available for occupation over the next 36-48 months. 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. Fitch expects organized retail to capture l5%. The Indian retail sector is estimated to have a market size of about $ 180 billion. more than 40% of all consumer goods are sold through the super markets and departmental stores. According to the estimates available with Fitch. In Thailand. A McKinsey report on India says organised retailing would increase the efficiency and productivity of entire gamut of economic activities. the share of employment of retail in India is low. and has been concentrated mainly in the metro cities. expects the organized retail industry to continue to grow rapidly. especially through increased levels of penetration in larger towns and metros and also as it begins to spread to smaller cities and B class towns. A study conducted by Fitch.
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. display location/adjacencies. Retailers have some unique advantages for managing brands such as continuous and actionable dialogue with consumers. control over shopping environment. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. And they have used this advantage with tremendous success. and signage. The 3 stages of evolution of the trade channel are shown in the exhibit below : Extended Limited Direct ABHISHEK PANDEY. LUCKNOW . control over brand presentation at point-of-sale.
which has obvious implication of backlash of the trade channel upwards towards the suppliers. ABHISHEK PANDEY. the largest grocer in India has a “direct supply” contract with over 20% of its key suppliers. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Therefore when FoodWorld. LUCKNOW . where the channel economics in favour of the middlemen is still strong enough given the fragmentation of the retail sector. 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). This is more severe in countries such as India.24 Manufacture Depo/CNF Manufacture Manufacture / Retailer Depo/CNF Distributo r Retailer Shopper Shoppe r Retailer Shopper As seen. the role of the intermediary is being diminished gradually. it gives rise to conflict of interest with the distribution infrastructure that suppliers have painstakingly built over the years.
FORMAL RETAILING SECTOR 1. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.25 The strategies adopted by the retailer to compete with branded goods are illustrated by the following diagram. Branding the store and following a private label strategy is the key strategy which helps the retailer to compete with branded products. Greater enforcement of taxation mechanisms ABHISHEK PANDEY. LUCKNOW . Typically large retailers 2.
LUCKNOW .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. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
Dedicated brand outlets Nike. 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. Weekender Glow. 2. Manufacturers/ Exporters Pantaloons.27 Tatas: Tata Trent RPG group: Food World. LUCKNOW . Multi-brand outlets Vijay Sales. Zodiac etc 3. Bata. Viveks etc 4. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. DLF(DT cinemas) etc. Reebok. Health and ITC: Wills Life Style Rahejas(ShoppersStop). Hiranandani(Haiko).
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 .
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW .29 4) Exclusive /Multiple Brand Outlets (C)Large Indian retailers 1. Hypermarket 1) Big Bazaar 2) Giants 3) Shoprite 4) Star II Department store 1) Lifestyle ABHISHEK PANDEY.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.30 2) Pantaloons 3) Piramyds 4) Shoppers Stop 5) Trent III Entertainment 1) Fame Adlabs 2) Fun Republic 3) Inox 4) PVR ABHISHEK PANDEY. LUCKNOW .
single-outlet retailers dominate the market .Here also small. b) HEALTH & BEAUTY PRODUCTS With growth in income levels. a few retail chains specializing in these products have come into the market. 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. dominate this sector In comparison.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. who operate small single-outlet businesses mainly using family labour.However in recent years. LUCKNOW . 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. Indians have started spending more on health and beauty products . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
Intense competition among companies to sell their brands provided a strong impetus to the growth for retailers doing business in this sector. However. E) DURABLE GOODS The Indian durable goods sector has seen the entry of a large number of foreign companies during the post liberalization period. A greater variety of consumer electronic items and household appliances became available to the Indian customer. F) LEISURE & PERSONAL GOODS ABHISHEK PANDEY.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. Despite the large size of this market. LUCKNOW . very few large and modern retailers have established specialized stores for these products. in contrast. D) HOME FURNITURE & HOUSEHOLD GOODS Small retailers again dominate this sector. with rapid urbanization. and changing patterns of consumer tastes and preferences. However there is considerable potential for the entry or expansion of specialized retail chains in the country. it is unlikely that the traditional outlets will survive the test of time. modern clothing and footwear stores have modern products and attractive displays to lure customers. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. The unorganized sector still holds a dominant position in this industry. has a large share ABHISHEK PANDEY. Benefit to customer through retailer sector There has been a significant change in retail trading over the years. music products. from small kiranawalas in the vicinity to big super markets. Another prominent feature of this sector is popularity of franchising agreements between established manufacturers and retailers. consumer demand is truly the driving force for organized retailing in the country. There are specialized retailers for each category of products (books. the backbone of the apparel segment. which is expected to reach about US $ 385 billion by the middle of this decade. LUCKNOW . With consumers looking at convenience with multiplicity of choice under one roof and expectations evolving over time. They are followed by apparel and footwear.2% of the current US$ 245 billion retail market. Food and beverages form the main chunk of the retail market. The Indian textile industry. The organized segment holds just about 1. a transition is happening from the traditional retail sector to organized retailing.33 Increasing household incomes due to better economic opportunities have encouraged consumer expenditure on leisure and personal goods in the country. etc.) in this sector.
LUCKNOW .00 sq ft. 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. While this fragmented market structure does pose significant challenges for organized retailing. Today trend is the development of integrated retail cum Entertainment centers or shopping malls. the key outlet or store around which other outlets cluster. the latest trend in this sector is the increasing focus on providing leisure activities such as multiplexes. Critical to these malls is the concept of the anchor. it is estimated that over 90% of the stores are less than 500 sq. eateries etc. The most popular Indian ABHISHEK PANDEY. facilities for kids' entertainment. Good environment in mall. Despite the retail store density in India with regard to population being the largest. Less crowed and These are enclosed. While the number of shopping malls has seen a massive surge in the recent past in the metros and their suburbs. multi-level malls of at least 100. This is clearly indicative of small-shop ownership crowding the unorganized segment of retailing. Industry estimates put the number of retail outlets at 12 million. potential does exist if modern information and supply chain management systems are to support the development of convenience shops that match customer expectations. air-conditioned. ft in size.34 of the Indian economy. accounting for over 20% of industrial production as well as providing direct and indirect employment to around 65 million people. within the mall premises. An increasing number of retailers are focusing on malls now as opposed to stand-alone developments. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
Example for wave and PVR. Qatar. years ago. Employs 24. Landmark Group The Landmark Group. In addition to its retail sector. Pakistan & Egypt. It currently operates over 750 stores across the region with a retail presence in China as well. Oman. to support its retail operations and other businesses. 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. the old single screen theatres are being divided into three-five smaller screens. food. Turnover in excess of US$2. Jordan. UAE.000 personnel. Globus. LUCKNOW . Key Facts 35 Years of retail experience. hotels and electronics and has created a comprehensive infrastructure including its own logistics and distribution division. Pantaloon. Driven by the lucrative tax breaks. China. as was done in the US. Total retail space over 10 million sq ft. Lifestyle and hypermarkets like Big Bazaar and Giant. the Group has also diversified into leisure. Retail Presence across 12 countries: Bahrain. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.35 anchors include Shoppers' Stop. Spain. Operates over 825 stores.5bn. India. Cinemas also often anchor malls. Kingdom of Saudi Arabia. Kuwait. ABHISHEK PANDEY.
with strict adherence to quality and delivering value for money. LUCKNOW . Our doctrine is to strive and maintain the lead in whatever we do. 3. E mpowering people to strive and deliver – Our core strength is our employees. Adapting to changing market and customer needs – We keep ourselves abreast with industry trends and dynamic consumer preferences. We believe in giving our personnel the opportunity and responsibility that are integral to their professional development and our Group’s success. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.36 Core Values of Landmark Group 1. Our offerings keep evolving to address changing and discerning consumer needs. strong ethics and mutual respect. ABHISHEK PANDEY. 2. Integrity in every thing we do .Our business is driven by trust. 4. Passion for excellence – We are committed to setting industry benchmarks – be it our product or practices.
Kuwait. ft. LUCKNOW . Max is being increasingly recognized as a key player in the value retail format.37 Look Good Feel Good • • Max a value retail store for the family was launched in May 2004 in the UAE. Bahrain. by a large team of in-house designers and buyers.000 sq. Qatar. The Largest Value Fashion Chain in the Middle East Products designed and developed exclusively for Max. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Feel good” with Max. Max retails its own label clothing for men. A good shopping experience and great value is an assurance that translates into making customers “Look good. Max plans to expand its network in more potential markets within the Middle East. With stores that ty pically measure between 25. With 75 stores across UAE.000 to 30. Jordan. A pioneer in the Middle East of the global trend of delivering quality and value at very attractive prices. • • • Key Facts Established in 2004. Oman & India. women and children as well as footwear and home ware. Turkey and India to build a significant presence for the brand by targeting to have 100 stores by 2009. ABHISHEK PANDEY. 75 stores spread across 8 countries. Saudi Arabia.
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.
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. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW .
DENIM. SPEGDEE. TUNIC. SLEAVELESS.KNIT TOP. ETHNIC FUSION KURTI ROUND NECK V-NECK ABHISHEK PANDEY. KNIT BOTTOM. DRESS. LUCKNOW . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 3 PIECE PACK (SPORTS. WOVEN BOTTOM. DONGRIE. HALTER NECK TOP. CAPRI. 2 PIECE PACK (NIGT WEAR. WOVEN TOP.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: . SKIRTS). HALF SLEAVES).
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. GORGET. SHIFFON. VISCOS. COTTON. LINEN. LUCKNOW PREPACK 1 2 2 2 . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.ACOBA.
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.FULL SLEAVES KNITTED TOP. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.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.DENIM KNITTED TOP. LUCKNOW .
SLEAVELESS JACKET KNITTED TRACK BOTTOM WOVEN TRACK BOTTOM WOVEN TRACK SHORTS KNIT TRACK SHORTS SIZES.HALF SLEAVES INNER WEAR TRUNK VALUE PACK WEST VALUE PACK Y FRONT VALUE PACK SEMI FORMAL WOVEN BOTTOM.PLEATED WOVEN TOP.44 WOVEN TOP.FULL SLEAVES WOVEN TOP.FULL SLEAVES WOVEN TOP.FLAT FRONT WOVEN BOTTOM. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.FULL SLEAVES KNITTED TOP.H/S BASIC 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.PLEATED WOVEN TOP.SLEAVE LESS WOVEN TOP.HALF SLEAVES SPORTS WEAR KNITTED TOP.F/S BASIC FORMAL WOVEN BOTTOM. LUCKNOW .HALF SLEAVES KNITTED TOP.HALF SLEAVES WOVEN TOP.FLAT FRONT WOVEN BOTTOM.FULL SLEAVES WOVEN TOP.
Check the lock before unlock. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 2. 3. ABHISHEK PANDEY. LUCKNOW . unlock the door at 9:30 am. Switch on optimum lights on floor.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.
Trial rooms are empty. 11. STORE CLOSING 1.46 4. 5. cleaning. 13. 4. Trials rooms are empty and clean before 10:30 am. moppng. 8. LUCKNOW . Switch off Sensomatic on both floors and at entrance. 8. Security in place with complete uniform at back door.T. 9. Lock Manager’s room. 6. music at till point. machine.C. Recycling of Security ags and hangers. Merchandise well present on the floor. Select the housekeeping workdone. Merchandise well present on the floor. at 10:00 am. Switch on A. Switch off all lights. Security in place with complete uniform. 3. 12. Ensure that staff is complete uniform by 10:30 am. 10. Floats issued in tills and dedicated cashier by 10:25 am. Manager signature.C. 2. All the tills closed. Adequate housekeeping staff sould be in store. E. 11. DUTIES &RESPONSIBILITIES OF STORE MANAGER ABHISHEK PANDEY. 7. Switch off A. 10. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.C. 6. Switch off sensomatic. 9. Lock I. Security signature. 12. Switch on the music. 5. room.D. 7.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.47 Duties & Responsibilities Sales Forecasting & Budget Personnel Recruitment. opening and closing store ➢ Reviewing customer complaints ➢ Reviewing computer data forms ➢ Review of overall operations and reports to top management. ➢ ➢ ➢ ➢ DEPARTMENT MANAGERS DETAIL CHECKLIST Cleaning and Dusting Floor cleaned and Mopped Fixture (Clean. preparing bank transactions. Alignment & Breakage) Stock Replenishment All sty le displayed on floor. motivation and evaluation Merchandise Display. Inventory Management and merchandise reorders Handling store receipts. selection. training. 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. LUCKNOW . Trial rooms clean Cash Counters Clean (Merchandise. 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. 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.
arms & back bars. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Distribution Of Target In Departments Let. average bill size. ASM on daily basis CRE DETAIL CHECKLIST ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ Cleaning and dusting of shelves. 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. 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.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. LUCKNOW . ABHISHEK PANDEY. ➢ Maintain DM’s log book on daily basis & acknowledge by SM. tokens and manned) by 10:30 am Try and attend each and every customer. browsers.
566 One weekday target = Rs 6.30.50. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.49 Store target = Rs 50.90.30.000/5 = Rs 1.Rs 3. 9.50.000 Department Target in % = 19% One Month = 8 weekends and 23 week days One Weekend Target = Rs 9. LUCKNOW .50.000/23 = Rs 41304 Total weekend target = Rs 41304*8 = Rs 3.00.000 One Weekend Target = Rs 41304 One Weekday Target = Rs 26937 ABHISHEK PANDEY.19.19.000 Department Target = Rs.566/23 = Rs 26.000.434 Total weekday target = Rs 9.434 = Rs 6.937 CRE target (Monthly) = Rs 9.50.
50 ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW .
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 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 .51 DIPSTICK PARAMETERS Enable retailers to find out about the health of specific area of operation in an instant.
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. LUCKNOW x 100 . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
LUCKNOW .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. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
LUCKNOW . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.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.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.
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 .
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. advertising or store layout. the retailer may need to take a closer look at merchandising practices. Sales Per Square Foot Sales Per Square Foot = Net Sales ABHISHEK PANDEY. LUCKNOW .56 -If the ratio increases. especially pricing -Markdowns may be symptoms of other problems like or buying. Shrinkage to Net Sales Shrinkage to Net Sales = Actual Inventory – Book Inventory x 100 Net Sales -Percentage of net sales lost due to shrinkage -Does not indicate cause of shrinkage but the magnitude of the problem. Occupancy Cost Per Square Foot Selling Space Occupancy Cost Per Square Foot Selling Space = Occupancy Cost Square Feet of Selling Space -Translates into occupancy cost per unit of selling space -In other words the amount that needs to be generated by that unit of space to justify occupancy costs -For multi-unit retailer it is a useful tool to compare the performance of units at different locations.
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. 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. LUCKNOW . Labour Productivity ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.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. LUCKNOW . used to gauge performance of sales employees -Not the only measure but a starting tool.
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. The store layout can be classified into • Grid • Race track • Free form. LUCKNOW . 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. ABHISHEK PANDEY. Creating a store image is like giving a personality to the store For the consumer: A store needs to be simple to navigate. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.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 relationship. and buying habits and the merchandise that he is going to sell. it must appeal to his sensory perceptions and must create a sense of belonging. and makes him relate to the store in a particular manner. their needs.
MAX STORE LAYOUT ABHISHEK PANDEY. LUCKNOW . It links the various departments or the sections inside the store. Race track layout: This layout is popularly found in department stores. merchandise is arranged in an asy mmetrical manner.60 Grid layout: It is most commonly used in a supermarkets and discount stores. 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. It Is a preferred layout in many retail stores that adopt self service. It allows for free movement and is often used in retail outlets to encourage people to browse and shop. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.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. LUCKNOW .
media). products). feel. family. signs.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. The the psy chology of how the consumer is influenced by his or her environment (e. Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome. culture. reason.g. brands. LUCKNOW . and select between different alternatives (e.g.. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. The behavior of consumers while shopping or making other marketing decisions.. ABHISHEK PANDEY.
groups. advertisements must usually be repeated extensively. For example. Consumer behavior involves the use and disposal of products as well as the study of how they are purchased. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. For example. and dispose of products. By understanding the consumer. Product use is often of great interest to the marketer. The impact of consumer behavior on society is also of relevance. it brings up some useful points: • Behavior occurs either for the individual. services. or garbage piling up at landfills) this is also an area of interest. aggressive marketing of high fat foods. Understanding these issues helps us adapt our strategies by taking the consumer into consideration. or aggressive marketing • • • ABHISHEK PANDEY. Consumer behavior involves services and ideas as well as tangible products. but at other times will be persuaded more by emotional or sy mbolic appeals. or in the context of a group (e.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.. Since many environmental problems result from product disposal (e.. • One "official" definition of consumer behavior is "The study of individuals. secure. LUCKNOW . experiences.g. by understanding that a number of different messages compete for our potential customers’ attention. or organizations and the processes they use to select. we will be able to make a more informed decision as to which strategy to employ. 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). or ideas to satisfy needs and the impacts that these processes have on the consumer and society. motor oil being sent into sewage sy stems to save the recycling fee." Although it is not necessary to memorize this definition. we learn that to be effective. because this may influence how a product is best positioned or how we can encourage increased consumption. and How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.g. We also learn that consumers will sometimes be persuaded more by logical arguments. use.
Although physicians were instructed to warn their female patients of this. As a final benefit. that if you liquid ounce bottle of laundry detergent. since they will in turn influence many subsequent customers ’ brand choices. Marty Fishbein. was introduced. study ing consumer behavior should make consumers. 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. a marketing professor. us better buy a 64 per ounce you often • • • ABHISHEK PANDEY. 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. however.. to the rest of the population. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. There are four main applications of consumer behavior: • The most obvious is for marketing strategy—i. we learn to schedule snack advertisements late in the afternoon. In the 1980s. however. by understanding that consumers are more receptive to food advertising when they are hungry. obviously. To get consumers’ attention. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. In practice. using knowledge of consumer attitudes. may have serious repercussions for the national health and economy.64 of easy credit. This.e. and then only gradually. you should pay less than if y ou bought two 32 ounce bottles. a goal that was believed to be more realistic. for making better marketing campaigns. By understanding that new products are usually initially adopted by a few consumers and only spread later. Common sense suggests. LUCKNOW . Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them. for example. was deemed to be infeasible. Social marketing involves getting ideas across to consumers rather than selling something. Unfortunately. A second application is public policy. a number still became pregnant while taking the drug. would be if we could get illegal drug users to stop. Dr. Accutane. As a result. Accutane resulted in severe birth defects if taken by pregnant women. a near miracle cure for acne. The best solution. the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers. Fo r example.
In other words.. LUCKNOW .. a recession may cut demand dramatically. by: • Providing different products (e. for example. we will also need to analy ze our own firm’s strengths and weaknesses and those of competing firms. we need to examine its assets (e. Our main thrust in this course is the consumer. 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. is likely to consider repositioning toward our market. Finally. technology. That is. There are several units in the market that can be analy zed.g. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.65 pay a size premium by buying the larger quantity. This enables us then to "treat" each segment differently—e. while others prefer lime) • Offering different prices (some consumers will take the cheapest product available. in this case. awareness of its brands) against pressures it faces from the market. patents. we need to assess conditions (the marketing environment). Segmentation Segmentation is important in consumer analysis because understanding the consumer will allow us segment the market more meaningfully. However. 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. some consumers like cola taste. For example. A competing firm that targets babies.g.g. a shrinking market. that we make a product aimed at older consumers.. although we may have developed a product that offers great appeal for consumers. culture represents influences that are imposed on the consumer by other individuals. Culture Culture is part of the external influences that impact the consumer. ABHISHEK PANDEY. To assess a competing firm’s potential threat. market knowledge. Suppose. a growing segment. while others will pay for desired features) • Distributing the products where they are likely to be bought by the targeted segment.
for example. Demographics and Social Stratification ABHISHEK PANDEY. For example. • Space is perceived differently. however. in contrast. and multiple tasks may be performed simultaneously. In some cultures. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. The United States has undergone some changes in its predominant culture over the last several decades. while white symbols purity in the U. Again.: • Monochronic cultures tend to value precise scheduling and doing one thing at a time. Americans will feel crowded where people from more densely populated countries will be comfortable. belief. in others. and any other capabilities and habits acquired by man person as a member of society.66 • The definition of culture is "That complex whole which includes knowledge. the percentage of people working extremely long hours has also increased. (See text for more detail). (3) Culture is manifested within boundaries of acceptable behavior. Different perspectives exist in different cultures on several issues.. there are explicit standards as to how a gift should be presented. morals. In some countries. For example. some cultures have more rigid procedures than others. Americans have become less materialistic and have sought more leisure. on the other hand. (4) Conscious awareness of cultural standards is limited. (2) Culture is learned rather than being something we are born with. custom. LUCKNOW . on the average." Culture has several important characteristics: (1) Culture is comprehensive. it should be kept in mind that there are great variations within the culture. e. (5) Cultures fall somewhere on a continuum between static and dynamic depending on how quickly they accept change. art. The text discusses changes in values in more detail. promptness is valued less. the gift should be made publicly to ensure that no perception of secret bribery could be made. Colors that are considered masculine and feminine also differ by culture. • In terms of etiquette. • Symbols differ in meaning. it is a sy mbol of death in China.g. in polychronic cultures. gifts should be presented in private to avoid embarrassing the recipient.S.
a manufacturer of baby food). 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. a large percentage of the population is concentrated among younger generations. while in certain poorer countries. China. the German government has issued large financial incentives. problems occur for firms that are dependent on population growth (e. In countries such as Korea. population growth occurs both through births and immigration. The breakup of a non-marital relationship involving cohabitation is similarly considered equivalent to a divorce. we shift our focus from analyzing specific subcultures to trying to understand the implications for an entire population of its makeup. Several issues are useful in the structure of a population. For example. this has helped stimulate economic growth. Family Decision Making The Family Life Cycle . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. a "couple" may either be married or merely involve living together. and Taiwan. where fewer non-retired people are around to support an increasing number of aging seniors. * For purposes of this discussion. in some rapidly growing countries. in the forms of subsidies. For example. Because Germany actually hovers around negative population growth. Individuals and families tend to go through a "life cycle. this situation is. LUCKNOW . for women who have children. In real life.. Here. however." The simple life cycle goes from child/teenager ---> young single ---> young couple * ---> full nest ---> empty nest ---> widow(er). in contrast. Other countries such as Japan and Germany. it puts pressures on society to accommodate an increasing number of people on a fixed amount of land. a bit more complicated.g. Since the number of births is not growing. Gerber. experience problems with a "graying" society. In the United States. of course. many couples undergo divorce.67 Demographics are clearly tied to subculture and segmentation.
and individuals greatly influence each other. neighbors. many firms use athletes as spokespeople. Some individuals are information gatherers/holders. ○ where to buy it. 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. The Quality Paperback Book specifically suggests in its advertising that its members are "a breed apart" from conventional readers of popular books.68 resources. coworkers. ○ which product to buy (pick-up or passenger car?). The decision maker(s) have the power to determine issues such as: ○ whether to buy. For example. and organizations. and ○ when to buy. For example. the store literally named The Gap came about because many younger people wanted to actively dissociate from parents and other older and "uncool" people. Finally.. clubs. Associative reference groups include people who more realistically represent the individuals’ current equals or near-equals—e. and these represent what many people would ideally like to be. LUCKNOW . The aspirational reference group refers to those others against whom one would like to compare oneself. Diffusion of Innovation ABHISHEK PANDEY. the dissociative reference group includes people that the individual would not like to be like. Reference groups come in several different forms. who seek out information about products of relevance. ○ which brand to buy.g. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Group Influences Humans are inherently social animals. or members of churches.
they are only adopted by a small group of people initially. tends to value progress. even when spread out to a large part of the population. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. the more likely an opinion leaders moderates innovative countries. or ideas to spread among people. will be of interest to far from everyone. in contrast. The United States. In some countries. Cumulative adoptions are reflected by the S-shaped curve. later. The bell shaped curve frequently illustrates the rate of adoption of a new product. to reflect the local norms innovation is to spread. however.e. when new products or ideas come about. LUCKNOW . The two most rapidly adopting countries in the World are the U. While the U. the less likely innovation is to spread. Perception ABHISHEK PANDEY. The style of this influence. ○ Opinion leadership: The more opinion leaders are valued and respected. interestingly scores very low. Some cultures tend to adopt new products more quickly than others... practices. based on several factors: ○ Modernity: The extent to which the culture is receptive to new things. ○ Physical distance: The greater the distance between people. of resistance. the saturation level is nearly one hundred percent of households.S.69 The diffusion of innovation refers to the tendency of new products. In the case of refrigerators in the U. The saturation point is the maximum proportion of consumers likely to adopt a product. Usually. tradition is greatly valued—thus. many innovations spread to other people. the more likely an innovation is to spread—people are more likely to imitate similar than different models. ○ Homophily: The more similar to each other that members of a culture are. and Japan.S. it well below that for video games that. Japan scores high. opinion i. such as Britain and Saudi Arabia.S. In less leaders tend to be more conservative. new products often don’t fare too well.
We thus may develop a preference for the one store over the other. LUCKNOW . for example. Personality. Motivation. Learning involves "a change in the content or organization of long term memory and/or behavior. we may deliberately seek out advertisements and "tune in" when dealer advertisements come on the radio. if we are shopping for a car.70 Background . For example. when we "see" a friend three hundred feet away at his or her correct height. however. Several sequential factors influence our perception. many people will avoid foods that they consumed shortly before becoming ill." The first part of the definition focuses on what we know (and can thus put to use) while the second focuses on concrete behavior. Most of this exposure is random—we don’t plan to seek it out. Exposure involves the extent to which we encounter a stimulus. Our perception is an approximation of reality. Fo r example. Factors in percpetion. radio advertisements. The late Abraham Maslow suggested the intuitively appealing notion that humans must satisfy the most basic ABHISHEK PANDEY. Maslow’s Hierarchy of Needs . we may not be able to give a conscious explanation as to the reason for our preference. certain shapes of ice cream containers look like they contain more than rectangular ones with the same volume. Each of these perspectives suggests different things as to what the marketer should do and what can (and cannot) be controlled. We considered several perspectives on behavior as a way to understand what motivates the consumer. we may experience the sales people in one store being nicer to us than those in the other. we are exposed to numerous commercial messages while driving on the freeway: bill boards. Our brain attempts to make sense out of the stimuli to which we are exposed. Fo r example. Note that each perspective tends to contain a "grain" oftruth and that one should not be too dogmatic in emphasizing one over the others. and signs and banners placed at shopping malls that we pass. and Emotion Perspectives on Consumer Behavior and Motivation . bumper-stickers on cars. our perception is sometimes "off"—for example. This works well. Learning and Memory Background. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. However. however. if pressed. Learning is not all knowledge based.
Thus. Some motivations are publicly expressed (e. • Consumers are motivated to achieve goals.71 objectives before they can move onto "higher level" ones. get a promotion at work) or avoid something (e. ABHISHEK PANDEY. buy a car and save money for retirement) which may conflict. one must be careful not to take it too literally.g. while others (e. since people may occasionally "swing" between needs. the desire to buy an energy efficient house). Only when basic objectives have been met will a person move on to seek such objectives as love and belonging. 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.g. That is.. but not enough to engage in a comprehensive exercise program.g. Individuals may also hold multiple motivations (e. 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). a person may be motivated enough to go and shop fo r food.. a homeless person who currently does not have shelter may seek that out even though he or she is hungry.people may either be motivated to achieve something (e. the desire to look wealthy by buy ing a fancy car) are not. Achieving these goals may require sustained activity over time (e. However. exercising every day for months or years) as opposed to just taking some action once.g. • Motivations may have either a positive or negative valence -. hidden. and only a small minority of people make it as far as seeking self-actualization. Motivation is described through several properties: • Motivation is composed of energy and direction. A person may or may not have enough motivation to engage in a given activity. For example.. eliminate thirst or hunger). • • Many motivations are driven by the desire for tension reduction (e. Maslow’s Hierarchy is useful in understanding different needs of consumers across the World. LUCKNOW . being hospitalized without having adequate insurance). For example..g.g.g... Motivations can be driven by both internal and external factors. • Motives may be overt. and multiple. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Properties of motivation..
For example. Most consumers want some variety (e. a police officer may like and listen to rap music in private. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. the ideal self reflects a self that a person would like to have. The private self is one that is not intentionally exposed to others. Different consumers are motivated to achieve different things. on how the individual’s confidentiality and privacy can be enhanced. The actual self reflects how the individual actually is. but may have no actual athletic ability. The Values and Lifesty le (VA LS) Project. many anorexic consumers who are dangerously thin believe that they are in fact fat).g. Situational Influences. developed by the Stanford Research Institute (SRI). Lifestyles. playing country songs at work where police officers are portrayed as heroes. For example. In contrast. but does not in fact have. but also want a certain stability (they do not want to try an entirely new food every day ). • Motivation reflects individual differences. and it may be possible to market products that help achieve this goal. a couch potato may want to be a World famous athlete. Self-Concept. Self-concept often translates into a person’s lifesty le. for example. Attempts have been made to classify consumers into various segments based on their lifestyles.. If we appeal to the hidden self. The consumer faces several possible selves. and it may be difficult to infer motivations from looking at actual behavior without understanding these differences in desired outcomes. although the consumer may not be aware of that reality (e. and Lifestyle The self-concept . preferring to wear flashy clothes and drive expensive cars.g.72 • Consumers maintain a balance between the desires for stability and variety. The key here is to keep in mind which kind of self we are try ing to reach in promotional messages. attempts to classify people based on a combination of values and resources. Thus. a person may be very materialistic.. LUCKNOW . if appropriate. or prefer instead a simpler life with fewer visible status symbols. For example. For example. but project a public self-image of a country music enthusiast. they do not want to eat the same meal every day ). we must be careful to make our appeals subtle and hint. both "Achievers" and "Strivers" want ABHISHEK PANDEY. 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. Individuals will often seek to augment and enhance their self concepts. or the way that he or she lives his or her life. for example.
A global analogue is the Global Scan. In terms of the "big picture.g. in which case a search for solutions is initiated. and the broader and more ambiguous a problem is.." what is compared may be the totality of one’s lifestyle. or actual. you have a headache and would like as quick a solution as possible) or inactive-. Specific circumstances often influence consumer behavior. a wedding) may buy different products. Consumer decision making comes about as an attempt to solve consumer problems. Consu mer Problem Recognition. the consumer lacks an eraser necessary to take an exam the next day). Situational influences . consumers in a rush are likely to take the most convenient product available. a determination is found as to whether this is large enough to warrant action... A problem may be an active one (e.g. a consumer is aware that his or her car does not accelerate well enough or unacknowledged (e.g. to some desired situation. Consumer Decision Making Definitions . Consumers often note problems by comparing their current.g.. a consumer is not aware that he or she could have more energy with a new vitamin). problems can be major (e. a consumer will not acknowledge that he or she consumes too much alcohol). the more potential solutions are generally available (see class slides for examples). but only the Achievers have the resources to bring this about.. as in the need for ABHISHEK PANDEY.you are not aware that your situation is a problem (e. Problems may be acknowledged (e..g..g.g. explicitly or implicitly. situation. Once a discrepancy is found. A problem refers to "a discrepancy between a desired state and an ideal state which is sufficient to arouse and activate a decision process. needs can be relatively specific (generic)." Thus. Finally. For example. a consumer has been fired and is without a job) or minor (e.73 public recognition. LUCKNOW . Consumers whose attention is demanded elsewhere are likely to disregard commercial messages. Problems come in several different types. Consumers shopping for a special occasion (e. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
For example. as in the need for professional attire to wear at a new job. a firm may publicize current crime statistics to increase the sales of handguns and alarms.74 enjoyment (which can be satisfied many different ways). 508-509 in the text. One way to create new problems. Some are not known (the "unawareness" set). others are ruled out as unsatisfactory (the "inept" set--e.. There are two main approaches to search. This is often done quite arbitrarily in the fashion industry.g. some were once known but are not readily accessible in memory (the "inert" set). by the way. but instead search your memory for fast food restaurants conveniently located. if you decide to go out for fast food. Consumers often do not consider all alternatives. and how ABHISHEK PANDEY.g. as skirt lengths and the appropriate number of buttons on a suit often change arbitrarily up and down. from which one alternative is likely to be purchased. you may not consult any directories. Thus. this medium is able to charge very large advertising rates. albeit a questionably ethical one. Because the yellow pages are often the first place to which people turn. which are discussed on pp. LUCKNOW . It may also be possible to create dissatisfaction with current states--e. The amount of effort a consumer puts into searching depends on a number of factors such as the market (how many competitors are there." As another example. or specific. Glad bags attempts to get "bargain bags" into that set). it may be important for certain firms to advertise to consumers before they actually need the product. Creating problems for consumers is a way to increase sales. 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). Several different methods can be used to detect consumer problems. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. and those that are considered represent the "evoked" set.. they may not deliver in the end). and resultant needs. is to create a new ideal state. Many vocational training schools advertise that better careers than the consumer ’s current one are available upon graduation (a promise on which. are not considered. or have never been heard of. A problem is that some excellent ones which are not remembered. Internal searches are based on what consumers already know. one bail bond company advertised its existence to people "in case you ever find yourself in jail.
specialty and discount stores evolved. For many products. fo r example. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. the evolution of diversity in the retail scene has provided consumers with more choice. 537-541. electronics). or one that he or she remembers that is needed only once inside the store (remember the Wal-Mart article). In general. A special case of the discount store is the category killer--a store that tends to specialize in some limited area (e. unplanned. Consumer Outlet Selection Retail evolution and consumer choice . consumer characteristics (how interested is a consumer. Alternatively. most consumers had access only to "general" stores for most products. Today. In the old day s. Gradually. Impulse purchases are. a shopper may plan to buy vegetables but only decide in the store to actually buy broccoli and corn. but represent a somewhat fuzzy group. a person may buy an item which is currently on sale. consumers frequently have numerous choices as to where they are going to actually obtain the product. but rather because the consumer wants a "change of pace. product characteristics (how important is this product? How complex is the product? How obvious are indications of quality?). LUCKNOW . generally speaking.g. 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. 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. 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. in a specialty store. Several different strategies for influencing consumer decision making are discussed in the text on pp. For example. a consumer may generally choose to buy most products either at a relatively high price.75 great are differences between brands expected to be?). frequently with a significant amount of service. Although we are used to thinking of buy ing automobiles only from dealerships. generally.. in urban environments." and "impulse" purchases. and situational characteristics (as previously discussed). in analyzing product characteristics and making the best possible deal?).
Obviously. A more recent development is Internet based marketing. that position would be untenable. Although many of the concerns that consumers hold about computer crime tend to be exaggerated and/or largely unwarranted. which may well have spillover effects outside the realm of the Net. ABHISHEK PANDEY. consumers. stores which excel on a significant dimension seem to perform better--for example.g. if Nordstrom were to double its prices and even double its service.S. For example.76 from high buying volumes of a narrow assortment of merchandise from the same manufacturer). there is a limit to how strongly you can move toward one extreme. you will probably discuss the issue of the importance of balanced markets--it is healthier if different firms have different strategies. public fears are a major holdback. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.. Stores which fall somewhere in between--e.. Nordstrom’s excels through its intense customer service.. (In a course on marketing strategy or retailing. software) and products/services that require a high level of customization (e. so that everyone will not be competing intensely on the same variables). while Wal-Mart excels through its efficiency and low prices. and certainly the great majority of residents of even highly industrialized countries. "At home" shopping and electronic commerce . is the relative ease with which consumers may compare prices of different retailers. 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. resulting in intense price competition.. Certain products specifically aimed at heavy Internet users (e.S. During the last several decades. Store positioning. it is too early to judge the total potential of this medium. In general.g. LUCKNOW . in a sense attempting to "jump start" this innovation. An interesting problem with Internet commerce. Note that recent legislation has limited taxation of Internet sales in the U. are not regular Internet users. Positioning of retail stores is essential. the incidence of "at home" shopping has increased.g. Sears--tend to do less well since they get "stuck in the middle" and have to compete against both. airline tickets) may find good opportunities. Although sales are modest in this domain at the moment. Another problem is the demographics of computer and Internet use--the majority of U. 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).
Onida or Sony. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. would consumers visit an exclusive showroom of BPL. consumers wanting lower-end watches probably felt that a ty pical Titan showroom was too elitist. LUCKNOW . Does the retail outlet have psychological implications on the target segment? When Titan and Timex watches were retailed through exclusive shops. There are a few interesting and important dimensions associated with consumer behaviour and retail outlet selection.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. Does selection of outlets vary in accordance with ty pes of product categories? While buy ing a TV or a washing machine. 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. 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. which could have had a negative impact.
biscuits and other commodities. Nilgiri's is another example in the South which carries its own brands of chocolates. retailers have been carry ing manufacturers' brands. Retail outlet selection and brand selection ABHISHEK PANDEY. It is providing play areas to ensure a number of families visit its outlets with children. LUCKNOW . supermarkets such as FoodWorld have started carry ing retail or store brands. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. There is research required to handle retail decisions in a competitive context. malls and high-traffic areas. 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. But in recent times (at least to a significant extent in the foods category ). Sunglass Hut is a brand which operates kiosks at various places which displays about 1. 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.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.000 different models along with their prices. Consumers could place an order through these kiosks and the product is home-delivered. A few companies also operate through kiosks in airports.
consumers may think of the retail outlet initially and then the brands (television. brand second (iii) Brand and retail outlet simultaneously. In certain product categories. could be an example). SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 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. This is highly possible. especially in the Indian context where dealers develop a social relationship with consumers. LUCKNOW . retail outlet second (ii) Retail outlet first. A consumer wanting to buy a car may collect information on brands and purchase it fro m a retail outlet based on his perception of price offered or afte rsales service provided by the outlet (ty pically. search for information on brands is followed by retail outlet selection in durables). ABHISHEK PANDEY.79 There are three fundamental patterns. which a consumer can follow and they could be: (I) Brand first. Primary research could be used to discover the specific sequence involved in a situation of this kind. refrigerator and audio products retailed through outlets like Vivek and Co. in the South. 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. especially where `category killers' exist.
why. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. the evoked set could also change from time to time depending on the strategies of brands. The local advertising could be different from the national advertising for the brand. 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 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. price.80 Further. should the POP material be in the regional language. LUCKNOW . and the differences between markets) to formulate retail strategies. 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. promotional deals and ambience. brands like Solidaire.these changes should be captured (how often this happens. 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. This is especially applicable to durables retailing in India (in cities). 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. should product features be used. Retailers attempt to increase consumer traffic by providing a number of `add-ons'. A brand may be advertised on features nationally but the retail outlet in may ABHISHEK PANDEY. display of point-of-purchase material and building the image of the outlet becomes important. 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 . Dy anora and Crown may have been top-of-the-mind (in a specific geographical area) but slowly gave way to other brands . Besides. 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). About two decades ago. This is likely to improve traffic to the outlet. Primary research may be required to identify the brands in the evoked set.should visuals be used. Strategies and sequences Retail outlet first and brand second: When a number of consumers follow this sequence of decision-making.
consumers may turn to a different retailer. This model puts the brand in focus and reinforces the positive association a consumer may have about it. a shop-in-shop arrangement may be preferable. Brand and retail outlet simultaneously : When consumers think of the brand and retail outlet together. Retail sales personnel also become important in this situation. The prospective consumers are "carried over" to the purchase stage by the store personnel and hence there should be incentive programmes for the store personnel. If the retail outlet is a large one dealing with a number of brands (like Vivek). This is to ensure that the retailers who have a favourable perception among the target segment carry the desired brands. If a company such as BPL or Videocon is dealing with a number of brands/subbrands. The marketer would have to carry out primary research to find out specific markets where consumers have a very positive relationship with retailers. LUCKNOW . A considerable amount of pre-sale service would have to back up the shop-in-shop concept. 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. The shop-in-shop concept creates an aura of exclusivity. which would be to the disadvantage of a retailer who has already won the confidence of consumers. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Consumers tend to have higher expectations about the pre-sale service and the attention given to them. it has to ensure the availability of specific brands which may interest the consumers. The combination of `push-pull' strategy is shown in the table. it means that they have a certain preference for the outlet and would like to check the evoked set of brands there. 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. This is important because of the influence of retailers over the purchase behaviour of consumers in the Indian context. Failing this. 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. The interest generated in the brand would have to be backed by good pre-sale services at the outlet.81 prefer to highlight the effective afte r-sales service associated with the brand as this may be a priority of consumers.
A walk along the main Hagaratganj.5 hectares of prime land. shade and size and all types of food! You'll also find four of Lucknow's supermarkets here. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. With a total of 74 shops.Project deadline: March 2006. not just in terms of size but owing to the names it is planning to bring ABHISHEK PANDEY. all kinds of products in every shape. It is Utterpradesh’ capital with a population nudging 30 lakh as of 2001.Fun Republic Family Entertainment Centre.000 sq mtrs/ 4.Lucknow believes the general feeling that the retail revolution as we know occurs only in the metros. Here.Location: Near Eldeco Greens. Gomti Nagar. Aminabad. Touted as Lucknow’s biggest mall. Gomtinagar Lines areas is like walking through a large shopping mall.Total area: 18. LUCKNOW . you'll find every brand.This city in Utterpradesh has the state's largest shopping mall. All these are changing the way Lucknow shops. This is 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. this is part of the Zee Groups master plan of 25 all-India malls.82 clinch the deal with consumers who may simultaneously consider both the brand and the retail outlet. which is now experiencing a retail revolution of sorts. It also holds the distinction of being one of India's cleanest cities. Two of the largest supermarkets in LUCKNOW are Saharaganj location Hagaratganj run by the Sahara group and wave location in gomti nagar.
ABHISHEK PANDEY.Project deadline: March 2006. LUCKNOW .Location: Near Hoteltaj Residency.000 sq ft.gomti nagar( work in progress) . And this is already happening. 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. Fortuna’s City Malllocation: Near Cms Gomti Nagar.Total Area: 70. Gomti Nagar.Project deadline: By 2007. more modern restaurants and theatres to drive lifestyle changes.Total area: 20. Barista. the project is reportedly 95 per cent sold-out. wave). Both offer valuable lessons in how organised retail in smaller towns can succeed. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Singapore mall. Ladhani’s Taj Multiplex. Despite dramatic changes in the retail scene. Here we profile three leading retailers from Lucknow.83 into the city. Lucknow’s retailers feel the need for a shift in mindset.000 Sq Ft. the fast-growing espresso chain. habits. 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.
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
ABHISHEK PANDEY.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. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW . Data collected through journals. newspapers & internet is SECONDARY type. data has been observed and recorded by the researchers for the first time to their knowledge.e.
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. the primary data has been collected through Questionnaire.88 Me thod of da ta col lect ion This study is a research which utilizes interrogation and observation method for data collection. ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Co llec tion of the Pr imar y da ta As this study is of descriptive type. Method employed to collect data is Questionnaire. LUCKNOW . which are collected afresh and for the first time. Secondary data was obtained from intensive analysis & observation. The secondary data. and thus happen to be original in character. on the other hand. The primary data are those.
the information is sought by way of direct observation without asking from the respondent. LUCKNOW .This processed data is represented by means of suitable graphs & diagrams.89 Ob ser vation method Under the Observation method. if observation is done accurately. The main advantage of this method is that subjective bias is eliminated. ➢ 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. Anal ys is of Da ta Data collected through questionnaire is being processed . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
LUCKNOW .90 ➢ On the basis of above respondents the graph shows that maximum respondents i. It means maximum no of customer are preferred Shopping Malls for purchasing. FAMILY [52 RESPONDENTS] ABHISHEK PANDEY. ➢ YOU PREFER TO GO IN STORE WITH: a. 80 out of 100 are agree that they frequently visit shopping mall for their shopping needs.e. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
It means maximum no of customers are family conscious for visiting retail store.91 b. FRIENDS d.e. 52 out of 100 are preferred to go in store with their family. LUCKNOW . SPOUSE c. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. OTHERS [12 RESPONDENTS] [ 36 RESPONDENTS] [ 0 RESPONDENTS] ➢ On the basis of above respondents the graph shows that maximum respondents i. ➢ 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.
60 out of 100 are preferred multi branded store for shopping. LUCKNOW . It means maximum no of customers are time conscious and desire for many brand under one roof. ➢ HOW OFTEN DO YOU ASK FOR ASSISTENCE FROM STORE STAFF IN SELECTING YOUR PURCHASE? a) ALMOST ALWAYS b) FREQUENTLY c) SOMETIMES d) NEVER [ 12 RESPONDENTS ] [ 16 RESPONDENTS ] [ 60 RESPONDENTS] [ 12 RESPONDENTS ] ➢ On the basis of above respondents the graph shows that maximum respondents i.92 ➢ On the basis of above respondents the graph shows that maximum respondents i. ➢ WHAT DO YOU LOOK FOR IN A PRODUCT DURING YOUR PURCHASE: ABHISHEK PANDEY.e. It means maximum no of customers do not compromise with their choice. 60 out of 100 wanted sometime assistance from store staffs. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.e.
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. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.e. LUCKNOW . 60 out of 100 preferred price during their purchasing. ➢ 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. It means maximum no of customers are price conscious so maximum customers belongs to middle class.
e.94 ➢ On the basis of above respondents the graph shows that maximum respondents i. 60 out of 100 are prefer shopping during fresh season stock. 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 . It means maximum no of customers did not compromise quality with discount and offers. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
SIZE It means maximum no of customers are prefer to the Malls for FASHION ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW .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.
It means maximum no of customers are visiting the store monthly.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. 60 out of 100 are visited the store with in one month.e. ➢ 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. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. LUCKNOW .
➢ :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. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. ➢ HOW DID YOU COME TO KNOW ABOUT MAX? a) NEWSPAPER [ 12 RESPONDENTS] ABHISHEK PANDEY. It means maximum no of customers prefer middle class shopping. LUCKNOW . 40 out of 10 are agree that price of products are reasonable.e.e.97 ➢ On the basis of above respondents the graph shows that maximum respondents i. 52 out of 100 are spend Rs 1000-1999 on shopping. It means maximum no of customers are agree that price of products are equal to the other market rate.
➢ 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.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. It means maximum no of customers are know about the max store by other people reference. LUCKNOW . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 46 out of 100 are know about max store by reference group.
99 ➢ On the basis of above respondents the graph shows that maximum respondents i.e. LUCKNOW . Customers prefer shopping according toWOMEN’S WEAR FOOTWEAR ETHENIC MEN’S. KID’S WEAR ACCESSORIES ABHISHEK PANDEY. ➢ 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. 36 out of 100 are purchasing maximum from women’s wear.e. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 32 out of 100 want discount mailers facility. It means maximum no of customers want every information at their door step.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. It means max retail targeting to the middle class customers. 44 out of 100 prefer MAX for shopping.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. LUCKNOW . ➢ AGE WISE DISTRIBUTION A) <20 B) 20-29 C) 30-39 D) >40 [ 12 RESPONDENTS ] [ 45 RESPONDENTS ] [25 RESPONDENTS ] [18 RESPONDENTS] ABHISHEK PANDEY.
It means maximum no of customers are male in malls due to family responsibility.e. OF FAMILY MEMBER WISE DISTRIBUTION ABHISHEK PANDEY. 58 out of 100 are males.101 ➢ On the basis of above respondents the graph shows that maximum respondents i. LUCKNOW .e. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. ➢ NO. 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 belongs to young age group.
LUCKNOW . ➢ 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. 54 out of 100 having 3-4 members in their family.e. It means maximum no of customers having nucleur family.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. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.
It means maximum no of customers are educated and aware about retail store. Employee.e. 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. ➢ INCOME WISE DISTRIBUTION A)LESS THAN Rs 20. 40 out of 100 are 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.000 C)BETWEEN Rs 40.000 B) BETWEEN Rs 30. LUCKNOW . ➢ OCCUPATION WISE DISTRIBUTION A) STUDENT B) GOV.e.000 TO 40. It means maximum no of customers are self dependent. SERVICE C) PVT. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.000 [ 28 RESPONDENTS ] [ 48 RESPONDENTS ] [ 20 RESPONDENTS ] ABHISHEK PANDEY.001 TO 50.
000 to 40.104 D)MORE THAN Rs 50. ABHISHEK PANDEY.e. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 48 out of 100 are having monthly income between Rs 30. It means maximum no of customers are belonging to upper middle class.000 [ 12 RESPONDENTS ] ➢ On the basis of above respondents the graph shows that maximum respondents i.000. LUCKNOW .
12. 2. Maximum no of customers are belonging to upper middle class. 3. 11. 7. 9. It means maximum no of customers having nucleur family. LUCKNOW . Max retail targeting to the middle class customers.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 educated and aware about retail store. ABHISHEK PANDEY. 10. Maximum no of middle class customers come to max for shopping. 5. 4. 6.Maximum no of customers are family conscious for visiting retail store. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. Maximum no of customer are preferred Shopping Malls for purchasing.105 1. 8. Maximum no of customers belongs to young age group. Maximum no of customers are self dependent. Maximum no of customers are male in malls due to family responsibility.
Maximum no of customers are agree that price of products are equal to the other market rate. 17.Maximum no of customers are visiting the store monthly. 19.Maximum respondents are attracted towards the Store due to this rankingFASHION BRAND PRICE RANGE.Maximum no of customers did not compromise quality with discount and offers.Maximum no of customers are price conscious so maximum customers belongs to middle class.Maximum no of customers prefer middle class shopping. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 18. SIZE 16. 15.Most of the customers know about the MAX retail through other people reference. ABHISHEK PANDEY. LUCKNOW . 14.Maximum no of customers are know about the max store by 20.106 13.
2) Use of secondary data for analysis. They can be pointed as: 1) Conclusions are for Lucknow City only. LUCKNOW . ABHISHEK PANDEY.107 LIM ITATI ONS Every report has its pros and cons so mine also have some limitations. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. 3) Only Zee Mall was present for collection of data so it was tough to collect more respondent.
retailing in India is surely poised for a takeoff and will provide many opportunities both to existing players as well as new entrants. various business houses have already planned for few investments in the coming 2-3 years. more investments will keep flow in..108 4) Respondents were not keen to give the answers of questionnaire. and intensely competitive rivals. And. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. And though the retailers will have to face increasingly demanding customers. The country is witnessing a period of boom in retail trade. LUCKNOW . And the share of organized sector will grow rapidly. ABHISHEK PANDEY. CONCLUSION The past 4-5 years have seen increasing activity in retailing.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. have all resulted in narrowing down the spending differences between the consumers of larger metros and those of smaller towns. is also bringing in slow changes in lifestyle in the smaller towns of India. ABHISHEK PANDEY. directly or indirectly. furnishing stores and chemist shops.109 mainly on account of a gradual increase in the disposable incomes of the middle and upper-middle class households. LUCKNOW . Lastly I want to conclude my project in some points➢ The customers are attracting towards shopping malls & retail outlets. Increase in literacy. New formats like super markets and large discount and department stores have started influencing the traditional looks of bookstores. apart from bringing in sweeping. The retail revolution. positive changes in the quality of life in the metros and bigger towns. More and more corporate houses including large real estate companies are coming into the retail business. ➢ 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. in the form of mall and shopping center builders and managers. exposure to media. greater availability and penetration of a variety of consumer goods into the interiors of the country.
of customers. ➢ 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. ➢ Big retail stores are running customer loyalty programmes which has increased profits and no.110 ➢ The young generation is fashion & show-off conscious so retail outlets are mainly focused on them. LUCKNOW . SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. ➢ The main strength of most of the retail outlets are providing attractive offers to attract customers. ABHISHEK PANDEY.
SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. ➢ 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. ➢ Proper signage’s should be used in retail store ➢ Exchange Policies of retail store should be properly communicated to customers during Sale. ABHISHEK PANDEY. “Catchy & Intelligent schemes”. ➢ Men’s Accessories like Sunglasses and Bracelets can be add up in Accessories section. 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.
➢ Sizes of merchandising should be easily visible or one rack can be made for each size of different style. Bibliog raphy BOOKS:➢ Marketing Management. ----Kotler & Keller ➢ Marketing Management in Indian Perspective ----V. M. ➢ Sizes of the merchandising should be standard. Namakumari ➢ Research methodology ---C. Kothari ---B.R. ---Levy & Weitzs ➢ Quantitative Methods ➢ Retail management ABHISHEK PANDEY. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT. S.112 ➢ To solve the problem of alteration on Sunday. Ramaswamy & S. Company can provide the home delivery of Altered merchandise. Aggarwal. LUCKNOW .
goggle. LUCKNOW .com ➢ www.businessworld.retailbiz.com ➢ www.retailyatra. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.tataretail.net ➢ www.retailindia.com ➢ www.com ➢ www.113 MAGZINES:➢ Business worlds ➢ Indian retail ➢ Economics of India ➢ India today WEBSITES:➢ www.com ➢ www.in ABHISHEK PANDEY.aboutus.
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 Gov.000 Self Employe d Hazratga nj More then 50. Employe e Aliganj 40. Service Mahanag ar 30.00150.000 House wife Indiranaga r Retired Niralan agar o the r THANK YOU ABHISHEK PANDEY. LUCKNOW .117 Occupation Location Household Income (per month) Studen t Gomti nagar Less Than 20. SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT.000 Pvt.00040.