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It happened in India" Kishore Biyani"

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  • 1. IT HAPPENED IN INDIA 2009 CONUMER BEHAVIOUR REPORT ON “IT HAPPENED IN INDIA” Submitted by: Ankit Gupta (03) Jatin Dhingra(16) Rohit Gaur(41) Jinesh Jain(17) Chitresh Girdhar(08) Section FH-21
  • 2. IT HAPPENED IN INDIA 2009 ACKNOWLEDGEMENTThe fact that we have been able to prepare this report is due to help and support ofmany sources. We could not have achieved anything without those sources.First of all we would like to express our enormous gratitude to our Consumer Behaviorprofessor Mrs. Simran Gulati for her continuous encouragement and guidancethroughout the project. Her way of thinking and converting ideas into somethingconcrete helped us a lot. She was always there to encourage us, whenever we were downand looking for some support. She helped us to think in right direction and gave us herprecious time in spite of having very busy schedule. We thank him for her timelyguidance and the pains she took to make us complete this project report.We are also thankful to our parents who were a constant source of inspiration to us. Thankyou 2
  • 3. IT HAPPENED IN INDIA 2009 ContentsAcknowledgementAbstract5 Consumer Insights • Strategic Approach • Value Preposition • Impulsive Buying • Fifth Anna in the Rupiaya • Rural InsightConclusion Abstract 3
  • 4. IT HAPPENED IN INDIA 2009It Happened In India - around, and was interested in finding out more aboutit. The book is about Kishore Biyani - the man who created the retailrevolution in India with Big Bazaar, Pantaloons et al.We interpreted after reading this book that book has two faces, on one sideit depicts the blending of ideas of a third generation entrepreneur onbuilding a business to the consumer, by the consumer & for theConsumer and Secondly, a new way how to build a successful businessby organizing the unorganized existing market. It also helped in creatingnew markets and describes how to carter to different segments.The central objective for earlier businesses was to bring in stability andconsolidation. They were built to enforce order. However, in the new erawhere nothing remains constant, the dominant theme for businesses needsto be speed and imagination.The new macro-differentiator is design. Design is helping companies to selldifferentiated experiences and solutions that connect with the consumer’semotions. It’s no longer about selling products and services alone. Nor is itjust about completing transactions. Every time a customer walks in, it is anopportunity to build a relationship and invite the customer to become a partof the transformational scenario. 1st Consumer Insight (Strategic Approach) 4
  • 5. IT HAPPENED IN INDIA 2009“It was Thursday evening that started like no other. The tore was supposedto open at 8 I decided to check the situation first hand, but before I couldget started, similar calls from Bangalore, Gurgaon and Kolkata informedme of long queues of customers waiting outside big bazaar stores at thoseplaces as well.At the Store level 26th January experience gave all of us a lot of confidence.Going by the no of customers who visited our stores, it was evident thatgiven the right environment and a correct emotional connect with ourcustomers, anything was possible. After this, no one in our organizationthinks any sales target is impossible to achieve.There are couples of emotions that determine shopping behavior. Themost fundamental of them are greed, altruism, fear and envy.”Well book describes the above behavior as greed and envy but we wouldlike to give a different aspect in our view it is a planned approach of anIndian consumer, he/she always purchase seeking future requirementsand if you are getting an advantage today why not to utilize it to the 5
  • 6. IT HAPPENED IN INDIA 2009maximum. So we feel it is an intelligent and strategic approach of an Indianconsumer. 2nd Consumer Insight (Value Preposition) 6
  • 7. IT HAPPENED IN INDIA 2009“It was during this period that we first started to study market very closely.India historically has been a savings-led society. Not Woman in India aretrained from their childhood to preserve everything. This holds true forapparels as well. The average Indian wears the same shirt or trouser foryears, when its colors have faded or the buttons have come off. In everyIndian city there are Indian women who trade new steel utensils for oldclothes that are then sold in a second hand Market.Today exchange programs are common across all categories, be itapparels, cars or televisions. Customers are encouraged to bring anythingand everything that they don’t use any longer. You may notice drove ofcustomers lining up outside Big Bazaar and unloading old clothes, utensils,newspapers, bottles from cars and autos.” 7
  • 8. IT HAPPENED IN INDIA 2009Well when we read these lines what immediately came our mind was whatDhirubhai Ambani said to Mukesh Ambani while discussing on launching oftelecom services. He asked Mukesh Ambani that have you ever noticed amother chopping off vegetables, Mukesh Ambani said yes she waschopping to cook. For this Dhirubhai Ambani replied that she is not justChopping it to cook but she is also minimizing Waste”So, these lines actually depicts that an Indian consumer always seeks onsavings, for both present as well as future. As India is a demand drivenEconomy it has a huge potential but with this demand, the consumptionexpenditure is low because of lower standard of living, poor salaries andwages. A low education level and a lower level of awareness are alsoprominent causes for such consumer behavior. Sometimes consumer don’tknowwhen the sale will be again there in the same store so they always buyduring the sale period so that they can increase on there savings.There are other customers also who know that the sale will be there at theend of the season. So, they always try to buy at that point of time to get thebest deals. They always try to buy as much so that they can have till nextsale will come.And this is not the behavior which is restricted to India only or found amongIndian Consumers. This low cost retail strategy works all over the globe, a 8
  • 9. IT HAPPENED IN INDIA 2009clear example is of the Wal-mart. “EVERYDAY LOW PRICES” Similar iswith Big Bazaar “IS SE SAASTA AUR AACHA AUR KAHAN”. 3rd Consumer Insight (Impulsive Buying) 9
  • 10. IT HAPPENED IN INDIA 2009“Later in the evening we sat out to take a look at this new concept calledbig bazaar when we entered the ground floor, it took barely three minutesfor us to decide that this is the retailing model we had to own. The reasonwas simply the environment which greeted us to decide that this is theretailing model we had to owe. The reason was simply the environmentwhich greeted us ------ an environment of chaos where people were literallyfreaking out. In our quest for the right retail company to invest in, we hadvisited several stores, but they all were focused only on lifestyle retailing.India needed a value retailing model to revolutionize the Indian retailscene. Big Bazaar fitted the bill since here we found a customer who haddriven in on a Mercedes, shop as excitedly as folks who had come on footand the store was packed on a weekday evening.”Well we say this is “India one” from the three described by Kishore Biyani inthis book from the given India One, India Two and India Three.So,” India One” customer have a different insight. They observe verykeenly that what is best for them. If they found that there is somethingwhich is good for them to adopt impulsive buying behavior as decided byshivanand mankekar in the above statements. So, impulsive buying is 10
  • 11. IT HAPPENED IN INDIA 2009another characteristic of Indian consumer. It is because of this that youmight find in retail chains that quick pick items are always displayed nearthe cashcounters. The time for which customer stands at the cash counter queuethey are involved in impulsive buying behavior. 4th Consumer Insight (Fifth anna in the Rupaiya) 11
  • 12. IT HAPPENED IN INDIA 2009“What we discovered on launching our store there was that a customer inGujarat is not only value-conscious, he or she has habits that are peculiarto the state and are hardly seen anywhere else in the country. When itcomes to staples, the Gujarati customer prefers to buy the entire year’srequirements at one go. Staples are stored in the loft, a common feature inmost homes in Gujarat. Since she buys it in bulk, she also demands aheavy discount, expects it to be delivered at her home and wants to payback on credit.”This actually depicts the static behavior towards the good quality productand his/her bargaining power. Along with value, the customer always looksfor the benefits. Indian women is very cost sensitive and always look forbest value preposition. Her negotiation skills are matchless. She is the onewho can be best described as the finance minister of the home. 5th Consumer Insight (Rural Insights) 12
  • 13. IT HAPPENED IN INDIA 2009 Mohan Jadhav is one such sugarcane farmer who lives in walwa, another forty kilometers from sangli. Fifty-five Years old Jadhav lives in a joint Family that has 127 members. He also happens to be our greatest customer till date. On a sunny Tuesday morning 2006, he drove down to Sangli in his Bajaj Trax picked up van along with his wife, Sister-in-law ad nephews. The six of them visited our Big Bazaar outlet in the town and indulged in some frenzied shopping activity ------ buying grocery About three quarters of the Indian population are in the rural areas and with the growing middle class, especially in the Indian cities, the spillover effect of the growing urban middle class is also felt in the rural areas. The Indian rural market has been growing at 3-4% per annum, adding more than 1 million new consumers every year and now accounts for close to 50% of the volume consumption of fast-moving consumer goods (FMCG) in India. The market size of the fast moving consumer goods sector is projected to more than double to US$ 23.25 billion by 2010 from the present US$ 11.16 billion. As a result, it is becoming an important market place for fast moving consumer goods as well as consumer durables. Conclusion13
  • 14. IT HAPPENED IN INDIA 2009India is a multi-cultural society which is today ata very dynamic stage where consumer insightsdiffer everyday. So the success of any branddepends on the behavior of the customer and onquickness by which the producer can actuallyinnovate itself according to the consumerperception, consumer needs and consumerbehavior. 14

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