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Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
Customersperceptionandsatisfactiontowardsorganizedret 120511065432-phpapp02
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  • 1. DISSERTATION REPORT ON “CUSTOMERS PERCEPTION AND SATISFACTION TOWARDS ORGANIZED RETAIL OUTLETS” IN PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATIONSUBMITTED TO: SUBMITTED BY:Mrs.ANITA CHATURVEDI SUDEEP KUMAR SINGHFACULTY GUIDE MBA –IVTH SEM.NAM, DEHRADUN (2010-2012) NIMBUS ACADEMY OF MANAGEMENT, DEHRADUN Page1
  • 2. DECLARATIONI, SUDEEP KUMAR SINGH student of M.B.A (Marketing) 20010-2012 batchstudying at NIMBUS ACADEMY OF MANAGEMENT, DEHRADUN, declarethat the project work entitled on “CUSTOMER PERCEPTION ANDSATISFACTION TOWARDS ORGANIZED RETAIL OUTLETS”was carried by me in the partial fulfillment of M.B.A Programme. It is not beencopied from anywhere else. SUDEEP KUMAR SINGH MBA – IV SEM. NAM, DEHRADUN Page 2
  • 3. LIST OF CONTENTS TITLE• ACKNOWLEDGEMENT• LIST OF TABLE AND ILLUSTRATION• ABSTRACT• INTRODUCTION• ABOUT RETAIL INDUSTRY IN INDIA• PRESENT INDIAN RETAIL SCENARIO• EVOLUTION AND TRENDS IN ORGANIZED RETAILING FORMATS AND RETAIL OUTLETS• MAJOR INDIAN RETAILERS• ORGANISED RETAIL OUTLET IN DEHRADUN• THEORITICAL BACKGROUND• REVIEW OF LITERATURE• STORE LAYOUT• INTERPRETATION & ANALYSES• FINDINGS• SUGGESTIONS• LIMITATIONS Page 3
  • 4. • CONCLUSION• QUESTIONNAIRE• BIBLIOGRAPHY Page 4
  • 5. ACKNOWLEDGEMENT “NO MAN IS COMPLETE IN KNOWLEDGE BUT SINGLE RAY OF KNOWLEDGE CAN BE HELPFUL TO MAN”.The research on “CUSTOMERS PERCEPTION AND SATISFACTIONTOWARDS ORGANIZED RETAIL OUTLETS” has been given to me aspart of the curriculum in Two-Year Masters Degree in BusinessAdministration.I have tried my best to present this information as clearly as possible usingbasic terms that I hope will be comprehended by the widest spectrum ofresearchers, analysts and students for further studies.I have completed this study under the able guidance and supervision of Mr.ANITA CHATURVADI I will be failed in my duty if I do not acknowledgethe esteemed scholarly guidance, assistance and knowledge. I have receivedfrom them towards fruitful and timely completion of this work.My acknowledgement may not redeem the debt I owe to my parents for theirdirect/indirect support during the entire course of this project.“GUIDANCE IS THE BEST IN THE WAY OF PROGRESS”.I also thankful to my friend who helped me a lot in the completion of thisproject. SUDEEP KR. SINGH MBA – IVTH SEM. (MARKETING) Page 5
  • 6. LIST OF TABLE AND ILLUSTRATIONS1) Indian retail market2) Retail formats available in India3) Fastest growing retail formats in India4) Fastest growing retail segment in India Page 6
  • 7. ABSTRACTThis paper provides detailed information about the growth oforganized retail sector in Dehradun. It discusses about the emergenceof innovative practices that support the growth of the sector in ahighly competitive environment. Though this sector is one of thefastest growing in the country but in Dehradun it is still in its nascentstage, however it is fast spreading and making its presence felt indifferent parts of the city. There is a vast untapped potential fororganized retailing in Dehradun which is the key attraction not only tothe domestic and global retailing chains operating here but also for thecustomers who belong to different cross sections of the society andvisit them. An effort has been made, in the paper to know about thecustomers’ perception and satisfaction towards these organized retailstores in Dehradun so as to access their satisfaction level and decodewhether the sector will be able to do a meaningful business inDehradun. Page 7
  • 8. INTRODUCTIONObjective  The overall purpose of this endeavour is to investigate empirically customer’s perception and satisfaction towards organized retail outlets and kirana stores on the basis of various parameters.  Moreover this study aims at finding the discriminating factors that lead to customers’ preference towards organized retailers.  To understand the overall shopping habits of customer.  To know the major factors considered by customers while shopping in unorganized retail shops.  To know the different class of customers shopping in unorganized retail shops.  To understand the various promotional activities undertaken by the unorganized retailers.  To know the satisfaction level of customers shopping in unorganized retail shops.Methodology  The study involves the primary data which is collected through questionnaire, interview, and observation.  It involves use of secondary sources such as web and other research articles printed by various financial institutions and other journals and magazine. Page 8
  • 9.  It involves analysis and tabulation of data which is collected from customers is done by various means such as line graphs, pie charts and bar graphs.  The project involves the study of customer’s perception.Sampling Method and Sample Size:Three retail outlets and two kirana stores in Dehradun were randomly selectedfor this study. Fifty visiting customers from each outlet were personallyinterviewed with the help of especially structured questionnaire. In this way 250customers were interviewed for the study.Research Instrument and Method:The survey was conducted on customers with the help of MBA students whowere specially trained for the purpose. A well structured questionnaire wasdeveloped for conducting the study. The questionnaire was divided into twoparts. First part was designed to obtain demographic information about therespondents’ age, income, literacy level and gender. Second part containedclosed-ended questions relating to rating of retail outlets on various parameters.Analysis of Data:Customers’ perception towards different aspects of retail outlets and kiranastores were compared using Analysis of Variance (ANOVA). Before going infor analysis, the Likert Scale attributes were assigned weights as under:Agree =1, Neutral =0, Disagree = -1 Satisfied = 1, Neutral = 0, Dissatisfied = -1Most Important = 2, Important = 1, Neutral = 0, Unimportant = -1, MostUnimportant = -2 andThe results obtained through data analysis have been discussed in the paper. Page 9
  • 10. ABOUT RETAIL INDUSTRY IN INDIARetail is Indias largest industry. It accounts for over 10 per cent of the IndiasGDP and around 8 per cent of the employment. Retail sector is one of Indiasfastest growing sectors with a 5 per cent compounded annual growth rate.Indias huge middle class base and its untapped retail industry are keyattractions for global retail giants planning to enter newer markets. Driven bychanging lifestyles, strong income growth and favourable demographic patterns,Indian retail is expected to grow 25 per cent annually. It is expected that retail inIndia could be worth US$ 175-200 billion by 2016.The organized retail industry in India had not evolved till the early 1990s. Untilthen, the industry was dominated by the un-organized sector. It was a seller’smarket, with a limited number of brands, and little choice available tocustomers. Lack of trained manpower, tax laws and government regulations alldiscouraged the growth of organized retailing in India during that period. Lackof consumer awareness and restrictions over entry of foreign players into thesector also contributed to the delay in the growth of organized retailing.A number of factors are driving Indias retail market. These include: increase inthe young working population, hefty pay-packets, nuclear families in urbanareas, increasing working women population, increase in disposable income andcustomer aspiration, increase in expenditure for luxury items, and low share oforganized retailing. Indias retail boom is manifested in sprawling shoppingcentres, multiplex- malls and huge complexes that offer shopping, entertainmentand food all under one roof. But there is a flip side to the boom in the retailsector. It is feared that the entry of global business giants into organized retailwould make redundant the neighbourhood Karana stores resulting in dislocationin traditional economic structure. Also, the growth path for organized retail inIndia is not hurdle free. The taxation system still favours small retail business.With the intrinsic complexities of retailing such as rapid price changes, constant Page 10
  • 11. threat of product obsolescence and low margins there is always a threat that theventure may turn out to be a loss making one.A perfect business model for retail is still in evolutionary stage. Procurement isvery vital cog in the retail wheel. The retailer has to fight issues like fragmentedsourcing, unpredictable availability, unsorted food provisions and dailyfluctuating prices as against consumer expectations of round-the-year steadyprices, sorted and cleaned food and fresh stock at all times.Trained human resource for retail is another big challenge. The talent base islimited and with the entry of big giants there is a cat fight among them to retainthis talent. This has resulted in big salary hikes at the level of upper and middlemanagement and thereby eroding the profit margin of the business. All thecompanies have laid out ambitious expansion plans for themselves and theymay be hampered due lack of requisite skilled manpower.But retail offers tremendous for the growth of Indian economy. If all the abovechallenges are tackled prudently there is a great potential that retail may offeremployment opportunities to millions living in small town and cities and in theprocess distributing the benefits of economic boom and resulting in equitablegrowth. Page 11
  • 12. PRESENT INDIAN RETAIL SCENARIOThe retail industry is divided into organized and unorganized sectors. Over 12million outlets operate in the country and only 4% of them being larger than 500sq ft (46m²) 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 thecorporate-backed hypermarkets and retail chains, and also the privately ownedlarge retail businesses.Unorganized retailing, on the other hand, refers to the traditional formats oflow-cost retailing, for example, the local kirana shops, owner manned generalstores, paan/beedi shops, convenience stores, hand cart and pavement vendors,etc. • Unorganized market: Rs. 583,000 cores • Organized market: Rs.5, 000 cores • 5X 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 Asias top 200 companies are retailers.Growth in organized retailing on par with expectations and projections of thelast 5 Years: on course to touch Rs. 35,000 corers (US$ 7 Billion) or more by2005-06The growth factors of the retail sector of Indian economy: Page 12
  • 13. • 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. Page 13
  • 14. EVOLUTION AND TRENDS IN ORGANIZED RETAILING FORMATS AND RETAIL OUTLETSHistorical Indian retail market consisted of weekly markets, village fairs andmela’s and the 19th century gave birth to the retail outlets which took the formof convenience stores, Mom and Pop stores/ kirana stores. This helped theconsumers on to stick to a particular store for their day to day requirements andalso avail the credit purchasing facility. And in the 1980’s people have seen thenew formats like supermarket, departmental stores and discount stores enteringinto the Indian retail space. In less than a decade hypermarkets have gained allthe applause of the retail market and stood above all the other formats bybringing in the concept of “one stop shopping.” This stood as an opening doorfor the new generation of the retail industry. And very soon the malls becamethe 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 shopfor 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 retail’s Big Bazaar, RPG’s Spencer’s (Giant),Vishal mega mart.Supermarket: A subdued version of a hypermarket.Merchandise: Almost similar to that of a hypermarket but in relatively smallerproposition.Space occupied: 5000 Sq. ft. or more. Page 14
  • 15. 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 Retail’s fresh.Department store: A retail establishment which specializes in selling a widerange of products without a single prominent merchandise line and is usually apart of a retail chain.Merchandise: Apparel, household accessories, cosmetics, gifts etc.Space occupied: Around 10000 Sq. ft. – 30000 Sq. ft.Example: Landmark Group’s LifeStyle, Trent India Ltd.’s Westside.Discount store: Standard merchandise sold at lower prices with lower marginsand higher volumes.Merchandise: A variety of perishable/ non perishable goods.Example: Viswapriya Group’s Subiksha, Piramal’s TruMart.Specialty store: It consists of a narrow product line with deep assortment.Merchandise: Depends on the storesExample: Bata store deals only with footwear, RPG’s Music World, Crossword.MBO’s: Multi Brand outlets, also known as Category Killers. These usually dowell in busy market places and Metros.Merchandise: Offers several brads across a single product category. Page 15
  • 16. Kirana stores: The smallest retail formats which are the highest in number (15million 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 metrocities, in proximity to urban outskirts.Merchandise: They lend an ideal shopping experience with an amalgamation ofproduct, service and entertainment, all under a common roof.Space occupied: Ranges from 60,000 sq ft to 7, 00,000 sq ft. Page 16
  • 17. In the above graph it shows that the in India the fastest growing retail segmentis food and grocery because in India people spend more on eating. Thendressing because India is now turning to modern age and the people of modernage like to dress well and look well. Page 17
  • 18. In the above graph it shows that the there are many formats of retailing in Indiabut the specialty store and supermarket is fastest growing formats in India. Key part of the general corporate strategyA marketing strategy is most effective when it is an integral component ofcorporate strategy, defining how the organization will successfully engagecustomers, prospects, and competitors in the market arena. It is partially derivedfrom broader corporate strategies, corporate missions, and corporate goals. Asthe customer constitutes the source of a companys revenue, marketing strategyis closely linked with sales. A key component of marketing strategy is often tokeep marketing in line with a companys overarching mission statement.Basic theory: 1) Target Audience 2) Proposition/Key Element 3) Implementation Page 18
  • 19. MAJOR INDIAN RETAILERSThe low-intensity entry of the diversified Mahindra Group into retail is uniquebecause it plans to focus on lifestyle products. The Mahindra group is the fourthlarge Indian business group to enter the business of retail after RelianceIndustries Ltd, the Aditya Birla Group, and Bharti Enterprises Ltd. The otherthree groups are focusing either on perishables and groceries, or a range ofproducts, or both.RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper,Spencer’s Super, Daily & FreshThe Tata Group-Formats: Westside, Star India Bazaar, Steel junction,Landmark, and Titan Industries with World of Titans showrooms, Tanishqoutlets, Chroma.K Raheja Corp Group-Formats: Shoppers’ Stop, Crossword, Hyper City, inorbitLifestyle International-Lifestyle, Home Centre, Max, Fun City andInternational Franchise brand stores.Pyramid Retail-Formats: Pyramid Megastore, TruMartNilgiri’s-Formats: Nilgiris’ supermarket chainSubhiksha-Formats: Subhiksha supermarket pharmacy and telecom discountchain. Page 19
  • 20. Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarketchainVishal Retail Group-Formats: Vishal Mega MartBPCL-Formats: In & OutReliance Retail-Formats: Reliance FreshReliance ADAG Retail-Format: Reliance WorldShoprite Holdings-Formats: Shoprite Hyper Page 20
  • 21. ORGANISED RETAIL OUTLETS IN DEHRADUNVISHAL MEGA MARTThe glory of Vishal Group’s success is the ascent it has come to accomplish inthe field of manufacturing and retailing of readymade garments. The credit forthis radiance goes to its dynamic of directors Mr. Ram Chandra Agarwal & MrsUma Agarwal who have transformed their foresightedness into an unendingsaga of growth. Identifying the immense market in fashion garment for themasses the Group has actually established benchmarks that many others areinspired to follow. Not resting on its laurels, the Group is busy identifying newavenues of growth and its companies are busy implementing the expansionplans to cash in on emerging potentials in the changing business environment ofmodern India’s enterprise.The jewel in Vishal Group’s crown is its flagship company Vishal Retail Ltd. acompany engaged in Hyper market stores with an average area of 25,000 to30,000 sq. ft. through an impressive chain of 172 fully integrated stores inspread over the area of more than 24,00,000 sq. ft. in around 110 cities acrossIndia in 24 states. The turnover of the company for 09-10 was 1105 Crore.Maintaining the highest standards in quality and design, these stores have cometo offer the finest fashion garments at down-to-earth price structure. A fact that Page 21
  • 22. is better visible in the constant flow of shoppers all through the year. Under thetitle of Vishal Mega Mart these stores have emerged as the regular haunts forthe bargain-hunters and fashion enthusiasts alike.The saga of Vishal Group dates back to 2001 when its directors foresaw theemerging potentials in the retail industry which is indeed the largest sector inthe global economy. Imbibing its innovative concepts and techniques the Groupidentified the vast scope of growth in retailing for the common man. Its storeshave gained an enviable prominence as being the ideal store for the commonman where an extensive variety and quality is offered at a very, very reasonableprice structure. The Group’s expertise in the field of retail marketing over theyears and its focus on regions, cities and exact customer preferences haveearned the Group an undisputed leadership status to Vishal Group.Bharti RetailBharti Retail is a wholly owned subsidiary of Bharti Enterprises. The Companyoperates easy day neighbourhood stores and compact hypermarket stores calledeasy day Market. Bharti Retail provides consumers a wide range of good quality Page 22
  • 23. products at affordable prices. easy day stores are one stop shops that cater toevery familys day-to-day needs. Merchandise at easyday Market stores includeapparels, home furnishings, appliances, mobile phones, meat shop, generalmerchandise, fruits and vegetables among others.Created on the neighbourhood shop format, the much-awaited retail operations‘EasyDay‘was introduced by Bharti Retail Limited at Dehradun in Uttrakhnad.Bharti Retail Limited happens to be a wholly-owned subsidiary of BhartiEnterprises and its Easy Day retail operations will act as a one-stop shopcatering to a family’s day-to-day needs.As such, the Easy Day Stores will provide Indian consumers a wide range ofproducts of excellent quality apart from proffering a nice ambience and service.Among the range of items you can look forward to buying from the EasyDaystores include personal care products, stationery, household articles, hosieryitems, daily-need groceries like staples, processed foods, bakery and dairyproducts, meat and poultry and fresh produce.It was announced by the company that EasyDay will gives jobs to the locals inthe Ludhiana area where it has been set up. Further on those who will beselected for the job will be trained by Bharti Academy of Retail, which has beenestablished by Bharti Retail Limited. This academy has already trained about1,800 local people from different sections of the society.KUMAR STORES4, Neshvilla RoadDehradun, Uttarakhand, 248001Phone No: +91-135-2653145 +91-9837034784 Page 23
  • 24. Email: Samraat@Vsnl.ComDirections: It Is Located On Neshvilla Road, 800 Metres From Clock TowerHours of Operation: 8:30 Am To 8:30 PmClosed: SundayPayment Type: Cash, Visa, Master CardBusiness DescriptionIt Deals In All Kinds Of Cosmetics, Gift Novelties, White Metal, Toys,Decorative Pieces, Home Appliances, Stationery And All Other Items Of DailyNeed.Kaveri Departmental Store38, Arhat Bazar,Saharanpur ChowkSaharanpur RoadDehradun,Uttarakhand, 248001Phone No: +91-135-2625514Directions: It Is Located At Saharanpur Chowk, 550 Metres from DehradunHours of Operation: 10:00 Am To 8:30 PmClosed: SundayPayment Type: Cash, Visa, Master CardBusiness Description Page 24
  • 25. All Types Of Utility Items Of Domestic Purposes Can Be Purchased FromHere. Page 25
  • 26. AMARTEXFrom The Directors Desk Amartex was born in 1988 as a small cloth-manufacturing unit, established by the Grover family of Chandigarh. Set upwith a modest capital, it is today a fully integrated manufacturing Company,boasting of an impressive turnover of Rs. 250 Crores and targeting 1000 Croresin coming two years.Mr. Arun Grover, the Managing Director, was quick to spot the discrepancies inthe prevalent manufacturing to retail process. By the time the product reachedthe stories, the consumer paid a lot more than justified.Amartex revolutionized whole textile industry in north India with a swift andthorough process of backward integration which led to the setting up of everylink in the chain. Today, the company has completed all in-house facilities,from manufacturing to retailing and is fastest growing.Amartex is a fully integrated manufacturing Company with a balanced mix ofmanufacturing and marketing. The Company is well equipped with modernmanufacturing and marketing infrastructure, such as, weaving to processing,designing and garments manufacturing and is the fastest growing company inthe region. All products rolling out of our premises find their way to every nookand corner in this region through 34 Company owned retail outlets. TheCompany provides consumers with a wide variety of apparel products andservices to suit their individual needs. We have carved out a niche and name inthe industry and cater. Amartex was brought into existence in 1988 by a team ofcompetent promoters viz-a-viz The Grover Family. The core promoters have Page 26
  • 27. more than two decades of experience in manufacturing and marketing of textileproducts. The management of the Company comprises of an appropriate mix ofqualified and competent Directors and Managerial Staff. THEORETICAL BACKGROUNDUnique Customer Perception (UCP)Marketing is a domain which is dynamic i.e. involves change, an importantphenomenon not to be overlooked. We have come across a term “UniqueSelling Proposition” (USP) which companies feel as a constant factor. Everyorganization is an open system of management which means change isinevitable and is associated with environmental factors. Companies need tofocus not only on USP of their products but also on the “Unique CustomerPerception” (UCP) of the final end users.The prop of marketing is based on the need identification and the USPs areprepared based on the identified needs. If the needs are wrongly identified theneven the USPs which are unique to the product would not serve the purpose.USP identifies a product/service from its competitors while UCP is theperception or picture a customer develops from all types of promotional inputsfrom the company about their product or service. It is often seen that somebrands do extremely well compared to other brands having the same resources.The reason for the brands not to do well is probably the communications whichdoes not reflect the customer’s perception. So it is not the USP but UCP thatplays an important role .This has lead to the concept - “Customer Perception isthe Rule and not Customer Satisfaction”.Remember that a customer always buys a product or service with a lot ofexpectations which he has derived from the promotional inputs of the company Page 27
  • 28. or other sources including word of mouth. So a customer would be satisfiedwhen Performance is equal to Expectation while would not be satisfied whenPerformance does not match with Expectations. Now this expectation is whathas been derived from perception.Perception is not good or bad, right or wrong, it is just the way someone judgesan experience based on their value system of what they believe should happen.Since people are unique, each of their perceptions are unique .On the other handeach situation is a "point of contact" with an employee that will tell thecustomer a "truth" about the companys idea of customer service. Each situationwill create expectations’ of what the next experience will probably be like.Companies spend considerable amount on advertisement and in this world ofcompetitive advantage advertisement has to be repetitive in nature. Socompanies need to understand the Unique Customer Perception to facilitateadvertising and Sales Promotional (ASP) efforts towards a better bargain. Thecost incurred on advertisement is huge i.e. if we refer to the 5 Ms ofadvertising, Money is a budgetary constrain for an ideal advertising campaign.Thus UCP has to be rightly analyzed for better results by the company to matchperformance and expectation. Page 28
  • 29. – An analysis of Indian Retail sectorPJ GERMAINThe customers perception: Customer perception is an important componentof our relationship with our customers. Given that 90% plus of our orders atsome point involve the phone, how we handle the telephone is essential tocreating a perception for our customer that aligns with the company mission ofservice. Smiling stretches your vocal cords, and gives a more upbeatpresentation to the customer. Slowing down ensures that the customersperception is of an organized systematic company that can handle their project.Getting it done right and on time consistently.Article source: http://www.fibre2fashion.comBY SOUMEN CHATTERJEEUnique customer perception (UCP): According to soumen, Unique CustomerPerception is what is required by companies instead of Unique SellingProposition. It is ultimately that customer look for satisfaction based on thepicture of perception derived from various sources. If these perceptions ofcustomer can be analyzed then promotion would be easier for customer centricmarketing. This has lead to the concept - “Customer Perception is the Rule andnot Customer Satisfaction”.Article Source: http://EzineArticles.com/?expert=Soumen_ChatterjeeBY JEN BBrand recognition will change customer perception: According to JenB, fora bigger stronger business you have to get some serious brand recognition Page 29
  • 30. happening. People need to know your name before any thing else. You wantpeople 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 blanklooks from people that are not current customers then you probably have norecognition at all. That means it is time for an advertising switch. Even if peopledon’t buy the product they will recognized the name. Remembering a businessis one step closer to trusting a business. Brand recognition is accomplished onlyby people seeing your logo and business name over and over again. This willcreate the repetition that your customers and future customers need to pick yourproduct out of a crowd time and time again.Article Source: http://www.a1articles.com/article_1035917_15.htmlHUAWEISatisfy customers perception is the biggest challenge: In meeting customersrequirements and measuring customers satisfaction indexes, customerperception should be definitely a key consideration. Qualified services in theoperation execution layer, technical management layer and businessdevelopment layer are necessary. It is more important to understand customerexpectations and make efforts to exceed their expectations. In customersatisfaction management, the biggest challenge is customer perceptionmanagement, or customer perception satisfaction. The major characteristics ofservice is intangible, hence the core value of services is not like a physicalproduct but the spiritual experience and perception of customers. The final aimand ideal effect of service provisioning is to have customers perceive and enjoythe service. Such perception is both at psychological and behaviour levels, andit is the contents of high quality life in the modern society. Customers areseeking for material deliverables as well as perceptive enjoyment whenpurchasing a service product. Page 30
  • 31. Since perceptive enjoyment is a vital service objective, one of the key servicemanagement objectives shall be meeting customers perceptive enjoyment.Article source: Huawei Technologies Co. LtdMORGAN STANLEYQuick Comment – Impact on our views: We met Rakesh Biyani, DirectorFuture Group, who heads the retail business. Our investment thesis regardingimproving business outlook and availability of capital to fund growth planscontinues to hold good. Management has consciously shifted focus to growthquality rather than just growth. We reiterate our Overweight rating and believethat any volatility in the stock price should be viewed as an entry opportunity.Here are the key takeaways from the meeting: Aggressive growth and margintargets: PRIL has set an aggressive 16-17% same store growth (SSG) target forF2010. This compares with F2009 SSG of 7.0%. The company plans to achievethis target by adopting active merchandise management. First, the company islikely to ensure that its fastest-selling products don’t go out of stock. It hasincreased its order per SKU range from 900-1,400 to 600-6,000 to ensurereduced stock outs for fast-selling products. Second, it has put in place a systemto continuously monitor underperforming categories/segments/SKUs so thatthey can be immediately replaced. Third, it has improved product quality andpricing across its merchandise (particularly private label) to ensure market sharegains. Fourth, it has now set store-wise, product-wise and SKU-wise,daily/weekly sales targets so that the monitoring and feedback system improvessignificantly.Focus on efficiency to improve margins: The management is targeting 200-250 bps improvement in gross profit margin, a 30% reduction in logistic costs,and a reduction in nonstore inventory during F2010. Gross margin improvementis likely to be driven by improvement in sell-through ratio (% of products sold Page 31
  • 32. through the primary store), from 79% in F2009 to 89% in F2010. The companyachieved 79% in F2009, which was an improvement from 64% in F2008.Significant improvement in private label contribution, particularly in the apparelsegment, may also help the overall mix improvement.TRENT LEYSHANCreating the right ‘Value Perception’ for your CustomersAccording to Trent Leyshan Value Perception (VP) is the opinion your potentialand current customers have of your product or service. This perceptiondetermines the value it adds to them in line with the problems it needs to solveor aspirations they want it to fulfil. Irrespective of your customer’s opinionbeing 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 thisinstance we respond: whose fault is that: the customer, sales person, salesmanager, marketing dept or Company Directors? One this is for sure, itcertainly isn’t the customers fault. Value cascades down the value deliversystem into the customer. A breakdown on any level can be detrimental to acompany’s success. The customer’s positive perception, along with an effectivesales process will help the customer make the appropriate buying decision.Article source: www.trentleyshan.com | Page 32
  • 33. MERCHANDISE ASSORTMENT PLANNINGThe retailer must make decisions regarding the merchandise offered dependingon the sales targets and financial objectives of the store.Retailer should be very careful while deciding on the amount of stock to bemaintained in each category; if large stocks are maintained in a particularcategory, there may not be sufficient resources left for providing a deeperassortment of goods. By taking into consideration this phenomenon all PeterEngland specialty stores are maintained on the basis of the per square footSKUs. It means that as shown into the figures of assortment, every SKU arereplenished in the fix quantity. STORE LAYOUTThere are some key factors that a retailer should take into account, whiledeveloping a layout prototype. The following are the optimizing factors: • Increasing sales • Maximizing returns per square foot • Coordinating the merchandise with the store format. • Allowing flexibility in store design. • Recognizing the needs and safety of the customersThe store lay out should enable and incite the customers to move around thestore to purchase more products than they have actually planned for.The store layout should tempt customer to walk along the inexpensivemerchandise display section for impulse buying and then move on to expensivemerchandise.There are three types of store layout1. Grid layout2. Race track layout Page 33
  • 34. 3. Free-form layout STORE EXTERIORSGenerally, the first impression of a customer about a store is formed by itsexteriors. The exterior of a store plays a vital role in attracting new customersand retaining existing customers. Retailer while planning their store exteriormay consider any of the following option.1. Modular structure2. Prefabricated structure3. Prototype structure4. Recessed structure5. Distinct structureMarquee: typically carries store name along with the trade marks. Here youcan see Peter England marquee is not much blowy and outside signboard is putwhich matching with its positioning tag line “Honestly Impressive”.Entrance and display window: From the photograph we can clearly make outthat there is only one entrance in the store which shows the display ofmerchandise which store offers, so that it can attract the pedestrians easily.Door type and walk away: the door is of push-pull type which eases trafficcongestion at the entrance and allows the customer to see interiors. There isample of space available for the customer to freely move inside the store butbecause of the smaller parking space available, which is outside the store, itbecomes very congested sometimes. Page 34
  • 35. STORE INTERIORSThe principal objective of any retailer is to maximize its sales and customersatisfaction, and to minimize the operational costs. Therefore, the interior of thestore should be designed in such a way that it serves.Lighting and FragranceIn the store lighting is used intelligently to highlight the merchandise and attractcustomers to specific departments in the store.Some of the main objectives they have achieved with lighting are following: • Highlighting the displayed product. • Capturing customer’s mood. • Masking the unattractive features or places of the store.There is also a mild fragrance available into the store to influence thePurchasing decisions of the target market. Page 35
  • 36. INTERPRETATION & ANALYSES Page 36
  • 37. RESEARCH AND METHODOLOGYThe study focuses on DEHRADUN city, as it is the industrial capital ofUTTARAKHAND, and it portrays cross-sections of the society. Five megamarts, namely, Vishal Mega Mart, Easy day, Amartex, Kumar’s stores andKaveri departmental stores, were randomly selected for the study. Fifty visitingcustomers from each mega mart were personally interviewed with the help of aspecially structured questionnaire. In this way, 250 customers were interviewedfor the study.Customers perceptions towards different aspects of mega marts were comparedby using Analysis of Variance (ANOVA).Socioeconomic Characteristics of the CustomersAge: The data given in Table 1 shows that half of the customers belonged to theage group of 16-25 years. This shows that younger people visit mega martsmore frequently as compared to their older counterparts. This proportionbecomes 32.00% in the age group of 26-35 years. This shows that the olderpeople enjoyed their old set pattern of marketing.Sex: Majority, i.e., 57.20% of the customers were female, while only 42.80% ofthem were male. This may be due to the now female domination in the decisionmaking process in the family.Place of Residence: As high as 71.20% of the customers belonged to the urbanareas, while 28.80% of them came from rural areas. Thus, the urban populationdominates the quantum of customers at mega marts.Education: The analysis shows that the customers with educational level up tograduation, accounted for 40.80%, while the customers with higher educational Page 37
  • 38. level, came to be 30.80% only. The highest proportions of customers (44.40%)were enjoying medium level of education. This indicates that among the highlyeducated customers, mega marts could not become popular, and they mighthave preferred to go to malls keeping with their educational status.Family Income: The data shows that the proportion of customers visiting megamarts was inversely related with the family income. It came down from 62.20%of customers with low family income up to Rs. 25,000 per month to 6.40% ofthem having family income of more than Rs. 50,000 per month. This shows thatmega marts could not attract the very rich class. They may instead prefer mallsfor shopping. Thus, people with high education and income do not visit themega marts frequently. Table 1 : Socioeconomic Characteristics of Customers of Mega Marts Socio-Economic Number of Customers Percentage ( % ) CharacteristicsAge (Years) :16 – 25 114 45.6026 – 35 80 32.0036 – 45 30 12.0046 – 55 12 4.8056 – 65 14 5.60Above 65 0 0.00Place of residencerural 72 28.80urban 178 71.20Gender :Male 107 42.80Female 143 57.20Education :Matriculate 6 2.40 Page 38
  • 39. Intermediate 35 14.00Graduate 102 40.80Post Graduate 77 30.80Above Post Graduate 30 12.00Family Income (Rs/Month ) :Up to 10,000 63 25.2010,000 – 20,000 94 37.6020,000 – 50,000 77 30.80Above 50,000 16 6.40Decision Maker :Self 187 74.80Others 63 25.20Decision Maker: Majority, i.e., 74.80% of the customers were decision makersthemselves, while only 25.20% of them belonged to those families where thedecision maker was some other family member. Thus, self decision makingdominates the purchasing scenario at the mega marts.Therefore, it can be said that majority of the customers of mega marts wereyoung female from urban areas, with medium level of education, and low levelof family income.Perceptions of the Customers Towards Mega MartsThe perceptions of the customers towards different aspects related to megamarts were observed through a number of Likert scale-based, ranking-based andmultiple choice-based questions.Preference for Mega MartsThe data given in Table 2 shows that the highest proportion, i.e., 42.40% of thecustomers assigned 1st rank to Vishal Mega Mart, while on the other hand, ashigh as 37.60% of them assigned the lowest rank, i.e., 5th rank to kaveri Page 39
  • 40. departmental stores. The overall ranking came to be 1st in favour of VishalMega Mart, followed by easyday, Amartex and Kumar stores, while kaveridepartmental stores could only secure the least preference of the customers.Vishal Mega Marts first position may be due to its easy approach location andparking facilities, compared to other mega marts. The Critical Difference (C.D.)value indicated that though there were some differences in the overall rankingof different mega marts, but statistically Vishal Mega Mart, V-Mart andeasyday were at par. These three mega marts acquired the 1 st preference, whileeasy day and Kumar stores could secure the 2nd preference of the customers. Page 40
  • 41. Ranking of Mega Marts in Order of Preference for Shopping Rank Assigned Mean Overall Malls 1 2 3 4 5 Rank RankVishal 106 57 51 22 14 2.30 Imega mart (42.40) (22.80 (20.40) (8.80) (5.60) )Easy day 64 89 56 23 18 2.83 I (25.60) (35.60 (22.40) (9.20) (7.20) )Amartex 46 69 74 38 23 3.56 II (18.40) (27.60 (29.60) (15.20) (9.20) )Kumar’s 23 35 45 69 78 2.57 Istores (9.20) (14.00 (18.00) (27.60) (31.20) )Kaveri 11 13 36 96 94 3.83 IIdepartment (4.40) (5.20) (14.40) (38.40) (37.60)al storesF-ratio 7.89 -C.D. .7892 -Note: Overall rank is based on the value of C.D. Page 41
  • 42. Reasons for Preferring a Mega MartA perusal of Table 3 shows that the vast majority, i.e., 79.20% of the customersagreed upon the convenience of the mega mart responsible for their preference.This agreement on convenience was followed by reasons like less timeconsuming (77.60%), safety (71.20%) and location (70.00%), while the lowestproportion, i.e., 62.40% of the customers agreed upon the uniqueness of themega mart responsible for their preference for a mega mart. Extent of Agreement on Different Reasons for Preferring a Particular Mega MartReasons Agree Neutral Disagre Mean Overall e Score PreferenceSafety 178 45 27 0.60 I(%) (71.20) (18.00) (10.80)Convenience 198 48 4 0.77 I(%) (79.20) (19.20) (1.60)Uniqueness 156 59 35 0.48 II(%) (62.40) (23.60) (14.00)Less Time Consuming 194 34 22 0.68 I(%) (77.60) (13.60) (8.80)Location 175 65 10 0.66 I(%) (70.00) (26.00) (4.00)F-ratio 9.21 -C.D. 0.1892 -Note: Overall performance is based on the value of C.D.Overall preference for a particular mega mart came to be the highest of theorder of 0.79 (79%) in favour of convenience of the mega mart, while thelowest preference was found to be in case of uniqueness of the mega mart. The Page 42
  • 43. C.D. value indicates that the customers preferred a particular mega martkeeping in view the convenience and location at the 1 st place, followed bysafety, uniqueness and less time-consuming status at the 2nd place. Thus, themega marts should be convenient in terms of space, product range, billingsystem, multiple choice, etc., and should be located within an easy approach.Safety and Parking FacilitiesThe customer’s opinion regarding safety and parking facilities at the megamarts is contained in Table 4. As much as 51.20% of the customers weresatisfied over the safety at mega marts, while 30.80% of the customersexpressed dissatisfaction over the same. About 19% of them could not commenton the safety status at the mega marts. Overall safety could secure only 0.20(20%) score by the customers. This shows that safety at the mega marts is poor. Page 43
  • 44. Extent of Customers’ Satisfaction on Safety and Parking Facilities at Mega MartsA. Safety Number of Customers %Satisfied 128 51.20Neutral 45 18.00Dissatisfied 77 30.80Mean Score 0.20 -B. Parking FacilitiesSatisfied 96 38.40Neutral 67 26.80Dissatisfied 87 34.80Mean Score 0.04 -As far as parking facilities at the mega marts are concerned, only 38.40% of thecustomers were satisfied, while 34.80% of them expressed their dissatisfactionover the parking facilities. The mean level of satisfaction over parking facilitiesat mega marts came to be 0.04(4%), indicating an overall dissatisfaction ofcustomers over parking facilities at the mega marts.Utility of Mega MartsThe customers were asked about their extent of agreement over different utilityaspects of mega marts in terms of `agree, `neutral, and `disagree, and the sameare presented in Table 5. It shows that the highest proportion, i.e., 98.00% of thecustomers agreed upon mega marts as a place to shop, while the leastproportion, i.e., 42.00% took the mega marts as a place to socialize. The meanscore of agreement ranged between 0.98 in favour of mega marts as a place toshop, and 0.19 in favour of mega marts as a place to socialize. The CD valueconveys that the extent of agreement as a place to shop significantly came to bethe highest, followed by a place to compare. The mega marts as a place ofenjoyment and a place to experience, could secure the third rating, while 4 th andthe lowest stage rating was found to be in case of mega marts as a place to Page 44
  • 45. socialize. Thus, the mega marts are generally taken to be a place to shop and tocompare. Extent of Agreement on Different Utility Aspects of Mega MartsUtility Aspects Agree Neutral Disagree Mean Overall Score RatingA Place to Shop 245 5 0 0.98 I(%) (98.00) (2.00) (0)A Place to 105 88 57 0.19 IVSocialize (42.00) (35.20) (22.8)(%)A Place to Enjoy 150 67 33 0.47 II(%) (60.00) (26.80) (13.2)A Place to 176 45 29 0.59 IIExperience (70.40) (18.00) (11.6)(%)A Place to 120 104 26 0.38 IIICompare (48.00) (41.60) (10.40)(%)F-ratio 13.05C.D. .0932Note: Overall rating is based on the value of C.D. Page 45
  • 46. Spending on Different ItemsThe data given in Table 6 show that the highest proportion, i.e., 35.90% of thecustomers total spending was incurred on clothing’s, followed by 16.56% onfootwear’s, 14.98% on grocery and 12.98% on cosmetics. The lowestproportion, i.e., 0.82% of the total spending at mega marts was incurred oncommunication instruments, followed by 2.08% on artificial jewellery and7.82% on cosmetics. Thus, it can be said that the mega marts emerged as themost common shopping centres for clothing’s. Average Proportion of Spending on Different Items at Mega Marts Items Mean Position (%)Grocery 14.98 IIICosmetics 12.28 IVJewellery 2.08 VIIClothing 35.90 IEatables 9.56 VFootwear 16.56 IIConsumer Durables 7.82 VICommunications .82 VIIITotal 100.00 Page 46
  • 47. Preference for Different Sale Promotion SchemesA perusal of Table 7 leads to the fact that majority, i.e., 62.40% of thecustomer’s assigned 1st rank to cash discount offered at mega marts, while theleast rank was assigned to guarantee/warranty by as high as 45.60% of thecustomers. The overall ranking based on C.D. value came to be 1 st in favour ofcash discount, followed by free gifts schemes and financing facilities, while theleast and the fifth rank was found to be in case of guarantee/warranty, precededby lucky draw schemes. This shows that cash discount and free gifts schemesemerged as the most common sale promotion schemes amongst customers atmega marts. Ranking of Different Sale Promotion Schemes Attracting Customers MostPromotional Rank Assigned Mean Overall 1 2 3 4 5Schemes Rank RankCash 156 46 24 15 9 1.89 IDiscount (%) (62.40) (18.40) (9.60) (6.00) (3.60)Lucky Draw 13 35 54 71 77 3.54 IVSchemes (%) (5.20) (14.00) (21.40) (28.40) (30.80)Free Gifts 59 114 61 15 1 2.19 IISchemes (%) (23.60) (45.60) (24.40) (6.00) (0.40)Financing 14 28 83 106 19 3.34 IIIFacility (%) (5.60) (11.20) (33.20) (42.40) (7.60)Guarantee/ 32 38 18 48 114 3.94 VWarranty (%) (12.80) (15.20) (7.20) (19.20) (45.60)F-ratio 8.78 -C.D. .1869 -Note: Overall rank is based on the value of C.D. Page 47
  • 48. Importance of Different Factors for Purchase DecisionSome factors were identified which influence the decision making for purchaseby the customers. The factors were rated as per the level of importance. Theresults are presented in Table 8. It is obvious from Table 8 that the highestproportion, i.e., 74.80% of the customers considered the quality of products asmost important, followed by 63.60% in favour of discount. Ambience was themost important factor only for 8.40% of them, while only for 11.20%, thepressure from family members came to be the most important factor whilemaking a purchase decision. The mean rating of factors in terms of importancecame to be significantly the highest for quality and discount, followed by valuefor money. The 3rd rating factors were fixed prices and need-based purchases,while there were wide range of products and display of products which acquired4th level of importance. The next level of importance, i.e., 5 th level, was securedby international brands, socioeconomic status and behaviour of the staff, whilepackaging stood at the 6th level of importance. Advertisement influenced thepurchase decision of customers at the 7th level, while pressure from familymembers and ambience could secure only 8th and 9th level of importance,respectively.Thus, quality and discount emerged as the most important factors influencingcustomers purchase decision, while family members pressure and ambiencecame to be the least important factors in this regard. Page 48
  • 49. Importance of Factors Considered by Customers while taking a PurchaseDecision Factors Overall Position Mean Rating Neutral Most Important Unimportant MostUnimportant ImportantQuality 187 56 7 0 0 1.65 I(%) (74.80) (22.40) (2.80) (0.00) (0.00)Wide Product 89 91 42 20 8 0.87 IVRange (%) (35.60) (36.40) (16.80) (8.00) (3.20)International 56 66 87 35 6 0.45 VBrands (%) (22.40) (26.40) (34.80) (14.00) (2.40)Discount 159 77 10 4 0 1.53 I(%) (63.60) (30.80) (4.00) (1.60) (0.00)Packaging 47 90 50 59 4 0.42 VI(%) (18.80) (36.00) (20.00) (23.60) (1.60)Advertisement 36 89 66 59 0 0.30 VII(%) (14.4) (35.60) (26.40) (23.6) (0.00)Product 86 117 22 20 5 0.91 IVDisplay (34.40) (46.80) (8.80) (8.00) (2.00)(%)Ambience 21 41 98 62 28 -0.14 IX(%) (8.40) (16.40) (39.20) (24.80) (11.20 )Value for 108 112 30 0 0 1.27 IIMoney (%) (43.20) (44.80) (12.00) (0.00) (0.00)Need-Based 118 66 47 19 0 1.12 III Page 49
  • 50. Purchases (%) (47.20) (26.40) (18.8) (7.60) (0.00)Family 28 71 94 57 0 0.19 VIIIMembers’ (11.20) (28.40) (37.60) (22.80) (0.00)Influence (%)Socio- 54 89 62 40 5 0.51 VEconomic (21.60) (35.60) (24.80) (16.00) (2.00)Status (%)Behaviour of 67 93 60 33 7 0.59 Vthe Staff (26.80) (37.20) (24.00) (13.20) (2.80)(%)Fixed Prices 72 98 55 20 5 1.07 III(%) (28.80) (39.20) (22.00) (8.00) (2.00)F-ratio 11.12C.D. 0.1191Note: Overall position is based on the value of C.D. Page 50
  • 51. FINDINGS1. In this study it is found that 60% customers prefer to purchase from organized retail outlets as compare to unorganized retail outlets.2. During the study it comes to know that customers spend 40% - 50% of their monthly budget at organized retail outlets.3. In this study it is found that organized retail outlets provide better quality, product range as compare to unorganized retail outlets.4. 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.5. 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.6. The findings of the study conclude that 80% of the customers are youngsters aged between 16-25 and among them more males from the urban sector visit mega marts.7. From the utility point of view, 90% of customers were more oriented towards safety and parking facilities.8. About 35% - 40% of peoples are least bothered about guarantee and warrantee as compared to quality and discount that they prefer more. Page 51
  • 52. SUGGESTIONS1. The organized retail outlets should improve the quality of Vegetables & fruits they provide to customers.2. The organized retail outlets should provide the free home delivery facility.3. The organized retail outlets should increase the no. of billing counters in their outlets.4. The organized retail outlets should also provide the credit facility to the lower class customers so that they can increase their market share.5. The organized retail outlets should also provide the mobile van facility in the areas which are far away from the stores.6. to attract the rural sector customers, mega marts may extend their advertisements offering special sale promotion schemes to the rural areas.7. 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.8. 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. Page 52
  • 53. LIMITATION Due to the constraints of time, the study was confined to DEHRADUN city. The sample was taken on the basis of convenience; therefore the shortcomings of the convenience sampling may also be present in this study. The sample size chosen for the purpose was only indicative and not exhaustive owing to time constraints. There were some inherent limitations as far as collection of data is concerned. The respondents replied may be biased in favour of their centres. Page 53
  • 54. CRUX OFTHE STUDY Page 54
  • 55. CONCLUSIONThe crux of the study is that most of the customersprefer to purchase from organized retail outlets ascompare to unorganized outlets. Also its found thatmost of the respondents are satisfied with the quality,price and product range of the goods provided byorganized retail outlets. In this study it is found thatcustomers want to spend more at organized retail outletsin comparison to other local Kirana stores. During thestudy its also found that customers were happy from theservices provided by organized outlets.This study also revealed that customer prefers theorganized retailing over unorganized retailing, due towhich the organized retailing become a threat to thelocal kirana stores & street hawkers. Page 55
  • 56. ANNEXURE Page 56
  • 57. QuestionnaireNote: Tick your ResponsesQ.1 “I belong to the age group” 16 – 25 years 26 – 35 years 36 – 45 years 46 – 55 years 56 – 65 years Above 65 years --------------------------------------------------------------------------------------------Q.2 Gender : Male Female --------------------------------------------------------------------------------------------Q.3 “I have obtained education till this level”. Matriculate Intermediate Graduate Post Graduate Beyond PG --------------------------------------------------------------------------------------------Q.4 “My monthly income range is” Up to Rs. 10,000 Rs. 10 – 20,000 Rs. 20 – 50,000 Above Rs. 50,000 Page 57
  • 58. Q.5 Which sources of promotional mix method used by the company attracts you most ? (a) Yes ( ) (b) No ( )Q.6 Are you aware of promotional scheme of this company’s services? (a) Yes ( ) (b) No ( )Q.7 Did the company advertisement meet the performance ? (a) Yes ( ) (b) No. ( )Q.8 Do you buy services on the basis of its brand image ? (a) Yes ( ) (b) No. ( )Q.9 Are you satisfied with the pricing polices of this company ? (a) Yes ( ) (b) No. ( )Q.10 Which company provide better services ? (a) Yes ( ) (b) No. ( )Note: Circle your ResponsesQ.11 “Please indicate how important or unimportant each of the following characteristics is” Important Unimportant (a) Safety 5 4 3 2 1 (b) Uniqueness 5 4 3 2 1 (c) Less Time 5 4 3 2 1 Consumption (d) Location 5 4 3 2 1 (e) Parking 5 4 3 2 1 Page 58
  • 59. Q.12 “Please indicate the extent to which you agree or disagree with the following utility aspects of organized Retail Outlets.” Strongly Strongly Agree Disagree (a) A place to 5 4 3 2 1 shop (b) A place to 5 4 3 2 1 socialize (c) A place to 5 4 3 2 1 Enjoy (d) A place to 5 4 3 2 1 experience --------------------------------------------------------------------------------------------Q.13 “Please rank the following sales promotion schemes as per the degree of attractiveness.” Attractive Unattractiveness (a) Cash Discount 5 4 3 2 1 (b) Lucky Draw 5 4 3 2 1 Scheme (c) Free Gift 5 4 3 2 1 Scheme (d) Financing 5 4 3 2 1 Facility (e) Guarantee / 5 4 3 2 1 Warranty --------------------------------------------------------------------------------------------Q.14. “Kindly indicate the importance of each of the following while making a purchase decision.” Most Most Important Unimportant (a) Quality 5 4 3 2 1 (b) Wide Product 5 4 3 2 1 Assortment (c) Fixed Price 5 4 3 2 1 Page 59
  • 60. (d) Presence of 5 4 3 2 1 International Brands(e) Discounts 5 4 3 2 1(f) Packaging 5 4 3 2 1(g) Advertisement 5 4 3 2 1(h) Display of 5 4 3 2 1 Products(i) Ambience 5 4 3 2 1(j) Value for Money 5 4 3 2 1(k) Socio Economic 5 4 3 2 1 Status(l) Behaviour of 5 4 3 2 1 Staff Page 60
  • 61. BIBLIOGRAPHYWEBSITES:www.imagesretailing.comwww.reportbuyer.comwww.reportbuyers.comwww.thirdeyesite.inwww.google.comwww.datamonitar.comwww.rediff.comwww.scribd.comBooksKothari.C.R, Research Methodology, New Age (P) Limited, SecondEdition, 2004.Pillai & Bagavathi, Marketing management, New Delhi, sultan Chand &Sons, 1999.David Gilbert, Retail Marketing Management, Prentice Hall, SecondEdition, 2003. Page 61
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