• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Customer Shopping Behavior - Organized & Unorganized Retail in India
 

Customer Shopping Behavior - Organized & Unorganized Retail in India

on

  • 36,101 views

A Study done during my MBA period, with a great group of batch mates, in which we studied Customer Behaviour for preference between the Organized Retail(Big Bazaar, Food Bazaar, Central, etc) and ...

A Study done during my MBA period, with a great group of batch mates, in which we studied Customer Behaviour for preference between the Organized Retail(Big Bazaar, Food Bazaar, Central, etc) and Unorganized Retail(Kirana Stores, Sabji Mandi, etc.).

The study has given very interesting results.

This ppt is to help all those analysts and MBA sitting around analysing something relative to above.

Statistics

Views

Total Views
36,101
Views on SlideShare
35,964
Embed Views
137

Actions

Likes
48
Downloads
36
Comments
10

5 Embeds 137

http://www.slideshare.net 93
http://www.brijj.com 35
http://www.retailnetworks.org 7
http://www.doaj.org 1
http://www.slashdocs.com 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel

110 of 10 previous next Post a comment

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • On the basis of the decision making processes and the type of need, a customer may not undergo the stages in the same order as shown in the figure.
  • From the previous table, a customer forms an overall evaluation of each store on the importance he places on each benefit the stores provide. He can also represent the importance of these benefits using 10-point scale like earlier.Customers have unique set of needs. The importance of store’s benefits differs for each customer and may also differ for each shopping trip. When customers are about to select a store, they don’t actually got through the process of listing store characteristics, evaluating stores’ performance on these characteristics, determining each characteristic’s importance, calculating each store’s overall score and then visiting a store with the highest score. The Multiattribute attitude model doesn’t reflect customers’ actual decision process but it does predict their evaluation of alternatives and their choice, and provides information on designing a retail offering.

Customer Shopping Behavior - Organized & Unorganized Retail in India Customer Shopping Behavior - Organized & Unorganized Retail in India Presentation Transcript

  • Unorganized Retail vs. Organized Retail Sector in Mumbai, India
    CUSTOMER SHOPPING BEHAVIOR
    Pankil Chugh 204
    Jai Awatramani 402
    HimmatSandhu 416
    ShikharTyagi 423
    AliasgarNavagharwala425
    1
    MBA(Tech.) – Class of 2004-09, NMIMS, Mumbai, India
  • Chronology
    Indian Retail Scenario
    Objective of the survey
    Questionnaire
    Findings
    Recommendations and learnings
    2
  • Indian Retail Scenario
    12 million retailers
    Dominated by dukandars
    Total retail market size in India in 2008: USD 353 bn
    Annual growth rate (2008): 12%
    Present share of organized sector: 7%
    Expected investment in modern retailing: USD 25-30 bn
    in next 4 years
    3
  • Organized Sector in India
    Modern format
    Chain stores
    Types
    Specialty stores
    Discount stores
    Hypermarkets
    Supermarkets
    Convenience stores
    Department stores
    Malls
    4
  • Classification of Indian Customers
    Source: Future Group Research, Published in book “It happened in India” by KishoreBiyani, 2007 issue
    5
  • Emerging trends in consumers’ income and consumption pattern
    Growing prosperity
    Increase in sizable disposable income
    Place is no more important
    Higher proportionate rural expenditure
    Young population with higher purchasing power
    6
  • Need Recognition
    Information Search
    Evaluation
    Choice
    STAGES
    SELECTING A RETAILER
    SELECTING MERCHANDISE
    THE BUYING PROCESS
    7
  • Evaluation of Alternatives
    Multiattribute Attitude Model
    Customers see a retailer or a product as a collection of attributes or characteristics
    Designed to predict a customer’s evaluation of a product or retailer based on:
    Performance on several attributes
    Importance of those attributes to the customers
    Attributes and importance weights are chosen as criteria
    Alternatives compared against the criteria
    8
  • 9
  • 10
  • 11
  • Importance Weights
    12
  • Research Design and Methodology
    Exploratory research conducted in Mumbai
    Focuses on customer shopping behavior in Indian scenario among different formats, i.e. organized and unorganized
    13
  • QUESTIONNAIRE
    14
  • Objective behind the questionnaire
    To identify the various factors that affect the choice of format viz. Organized/ Unorganized Retail.
    The perceptions and the attitude towards both the formats.
    The type of goods customers prefer to purchase from each format.
    Findings that can help the organized and the unorganized retail gain its key strength and weaknesses.
    Sample Size: 40
    15
  • Customer Attributes affecting choice of format
    SEX
    Occupation
    Organized
    -
    Unorganized Retail
    Age Group
    Location
    Number of Members in Family
    16
  • Other factors checked
    We believe this is a big factor that affects the usage of formats, in urban areas, SEZ’s the out of city crowd is completely unaware of the local market, the local language(Chennai) and the local behavior(general bargaining rates), thus they may choose to shop from Organized Retail coming as a big convenience to them
    Some Customer would shop some particular items from Organized Retail while some items from unorganized retail thus using both the options
    17
  • Which are the possible shops?
    18
  • What do you shop, how often and from where?
    19
  • What do you shop, how often and from where?
    Items which are purchased on a daily basis will be preferred on basis of closeness to the store(organized/unorganized)
    For items which customer prefer to purchase once in a week, have a higher probability in going in for organized retail.
    What is the frequency of purchase eatable items of customers going to each of the formats as they contribute highest to the sales
    20
  • Reasons for preference to each of the formats: May be it’s a Customer perceptions or facts
    11.) Why do you prefer to go for Organized Retail formats?
    12.) Why do you prefer to go for Organized Retail formats?
    21
  • Comparing Organized/Unorganized Retailing on various attributes that decide the choice of format
    13.) Kindly rate the below of an organized retail and unorganized retail based upon your preference
    22
  • Any other comments from the customer and
    Comments given by customers bring points which are never covered within the survey and thus bring new ideas
    Lets us know if customer is dissatisfied with the current state of things
    23
  • Organized Retail
    An Analysis of Consumer Preferences
    24
  • A Few Big Players are Dominating the Market
    25
  • Types of Purchases Made in Organized Retail
    M
    F
    F
    M
    M
    W
    M
    W
    F
    D
    Daily
    Weekly
    Fortnightly
    Monthly of Rarer
    26
  • Top 10 Reasons Why Consumers Prefer Organized Retail
    27
  • Consumer Rating on Various Criteria
    28
  • Customers Want Further Improvement
    29
  • To Sum it Up
    Consumers prefer organized retail outlets for FMCG products that are bought in large quantities and for a larger duration of time. They also perceive it as a “family outing” and are drawn towards it due to its convenience, variety and special offers.
    30
  • Unorganized Retail
    An Analysis of Consumer Preferences
    31
  • What Do Consumers Buy from Unorganized Retail
    W
    M
    F
    M
    F
    M
    M
    W
    F
    D
    Daily
    Weekly
    Fortnightly
    Monthly of Rarer
    32
  • Top 10 Reasons Why Customers Prefer Unorganized Retail
    33
  • Consumer Ratings for Various Criteria
    34
  • Aspects That Put Consumers off
    35
  • In a Nutshell…
    Consumers prefer unorganized retail outlets for items that have low shelf life and are consumed on a daily basis (such as vegetables). Logistical convenience and a sense of personalization are key drivers for consumers to continue shopping at unorganized retail outlets.
    36
  • Comparison
    37
  • Organized Vs Unorganized
    Organized Retail
    Unorganized Retail
    38
  • Organized Vs Unorganized
    Organized Retail
    Unorganized Retail
    39
  • RECOMMENDATIONS
    40
  • Unorganized Retail
    Needs to be clean and a bit organized
    Requires Planning
    Increase the number of brands
    Staff needs to be trained
    Good Quality
    Replenishment of stock
    Warranty scheme
    41
  • Organized Retail
    Need more Fresh products
    Home delivery
    Quality can be improved - freshness
    Online shopping
    Require more counters on weekends
    Tendency to shop for unnecessary thing just because you like the offer.
    42
  • LEARNING
    43
  • Consumer Behavior
    Attitude development and change
    Intention to buy
    Experiential involvement
    Emotional response
    Store choice v/s Brand Choice
    Information
    Print Ads
    Friends
    44
  • How does the retail consumer think?
    45