CHAPTER 1 INTRODUCTION

RETAIL INDUSTRY IN INDIA

Retail is India's largest industry. It accounts for over 10 per cent of the India's GDP and around 8 per cent of the employment. Retail sector is one of India's fastest growing sectors with a 5 per cent compounded annual growth rate. India's huge middle class base and its untapped retail industry are key attractions for global retail giants planning to enter newer markets. Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian retail is expected to grow 25 per cent annually. It is expected that retail in India could be worth US$ 175-200 billion by 2016.

The Organized Retail Industry in India had not evolved till the early 1990s. Until then, the industry was dominated by the un-organized sector. It was a sellers market, with a limited number of brands, and little choice available to customers. Lack of trained manpower, tax laws and government regulations all discouraged the growth of organized retailing in India during that period. Lack of consumer awareness and restrictions over entry of

foreign players into the sector also contributed to the delay in the growth of organized retailing. A number of factors are driving India's retail market. These include: increase in the young working population, hefty pay-packets, nuclear families in urban areas, increasing working women population, increase in disposable income and customer aspiration, increase in expenditure for luxury items, and low share of organized retailing. India's retail boom is manifested in sprawling shopping centers, multiplex- malls and huge complexes that offer shopping, entertainment and food all under one roof. But there is a flip side to the boom in the retail sector. It is feared that the entry of global business giants into organized retail would make redundant the neighborhoods. Kariyana stores resulting in dislocation in traditional economic structure. Also, the growth path for organized retail in India is not hurdle free. The taxation system still favors small retail business. With the intrinsic complexities of retailing such as rapid price changes, constant threat of product obsolescence and low margins there is always a threat that the venture may turn out to be a loss making one.

A perfect business model for retail is still in evolutionary stage. Procurement is very vital cog in the retail wheel. The retailer has to fight issues like fragmented sourcing, unpredictable availability, unsorted food provisions and daily fluctuating prices as against consumer expectations of round-theyear steady prices, sorted and cleaned food and fresh stock at all times.

Trained human resource for retail is another big challenge. The talent base is limited and with the entry of big giants there is a cat fight among them to retain this talent. This has resulted in big salary hikes at the level of upper and middle management and thereby eroding the profit margin of the business. All the companies have laid out ambitious expansion plans for themselves and they may be hampered due lack of requisite skilled manpower. But retail offers tremendous for the growth of Indian economy. If all the above challenges are tackled prudently there is a great potential that retail may offer employment opportunities to millions living in small town and cities and in the process distributing the benefits of economic boom and resulting in equitable growth.

PRESENT INDIAN RETAIL SCENARIO

The retail industry is divided into organized and unorganized sectors. Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46m) in size. Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc.

These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kariyana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. Unorganized market: Rs. 583,000 cores Organized market: Rs.5, 000 cores 5 times growth in organized retailing between 2000-2005 Over 4,000 new modern Outlets in the last 3 years Over 5,000,000 sq. ft. of mall space under development The top 3 modern retailers control over 750,000 sq. ft. of retail space Over 400,000 shoppers walk through their doors every week 47 global fortune companies & 25 of Asia's top 200 companies are retailers.

Growth in organized retailing on par with expectations and projections of the last 5 Years: on course to touch Rs. 35,000 corers (US$ 7 Billion) or more by 2005-06. The growth factors of the retail sector of Indian economy: Increase in per capita income which in turn increases the household consumption Demographical changes and improvements in the standard of living

 Change in patterns of consumption and availability of low-cost consumer credit Improvements in infrastructure and enhanced availability of retail space Entry to various sources of financing.

EVOLUTION AND TRENDS IN ORGANIZED RETAILING FORMATS AND RETAIL OUTLETS

Historical Indian retail market consisted of weekly markets, village fairs and melas and the 19th century gave birth to the retail outlets which took the form of convenience stores, Mom and Pop stores/ kariyana stores. This helped the consumers on to stick to a particular store for their day to day requirements and also avail the credit purchasing facility. And in the 1980s people have seen the new formats like supermarket, departmental stores and discount stores entering into the Indian retail space. In less than a decade hypermarkets have gained all the applause of the retail market and stood above all the other formats by bringing in the concept of one stop shopping. This stood as an opening door for the new generation of the retail industry. And very soon the malls became the trend setters in the new millennium. This has coined the term of shoppertainment (shopping and entertainment) which can be attributed to the changing life styles of the people.

Hypermarket: It is the largest format in Indian retail so far is a one stop

shop for the modern Indian shopper.

Merchandise: food grocery to clothing to spots goods to books to stationery. Space occupied: 50000 Square feet and above. SKUs: 20000-30000. Example: PETER ENGLAND retails Big Bazaar, RPGs Spencers (Giant), Vishal mega mart.

Supermarket: A subdued version of a hypermarket.

Merchandise: Almost similar to that of a hypermarket but in relatively smaller proposition. Space occupied: 5000 Sq. ft. or more. SKUs: Around 10000. Example: Nilgiris, Apna Bazaar, Trinethra/more.

Convenience store: A subdued version of a supermarket.

Merchandise: Groceries are predominantly sold. Space occupied: Around 500 Sq. ft. to 3000 Sq. ft. Example: stores located at the corners of the streets, Reliance Retails fresh.

Department store: A retail establishment which specializes in selling a

wide range of products without a single prominent merchandise line and is usually a part of a retail chain. Merchandise: Apparel, household accessories, cosmetics, gifts etc. Space occupied: Around 10000 Sq. ft. 30000 Sq. ft. Example: Landmark Groups Lifestyle, Trent India Ltd.s Westside.

Discount store: Standard merchandise sold at lower prices with lower

margins and higher volumes. Merchandise: A variety of perishable/ non perishable goods. Example: Viswapriya Groups Subiksha, Piramals TruMart.

Specialty store: It consists of a narrow product line with deep assortment.

Merchandise: Depends on the stores Example: Bata store deals only with footwear, RPGs Music World, Crossword.

MBOs: Multi Brand outlets, also known as Category Killers. These

usually do well in busy market places and Metros. Merchandise: Offers several brads across a single product category.

Kariyana stores: The smallest retail formats which are the highest in
number (15 million approx.) in India. Merchandise: Mostly food and groceries. Space occupied: 50 sq ft and even smaller ones exist.

Malls: The largest form of organized retailing today located mainly in

metro cities, in proximity to urban outskirts. Merchandise: They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Space occupied: Ranges from 60,000 sq ft to 7, 00,000 sq ft.

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In the above graph it shows that the in India the fastest growing retail segment is food and grocery because in India people spend more on eating. Then dressing because India is now turning to modern age and the people of modern age like to dress well and look well.

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In the above graph it shows that the there are many formats of retailing in India but the specialty store and supermarket is fastest growing formats in India.

MAJOR INDIAN RETAILERS

The low-intensity entry of the diversified Mahindra Group into retail is unique because it plans to focus on lifestyle products. The Mahindra group is the fourth large Indian business group to enter the business of retail after Reliance Industries Ltd, the Aditya Birla Group, and Bharti Enterprises Ltd. The other three groups are focusing either on perishables and groceries, or a range of products, or both. RPG Retail-Formats: Music World, Books & Beyond, Spencers Hyper, Spencers Super, Daily & Fresh

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 The Tata Group-Formats: Westside, Star India Bazaar, Steel junction, Landmark, and Titan Industries with World of Titans showrooms, Tanishq outlets, Chroma. K Raheja Corp Group-Formats: Shoppers Stop, Crossword, Hyper City, in orbit Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International Franchise brand stores. Pyramid Retail-Formats: Pyramid Megastore, TruMart Nilgiris-Formats: Nilgiri's supermarket chain Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain. Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain Vishal Retail Group-Formats: Vishal Mega Mart BPCL-Formats: In & Out Reliance Retail-Formats: Reliance Fresh Reliance ADAG Retail-Format: Reliance World Shoprite Holdings-Formats: Shoprite Hyper Easy Day

Rahejas
Raheja Corp is a success story spanned across decades and continues to achieve higher targets relentlessly for quality performance and service in diverse fields of real realty business, hospitality sector and retailing outfits.

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The group has made an impact on the supply side of the modern day living. A style that has been the dream of new class of consumers, a style encompassing the whole range of consumption pattern of the young and the upcoming consumers that has become synonym with the brand K Raheja Corp. The group has pioneered the trend of setting world class hotels and convention centers across the country with enhanced facilities to meet the business and leisure needs of the international and domestic traveler.

The higher standards set by the group in its pursuit to position India on par with the developed economies of the world and with a vision to be and remain at the commanding height of Real Estate Business.

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Retailing in India is up for transition. It has broken the safe and claustrophobic space of an eggshell and rearing to grow into a giant that will match the retailing practices of the west. K Raheja Corp are the pioneers in organized retail by taking a first giant step to successfully establish a retail store know as "Shopper's Stop" The group is expanding its retail chains across the country on the back of the vast experience it gathered from feedbacks and keen observance of people's taste keeping in tune with its culture, customs, traditions and income. Crossword, Inorbit Mall & Hyper City has set new bench marks on the basis of information and adaptation of worldwide changes, innovations and new techniques in 1991 Shoppers Stop retailing practices. 2000 Crossword Book Store 2004 Inorbit Mall 2006 Hypercity 2008 Inorbit Vashi

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Spencers Retail
Spencer's Retail Limited is one of India's largest and fastest growing multiformat retailers with 220 stores, including 30 large format stores across 35 cities in India. Spencer's focuses on verticals like fresh fruit and vegetables, food and grocery, personal care, garments and fashion accessories, home and office essentials, electrical and electronics. Established in 1996, Spencer's has become a popular destination for shoppers in India with hypermarkets and convenient stores catering to various shopping needs of its large consumer base. Operations Spencer's has retail footage of approximately 1 million square feet and over 220 Spencer's stores in 35 cities. The company operates through the following formats:

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 The Spencer's Hyper stores are destination stores, of more than 15,000 sq. ft in size. They offer everything under one roof. The merchandise ranges from fruits & vegetables, processed foods, groceries, meat, chicken, fish, bakery, chilled and frozen foods, garments and fashion accessories, consumer electronics & electrical products, home decor and needs, office stationeries, soft toys. On an average, a Spencer's hyper stocks 70,000 SKUs across 35,000 items. The Spencer's stores are neighborhood stores ranging from 1500 less than 15000 sq. ft. These stores stock the necessary range and assortment in fruit and vegetables, FMCG food and non-food, staples and frozen foods and cater to the daily and weekly top-up shopping needs of the consumer.

Au Bon Pain
Spencers Retail Limited, has tied up with Au Bon Pain, the Boston -based fast casual dining and bakery caf chain with more than 200 outlets in the
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USA, South Korea, Taiwan and Thailand. A joint venture has been formed between Spencers Retail Limited and Varin Narula which would be the Master Franchisee of Au Bon Pain in India. Varin is the Director & Promoter of Au Bon Pain, Thailand. The outlets will offer the choicest of healthy and nutritious food, bakery products and beverages in a relaxed and casual environment.

Beverly Hills Polo Club

Spencers, has signed an exclusive tie-up with the renowned apparel brand Beverly Hills Polo Club. Beverly Hills Polo Club evokes casual, relaxed yet affluent and elegant Southern Californian lifestyle. It presents product categories in-tune with its image viz, T-Shirts, polos, sweat shirt & sweat pants, causal shirt & trousers, denims, winter wear, eyewear and watches for men and women. Formal shirts & trousers are an added category in the

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menswear segment. It is strategically developed by Spencers for the Indian market with fine product attributes that makes fashion, affordable.

Pantaloon Retail (India) Limited

It is a large Indian retailer, which is part of the Future Group, and operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai, the company has over 1,000 stores across 71 cities in India and employs over 30,000 people
[1]

, and as of

2010, it was the country's largest listed retailer by market capitalization and revenue. With effect from 1 January 2010 the company separated its discount store business, which includes the Big Bazaar hypermarket and the Food Bazaar supermarket businesses, into Future Value Retail Ltd., its wholly-owned subsidiary, so that the company may be listed independently [2][3]. The companys brands include Pantaloons, a chain of fashion outlets, Big Bazaar, a hypermarket chain and Food Bazaar, a supermarket chain. Some of the company's other regional brands include, Depot, Shoe Factory, Brand Factory, Blue Sky, all, Top 10 and Star and Sitara. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and E-Zone focused on catering to the consumer electronics segment.

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Lines of Business
The company is present across several lines of business which have various formats (stores) plywood, The Dollar Store (JV) Fashion - Pantaloons, Central, aLL, Brand Factory, Blue Sky, Top 10, Fashion Station, Big Bazaar, Lee Cooper (JV) General Merchandise - Big Bazaar, Shoe Factory, Navras, Electronics Bazaar, Furniture Bazaar, KB'S FAIR PRICE Electronics - eZone, Electronic Bazzaar, STAPLES (JV) Home Improvement - Home Town Furniture - Collection i, Furniture Bazaar, Home Bazaar E-tailing (Online Shopping) - www.futurebazaar.com

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 Books & Music - Depot Leisure & Entertainment - Bowling Co., F123 Wellness - Star & Sitara, Tulsi Telecom & IT - Gen M, M Bazaar, M-Port, ConvergeM, Future Axiom Consumer Durables - Koryo, Sensei, IPAQ Service - E Care, H Care , Design & Service Malls - Central (Bangalore, Hyderabad, Pune, Mumbai, Vadodara, Gurgaon, Indore, Ahmedabad) Investment & Savings - Insurance: ULIP, Pension, Endowment etc. Stock Information Listed on: Bombay Stock Exchange Stock Code: BOM:523574 Company Timeline 1987 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, Indias first formal trouser brand. 1992 Initial public offer (IPO) was made in the month of May. 1997 Pantaloons Indias family store launched in Kolkata. 2001 Big Bazaar, Is se sasta aur accha kahi nahin - Indias first hypermarket chain launched. 2002 Food Bazaar, the supermarket chain is launched. 2007 Future Group crosses $1 billion turnover mark

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Various Factors affecting Retailing 1. Political

Even though the government is yet to give the sector an Industry status and we see aggressive political protests, some aspects of the Governments policy have been favorable on other fronts. For example- lets take Delhi, NCR and Mumbai. In Mumbai, the Government is releasing unused textile mill land for retail development. In Delhi & NCR, the Government has released large tracts of land for retail development. Overall in politics, those in opposition will always oppose..So is there any point in talking about this? Anyway main points to look out for are: Decision on FDI Governments stand for foreign players

2. Economical
Although the organized retail sector constitutes only 4-5% of the USD 350 billion Indian retail market, it is expected to grow 400%- from USD 12-15 billion currently, to over USD 30.0 billion by 2010. There is hectic activity in the sector in terms of expansion, entry of international brands and retailers as well as focus on technology, operations and processes. All these present a tremendous opportunity in this new high growth industry. A large portion related to economic impact has already been covered in the previous sections.

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The important thing is that the growth of this sector will create a totally new demand in our economy. Households across India are now exposed to products and services they had never seen before, the tempting value proposition and an inviting atmosphere is making them purchase these items. Without the new stores the same money would have been sitting idle in some bank lockers. But now the money is out in market, helping the manufacturers to come out with new and innovative products. A great aggregation is also taking place now.. you can go and buy as much low quantities that you want, and the systems assist you in this because no one is bothered. Imagine what happened in the Shampoo sachet market in India, prior to the entry of Velvet which later transformed the industry landscape...no one was catering to the huge demand of affordable hair care solution. And today sachets hold 76% of the total shampoo market in India... That means at least 60% more demand generation. There is no doubt in my mind that we are seeing something similar in the case of organized retailers though the extent of this demand expansion and its wholesomeness can be debatable.

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3. Social
There has been a demographic shift in India, emergence of a larger middle and upper middle classes and the substantial increase in disposable income has changed the nature of shopping in India from need based to lifestyle dictated. In addition to this, facilities like credit friendliness, availability of cheap finance and a drop in interest rates have changed consumer markets. Organized retail increases the efficiencies in the agriculture sector by removing intermediaries in the food chain; as a result, farmers are getting better prices for their produce. The private retail players can actually
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introduce new technology, seeds, and thus encourage farmers to improve their productivity. Large retailers like Wal-Mart can never impact small kirana stores in India. This is largely due to Indias socio-cultural heterogeneity and consumer choice. The consumer wants small retail. The kirana store and the paan shop are seen as part of community life. Anyway its a long discussion and deserves a separate post in itself.

4. Technological
With increasing competition, slimmer profit margins and diminished returnscost cutting at every point of value chain has become important. Toda ys global retail business strategies utilize technology. Ecommerce, Customer Relationship Management (CRM) software, Enterprise Resource Planning (ERP) and Point of Sale (POS) systems are all vital to retail businesses. Using these technologies retailers can actually gain key insights to further gain market share and increase revenue Indian retailer would feel the need for technology only when he wants to grow beyond a certain point. This is one of the reasons why the traditional grocery is here to stay, with 90% of sales in India done through them

Retail is usually classified by type of products as follows:

Food products Hard goods ("hard line retailers") - appliances, electronics, furniture, sporting goods, etc.

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 Soft goods - clothing, apparel, and other fabrics.

There are the following types of retailers by marketing strategy:

Department stores - very large stores offering a huge assortment of "soft" and "hard goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service. Discount stores - tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands. However the service is inadequate.; General merchandise store - a hybrid between a department store and discount store; Supermarkets - sell mostly food products; Warehouse stores - warehouses that offer low-cost, often highquantity goods piled on pallets or steel shelves; warehouse clubs charge a membership fee; Variety stores or "dollar stores" - these offer extremely low-cost goods, with limited selection; Demographic - retailers that aim at one particular segment (e.g., highend retailers focusing on wealthy individuals). Mom-And-Pop or Kariyana Stores - is a retail outlet that is owned and operated by individuals. The range of products are very selective and

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few in numbers. These stores are seen in local community often are family-run businesses. The square feet area of the store depends on the store holder. Specialty Stores- A typical specialty store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores. Convenience Stores- It is essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases. Hypermarkets- It provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. A classic example is the Metro in Bangalore. Supermarkets- These are self service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000-40,000 square feet. Example: SPAR supermarket.

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 Malls - has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof. Example: Sigma mall and Garuda mall in Bangalore, Express Avenue in Chennai. E-tailers - The customer can shop and order through internet and the merchandise are dropped at the customer's doorstep. Here the retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. However it is important for the customer to be wary about defective products and non secure credit card transaction. Example: Amazon and EBay. Vending Machines - This is an automated piece of equipment wherein customers can drop in the money in machine and acquire the products. For example: Soft drinks vending at Bangalore Airport. Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what income level they target. Other types of retail store include: Automated Retail stores are self service, robotic kiosks located in airports, malls and grocery stores. The stores accept credit cards and are usually open 24/7. Examples include Zoom Shops and Red box. Big-box stores encompass larger department, discount, general merchandise, and warehouse stores. Convenience store - a small store often with extended hours, stocking everyday or roadside items;

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 General store - a store which sells most goods needed, typically in a rural area; Retailers can opt for a format as each provides different retail mix to its customers based on their customer demographics, lifestyle and purchase behavior. A good format will lend a hand to display products well and entice the target customers to spawn sales.

Unorganized Retailing
Unorganized sector on the other hand, refers to the traditional formats of low-cost retailing, for example, hand cart and pavement vendors, & mobile vendors, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hardware shop at the corner of your street selling everything from bathroom fittings to paints and small construction tools; or the slightly more organized medical store and a host of other small retail businesses in apparel, electronics, food etc.

Indian unorganized retail sector

India is the only one country having the highest shop density in the world, with 11 outlets per 1000 people (12 million retail shops for about 209 million households). Rather we can see the democratic scenario in Indian Retail (because of low level of centralization, low capital input and due to a good number of self organized retail). India started its Retail Journey since ancient time.

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In Ancient India there was a concept of weekly HAAT, where all the buyers & sellers gather in a big market for bartering. It takes a pretty long times to & step to shape the modern retail. In between these two concepts (i.e. between ancient retail concept & the modern one there exist modern kirana/ mom and pop shops or Baniya ki Dukan. Still it is predominating in India. So, the Indian retail industry is divided into two sectors- organized and unorganized.

Characteristics of unorganized retail

Small-store (kariyana) retailing has been one of the easiest ways to generate self-employment, as it requires limited investment in land, capital and labour. It is generally family run business, lack of standardization and the retailers who are running this store they are lacking of education, experience and exposure. This is one of the reasons why productivity of this sector is approximately 4% that of the U.S. retail industry. Unorganized retail sector is still predominating over organized sector in India, unorganized retail sector constituting 98% (twelve million) of total trade, while organized trade accounts only for 2%. The reasons might be In smaller towns and urban areas, there are many families who are traditionally using these kariyana shops/ 'mom and pop' stores offering a wide range of merchandise mix. Generally these kariyana

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shops are the family business of these small retailers which they are running for more than one generation. These kariyana shops are having their own efficient management system and with this they are efficiently fulfilling the needs of the customer. This is one of the good reasons why the customer doesnt want to change their old loyal kariyana shop. A large number of working class in India is working as daily wage basis, at the end of the day when they get their wage, they come to this small retail shop to purchase wheat flour, rice etc for their supper. For them this the only place to have those food items because purchase quantity is so small that no big retail store would entertain this. Similarly there is another consumer class who are the seasonal worker. During their unemployment period they use to purchase from this kariyana store in credit and when they get their salary they clear their dues. Now this type of credit facility is not available in corporate retail store, so this kariyana stores are the only place for them to fulfill their needs. Another reason might be the proximity of the store. It is the convenience store for the customer. In every corner the street an unorganized retail shop can be found that is hardly a walking distance from the customers house. Many times customers prefer to shop from the nearby kariyana shop rather than to drive a long distance organized retail stores.

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 These unorganized stores are having n number of options to cut their costs. They incur little to no real-estate costs because they generally operate from their residences. Their labour cost is also low because the family members work in the store. Also they use cheap child labour at very low rates. As they are operating from their home so they can pay for their utilities at residential rates. Even they cannot pay their tax properly. Currently the value of the retail market is estimated at around $ 270 billion with a growth rate of 5.7 per cent per annum according to the Indian retail report which creates a big threat for the small unorganized retailers. The well established organized retail sector in India are Pantaloon Retail, Shoppers Stop, Spencers, Hyper CITY, Lifestyle, Subhiksha & newly emerging Reliance etc. Over 20,000 new retail outlets are expected to open within this segment. Major corporate retail like Wal-Mart and have started to try and take over the Indian retail sector. But in India the unorganized retail is source foods and other necessities of millions of Indians, major link between rural and urban societies. Not only that it is also act like a convenience store for the customer offering right product at right time at right place. In a country with large numbers of people, and high levels of poverty, this model of retail democracy is the most appropriate. So these unorganized retail sector need to be promoted so that they can organize & supply food to Indian consumer.

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CHAPTER 2 LITERATURE REVIEW

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REVIEW OF LITERATURE
Every research which is conducted in today's era has been inspired by some of researcher which is conducted before. I am also influenced to do, so I selected this topic for research. The consumers preferences are changing rapidity and becoming highly diversified. It is difficult for the retail stores to satisfy all the needs of the customers. Most of the consumers want to get some attractive prices, good schemes and offers on every purchases and a shopping comfort as well. Those who are able to purchase their needs and want for a month in a bulk prefer to go to the retail chains. Growth of Retail sector in India

PJ GERMAIN The customer's perception: Customer perception is an important component of our relationship with our customers. Given that 90% plus of our orders at some point involve the phone, how we handle the telephone is essential to creating a perception for our customer that aligns with the company mission of service. Smiling stretches your vocal cords, and gives a more upbeat presentation to the customer. Slowing down ensures that the customers perception is of an organized systematic company that can handle their project. Getting it done right and on time consistently.

Article source: http://www.fibre2fashion.com

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BY SOUMEN CHATTERJEE Unique customer perception (UCP): According to soumen, Unique Customer Perception is what is required by companies instead of Unique Selling Proposition. It is ultimately that customer look for satisfaction based on the picture of perception derived from various sources. If these perceptions of customer can be analyzed then promotion would be easier for customer centric marketing. This has lead to the concept - Customer Perception is the Rule and not Customer Satisfaction.

BY JEN B Brand recognition will change customer perception: According to JenB, for a bigger stronger business you have to get some serious brand recognition happening. People need to know your name before any thing else. You want people to thing of you a certain way too. This is the ticket to getting the image that you want. If you get a lot of blank looks from people that are not current customers then you probably have no recognition at all. That means it is time for an advertising switch. Even if people dont buy the product they will recognized the name. Remembering a business is one step closer to trusting a business. Brand recognition is accomplished only by people seeing your logo and business name over and over again. This will create the repetition that your customers and future customers need to pick your product out of a crowd time and time again.

Article Source: http://www.a1articles.com/article_1035917_15.html

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HUAWEI Satisfy customers perception is the biggest challenge: In meeting customers' requirements and measuring customers' satisfaction indexes, customer perception should be definitely a key consideration. Qualified services in the operation execution layer, technical management layer and business development layer are necessary. It is more important to understand customer expectations and make efforts to exceed their expectations. In customer satisfaction management, the biggest challenge is customer perception management, or customer perception satisfaction. The major characteristics of service is intangible, hence the core value of services is not like a physical product but the spiritual experience and perception of customers. The final aim and ideal effect of service provisioning is to have customers perceive and enjoy the service. Such perception is both at psychological and behaviour levels, and it is the contents of high quality life in the modern society. Customers are seeking for material deliverables as well as perceptive enjoyment when purchasing a service product. Since perceptive enjoyment is a vital service objective, one of the key service management objectives shall be meeting customers' perceptive enjoyment.

Article source: Huawei Technologies Co. Ltd

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TRENT LEYSHAN Creating the right Value Perception for your Customers According to Trent Leyshan Value Perception (VP) is the opinion your potential and current customers have of your product or service. This perception determines the value it adds to them in line with the problems it needs to solve or aspirations they want it to fulfil. Irrespective of your customers opinion being right of wrong in your mind, their opinion matters none the less, in fact, critically so. Some may suggest; But the customer my have it wrong In this instance we respond: whose fault is that: the customer, sales person, sales manager, marketing dept or Company Directors? One this is for sure, it certainly isnt the customers fault. Value cascades down the value deliver system into the customer. A breakdown on any level can be detrimental to a companys success. The customers positive perception, along with an effective sales process will help the customer make the appropriate buying decision. Article source: www.trentleyshan.com

MORGAN STANLEY Studied that Aggressive growth and margin targets: PRIL has set an

aggressive 16-17% same store growth (SSG) target for F2010. This compares with F2009 SSG of 7.0%. The company plans to achieve this target by adopting active merchandise management. First, the company is likely to ensure that its fastest-selling products dont go out of stock. It has increased its order per SKU range from 900-1,400 to 600-6,000 to ensure

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reduced stock outs for fast-selling products. Second, it has put in place a system to continuously monitor underperforming categories/segments/SKUs so that they can be immediately replaced. Third, it has improved product quality and pricing across its merchandise (particularly private label) to ensure market share gains. Fourth, it has now set store-wise, product-wise and SKU-wise, daily/weekly sales targets so that the monitoring and feedback system improves significantly.

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CHAPTER 3 RESEARCH METHODOLGY

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TITLE: Study on Customer Loyalty & Preference towards organized Retail Stores with special reference to Reliance Fresh & Easy Day Research is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique, which provide precise tools, specific procedure and technical rather than philosophical means for getting and ordering the data prior to their logical analysis and manipulation. Different type of research designs is available depending upon the nature of research project, availability of able manpower and circumstances. Research is an original contribution to the existing stock of knowledge making for its advancement search of knowledge through objective & systematic method of finding solution to the problem of research. Every project requires genuine research. Success of any project & getting genuine results from that depends upon the research method used by the research.

DEFINITION A careful investigation or inquiry especially through search for new facts in any Branch of knowledge. The factions that provide base to the research are: Desire to get a research degree along with its consequential benefits. Desire to face challenge in solving the unsolved problem. Desire to get intellectual joy of doing some creative work. Desire to be of service to the society. Desire to get respectability.

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3.1 Selection of the Topic

My topic for research is Study on Customer Loyalty & Preference towards organized Retail Stores with special reference to Reliance Fresh & Easy Day I have selected this topic because this study would help us to find out the consumer preference and their buying behavior towards both organized & unorganized retail stores and this would help both the retailers to know what are the consumer preference and what strategies should they adapt to grab the market.

3.2 Objectives of the Study

To study customer satisfaction level towards organized retail outlets.(with respect to Reliance Fresh & Easy Day) To study the major factors considered by customers while shopping in organized retail shops. To study consumer buying behavior & loyalty towards retail stores.

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3.3 Nature of the Study

It is descriptive because it describes the characteristics about the population & an attempt is made to obtain relevant result regarding the result problem keeping in mind the objective of the study.

3.4 Sampling Procedure and Design

The research design is the blueprint for the fulfillment of objectives and answering questions. It is a framework, which determines the course of action towards the collection and analysis of required data. Sample design is definite plan determine before any data is actually obtaining for a sample from a given population. The researcher must decide the way of selecting a sample. Samples can be either probability samples or non-probability samples. Researchers must prepare/select a sample design which should be reliable and appropriate for his research only. This project is based on convenience sampling.

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3.5 Methods of Data Collection

The data can be collected by two ways: Primary source Secondary source Primary Data: The data collected for the first time by the researcher himself and thus happen to be original in characteristics is called primary data. There are several methods of collecting primary data like questionnaire, Personal interviews etc. Here first-hand information is collected by distributing printed

questionnaires Secondary Data: The data already available is called secondary data or the secondary data are those which have already been collected by someone and which have already been passed through the statistical process. This data may be present in the form of journals, publishings etc. Information is obtained from the reports, journals, internet, management reviews, boards publication etc. Under this report the information are collected from different sources like: Internet Newspapers

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3.5.1 Instrument used here - Questionnaire

The foremost data collecting instrument that has been used is questionnaire. This questionnaire has been design both open and close ended questions. The task of data collection begins after a research problem is being defined and research design chalked out. It serves four basic purposes: (1) Collect the appropriate data, (2) make data comparable and amenable to analysis, (3) Minimize bias in formulating and asking question, and (4) To make questions engaging and varied.

3.5.2 Questionnaire Design

Questionnaires are an inexpensive way to gather data from a potentially large number of respondents. Often they are the only feasible way to reach a number of reviewers large enough to allow statistically analysis of the results. A well-designed questionnaire that is used effectively can gather information on both the overall performance of the test system as well as information on specific components of the system. If the questionnaire includes demographic questions on the participants, they can be used to correlate performance and satisfaction with the test system among different groups of users.

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The steps required to design and administer a questionnaire include: Defining the Objectives of the survey Determining the Sampling Group Writing the Questionnaire Administering the Questionnaire Interpretation of the Results

3.6 Analysis & Interpretation of Data

Data, after collection, has to be analyzed in accordance will the outline laid for the time of developing the research plan. The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exist among data groups. Data presented in raw state appear unrecognized and complex. Statistical processors are used this complex data into some significant understandable form. I analyzed the data

mathematically and then presented the results with the help of pie charts, bar graphs and other charts. After the data collection, various parameters have been used for the purpose of data analysis& the information collected has been presented in different tables & on the basis of these tables analysis &

45

interpretation has been made & the same has been presented in the form of Bar Diagrams, graphs & Pie-Diagrams. Processing of data and analysis has been done by means of printed questionnaires method and many statistical techniques that include percentage analysis, pie chart, histogram which are followed by conclusion and recommendations.

3.7 Scope of the Study

The fundamental to the success of any formal research is sound research design. The scope of the research is to Study of Customer Loyalty & Preference towards organized Retail Stores with special reference to Reliance Fresh & Easy Day. This project is helpful for the students to enhance the knowledge about the various retail stores. To know the factors affecting the consumers choice while purchasing from retail stores. This project is helpful for buyer to make effective buying decision.

3.8 Sampling Method

Sampling method can be classified into three section, followings are: Sample unit: The first step in developing any sample design is to clearly define the set of objectives. Sample unit refer to who are the

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sample target, in this study sample unit are, business class, professionals, executives, students etc. Sample size: It refers to total no. of people included in sample size. As large samples are more reliable and my Sample Size: 100 Type of Question: Close-ended & Open-ended Instrument Used: Questionnaire, Personal Interviews Sample Area: Ambala The study focuses on Ambala, as it is the science city of Haryana and it portrays cross-sections of the society. Mega marts namely Reliance Fresh, Easy day randomly selected for the study. Fifty visiting customers from each mega mart have been personally interviewed with the help of a specially structured questionnaire.

3.8.1 Sampling Technique: It refers to the method incurred for

choosing samples. In this study sample procedure is undertaken is convenience & non probability sampling method is used.

3.8.2 Steps of Selecting the Sample: I used the following steps for
framing the sample of the research: Defined the target population. Determined the sampling frame. Determined if probability or non-probability method will be chosen. Planned the procedure for selecting the sampling units.

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 Determined the sample size. Selected the actual sample units Conduct the field work.

3.9 Significance of the Study

The study is significant because it helps us to analyze the awareness of people towards retail stores It will also help a great deal in understanding consumer perception with regard to the retail stores. It helps to understand the consumers preference while purchasing the product from Retail Stores. It helps in framing effective research outlets. promotional strategies by the

3.10 Limitations of the Study

A study without some constraints is just like an illusion Inspite of the hurdles was a good time for learning experience and exposure to atmosphere and culture but there are certain limitations that every researcher has to face during the research period. I have tried to put my maximum efforts to obtain the best possible data but despite of all hardships,

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I sincerely accept some limitations which were beyond my control in this research. The limitations of the present study can be summarized as follows: Time constraints were the major limitation. It was difficult to get proper information from respondents. Research area was limited; study in limited geographical area may not be able to give appropriate results. Another problem was knowledge constraint and this report was an attempt to gather as much relevant data as possible. Sample size was 100 only so less possibility of 100% accurate result. The study has been completed during a short span while carrying my own studies. So it was not possible to study the problems well in details. Respondents were not serious about filling the questionnaire. Respondents were lacking in education about questionnaire because of which they took time. Due to lack of awareness it is not possible to get positive response from people. It is also very hard to pursue an employee to share his feelings about their company. Confined to area of Ambala only. The sample was taken on the basis of convenience; therefore the shortcomings of the convenience sampling may also be present in this study.

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CHAPTER 4 DATA ANALYSIS & INTERPRETATION

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Q1. Do you buy from organized retail outlets? Response (%)age of respondents Yes 67 No 33

Buying Decesion
Yes No

33%

67%

Interpretation- Out of 100 respondents 67% like to buy from organized retail outlets whereas remaining 33% respondents not like to purchase from organized retail stores.
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Q2. If yes, then what type of organized stores? Response Reliance fresh (%)age of respondents 45 Easy day 33 any other 22

Type of Store
Reliance Fresh Easy Day Any other

22% 45%

33%

Interpretation-Out of 100 respondents 45% like to buy from Reliance fresh, 33% like to buy from Easy day & remaining 22% like to buy from some other retail store.
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Q3. How often do you shop? Response (%)age of respondents Daily 13 Weekly Fortnightly 23 29 once in a month 35

Shopping Behaviour
Daily Weekly Fortnightly Once in a month

13% 35% 23%

29%

Interpretation-Out of 100 respondents, 35% like to shop once in a month, 29% like to shop fortnightly whereas 23% like to shop weekly and remaining 13% like to shop daily.
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Q4. What do you mostly shop for at mentioned store? Response (%)age of respondents Vegetable Grocery 17 47 cosmetic Product 24 any other 12

Shopping Items
Vegetable Grocery Cosmetic Products any other

12%

17%

24%

47%

Interpretation-Out of 100 respondents, 47% like to buy grocery, 24% like to buy cosmetic products whereas 17% like to buy vegetables & remaining 12% like to buy some other items.
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Q5. Preference of shopping? Response (%)age of respondents Quality Brand 27 19 Price 43 Ambience 11

Preference of Shopping
Quality Brand Price Ambience

11% 27%

43% 19%

Interpretation-Out of 100 respondents, 27% prefer quality while shopping, 19% prefer brand. On the contrary, 43% prefer price & remaining 11% prefer ambience while shopping.
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Q6. Which store do you find more comfortable for shopping? Response (%)age of respondents Organized 87 Unorganized 13

Comfortable Shopping Zone

Oraganised Unorganised

13%

87%

Interpretation-Out of 100 respondents, 87% find organized stores more comfortable for shopping whereas remaining 13% find unorganized store more comfortable for shopping.
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Q7.Do you think is there any price difference between products of organized and unorganized stores? Response (%)age of respondents Yes 73 No 27

Price Difference
Yes No

27%

73%

Interpretation-Out of 100 respondents, 73% think that there is a price difference between the products of organized & unorganized stores. On the other hand, 27% dont think so.
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Q8. Do you think organized stores provide more facilities then unorganized stores? Response (%)age of respondents Yes 83 No 17

Attracted by Facilities
Yes No

17%

83%

Interpretation-Out of 100 respondents, 83% think that organized stores provide more facilities than organized whereas remain 17% dont think so.

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Q9. Do you find any quality difference between the products of both the stores? Response (%)age of respondents Yes 64 No 36

Quality Difference
Yes No

36%

64%

Interpretation-Out of 100 respondents, 64% are of the view that there is a quality difference between product of organized & unorganized store. On the other hand, 36% do not agree.
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Q10. Is the method of payment in organized stores is better than unorganized stores? Response Yes (%)age of Respondents 76 No 24

Method of Payement
Yes No

24%

76%

Interpretation-Out of 100 respondents, 76% are in favour that method of payment in organized store is better than unorganized whereas remaining 24% are not in the favour.
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Q11. Does advertisement and promotional schemes influence your shopping decision? Response (%)age of Respondents Yes 62 No 38

Influence of Advertisement
Yes No

38%

62%

Interpretation- Out of 100 respondents, 62% think that advertisement influence their purchasing decision whereas remaining 38% dont think so.
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Note: Circle your Responses Q12. Please indicate how important or unimportant each of the following characteristics is (With respect to organized retail outlets) Excellent Good (a) (b) (c) (d) (e) Safety Uniqueness Less Consumption Location Parking 46 14 Time 46 48 28 49 40 49 40 48 Fair 3 28 5 12 13 11 Poor 2 11 Very Poor 1 7

Important & Unimportant Characterstics

60 50 40 30 20 10 0 Excellent Good Fair Poor Very Poor (a) Safety (b) Uniqueness (c) Less Time Consumption (d) Location (e) Parking

Interpretation- Out of 100 respondents, majority of customers think that safety, location & parking characteristic in organized retail store is good whereas very few customers think that it is poor.
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Q13. Please indicate the extent to which you agree or disagree with the following utility aspects of organized Retail Outlets. (With respect to organized retail outlets) Strongly Agree Neutral Disagree Strongly Agree Disagree (a) (b) (c) (d) A place to shop A place socialize 32 19 32 31 34 41 28 38 26 5 11 4 13 0 3 0 6

to 26

A place to Enjoy 27 A place experience to 21

Utility Aspects of oragnized Retail Outlets

45 40 35 30 25 20 15 10 5 0 Strongly Agree Agree Neutral Disagree Strongly Disagree

(a) A place to shop (b) A place to socialize (c) A place to Enjoy (d) A place to experience

Interpretation- Out of 100 respondents, majority of customer agree with the aspect that organized retail store is a place to shop, socialize, enjoy & experience whereas very few customers are disagree with this aspect.

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Q14. Please rank the following sales promotion schemes as per the degree of attractiveness. (With respect to organized retail outlets) Cash Discount Lucky Draw Free Gift Financing Facility Guarantee/Warranty Excellent 46 14 46 48 28 Good 49 40 49 40 48 Fair 3 28 5 12 13 Poor 2 11 Very Poor 1 7

11

Sales Promotion Schemes

60

50

40

Cash Discount Lucky Draw

30

Free Gift Financing Facility

20

Guarrantee/Warranty

10

0 Excellent Good Fair Poor Very Poor

Interpretation- Out of 100 respondents, majority of customers think that cash discount, lucky draw & financing facility is good in organized retail stores whereas very few customers think that it is poor.
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Q15. Kindly indicate the importance of each of the following while making a purchase decision. (With respect to organized retail outlets) Excellent Good Fair Poor Very Poor (a) (b) (c) (d) Quality 33 41 38 43 37 19 21 17 41 5 9 8 3 2 3 5 2

Wide Product 29 Assortment Fixed Price Presence International Brands Discounts Packaging Advertisement 27 of 17

(e) (f) (g) (h) (i) (j) (k) (l)

28 14 21

33 40 34 46 40 37 44 41

29 28 26 13 28 41 13 19

7 11 13 9 11 3 11 5

3 7 6 4 7 2 4 2

Display of Products 28 Ambience Value for Money Socio Status 14 17

Economic 28 33

Behavior of Staff

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Important Characterstics while making purchase decesion

50 45 40 35 30 25 20 Excellent 15 10 5 0 Quality Fixed Price Discounts Good Fair Poor Very Poor

Advertisement

Socio Economic Status (k)

Ambience

Presence of International Brands

Wide Product Assortment

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

Display of Products

(i)

(j)

Value for Money

(l)

Interpretation- Out of 100 respondents, majority of customers think that Quality, price & packaging of products are good in organized retail stores. On the other hand, very few customers think that price, quality, brand & packaging are poor in organized retail stores.

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Behavior of Staff

Packaging

Q16. What is your satisfaction level towards the services of organized retail outlets? Response (%)age respondents Highly Satisfied of 43 Satisfied Dissatisfied Highly Dissatisfied 37 13 7

Satisfaction Level
Highly Satisfied Satisfied Dissatisfied Highly Disatisfied

7% 13% 43%

37%

Interpretation- Out of 100 respondents, 43% are highly satisfied with the services of retail stores, 37% are satisfied whereas 13% are dissatisfied and remaining 7% are highly dissatisfied.
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CHAPTER 4 LATEST DEVELOPMENTS

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The factors responsible for the development of the retail sector in India can be broadly summarized as follows: Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes. Liberalization of the Indian economy which has led to the opening up of the market for consumer goods has helped the MNC brands like Kellogg's, Unilever, Nestle, etc. to make significant inroads into the vast consumer market by offering a wide range of choices to the Indian consumers. The Internet revolution is making the Indian consumer more accessible to the growing influences of domestic and foreign retail chains. Reach of satellite T.V. channels is helping in creating awareness about global products for local markets. About 47% of India's population is under the age of 20; and this will increase to 55% by 2015. This young population, which is technology-savvy, watch more than 50 TV satellite channels, and display the highest propensity to spend, will immensely contribute to the growth of the retail sector in the country. As India continues to get strongly integrated with the world economy riding the waves of globalization, the retail sector is bound to take big leaps in the years to come. The Indian retail sector is estimated to have a market size of about $ 180 billion; but the organized sector represents only 2% share of this

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market. Most of the organized retailing in the country has just started recently, and has been concentrated mainly in the metro cities. India is the last large Asian economy to liberalize its retail sector. 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. The retail sector in India is growing at a phenomenal pace leading to job opportunities in different areas. According to the Global Retail Development Index 2012, India ranks fifth among the top 30 emerging markets for retail. The recent announcement by the Indian government with Foreign Direct Investment (FDI) in retail, especially allowing 100% FDI in single brands and multi-brand FDI has created positive sentiments in the retail sector. "There are many factors contributing to the boom in retail sector. To name a few, increased consumerism with a capacity to spend on luxury items and increased spending power in the hands of Indians. More Indians are travelling abroad and are exposed to different cultures and way of life and thereby more brands. India's internal consumption is also high and the consumption pattern owning to diversity in culture, religion and the family values that encourage spending on specific occasions keeps the retail business well oiled. Marriages add a big dimension to the retail spends. Our culture expects a lot of give-and-take for marriages, festivals and other important events of life. Hence, it's imperative for people right from

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rural to the urban, irrespective of their caste and creed or economic status, to spend on gifts as a part and parcel of life. And that's the reason worldwide retailers eye the Indian market," says Swati Salunkhe, managing director, Growth Centre (I) Pvt Ltd. The size of India's retail sector is currently estimated at around $450 billion and organized retail accounts for around 5% of the total market share. Ratings agency Fitch has assigned a stable outlook to the retail sector for 2012 as factors like expected sales, growth-driven expansion and efficient working capital management are likely to benefit retail companies. It is estimated that the retail sector would continue to grow at 10-12 % per annum, which is extremely encouraging when the country's economy is only projected to grow at 6%.

EMERGING AREAS
Within retail, the emerging sectors would be food and grocery, apparel, electronics, e-commerce, fashion and lifestyle. "The upcoming areas within retail are luxury, super specialty stores/ malls, and renewed emphasis on high streets. Unfortunately, malls have become expensive affairs for most of the retailers. Therefore, a huge investment and emphasis has been laid down on e-tailing or online stores that has wider reach and are economically viable," says Darlie Koshy, DG and CEO, Institute of Apparel Management.

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Any professional who has an experience in the retail industry or a relevant qualification in the field of retail industry like visual merchandising, marketing or has pursued a retail course can get into this field.

SKILL-SETS REQUIRED
The training and the skills would be a little different for people working in Indian retail stores and international retail stores. "Conceptual understanding, analytical skills and details, understanding customers and observation skills project management and operating skills are required to work in any retail industry whether Indian or international. Specific aspects required to work in the international retail world would be understanding of global consumer behavior, international standards and retailing strategies, for example, retail expansion strategies. One is required to develop a strategic bent of mind to be able to work in this environment," says Salunkhe. It is also important to understand local culture, know the local language/s, spending patterns on festivals, special seasons, etc, and so on.

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CHAPTER 5 FINDINGS & CONCLUSION

73

FINDINGS
In this study we had find out that in todays world: More than 60% of the total population is interested in shopping from organized retail stores. Majority of customers are young & are females. In this study it is observed that in future the market share of unorganized retail will reduce 60% - 80%, because Customers shifting from unorganized retail outlets to organized retail outlets. During study it is observed that these organized retail outlets attracting the middle & upper class customers, the lower class person still prefer to purchase from the local Kirana Stores. From the utility point of view, majority of customers were more oriented towards discount, location & financing facility. Majority customers like to purchase all goods from Reliance fresh. Majority of customers like to shop once in a month whereas very few customers like to shop daily. Majority of customers like to purchase Grocery & cosmetic product from retail stores whereas very few customers like to purchase vegetable. Majority of customers prefer price & quality while making purchase decision, on the other hand very least bother about brand & Ambience. Majority of customers find organized retail stores more comfortable for shopping as compared to unorganized retail stores.

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 More than 80% of the customers think that there is a price difference between the products of organized & unorganized retail stores. 83% of the customers were attracted towards the facilities provided by organized retail stores as compared to unorganized retail stores. More than 75% of customers think that the method of payment in organized stores is better than unorganized retail stores. More than 60% of the customers think that advertisement & promotional schemes influence their purchasing decision. Majority of customers are highly satisfied with the services of organized retail stores. On the contrary, very few customers are dissatisfied.

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

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CHAPTER 6 SUGGESTIONS

77

SUGGESTIONS
More promotion scheme should be used to penetrate the market. Skilled employees should be higher because mostly customers are young. Promotion scheme should in such way that customer can understand easily. Service of store should be providing in such way which full the need of the customer. The organized retail outlets should improve the quality of Vegetables & fruits they provide to customers. The organized retail outlets should provide the free home delivery facility. The organized retail outlets should increase the no. of billing counters in their outlets. The organized retail outlets should also provide the credit facility to the lower class customers so that they can increase their market share. The organized retail outlets should also provide the mobile van facility in the areas which are far away from the stores. To attract the rural sector customers, mega marts may extend their advertisements offering special sale promotion schemes to the rural areas. The customers are dissatisfied with the safety and parking facilities at the mega marts. Therefore, they should concentrate on developing these aspects properly, besides extending more cash discount and free gifts schemes to attract the customers at a higher level.
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 The mega marts should focus on quality, discount and attractive display of products, as these are very important factors considered by the customers while making purchase decisions. People should not attract towards the facilities provided by organized stores. Sometimes the organized stores charge high prices, so consumer should be aware. Consumers should also have their attention towards the quality of the products.

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ANNEXURE

80

QUESTIONNAIRE Study on Customer Loyalty & Preference towards organized Retail Stores with special reference to Reliance Fresh & Easy Day

Date: ___________________ Name_____________________________________________Age__________________ Place: _______________________________Occupation__________________________ Mob/Contact No: __________________ Email: __________________________________

Q1. Do you buy from organized retail outlets? Yes ( ) No ( )

Q2. If yes, then what type of organized stores? Reliance Fresh ( ) Easy Day ( )

Any Other_______________ (Please Specify)

Q3. How often do you shop? Daily ( ) week ( ) fortnightly ( ) once in month ( )

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Q4. What do you mostly shop for at mentioned store? Vegetables ( ) Grocery ( ) cosmetic product ( ) any other ( )

Q5. Preference of shopping? Quality ( ) Brand ( ) Price ( ) Ambience ( )

Q6. Which store do you find more comfortable for shopping? Organized ( ) Unorganized ( )

Q7.Do you think is there any price difference between products of organized and unorganized stores? Yes ( ) No ( )

Q8. Do you think organized stores provide more facilities then unorganized stores? Yes ( ) No ( )

Q9. Do you find any quality difference between the products of both the stores? Yes ( ) No ( )

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Q10. Is the method of payment in organized stores is better than unorganized stores? Yes ( ) No ( )

Q11. Does advertisement and promotion influence your shopping decision? Yes ( ) No ( )

Note: Circle your Responses Q12. Please indicate how important or unimportant each of the following characteristics is (With respect to organized retail outlets) Excellent Good (a) (b) (c) (d) (e) Safety Uniqueness Less Time Consumption Location Parking Fair Poor Very Poor

83

Q13. Please indicate the extent to which you agree or disagree with the following utility aspects of organized Retail Outlets. (With respect to organized retail outlets) Strongly Agree Neutral Disagree Strongly Agree Disagree (a) (b) (c) (d) A place to shop A place socialize to

A place to Enjoy A place experience to

Q14. Please rank the following sales promotion schemes as per the degree of attractiveness. (With respect to organized retail outlets) Excellent Good Cash Discount Lucky Draw Free Gift Financing Facility Guarantee/Warranty Fair Poor Very Poor

84

Q15. Kindly indicate the importance of each of the following while making a purchase decision. (With respect to organized retail outlets) Excellent Good Fair Poor Very Poor (a) (b) (c) (d) Quality 33 41 38 43 37 19 21 17 41 5 9 8 3 2 3 5 2

Wide Product 29 Assortment Fixed Price 27

Presence of 17 International Brands Discounts Packaging Advertisement Display Products Ambience Value Money 28 14 21 of 28 14 for 17

(e) (f) (g) (h) (i) (j) (k) (l)

33 40 34 46 40 37 44 41

29 28 26 13 28 41 13 19

7 11 13 9 11 3 11 5

3 7 6 4 7 2 4 2

Socio Economic 28 Status Behavior Staff of 33

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Q16. What is your satisfaction level towards the services of organized retail outlets? Highly satisfied ( ) Dissatisfied ( ) Satisfied ( ) Highly Dissatisfied ( )

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BIBLIOGRAPHY

Books: Kotler, Philip, Marketing Management, (2004) Prentice Hall, India Kothari .C.R. , Research Methodology Method and Technology, New Age International Publication, Beri. G.S, Marketing Research, Tata Mc-Graw Hill, New Delhi. Pillai & Bagavathi, Marketing management, New Delhi, sultan Chand & Sons, 1999. David Gilbert, Retail Marketing Management, Prentice Hall, Second Edition, 2003.

Reports: Consumer preference towards organized & unorganized retail stores. Study of Consumer buying behavior in Reliance Fresh. Customers Perception and satisfaction towards organized retail outlets.

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721. Dor, Daniel (2003) Dor, Daniel (2005). Towards a Semantic Account of ThatDeletion in English. Linguistics, 43, 2, 345-382 download here. Dor, Daniel (2003) Babalola, Emmanuel Taiwo. Newspapers as Instruments for Building Literate Communities. The Nigerian. Experience. Nordic Journal of African Studies, 2002 . Atrophization of Minority Languages: Indigenous Folktales to the Rescue. Emmanuel ONANUGA ... The norm of 'objectivity' is internalised and journalists police themselves and 'discretion becomes predictable' (Larson quoted in Soloski 1989: 210; cf. Amy Christine Schmitz Weiss, The University of Texas at Austin. Journalism - 2008 For example, Soloski (1989) identified that journalists are not rewarded on the ... Soloski (1989) stated that promotions to management are possible but that it ...
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Taiwo

BABALOLA,

Paul

Ayodele

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 www.rediff.com www.ril.com www.trentleyshan.com Huawei Technologies Co. Ltd http://www.a1articles.com/article_1035917_15.html http://www.fibre2fashion.com http://EzineArticles.com/?expert=Soumen_Chatterjee

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