Professional Documents
Culture Documents
INTRODUCTION
The word "Retail" originates from a French-Italian word. Retailer-someone who cuts off or
sheds a small piece from something. Retailing is the set of activities that markets products or
services to final consumers for their own personal or household use. It does this by
organizing their availability on a relatively large scale and supplying them to customers on a
who is instrumental in reaching the Goods or Merchandise or Services to the End User or
Ultimate Consumer.
Retail is India’s largest industry. It accounts for over 10 per cent of the India’s GDP and
around eight 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 favourable demographic
patterns, Indian retail is expected to grow 25 per cent annually. It is expected that retail in
Emerging markets such as India and China are the final frontier for retail taking the focus
away from saturated Western markets. Since 2001, 49 global retailers entered 90 new
The Indian retail industry in valued at about $300 billion and is expected to grow to $427
billion in 2010 and $637 billion in 2015. Only three percent of Indian retail is organized.
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Retailers of multiple brands can operate through a franchise or a cash-and-carry wholesale
model.
The Indian retail environment has attained $ 210bn quiche, witnessing a strong development
pace of five percent per year as per latest survey by Price Waterhouse Coopers. As per the
estimation 200 malls, presenting additional 50mn sq ft of retail space will be ready in next
The analysts foresee bright future of the retail sector. A huge number of shopping malls,
nearly 100, have come up in the recent past, generating 20mn sq ft. retail space, extending
more space of about 12mn sq ft to it. Nearly 60 malls are on the verge of completion and may
be operational by the end of current financial year. A forecasted number of nearly 200 malls,
in a move to make additional 50mn sq ft of retail space, will be completed within the next
two-years.
India retail industry is expanding itself most aggressively, as a result a great demand for real
estate is being created. Indian retailers preferred means of expansion is to expand to other
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regions and to increase the number of their outlets in a city. It is expected that by 2010, India
In the Indian retailing industry, food is the most dominating sector and is growing at a rate of
9% annually. The branded food industry is trying to enter the India retail industry and convert
Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists
The global retail giants like Wal-Mart, Gap, Tesco, Versace, K-Mart/SEARS, Carrefour,
ZARA, FCUK, Fendi, NEXT, Mother Care, lKEA, Trussardi, DKNY and Debenhams have
ESPRIT, GUESS, Chanel, Mango and many other global marked their presence in India by
implementing licensing and franchisee agreements. The global retailers on the line of control,
awaiting the green signal from Govt. to enter Indian retail market. However, the current
scenario has encouraged Indian players to speed up retail expansion and fresh retail ventures.
Companies like Shoppers Stop, Trent, Reliance, Lifestyle, Pantaloons Tanishq, Crossroads,
Akbarallys and Tanishq already have planned to invest over Rs 5,000cr. Trent is on the edge
to take both its brands Star India Bazaar and Westside to new cities, meanwhile Shoppers
Stop has recently geared up for expansion of present ones and to add 11 new stores including
two hypermarkets. Also, Pantaloon has planned to add eight Big Bazaar malls within the next
6 to 8 months.
After partition, Reliance Industries Ltd (RIL) is substantially getting ready to enter in field of
retailing. RIL is poised to emerge as the single largest player in this sector. On the other hand,
Tosco’s, Wal-Marts or Safeway does ultimately enter in the country. So finally, Shoppers
Stops, Westside, Pantaloons and West sides in coming years have will face stiff competition.
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Fig 1.2 Map of Income classes
The retail industry continued in India in the form of Kiranas till 1980.Soon, following the
modernization of the retail sector in India, many companies started pouring in the retail
industry in India like Bombay Dyeing, Grasim etc. As has been mentioned earlier the retail
sector in India can be widely split into the organized and the unorganized sector.
After 50 years of unorganized retailing and fragmented Kiranas stores, the Indian
retail industry has finally begun to move towards modernization, Systematization and
consolidation. Today, modernization is the catch phrase and the key to understanding
retail in the next decade. Traditionally retailers Have had localized operations. This
localized nature of the industry is Changing as retailers face lower growth rates and
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threatened profitability in home Markets. New geographies help them sustain top line
There has been a boom in retail trade in India owing to a gradual increase in the
of IT, Service and Infrastructure sectors. More and more players are entering the retail
business in India to introduce new formats like malls, supermarkets, discount stores,
department stores and even changing the traditional looks of bookstores, chemist
Hypermarkets: Huge stores over 40000 sq ft situated outside the town with ample
parking space aimed for bulk purchases stocking electronics, furniture and clothing.
prices. They have cross-country chain operations with centralized sourcing and a hub-
and-spoke distribution. Makro and Sams Club are leading players in this format.
Discounters: Aimed at bargain buyers offering less choice but deep discount on bulk
sourcing deals through controlled inventory. Aldi is the world leader in this format.
Convenience stores: Small stores located at convenient points like petrol stations
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7
CHAPTER -2
World over, the retail segment has performed exceptionally since its inception in the
20thcentury. It is currently the biggest industry in the world with sales of $7.2 trillion, every
10th billionaire in the world today is a retailer and 25 of the top 50 Fortune 500companies are
in retail.
The Indian retail story couldn’t have been more different. India has approx. 15 million retail
stores, more than rest of the world put together. But the per capita square feet area under
retail is just 2 sq. Ft or 0.2 sq. meters with fragmented kirana stores being the predominant
players. Retailing in India had remained in the unorganized sector andlargely untouched by
corporates till very recently. However, times are changing. With the GDP at an all-time high
and income levels shooting through the roof, the average Indian consumer has never had it so
good. Credit cards are flashed with disdain and shopping baskets are getting bigger all the
time. Following are some factors that indicate the potential of retail in India:
At 271 million, India has one of the largest consumer bases in the world, forming
household in 2001
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Fig 2.1 Business world marketing white book 2005
The overall size of the retail market in India is estimated at Rs 9300 billion (2003-04) and is
expected to have grown at 5% p.a. making organized retailing a Rs 350 billion market in
2005 according to INDIA RETAIL REPORT 2005. Currently, the sector is highly
like India, bulk of consumer expenditure is on basic necessities, especially food related items.
Hence, it is not surprising that food, beverages and tobacco accounted for as much as 71per
cent of retail sales in 2002. The remaining 29 per cent of retail sales are non-food items. The
share of food related items has declined from 73 per cent in 1999, as with income growth,
Indians, like consumers elsewhere, spent more on non-food items compared with food
products.
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2.1 Emerging sectors
Retailing, one of the largest sectors in the global economy, is going through a transition phase
not only in India but the world over. For a long time, the corner grocery store was the only
choice available to the consumer, especially in the urban areas. This is slowly giving way to
international formats of retailing. The traditional food and grocery segmenthas seen the
It is the non-food segment; however that foray has been made into a variety of newsectors.
Crosswords, Landmark), appliances and consumer durables (Viveks,Jainsons, Vasant & Co.),
The emergence of new sectors has been accompanied by changes in existing formats aswell
• Hypermarts
The traditional grocers, by introducing self-service formats as well as value added services
such as credit and home delivery, have tried to redefine themselves. However, the boom in
retailing has been confined primarily to the urban markets in the country. Even there, large
chunks are yet to feel the impact of organised retailing. There are two primary reasons for
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this. First, the modern retailer is yet to feel the saturation effect in the urban market and has,
therefore, probably not looked at the other markets as seriously. Second, the modern retailing
In order to appeal to all classes of the society, retail stores would have to identify with
different lifestyles. In a sense, this trend is already visible with the emergence of stores with
an essentially `value for money image. The attractiveness of the other stores actually appeals
to the existing affluent class as well as those who aspire for to be part of this class. Hence,
one can assume that the retailing revolution is emerging along the lines of the economic
evolution of society.
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Organised retailing is spreading and making its presence felt in different parts of the country.
The trend in grocery retailing, however, has been slightly different with a growth
However, the Mecca of retailing is undoubtedly Chennai. What was considered a`traditional,
conservative and `cost-conscious market, proved to be the home ground for most of the
successful retail names – Food World, Music World, Health and Glow, Vitan, Subhiksha and
The choice of Chennai as the `retail capital has surprised many, but a variety of factors acted
in its favour. Chennai, in spite of being a rapidly growing metropolis offers reasonable real
estate prices, one of the most critical elements for the industry. Chennai has been witnessing
a high industrial growth and increasing presence of the MNCs, both in the IT sector as well as
outside it. The industrial boom has led to the emergence of new residential areas with
households and growth of the nouveau riche/upper middleclass with increased purchasing
power. These have been combined with the increasing need for touch and feel shopping
(especially for the large migrant population). All the factors have acted favourably in
1) Location
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Location is the most important ingredient for any business that relies on customers, and is
typically the prime consideration in a customer’s store choice. Locations decisions are harder
to change because retailers have to either make sustainable investments to buy and develop
real estate or commit to long term lease with developers. When formulating decision about
2) Merchandise
The primary goal of the most retailers is to sell the right kind of merchandise and nothing is
more central to the strategic thrust of the retailing firm. Merchandising consists of activities
involved in acquiring particular goods and services and making them available at a place,
time and quantity that enable the retailer to reach its goals. Merchandising is perhaps, the
most important function for any retail organization, as it decides what finally goes on shelf of
the store.
3) Pricing
Pricing is a crucial strategic variable due to its direct relationship with a firms goal andits
interaction with other retailing elements. The importance of pricing decisions isgrowing
because todays customers are looking for good value when they buymerchandise and
4) Target Audience
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"Consumer Pull", however, seems to be the most important driving factor behind the
sustenance of the industry. The purchasing power of the customers has increased to a great
extent, with the influencing the retail industry to a great extent, a variety of other factors also
5) Scale of Operations
Scale of operations includes all the supply chain activities, which are carried out in the
business. It is one of the challenges that the Indian retailers are facing. The cost of business
Nanz in North India, Nilgiris in the South, Pantaloon in the East and Crossroad in the West
were the pioneers of the retail revolution in India. Nanz faced several obstacles (See Case
Study) in their business and had to finally down their shutters. Nilgiris, due to some strange
reason, did not see any logic to expand beyond the southern frontiers. Pantaloon went to scale
up and become bigger and bigger to form the Future Group, that is now omnipresent in
almost all formats right from small groceries to e-tailing. Crossroads in Mumbai imparted
some valuable lessons to their parent, the Pyramid Group, who has since then gone on an
The big players in Indian retail landscape now are the Future Group, Shoppers Stop,
Westside, Subiksha and RPG Spencer. The newcomers who are knocking at the gates are
Reliance Retail, Bharti Walmart and Aditya Birla Trinethra. Here, we intend to do a brief
profiling of the major players in order to understand the retail business in a better manner.
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The Future Group
The Future Group, which was earlier known as PRIL (Pantaloon Retail India Limited) began
as a trouser manufacturer in the mid-1980s. The Future Group is divided into six verticals –
Future Retail, Future Capital, Future Brands, Future Space, Future Media and Future
Logistics. The Future Group started operations in the mid 1987s by in corporating the
company as Manz Wear Private Limited. The company went on to manufacture readymade
trousers under the “Pantaloons” brand name. It came out with a public issue in 1991 and later
The first exclusive men’s store called Pantaloon Shoppe was inaugurated in 1992.Pantaloons
went for a franchisee route to expand the number of retail outlets and by1995, it had reached
to a crucial number of 70. The first departmental store called Pantaloons was opened in
Kolkata in 1997 with an investment of Rs 0.7 million. The store was a success and recorded
revenues of Rs 100 million within the first year of operations. In 1999, the company’s name
The success of Pantaloons departmental stores encouraged PRIL to come up with other
retailing formats such as “Big Bazaar” to retail low cost general merchandising, and “Food
Bazaar” to retail food products. As of 2005, the Future Group has 3.5 million sq ft of retail
space and over 100 stores across 25 cities in India. It employs more than 12,000people and
Kishore Biyani, the promoter of the group who likes to address himself as “Chief Knowledge
Officer” has plans to launch 18 formats and over 3,340 stores, thereby turning the Future
Group into a US$7 billion company with over US$1 billion in profits by the year 2010.
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Shoppers Stop
Shoppers’ Stop, promoted by the real estate group K Raheja, was one of the first movers to
have set up a large retail outlet in New Delhi with international ambience. Shopper’s Stop Ltd
now has a considerable presence all over the country with 36api 7 lakh square feet of retail
space and stocks over 200 brands of garments and accessories. The stores are spread all over
India with presence in Mumbai, Delhi, Bangalore, Hyderabad, Jaipur, Pune , Kolkata,
Shoppers’ Stop is also very well known for having pioneered several quality retailing
concepts in India like CROSSWORD, Hyper CITY and Mothercare. They are the only
With its wide range of merchandise, exclusive shop-in-shop counters of international brands
shopping to the Indian consumer providing them with a world class shopping experience.
Shoppers’ Stop’s core customers represent a strong SEC A skew. They fall between the age
group of 16 years to 35 years, the majority of them being families and young couples with a
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monthly household income above Rs. 20,000/- and an annual spend of Rs.1,50,000/-. A large
number of Non – Resident Indians visit the shop for ethnic clothes in the international
TREND-WESTSIDE
Westside has 25 outlets across 17 cities in India offering a variety of designs and styles in
garments, footwear and accessories, as table linens, artefacts, home accessories and
furnishings. Well-designed interiors, sprawling space, prime locations and coffee shop
Trent also runs another chain of retail stores called Star India Bazaar. Launched in 2004, Star
India Bazaar provides a large assortment of high quality products made available at the
lowest prices coupled with a unique shopping experience. Star India Bazaar is located in
Ahmedabad and offers a wide choice of staple food, beverages, health and beauty products,
vegetables, fruits, dairy products, consumer electronics and household items at the most
affordable prices.
Trent has also recently acquired a 76 per cent stake in Landmark, one of the largest books and
music retail chains in India. Landmark commenced its operations in 1987 with its first store
in Chennai, and now has nine stores in the major metros of the country. Earlier Landmark
was focused on books, stationery and greeting cards. In 1996 it added music to its product
portfolio and also started the trend of stocking curios, toys, music, CDs and other gift items.
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Reliance Retail
With a vision to generate inclusive growth and prosperity for farmers, vendor partners, small
shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL, was set up
to lead Reliance Group’s foray into organized retail. The first store christened “Reliance
Fresh” opened in November 2006 at Hyderabad. Within a few months they have now opened
stores in Mumbai, Pune and Ahmedabad and plans foray into other cities on a rapid scale.
On June 26, 2006, Mukesh Ambani, Chairman and Managing Director, Reliance Industries
Reliance Retail started its retail operation with “Reliance Fresh”, a grocery store that sells
vegetables, fruits, personal care items and other food products. Soon, these retail outlets will
also be selling apparel and footwear, lifestyle and home improvement products, electronic
goods and farm implements and inputs. They will also offer products and services in energy,
travel, health and entertainment. In addition to this, partnerships would be developed to bring
Reliance Retail plans to extend its footprint to cover 1,500 Indian cities and towns with
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specialty stores and hypermarkets. Reliance also plans to open restaurant outlets, financial
Mukesh Ambani’s ultimate ambition seems to be to create the Indian equivalent of Wal-Mart
by scaling up the business to unprecedented heights to reach every nook and corner of the
country. With its retailing venture, Reliance expected a revenue target of US $20billion
through its retail operations by 2010. Over a span of five years, RRL expects a20% return-on-
investment.
Bharti Wal-Mart
Bharti Retail (Pvt.) Ltd. Unveiled the roadmap for its retail venture on 19th February,2007
envisaging an investment of $2.5 billion with expectation of revenue of $4.5 billion (about
Rs. 20,000 crore) from this business by 2015. The first retail outlet is expected to open
Bharti’s plan is to invest $2.5 billion by 2015 and open stores across all major cities. This
investment would be only for setting up front-end stores. The modalities for its back-end
linkage, including its joint venture with the world’s largest retailer Wal-Mart, are in the
A high-level team from Wal-Mart was visited India in the later part of February to workout
the details of the back-end chain. While Bharti would manage front-end of the retail venture,
Wal-Mart would be involved in the back-end, including logistics, supply chain and cash-and-
carry, he added.
However, Bharti and Wal-Mart have been facing stiff opposition from the left parties and
other political outfits who fear that the entry of the Bentonville giant will make life difficult
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for the small grocers and create massive unemployment. They also expect Wal-Mart to take a
tough stance on lowering prices and force farmers to sell their produce at lower rates. A
lurking fear of monopolistic regime in the retail sector is also enhancing their fears. Both
Bharti and Walmart are presently having a tough time in convincing the ministers, politicians,
agriculturists, the NGOs and other pressure groups that their business model would serve to
VISHAL RETAIL
Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all price
ranges. The showrooms have over 70, 00, 00 products range which fulfils all your household
needs, and can be catered to under one roof. It is covering about 1282000 sq. Ft. in 18 states
across India. Each store gives you international quality goods and prices hard to match. The
cost benefit that is derived from the large central purchase of goods and services is passed on
to the consumer. What started as a humble one store enterprise in 1986 in Kolkata (erstwhile,
hyper-market has also been opened for the Indian consumer by Vishal. Situated in the
national capital Delhi this store boasts of the single largest collection of goods and
commodities sold under one roof in India. The group’s prime focus is on retailing.
The Vishal stores offer affordable family fashion at prices to suit every pocket. The group’s
philosophy is integration and towards this end has initiated backward integration in the field
endeavours. Company has already tied up for 5-lakh sq. ft space and is looking for more.
Company will come up with 32 new stores this year. Company is doing research on more
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apparels business at 53% may slightly come down to 50%. India is a big country and there is
huge space for four-five big retail players. Vishal can always sustain growth in this big
market. Company can sustain margins as it is going for backward integration. Currently
manufacturing contributes 10% of the business, which in the next two to three years, will go
up to 25%. Company is increasing its focus on the non-apparel and FMCG segment. The
current share of FMCG at 15% could go up to20-25%. Apparel sales currently at 63% in the
next 2-3 years should come down to 50%as the company is now also focusing on different
segments. With growth in volumes, the cost of sourcing will come down in the near future.
Company will venture wherever it gets real estate space. Currently, it has very little space in
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CHAPTER 3-
LITERATURE REVIEW
store patronage, and it is widely accepted that psychological factors have a significant role in
storeimage formation. Past research has often involved the measurement of tangible
attributes, or links between store images and consumers’ self images. This study was
undertaken to move to the next stage by exploring the link between perceived store image
and the personal values which underlie behavioural choices. Fashion retailing was selected as
choice, personality, self-concept and personal values. Means-end theory and laddering
methodology were employed in interviews with 30 female respondents. The hedonic values
of “enjoyment and happiness” and “quality of life” were found to be the terminal values most
sought by consumers in association with store image. These were linked through the
consequence “nice feeling” to the tangible attributes of “price”, “quality” and “reputation”.
the results provide a platform for fashion store image and positioning strategies. Suggestions
strategies toward meeting the needs and wants of consumers. One important factor explaining
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consumer behavioural orientations is their values. Another important factor affecting
consumer behavioural orientations is the store image, an image shaped by store attributes.
This study examines the linkage between consumer values and the importance of some
Argues that for many retailers, competitive advantage in the home market has been based
upon the development of strong store and corporate images as retailers strive to develop
themselves as brands. The construction of store image, comprising both tangible and
consumers in the host environment are less familiar with the intangible dimensions of image,
which have been built up over time with exposure to the retail company. Retail companies
therefore need to fully understand the importance of image in competitive positioning and the
components of store image before attempting to replicate this image and positioning
overseas. Explores these issues with reference to Marks & Spencer and the company’s entry
into the Spanish market. A survey of customer perceptions of a range of store image
attributes in the UK and Spain reveals differences and similarities in perceptions, which must
Uusitalo (2001),
Grocery retailers are operating in a slow-growth market. The pursuit of market share is one of
the main concerns for retail managers. The retail structure is becoming increasingly
influence the success of a positioning strategy. This study examined how consumers perceive
23
grocery retail formats and brands in Finland. Data from personal interviews were used in
various store formats, meanwhile store brands are seen as quite similar. Consumers rely on
functional attributes of stores when discussing grocery stores. However, it seems that
consumers are unable to recognize the fabricated, often imaginary differences at the brand
level. The informant’s own, creative symbolic work results in this case to interpreting all
grocery retail brands as similar. Managerial implications of the study are presented.
Consumer perceptions of retail store attributes for a set of particular stores were examined to
determine their effect on store preference. Respondents rated13 stores. Four variables were
found to affect store preference using forward stepwise logistic regression: type of clothing
desired in stock, outside store appearance, shopping hours, and advertising. Significance of
the effect of store attributes on store preference varied by store type. In addition, associations
between customer perception of store attributes, education and age were observed.
Most research related to consumer choice of retailers emphasizes retailer attributes and/or
consumer characteristics. Since many retail formats, including online retailing, have emerged
in recent years, knowledge of how consumers select retail formats must be updated. A source
of influence that has been examined to a very limited extent for store
retailers but not for emerging retail formats is situational influence. From a modern interactio
nism perspective, this study investigates the influence of situational as well as consumer and r
etailer factors on preference for online, catalogue, and store formats. Key results show that
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situational factors have significant influence on online and catalogue format selection and
To identify the factors that influence shoppers' satisfaction with their “primary” grocery store,
and those that encourage them to continue patronising it despite being presented with a
relating to shopping behaviour and satisfaction was administered to 934 shoppers leaving
several grocery stores in an Australian city during a two-week period. Results were used to
construct two mathematical models predicting customer satisfaction and store loyalty, from
which two research hypotheses were derived. The results of model estimation show that
factors with a significant influence on store satisfaction have little in common with others that
impel shoppers to remain loyal to one store. Indeed, there was no evidence in this study that
The questionnaire did not ask questions, judged to be intrusive, relating to respondents'
switching to an unfamiliar store and hence potentially to inhibit action. It would be instructiv
perceptions of financial, psychological and social risk, and their influence on satisfaction and
loyalty. Retailers often do not recognise that what influences customer satisfaction is not the
same as what engenders store loyalty, and consequently do not allocate scarce resources
systematically among tactics influencing one or the other. Unless they are vigilant to
changing consumer behaviour patterns, they will not be able to isolate in their strategy the
elements of the retail mix that could insulate their loyal customers from responding to
competitors' special offers. This study introduces intelligence gatherers and strategic planners
25
in the retail context to an important distinction between general satisfaction and specific
loyalty.
market place. A random sample of US grocery consumers (N=454) was surveyed using a
ANOVA) were used to evaluate the data. Identifies demographic groups who frequent
specific formats (specialty grocers, traditional supermarkets, super centres, warehouse clubs,
internet grocers) and examines store attributes (e.g. price competitiveness, product, selection,
and atmosphere) as drivers of format choice. The results included in this research were
gathered and reported on an individual format basis. In order to capture consumer choices
across a range of grocery retail formats, forcing respondents to compare formats was not
initiated. In addition, data pertaining to whether consumers had access to each type of format
in the study were not collected. Examination of how dimensions of consumer access limit or
expand retail patronage behaviour could also be highly beneficial to grocery retailers.
store type. Building on the prior work in this area by the authors and other researchers the
study collected data in two phases to investigate the study hypotheses. The study results
suggest that consumers' online patronage is differed based on product type. Interaction effects
of the online stores and product type were significant too. Additionally, the rank order of
importance of the Internet attribute varied among the three types of online retailers. The study
results should be replicated in other markets. Future studies may also include variety of
different types of online outlets to improve the conclusiveness of the findings reported in this
26
study. The results should be of interest to the online retailers in choosing the types of
merchandise and services to emphasis in the retailers marketing program. The paper should
growing literature in the area of online retailing. It adds to the literature on the product
The purpose of this paper is to investigate e-tail store attributes that develop customers'
positive perceptions of e-tail store image and determines whether they develop a sense of
designed to examine e-customer loyalty intentions toward the e-tailer. To understand the
concept of loyalty toward an e-tailer, this study focuses on the importance of thefinal stage of
model that describes the extent to which e-tail store image (derived from a set of e-tail store
attributes) indicates patronage intentions and finally predicts customer loyalty. We use the
structural equation modelling to test the model and hypotheses. Results in this paper indicate
that e-tail store image is derived from e-merchandise, e-service, and e-shopping atmosphere
attributes, all of which support the way consumers shop. A favourable e-tail store image
positively influences e-patronage intentions, which thus leads to e-loyalty. The research in
this paper provides a conceptual model that will help retailers better articulate how
and why consumers may be e-loyal shoppers. Second, the research identifies attributes,
unique to online shopping that serve as the basis for conceptualizing e-tail image as a second
order factor.
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The purpose of this paper is to look into the relationship between the physical aspect of a
retail store, product-related attributes, personal interaction with customers and perceived
reliability and corporate brand image in an offline or bricks and mortar context. The study is
based on 511 interviews conducted in various bookstores and uses structural equation
modelling as a statistical tool for concluding the above. The paper argues that physical
aspect of a retail store, product-related attributes and personal interaction with customers will
have a significant and positive direct effect on the offline corporate brand image whilst there
was no significant connection between reliability and corporate brand image. The research
has been conducted in one organisation, albeit a number of bookstores were scrutinized. The
paper's managerial contribution lies in its lessons for practitioners who want to understand
what are the key drivers of corporate brand image in an offline context. It also provides a
background for further studies which can extrapolate the current thinking into other sectors in
order to validate or refute the results presented here. The paper scrutinizes the impact of
physical aspects; product related information; reliability; and personal interaction in the
The purpose of this paper is to identify the main determinants of fashion store personality, as
perceived by the shopper. It aims to discover factors that are responsible for specific store
personality trait perceptions in order to understand how these humans like personality traits
are induced in a retailing context. With this end in mind, a qualitative exploratory study was
the 34 different store personality trait descriptors put forward by d'Astous and Lévesque.
Respondents were asked which fashion stores they considered to embody these specific
personality traits and they were probed for the sources of inference they used. The findings
28
reveal that the store environment and store design particularly is an important factor in
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CHAPTER- 4
To study the current scenario of the Indian retail industry and various changes and
To ascertain the factors that influences people to purchase goods from organized retail
stores.
The studies will provide some basic ideas of the current scenario in the Indian retail industry
as research was done on the NCR region so we will be able to know more about that region
Exploratory research is research conducted for a problem that has not been studied more
clearly, intended to establish priorities, develop operational definitions and improve the
final research design. Exploratory research helps determine the best research design, data-
The research design which was used for this research was secondary research. The data
required for analysis of the project was taken from secondary sources of data such as internet,
30
magazines, newspaper and journals. The data obtained from such sources was organised and
analysed to study the required objective of the project. The primary data will also be collected
METHOD: The data is collected through both primary and secondary sources. The data
required for the analysis of the project was taken from secondary sources of data such as
internet, magazines, newspaper and journals. The data obtained from such sources was
organised and analysed to study the required objective of the project. The primary data will
31
CHAPTER-5
INTERPRETATION:
32
2. Do you visit mall?
Particulars No. of respondents percentage
Yes
No
Total
INTERPRETATION
33
3. How many malls are there in your area or nearby area?
Particulars No. of respondents percentage
0-1
1-3
3-5
5-8
Total 100 100%
INTERPRETATION:
34
4. In the malls, are there stores like: Big bazaar, Food bazaar, Pantaloons, Vishal Megamart,
Westside etc?
Particulars No. of respondents Percentage
Big bazaar
Food bazaar
Pantaloons
Vishal Megamart
Westside
Total
INTERPRETATION:
35
5. Do you like buying clothes and accessories from malls or local markets?
Particular No. of respondents percentage
Malls 35 35%
Local markets 8 8%
Both 57 57%
Total 100 100%
INTERPRETATION:
From the survey it was found that amongst 100 respondents, highest population goes for both
malls and local market for their shopping requirements. This shows, how malls and local
markets and equally important.
36
* Reason for buying clothes and accessories from malls?
Particular No. of respondents percentage
Ambience 28 28%
Service 28 28%
Brand 44 44%
Total 100 100%
INTERPRETATION:
The above pie chart shows that 44% of the population who visits retail stores in the malls
goes for the branded products, as they are Hight net worth income group consumers.
37
*Reason for buying clothes and accessories from local market?
Particular No. of respondents percentage
Price 44 44%
Variety 32 32%
Accessibility 24 24%
Total 100 100
INTERPRETATION:
The above pie chart shows that 44% of the consumers makes their purchase from local
markets as the markets are easily accessible. Price is always a factor for them as they are
middle class consumers. They always get a wide range of variety at a lower price in the local
market.
38
6. How often do you visit these malls/ retail stores?
Particular No. of respondents percentage
Daily 7 7%
Weekly 49 49%
Monthly 32 32%
Occasionally 12 12%
Total 100 100%
INTERPRETATION:
The above pie chart shows the frequency of the population of visiting malls. The highest
population i.e. 49% of the population visits malls weekly for various purposes e.g. shopping,
hangout, dating etc. 32% of the population visits mall monthly, they normally go for planned
shopping and sometimes for hangout only.
39
7. What is the purpose of visiting these places?
Particular No. of respondents percentage
Hangout 25 25%
Planned shopping 39 39%
Window shopping 14 14%
Dating 17 17%
Other reasons 5 5%
TOTAL 100 100%
INTERPRETATION:
The above pie chart shows that the highest population i.e. 39% visits malls for planned
shopping. While others mostly for hangouts followed by dating, window shopping and other
reasons as well.
40
8. What do you prefer to buy from these places?
Particulars No. of respondents percentage
Clothing
Accessories
Grocery
Total 100 100%
INTERPRETATION:
41
9. What propels you to buy clothes and accessories from these retail stores?
Particulars No. of respondents percentage
Need 8 8%
Discount sales 32 32%
Variety 26 26%
Quality 34 34%
Total 100 100%
INTERPRETATION:
The above pie chart shows that 34% of the consumers goes for quality while purchasing
clothes and accessories, 32% of the consumers goes for the discounted sale, as they get same
quality at a lower price, while 26% of the consumers believes in the variety and the rest 8%
makes their purchases only when they are in need.
42
10. Where do you like buying groceries from?
INTERPRETATION:
43
11. Will these malls/ retails stores will grow over a period of time?
Particulars No. of respondents percentage
Yes 93 93%
No 7 7%
Total 100 100%
INTERPRETATION:
The above pie chart shows that 93% of the population of the sample size believes that the
malls and retail stores will grow over a period, as this industry is going to generate a huge
number of employments, places for recreation and it will also help in grooming other
industries.
44
CHAPTER-6
CONCLUSIONS, SUGGESTIONS AND
LIMITATIONS
CONCLUSION
For a start, these retailers need to invest much more in capturing more specific market.
expertise in developing more accurate and scientific demand forecasting models. Re-
and replenishment should then be next on their agenda. The message, therefore, for the
existing small and medium independent retailers is to closely examine what changes are
taking place in their immediate vicinity and analyse Whether their current market offers a
potential redevelopment of the area into a more modern multi-option destination. If it does,
and most commercial areas in India do have this potential, it would be very useful to form a
consortium of other such small retailers in that vicinity and take a pro-active approach to pool
in resources and improve the overall infrastructure. The next effort should be to encourage
As the retail marketplace changes shape and competition increases, thepotential for
improving retail productivity and cutting costs is likely to decrease. Therefore, it will become
45
important for retailers to secure a distinctive position in the marketplace based on value,
relationships or experience.
Finally, it is important to note that these strategies are not strictly independent of each other;
value is function of not just price, quality and service but can also be enhanced by
customers can by itself increase the quality of overall customer experience and thus the
perceived value. But most importantly for winning in this intensely competitive marketplace,
it is critical to understand the target customers definition of value and make an offer, which
not only delights the customers but also is also difficult for competitors to replicate.
46
FINDINGS
The Retail Sector in India can be split up into two, the organized and the unorganized.
The organized sector whose size is expected to triple by 2010can be further split up
In terms of value the size of the retail sector in India is $300 billion. The organized
The retail sector in India contributes 10% to the Gross Domestic Product and 8% to
In terms of growth the FMCG retail sector is the fastest growing unit and the retail
The foreign retail giants were initially restricted from making investments in India.
But now FDI of 51% is permitted in India only through single branded retail outlets.
Multi brand outlets are still beyond their reach. Again, they can only enter the market
through franchisees, this was how Wal-Mart had entered joining hands with Bharti
Enterprises.
On line retailing is still to leave a mark on the customers due to lacunae that we have
already mentioned.
Cultural and regional differences in India are the biggest challenges in front of
retailers. This Factor deters the retailers in India from adopting a single retail format.
Hypermarket is emerging as the most favourable format for the time being in India.
LIMITATIONS
For every research there are restrictions and limitations. Without them the world does not
exist. Similarly, there are some restrictions in my research work, which could not be
47
controlled. The following were the limitations in my research which I faced in the making of
this research.
The study was restricted to selected malls and stores in Delhi NCR.
Time was the biggest constraint. It was difficult and time consuming to get the
questionnaire filled with 100 respondents. Nevertheless, all efforts were made to get
There may be discrepancies in views as some people might give false information in
SUGGESTIONS
48
BIBLOGRAPHY
The monthly fact sheet available from the company for studying the features of
products.
o www.lic.co.in
o www.wikipedia.com
o www.tata-aig-life.com
o www.birlasunlife.com
www.irdaindia.org
www.google.com
www.wikipedia.com
. William, Smith and Young 1998 Risk Management & VaughanInsurance; edition
VII
Mc Graw Hill Publication & Vaughan, (1999), "Insurance & Risk Management";
Edition I 60
http://www.hdfclife.com/
http://www.hdfclife.com/AboutUs/AboutUs.aspx
http://en.wikipedia.org/wiki/Standard_Life
Internal Experts
Journals
Websiteswww.hdfcinsurance.com www.qooqle.comwww.bimaquru.com
www.insurance.comwww.mibknowledge.com
Niehaus, Gregory R.; (1999) "Risk Management and Insurance"; Irwin/McGraw -Hill.
49
ANNEXURE
Q3. How many malls are there in your area or nearby area?
0-1
1-3
3-5
5-8
Q4 In the malls, are there stores like: Big bazaar, Food bazaar, Pantaloons, Vishal Megamart,
Westside etc?
Big bazaar
Food bazaar
Pantaloons
Vishal Megamart
Westside
50