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    Satish musti 04-customer satisfaction towards supermarket Satish musti 04-customer satisfaction towards supermarket Document Transcript

    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET A DISSERTATION ON “Analysis of customer satisfaction towards supermarket” Submitted in partial fulfilment of the requirement for MBA Degree of Bangalore University BY SATISH S MUSTI Register Number 04XQCM6080 Under the guidance of Prof. Shinu Abhi M.P.Birla Institute of Management Associate Bharatiya Vidya Bhavan #43, Race Course road, Bangalore-560001M.P.B.I.M, Bangalore 1
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET DECLARATAIONI hereby declare that the project report titled “Analysis of customer satisfaction towardssupermarket.” is a record of independent work carried out by me towards the partialfulfillment of the requirements for the Masters Degree in Business Administration course ofBangalore University, at M.P. Birla Institute of Management, Associate Bharatiya VidyaBhavan, Bangalore – 560001.This has not been submitted for the purpose of any award or degree or diploma of any otheruniversity or institution.Place: Bangalore (Mr. Satish S Musti)Date: 04XQCM6080.M.P.B.I.M, Bangalore 2
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET PRINCIPAL’S CERTIFICATEThis is to certify that Mr. Satish S Musti, bearing registration no.04XQCM6102 hasundertaken a research project and has prepared a report titled“ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET”,Under the guidance of Prof. Shinu Abhi. This has not formed a basis for the award of anydegree/ diploma for any other university/Institution.Place: BangaloreDate: Dr.Nagesh.S.MalavalliM.P.B.I.M, Bangalore 3
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET GUIDE CERTIFICATEThis is to certify that Mr. Satish S Musti, bearing registration no.04XQCM6080 hasundertaken a research project and has prepared a report titled“ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET”,Under my guidance. This has not formed a basis for the award of any degree/ diploma for anyother university.Place: BangaloreDate: Prof. Shinu AbhiM.P.B.I.M, Bangalore 4
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET ACKNOWLEDGEMENTAt the very outset, I take the opportunity to thank Dr. Nagesh Malavalli, Principal, M.P.Birla Institute of Management for providing me with the academic support. I express mysincere regards and gratitude for every individual linked with my Research Work.One such person is my guide for the semester Prof. Shinu Abhi, whose inspiring wordsmade me, put in all I had to offer. His continuous guidance and suggestions are the cardinalaspects that have ultimately led me to see this fruitful end.I would like to thank all the respondents and personnel for their co-operation and providingthe relevant data required.I express my sincere gratitude to all my friends and well-wishers who helped me incompleting this Project Report.Last but not the least; I would like to thank the Almighty for being there always in thisendeavor.Yours trulyMr. Satish S MustiM.P.B.I.M, Bangalore 5
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETCHAPTER PATICULARS Page No. 1 EXECUTIVE SUMMARY 1-2 2 INTRODUCTION TO RETAILING 3-35 • Retailing • Supermarket • Retailing in India • Indian retail market • Food retailing in India • FDI in retail • Developments in retail sector 3 REVIEW OF LITERACTURE 36-39 4 DESIGN OF THE STUDY 40-43 • Research gap • Problem statement • Objective of the study • Scope of the study • Contribution from the study RESEARCH METHODOLOGY • Research design • Sources of data collection SAMPLING DESIGN • Sample technique • Sample unit • Sample description RESEARCH ANALYSIS RESEARCH LIMITATIONS 5 DATA ANALYSIS & INTERPRETATION 44-61 6 MAYOR FINDINGS OF THE RESEARCH 62 7 RECOMMENDATIONS 63M.P.B.I.M, Bangalore 6
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET EXECUTIVE SUMMARY Amidst the competitive and complex market scenario in India, it is difficult toanalyze the changing attitudes, likes, dislikes and satisfactory levels of customers. The field issuch that only the ending and most outstanding will survive without being choked. Theattempt made here is to analysis the customer satisfaction level towards Supermarket. On the outset itself the problem was identified and defined as to assess the customersatisfaction towards food and grocery retailing and design marketing strategies forenhancement of customer happiness in clear terms with the help of a pilot survey. Theresearcher carried out this survey keeping in mind the need and importance of the proposedstudy. And this has enabled the researcher to easily determine the scope and objectives of thisstudy. Descriptive approach was considered ideal for the study as it entailed the everchanging opinion of the customers. Simple random sample has been taken as 100 respondents with 20 respondents fromeach of the retail outlet brands such as food world, subhiksha, spencers, fabmall and reliancefresh. These outlets have been from mahalaxmi layout and rajaji nagar in Bangalore north.They were considered adequate to represent the entire characteristics of the population for thestudy. Primary data was collected using structured questionnaire as an effective instrument.The collected data was tabulated for the purpose of consolidation and logicality, and the samewas analyzed and interpreted in a judicious way to facilitate systematic progression of thesubject matter of the study. The findings were taken up for drawing logical conclusions. Based on the findingssuitable suggestions and recommendations were brought out for the benefits Supermarket. The respondents were presented with a well structured questionnaire as a part of thesurvey method, which was easy to fill up. And the opinions of the respondents were rated ona percentage to arrive at the level of satisfaction. The main sources of data were thequestionnaire and the other relevant magazines, books and websites.M.P.B.I.M, Bangalore 7
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET Thus the survey centred on the features of Supermarket most preferred by thecustomers. The survey indicates that most or all-most all the customers are satisfied withprovision store and it is because of its quality and availability of wide range of products, freehome delivery, replacement on dissatisfied products, good packing facilities, price reductionon total purchase, friendly and helpful salesperson, good services, etc However, it is observed that there is lack of good parking facilities, discounts,coupons, ventilation, and lighting in some of the Supermarket to reach out genuinely to allmasses.M.P.B.I.M, Bangalore 8
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET RETAILING Retailing includes all the activities involved in selling goods or services directly tofinal consumers for personal, nonbusiness use. A retailer or retail store is any businessenterprise whose sales volume comes primarily from retailing. Any organization selling to final consumers whether it is a manufacturer, wholesaleror retailer is doing retailing. It does not matter how the goods or services are sold or wherethey are sold.TYPES OF RETAILERS Consumers today can shop for goods and services in a wide variety of retailorganizations. There are store retailers, nonstore retailers and retail organizations. Perhaps theBest-know type of retailer is the department store.The most important retail-store types are described.Speciality Store: Narrow product line with a deep assortment. A clothing store would be asingle-line store; a men’s clothing store would be a limited-line store; and a men’s custom-shirt store would be a super speciality storeExamples: Athlete’s Foot, The body shopDepartmental store: Several product lines-typically clothing, home furnishings, andhousehold goods-with each line operated as a separate department managed by specialistbuyers or merchandisersExamples: Sears, JC Penney.Supermarket: Relatively large, low-cost, low-margin, high-volume, self-service operationdesigned to serve total needs for food, laundry and household products.Examples: Kroger, Food world, big bazaar.M.P.B.I.M, Bangalore 9
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETConvenience Store: Relatively small store located near residential area, open long hours,seven days a week and carrying a limited line of high-turnover convenience products atslightly higher prices, plus takeout sandwiches, coffee, soft drinks.Examples: 7-Eleven, Circle K.Discount Store: Standard merchandise sold at lower prices with lower margins and highervolumes. Discount retailing has moved into speciality merchandise stores, such as discountsporting-goods stores, electronics stores and bookstores.Examples: Wal-Mart, Circuit city.Off-price retailer: Merchandise bought at less than regular wholesale prices and sold at lessthan retail; often leftover goods, overruns and irregulars.Examples: Sam’s club, Max clubs.Superstore: About 35000 square feet of selling space traditionally aimed at meetingconsumers’ total needs for routinely purchased food and nonfood items, plus services such aslaundry, dry cleaning, shoe repair, check cashing, and bill paying. A new group calledcategory killers carries a deep assortment in a particular category and a knowledgeable staff.Examples: IKEA, Home Depot.Catalog Show room: Broad selection of high-markup, fast-moving, brand-name goods atdiscount prices. Customers order goods from a catalog, and then pick these goods up at amerchandise pickup area in the store.Example: Service Merchandise.Levels of service: The wheel-of-retailing hypothesis explains one reason that new store typesemerge. Conventional retail stores typically increase their services and raise their prices andless service. New store types meet widely different consumer preferences for service levelsand specific services.M.P.B.I.M, Bangalore 10
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET Retailers can position themselves as offering one of four levels of service:1. Self service: Self service is the cornerstone of all discounts operations. Many customers are willing to carry out their own locate-compare-select process to save money.2. Self-selection: Customers find their own goods, although they can ask for assistance.3. Limited service: These retailers carry more shopping goods and customers need more information and assistance. The stores also offer services (such as credit and merchandise-return privileges).4. Full service: Salespeople are ready to assist in every phase of the locate-compare- select process. Customers who like to be waited on prefer this type of store. The high staffing cost, along with the higher proportion of specialty good as and slower- moving items and the many services, results in high-cost retailing.MARKETING DECISIONS In the past retailers held customers by offering convenient location, special or uniqueassortments of goods, greater or better services than competitors and store credit cards. All ofthis has changed. Today, national brands such as Calvin Klein, Izod and Levi’s are found indepartment stores, in their own shops, in merchandise outlets and in off-price discount stores.In their drive for volume, national-brand manufacturers have placed goods everywhere. Theresult is that retail-store assortments have grown more alike. Service differentiation also has eroded. Many department stores trimmed services andmany discounters have increased services. Customers have become smarter shoppers. Theydo not want to pay more for identical brand, especially when service differences havediminished; nor do they need credit from a particular store, because bank credit cards arealmost universally accepted. Supermarkets have opened larger stores, carry a larger number and variety of itemsand upgrade facilities. Supermarkets have also increased their promotional budgets andmoved heavily into private brands. Retailers’ marketing decisions in the areas of targetM.P.B.I.M, Bangalore 11
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETmarket, product assortment and procurement, services and store atmosphere, price,promotional and place.Target Market: A retailer’s most important decision concerns the target market. Until thetarget market is defined and profiled, the retailer cannot make consistent decisions on productassortment, store décor, advertising messages and media, price and services levels. Someretailers have defined their target markets quite well:Product assortment and procurement: The retailer’s product assortment must match thetarget market’s shopping expectations. The retailer has to decide on product-assortmentbreadth and depth. The real challenge begins after defining the store’s product assortment andthat is to develop a product-differentiation strategy.Here are some possibilities:• Feature exclusive national brands that are not available at competing retailers. Thus Saks might get exclusive rights to carry the dresses of a well-known international designer.• Feature mostly private branded merchandise: Many supermarket and drug chains carry private branded merchandise.• Feature blockbuster distinctive merchandise events: Bloomingdale’s will run month shows featuring the goods of another country, such as India, throughout the store.• Feature surprise or even-changing merchandise: Benetton changes some portion of its merchandise every month so that customers will want to drop in frequently.• Feature the latest or newest merchandise first: The sharper image leads other retailers in introducing electronic appliances from around d the world.• Offer merchandise customizing services: Harrod’s of London will make custom- tailored suits, shirts and tries for customers in addition to ready-made menswear.• Offer a highly targeted assortment: Circuit city’s decision to drop major appliances gave it more than 200 square feet to stock more units of higher-margin electronics. Remodeling also expanded total floor space by an additional 10,000 square feet, providing even more for higher-margin home electronics.M.P.B.I.M, Bangalore 12
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETSERVICES AND STORE ATMOSPHERE Retailers must also decide on the services mix to offer customers:• Prepurshase services include accepting telephone and mail orders, advertising, window and interior display, fitting rooms, shopping hours, fashion shows, trade-ins.• Postpurchase services include shipping and delivery, gift wrapping, adjustments and returns, alterations and tailoring, installations, engraving.• Ancillary services include general information, check cashing, parking, restaurants, repairs, interior decorating, credit, rest rooms, and baby-attendant service. The services mix is a key tool for differentiating one store from another; so isatmosphere. (See “Marketing for the New Economy: Extreme Retailing”.) Atmosphere isanother element in the store arsenal. Every store has a physical layout that makes it hard oreasy to move around. Every store has a “Look”. The store must embody a plannedatmosphere that suits the target market and draws consumers toward purchase.PRICE DECISION Prices are a key positioning factor and must be decided in relation to the target market,the product-and-service assortment mix and competition. All retailers would like to achievehigh volumes and high gross margins. They would like high Turns x Earns, but the twousually do not go together. Most retailers fall into the high-makeup, lower-volume group(fine specialty stores) or the low-markup, higher-volume group (mass-merchandisers anddiscount stores). Within each of these groups are further gradations). Retailers must also pay attention to pricing tactics. Most retailers will put low priceson some items to serve as traffic builders or loss leaders. They will run storewide sales. Theywill plan markdowns on slower-moving merchandise. Some retailers have abandoned “sales pricing” in favour of everyday low pricing(EDLP). EDLP could lead to lower advertising costs, greater pricing stability, a strongerimage of fairness and reliability and higher retailer profits. Frank Feather cites a studyshowing that supermarket chains practicing everyday low pricing are often more profitablethan those practicing sales pricing.M.P.B.I.M, Bangalore 13
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETPROMOTION DECISION Retailers use a wide range of promotion tools to generate traffic and purchases. Theyplace ads, run special sales, issue money-saving coupons and run frequent shopper-rewardprograms, in-store food sampling and coupons on shelves of at checkout points. Each retailermust use promotion tools that support and reinforce its image positioning. Fine stores willplace tasteful full-page ads in magazines such as Vogue and Harper’s. They will carefullytrain salespeople to greet customers, interpret their needs, and handle complaints.PLACE DECISION Retailers are accustomed to saying that the three keys to success are “location,location and location”. Customers generally choose the nearest bank and gas station.Department-store chains, oil companies and fast-food franchisers exercise great care inselecting locations. The problem breaks down into selecting regions of the country in whichto open outlets, then particular cities and then particular sites. A supermarket chain mightdecide to operate in the Midwest; in the cities of Chicago, Milwaukee and Indianapolis; andin 14 locations, mostly suburban, within the Chicago region. Retailers can locate their stores in the central business district, a regional shoppingcenter, a community shopping center, a shopping strip, or within a larger store.• General business districts: This is the oldest and most heavily trafficked city area, often known as “downtown”. Store and office rents are normally high. Most downtown areas were hit by a flight to the suburbs in the 1960s, resulting in deteriorated retailing facilities; but in the 1960s, a minor renaissance of interest in downtown apartments, stores and restaurants began in many cities.• Regional shopping centers: These are large suburban malls containing 40 to 200 stores. They usually draw customers from a 5 to 20 mil radius. Malls are attractive because of generous parking, one-stop shopping, restaurants and recreational facilities. Successful malls charge high rents and may get a share of stores’ sales.• Community shopping centres: these are smaller malls with one anchor store and between 20 and 40 smaller stores.M.P.B.I.M, Bangalore 14
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET• Strip malls (also called shopping strips): these contain a cluster of stores, usually housed in one long buildings, serving a neighbourhood’s needs for groceries, hardware, laundry, shoe repair and dry cleaning. They usually serve people within a five to ten–minute driving range.• A location within a larger store: Certain well-known retailers-McDonalds’s, Starbucks, Nathan’s, Dunkin’ Donuts-locate new, smaller units as concession space within larger stores or operations such as airports, schools or department stores. In view of the relationship between high traffic and high rents, retailers must decideon the most advantageous locations for their outlets. They can use a variety of methods toassess locations, including traffic counts, surveys of consumer shopping habits and analysisof competitive locations. Several models for site location have also been formulated. Retailers can assess a particular store’s sales effectiveness by looking at fourindicators:1. Number of people passing by on an average day.2. Percentage who enter the store3. Percentage of those entering who buy4. Average amount spent per sale.M.P.B.I.M, Bangalore 15
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETTRENDS IN RETAILING At this point, the main developments retailers and manufacturers need to take intoaccount in planning competitive strategies.1. New retail forms and combinations: some supermarkets include bank branches.2. Growth of intertype competition: Different types of stores–discount stores, catalog showrooms, department stores-all compete for the same consumers by carrying the same type of merchandise.3. Growth of giant retailers: Through their superior information systems, logistical systems, and buying power, giant retailers are able to deliver good service and immense volumes of product at appealing prices to masses of consumers. They are crowding out smaller manufacturers what to make, how to price and promote, when and how to ship and even how to improve production and management. Manufacturers need these accounts; otherwise they would lose 10 to 30 percent of the market. Some giant retailers are category killers that concentrate on one product category such as toys (Toys “R” Us), home improvement (home Depot), or office supplies (staples). Others are super centers that combine grocery items with a huge selection of nonfood merchandise (Kmart, Wal-Mart).4. Growing investment in technology: Retailers are using computers to produce better forecasts, control inventory costs, order electronically from suppliers, send e-mail between stores and even sell to customers within stores. They are adopting checkout scanning systems, electronic fund transfer, electronic data interchange, in-store television, store traffic radar systems and improved merchandise-handling systems.5. Global presence of major retailers: Retailers with unique formats and strong brand positioning are increasingly appearing in other countries.6. Selling an experience, not just goods: Retailers are now adding fun community in order to compete with other stores and online retailers. There has been a marked rise in establishments that provide a place for people to congregate, such as coffeehouses, tea shops, juice bars, book shops.7. Competition between store-based and non-store-based retailing: Consumers now receive sales offers through direct mail letters and catalogs and over television, computers and telephones. These non-store-based retailers are taking business awayM.P.B.I.M, Bangalore 16
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET from store-based retailers. Some store based retailers initially saw online retailing as a definite threat. Home Depot shocked its top vendors ( Black & Decker, Stanley tools, etc) by issuing a memo implying that if they started to sell online, Home Depot might drop them as suppliers; but now Home Depot is finding it advantageous to work with online retailers.M.P.B.I.M, Bangalore 17
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET SUPERMARKETInside Le Marches shop in New Delhi. With 15 million shops, India has the highest density ofretail outlets in the world. Large self-service shop selling food and household goods. The first, Piggy-Wigglywas introduced by US retailer Clarence Saunders in Memphis, Tennessee, 19919.Supermarkets have a high turnover and are therefore able to buy goods in bulk. This cutsdown the unit cost and, in turn, the price which further encourages business. Classic self-service 4,000-20,000sq-ft with shopping carts as popularized in India by‘Crazy Boys’ films with typical focus on regular groceries, household goods and personalcare products. Tesco and Safeway are famous chains. In India Nanz Food world and Nilgirilsare popular name.M.P.B.I.M, Bangalore 18
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETSTRENGTHS OF SUPERMARKET FROM CONSUMER POINT OF VIEW: Supermarket format of retailing try to fulfill these expectation through followingmerits.1. It saves the time because customer will get everything at a one place with self-service.2. It provides perfect platform for comparison of a same product from different company with a different brand name with complete information, which could be required to compare the brands and take a best purchasing decision.3. Multi brand department stores offer an intermediate solution with complete brand choice to the customer and spacious shop, which allows the manufacturers to present his product appropriately.4. Sometimes customer also get discount because multi brand stores go for bulk purchase and pass the earning of differences toward the customer.5. Customers get a detail and computerize bill so there is no possibility of any discrepancy in billing.M.P.B.I.M, Bangalore 19
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETCHALLENGES FACED BY SUPERMARKET Though theoretically, supermarket stores offer a number of reasons to purchase goodsfrom supermarket instead of purchasing from traditional provision store. It will save the time,give a spacious purchasing experience, provide platform to get variety scheme and servicesand faultless and accurate computerized billing system etc. In spite of having all thesebenefits, supermarket still has not proved itself successful in India market because still it isstruggling for survival and facing the following problems.1. Very low sales volume.2. According to experts, the real boom in organized retailing will come once supermarkets starts selling daily need goods at 90% of the regular price that result into low sales turnover because of that there is very low gross margin, low net margin and very low turn over per sq feet compare to unorganized sector in Indian and organized sector in foreign.3. Another very important thing is gross margins return on investment. But the problem of Indian retailing is to source on credit and sells on cash. Yet, retail margins in India are lower than overseas. The large format players face high costs, especially in comparison with traditional retailers that pay very little rent for real estate.4. Competition from unorganized retail shop.5. Typical mindset and psychology of Indian middle class. So, it would be a biggest challenge to transform the psychology of Indian middle class segment.6. From strategic decision point of view another biggest problem is to select a right retail format to fight against unorganized retail organization. Thus, there is question regarding very existence and survival of supermarket because still it has not proved successful in India.7. Still organized sector does not provide full satisfaction to customer in terms of quality, quantity, competitive price and convenience in terms of various service, assessable location and layout of supermarket.M.P.B.I.M, Bangalore 20
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET RETAILING IN INDIA Retailing in India is gradually inching its way to becoming the next boom industry.The whole concept of shopping has altered in terms of format and consumer buyingbehaviour, ushering in a revolution in shopping. Modern retail has entered India as seen insprawling shopping centres, multi-storied malls and huge complexes offer shopping,entertainment and food all under one roof. By 2007, an estimated 50 million square feet ofquality retail space will be available across India. This is in sharp contrast to the situation adecade ago. Then, there was not one shopping mall in India. Today, in Delhi, Mumbai andtheir suburbs, there are about 100 malls. Of the 700 new malls coming up all over India, 40per cent are concentrated in the smaller cities. Organized retailing in small-town India isgrowing at a staggering 50-60 per cent a year compared to 35-40 per cent in the large cities.Indias vast middle class and its almost untapped retail industry are key attractions for globalretail giants wanting to enter newer markets. Traditional markets are making way for new formats such as departmental stores,hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearingin metros and second-rung cities alike, introducing the Indian consumer to an unparalleledshopping experience. As organized retailers carve out a bigger piece of the retail pie for themselves it’s anexciting time for the retail sector. With the growth of organized retailing estimated at 40 per cent (CAGR) over the nextfew years, Indian retailing is clearly at a tipping point. India is currently the ninth largestretail market in the worldM.P.B.I.M, Bangalore 21
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET The Indian retailing sector is at an inflexion point where the growth of organizedretail and growth in the consumption by Indians is going to adopt a higher growth trajectory.The Indian population is witnessing a significant change in its demographics. A large youngworking population with median age of 24 years, nuclear families in urban areas, along withincreasing working-women population and emerging opportunities in the services sector aregoing to be the key growth drivers of the organized retail sector. Initially, this was about Indian corporate houses rolling out malls and supermarkets,but with Wal-Mart coming into the Indian market, the era of the superstore is dawning.Unlike the kirana stores that served us for decades, this new breed of retail chains is heavilydependent on IT. Wal-Mart, the world’s largest retailer, and Bharti Enterprises have signed aMemorandum of Understanding (MoU) to explore business opportunities in the Indian retailindustry. This joint venture will mark the entry of Wal-Mart into the Indian retailing industry.M.P.B.I.M, Bangalore 22
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET THE INDIAN RETAIL INDUSTRY / MARKET The Indian retail industry in valued at about $300 billion and is expected to grow to$427 billion in 2010 and $637 billion in 2015.About 98% of the retail trade in India is in thehands of 15-20 million unorganized small retailers. In our daily lives, we find themeverywhere, as kirana and pan shop vendors, hawkers, sellers of fruits and vegetables, eitherat the street corner or carrying their wares in baskets or carts to deliver them at the doorstepof the residents. They are invisible but omnipresent. They supply a wide variety of items thatwe consume daily. They account for as much as 10 percent of the GDP. Only four percent ofthe retailers in the unorganized sector have shops that occupy more than 500 sqft. Most ofthem are so small that they occupy not more than 30-40 square feet. In a way, small retailbusiness in India helps absorb about sex to seven percent of the huge mass of the unemployedfor whom the gov’t agencies are struggling hard to find employment by investing thousandcrores of rupees every year. Only three percent of Indian retail is organized. It is estimated at only US$ 8 billion.However, the opportunity is huge—by 2010, organized retail is expected to grow to US$ 22billion. It is expected to grow 25 per cent annually, driven by changing lifestyles, strongincome growth and favorable demographic patterns. It is estimated that 70 million Indians ina population of about 1 billion now earn a salary of $18,000 a year, a figure that is set to riseto 140 million by 2011. Many of these people are looking for more choice in where to spendtheir new-found wealth. Strong fundamental changes including the changing lifestyles of Indian people, risingincomes etc have fuelled the growth of modern retailing and has attracted investment in thissector.M.P.B.I.M, Bangalore 23
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET With the government being in the process of determining the level of FDI in Retail, anumber of foreign players including Wal-Mart, Carrefour, tesco have evinced interest forentering India in a big way. Retail in India has grown beyond mere retailing and now encompasses sectors such astelecom, automobiles and finance. Given the size, and the geographical, cultural and socio-economic diversity of India,there is no role model for Indian suppliers and retailers to adapt or expand in the IndiancontextM.P.B.I.M, Bangalore 24
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET FOOD RETAILING IN INDIAFood and Grocery (F&G) Retail Market in IndiaUnlike in the past, the debate today is no longer whether food and grocery retail in Indiawould grow but rather how fast can it grow and what challenges need to be overcome. TataStrategic Management Group (TSMG) projects that organized F&G retail in India could growto Rs. 1750Bn (at current prices) by 2015 representing 11% of overall F&G sales. A recentworld bank report on India’s fruits and vegetables trade comes up with some sour facts Indiaproducers 11 percent of the world’s vegetables and 15 percent of fruits at 53-63 percent ofglobal prices, but its share in global fruits and vegetables trade is 1.7 percent and 0.5 percentrespectively.Key Challenges in Food RetailingDemand SidePenchant for fresh/home-made and value consciousnessThe Indian consumer, unlike his western counterpart, has a penchant for freshly cooked foodover packaged food. This is a result of dietary patterns, poor electricity supply, lowpenetration of refrigerators and a family structure where one of the primary roles of thehousewife is feeding the family. The Indian consumer is extremely value conscious. ATSMG study indicates that packaged food players need to drive down prices by almost 35-40% to be comparable on cost with home made food.Diversity of tastes and preferencesMultiple cultures, languages and religions have a huge bearing on the tastes and preferencesof the Indian consumer. This will pose a challenge for players aspiring to develop a panIndian presenceWillingness to travelM.P.B.I.M, Bangalore 25
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETGiven the current density of retail outlets in India, retailers will have to motivate theconsumer to trade convenience with price, range and ambience.Supply SideSourcing base and efficiencyThe fragmented agri supply base coupled with an inadequate legal framework make itdifficult for retailers and food processors to procure quality produce at competitive costsdirectly from farmers. The small size of the food processing industry further limits the supplyoptions.Real estate availability and costRentals account for 7-7.5% of the total costs for organized retail in India against global benchmarks of less than 3%. Real estate availability and costs will continue to remain a challengein the retail industry with factors like adequate parking, ambience and proximity being thekey drivers of footfalls.Manpower availabilityAs organized retail expands, there is expected to be a dearth of skilled manpower. The lack finstitutions and courses for different aspects of retail management will have an impact on theoverall supply of quality manpower.M.P.B.I.M, Bangalore 26
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETEmerging trends in food retailingBig becoming biggerGlobally, retailers have realized that size drives profitability, not just through economies ofscale in operations but also through higher bargaining power leading to better margins. Whilemany players are entering the retail space in India currently, the growth stage will becharacterized by rapid expansion and consolidation among these players.Rise of organic foods and health and wellness segmentConsumer attitudes and preferences are undergoing a shift owing to factors like increaseddisposable incomes, changes in lifestyle patterns, shift in age structure, increased number ofworking women and multi cultural exposure. These would lead to increasing healthconsciousness in the future. Organic foods and wellness products would be emergingopportunities in the years to come.Increasing focus on private labels.As competition in the organized retail market increases, discounts and promotions areexpected to play a critical part in generating footfalls. To counter the impact on profitability,organized players will find it more attractive to promote private labels or store brands giventheir higher margins. The consumer too would benefit from lower prices.M.P.B.I.M, Bangalore 27
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETScope for innovation in food retailAs the organized food retail market matures in India, there would be an increased need forplayers to differentiate through innovation. Innovations would largely come under two heads:Innovation on Retail format - Players can innovate on formats in different ways: By targeting specific customer segments and serving their needs better e.g. working women, single office goers, etc By changing the product mix e.g. entirely private label stores, exclusively fresh produce stores By offering new forms of convenience and wider range to the customer e.g. tele- retail and internet retail Technological Innovations - Employing cutting edge technology in retail could prove to be the source of competitive advantage for retailers. Self-scan checkouts have the potential of both reducing check-out time manpower cost for the retailer Using RFID tags can help track and reduce in-store inventory management costs and give retailers better insights into customer in-store movement patterns Web-enabled POS systems, e-SCM systems, e-Procurement systems and warehouse management systems will enable food retailers in integrating the entire agri value chain leading to efficient procurement and supply chain management. Use of cutting edge analytics can bring insights into customer buying behaviour with implications on store layout, pricing and promotions.M.P.B.I.M, Bangalore 28
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET FDI IN RETAIL FDI in retail is a subject that seems to rear up its ugly headevery now and than. It is not as though these that oppose it orsupport it are consistent about what they say. In India, the logic and ideology that go into eithersupporting a reform or opposing it depends on whether theconcerned political party is in power or not. There is no clarity or There are about nine millionunderstanding of the ground retailers that should guide such small grocery shops in Indiadecisions. In January 2006, UPA government allowed FDI up to 51% in single-brand multiple-product retail business. This drives the foreign institutional investors would be permitted tocontrol equity in retailing up to even 100 percent. Retailers of multiple brands can operate through a franchise or a cash-and-carry. Butallowing in the big multi-brand, international retail groups like Wal-Mart, Tesco andCarrefour was considered a step too far. The gov’t has announced a partial opening of theretail market, to single-brand retailers.” But beyond that, gov’t need to find a model thatdoesnt displace the existing retailers. The Indian government has been conducting an impactanalysis of how the introduction of supermarket chains like Tesco and Carrefour would hit itsretail sector. An estimated 50% of the countrys fruit and vegetables rot by the roadsidebefore they reach market. For the first time, chains like McDonalds, Marks & Spencer, Body Shop and Ikea can,if they want to, open and control their own operations in India. Previously, many of them had gone down the path of working with franchise partners,a policy followed by M&S which supplies clothes to eight "Planet Sports" stores. They look like M&S stores on the inside, but they are owned by local retailers, andthe UK retailer has no plans for that to change.holesale model.M.P.B.I.M, Bangalore 29
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETChallenges in organized retail The first challenge facing the organised retail industry in India is: competition fromthe unorganised sector. Traditional retailing has established in India for some centuries. It is alow cost structure, mostly owner-operated, has negligible real estate and labour costs andlittle or no taxes to pay. Consumer familiarity that runs from generation to generation is onebig advantage for the traditional retailing sector. In contrast, players in the organised sector have big expenses to meet, and yet have tokeep prices low enough to be able to compete with the traditional sector. High costs for theorganised sector arises from: higher labour costs, social security to employees, high qualityreal estate, much bigger premises, comfort facilities such as air-conditioning, back-up powersupply, taxes etc. Organised retailing also has to cope with the middle class psychology thatthe bigger and brighter a sales outlet is, the more expensive it will be.M.P.B.I.M, Bangalore 30
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET DEVELOPMENTS IN RETAIL SECTOR Indias first true shopping mall – complete with food courts, recreation facilities andlarge car parking space – was inaugurated as lately as in 1999 in Mumbai. (This mall is called"Crossroads").1. $ 7 billion to be invested in retail by Bharti Bharti enterprises plan to invest about US $ 7 Billion by 2010 to set up 200hypermarkets and hundreds of small stores across India. This group had recently announced ajoint venture with the world’s top retailer, wal-mart stores; Inc. it expects to earn $1-2 billionrevenue from its retail business, which would constitute 10-20 percent of the group’s turnover2010. The group aims to have 200 large stores and hundreds of small stores in the first phase.Depending up on the company’s real estate and logistics business the company will investaround US $ 7 billion by 2010. The group plans to enlist small retailers as franchises and alsodecide whether the venture would undertake logistics or out source functions such as truckingand cold chains. It would operate several hundred stores across the country within five yearsand investment could run into billions of dollars.2. Mother care India, the UK based retailer for expecting mothers and kids is on anexpansion mode in India. The company’s exclusive franchise, shoppers stop is nowexpanding their retail network to 14 stores at a combined investment of about Rs-10 crores in4 months.M.P.B.I.M, Bangalore 31
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET3. Land mark books and music retailer Books and music retailer ‘Landmark launched its first store in western India atInfiniti Mall, Andheri, Mumbai on April 26. Spread across 18,000 sq. ft Landmark is housedon the 2 nd floor of the mall, with lavish interiors. This is the sixth Landmark store in thecountry. Landmark so far had five stores – three in Chennai, one each in Kolkata andBangalore. The store has over 1, 00,000 plus book titles, 70,000-plus movies, a wide range ofstationery, toys, accessories, perfumes, diamond jewellery and an inviting, comfortableenvironment, Landmark is a category killer in all focus categories. Later this year Landmarkplans to open stores in Delhi, Baroda, Pune and one more in Mumbai .4. Prozone- omaxe in retail JV As part of Prozones plan to develop India’s largest shopping mall network, ProzoneEnterprises, the wholly owned subsidiary of Provogue, signed a JV with Omaxe Group, oneof the largest real estate developers in North India, to develop shopping malls in townshipsowned by the latter. In the first phase, a SPV promoted by the joint venture will invest Rs.1 ,500 crore todevelop 10 malls across north India and in the second phase invest Rs.5,000 crore to develop30 properties owned by Omaxe. Omaxe is building 30 townships and 14 malls, has projects worth Rs.12, 000 croreunder implementation and another Rs.10,000 crore under-pipeline projects. At present,Omaxe is developing 4.1 million sq.ft of commercial development, mainly malls. Prozone isM.P.B.I.M, Bangalore 32
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETdeveloping over 12 million sq.ft. of modern retail space and plans to develop 50 retail mallsacross the country focused on tier two cities which will come up in two years.5. AFL launches India’s first ‘Convenience Services’ retail store AFL, a leading provider of integrated supply chain services in India, has launchedAFL Touch World, India’s first ‘Convenience Services retail store in Mumbai. The variousservices offered at the AFL Touch World store include Forex, money transfer, internationaltelephony, international and domestic courier, travel insurance and e-ticketing. It is for thefirst time in India that such a wide range of ‘convenience services is being offered under oneroof. The first Touch World store is located near Regal Cinema in south Mumbai and thecompany plans to expand into all major Indian cities in the near future.6. Calvin Klein Inc., the clothing design and marketing studio formed in 1968, is to set up aretail operation in India. The clothing empire and Murjani India Ltd. have announced anagreement for the latter to market and distribute the brands various labels throughout Indiaand open dozens of retail stores planned for the subcontinent. The agreement authorises Murjani to market the Calvin Klein lineup throughexclusive retail outlets and select department stores approved by the company. It includes theoriginal Calvin Klein Jeans line and the unisex ck Calvin Klein label, which the companyintroduced in the mid-1990s.7. Infiniti Retail, a 100-per cent subsidiary of Tata Sons, has launched the first mega store ofCroma, India’s first national chain of multi brand outlets for consumer electronics anddurable products. Ratan Tata, Chairman, Tata Sons, and Roger Corbett, IndependentConsultant, Woolworth’s, Australia, jointly launched the first Croma mega store in Juhu,Mumbai , amidst a high-tech display of technology and human interface built around theconcept of See, Touch and Feel. The sprawling store, spread over 20,000 sq ft of space, hason display more than 6,000 products across eight categories, namely, home entertainment,small appliances, white goods, computers and peripherals, communication, music, imagingand gaming software. The store currently offers more than 180 national and internationalbrands.M.P.B.I.M, Bangalore 33
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET8. Wadhawan Food Retail Pvt. Ltd. (WFRL), which operates 10 food retail outlets underthe brand name Spinach, has plans to open 60 food and grocery stores in Mumbai and Puneby the end of this year. The company plans to expand further to the Eastern and Northernstates in another two years. WFRPL launched its first store in Mumbai in February this year and targets to cover1,54,000 sq.ft of retail space by the year end. These stores are mainly in supermarket formatand will be rolled out in three sizes -- Spinach Express of about 1,000sq.ft, Spinach Local of3,000 sq.ft and Spinach Super of 6,000 sq.ft.9. Bangalore based real estate developer; Prestige Group, plans to invest Rs.2,500 crore intothe mall development business over the next two to three years. The group has plans to set upmalls in Chennai, Hyderabad, Bangalore, Mangalore, etc. Each mall will entail an investmentof about Rs.200 to 300 crore and will be designed with the expertise of an in-house team anda set of out sourced architects. The company plans to dedicate three million sq.ft of spaceacross the four cities.10. Trinethra Super Retail Ltd. (TSRL), the Hyderabad-based retail marketing chain, willinvest Rs.1 billion over the next two years in order to expand business and open more outletsin South India. The number of retail outlets would be increased to 205 by the end of currentfiscal from the existing 170. The number of outlets in Andhra Pradesh would be increased to90 from the present 73, and 50 would be opened in Karnataka. TSRL will open 40 retailshops in Tamil Nadu and 25 in Kerala by the end of FY`07. All the stores in Kerala would beopened under the groups Fabmall brand. By September end, there would be nine Fabmallstores, including two supermarkets at Aluva and Kottayam and a supercentre at Kakkanad.The company, which had a total turnover of Rs.2.4 billion in FY`06, has targeted turnovers ofRs.3.6 billion by March 2007 and Rs.6.5 -7 billion by FY`08.11. Kaya Skin Clinic, the beauty & wellness services chain from Marico Ltd., plans to open55 outlets by the end of 2007. The company is hoping for a tally of 50 such outlets covering atotal retail space of 75,000 sq.ft across 18 cities by the end of FY 2006-07. Kaya Skin Clinics– all owned and operated by the company – is targetting to touch a turnover of Rs.65 crore inthe current fiscal, growing from Rs.45 crore in the last year. The chain is also setting up KayaM.P.B.I.M, Bangalore 34
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETSkin Zones in malls across India to provide easy access for customers to Kaya range of skinsolutions. The company is aiming to establish 15 Kaya skin zones by end-2007.12. New Delhi-based florist Ferns n Petals plans to add 15 more outlets to its existing 55retail points across 32 cities by the end of the FY 2006-07. The company would be adding11,000 sq.ft of retail space, with the cumulative total rising to 40,000 sq.ft, through thisexpansion plan.13. Corporate safety and security service provider, Zicom Electronic Security Systems Ltd.(ZESSL) is planning to enter the consumer segment through its new division Zicomconsumer service group. Through this division, the company plans to launch 600 Zicom retailstores in 100 cities across the country by 2008-09. The stores would retail Zicom Homesecurity systems priced between Rs.6,495-12,995 and Zicom Business security systems forsmall and medium enterprises and retail outlets priced from Rs.54,995 to Rs.99,995. In the first phase, the company plans to enter the retail market with 100-125 stores in24 towns across all directions. Spread in 500-600 sq.ft area, the stores are targeted at highfootfall regions. Expansion will be through franchise route .The Company is planning toinvest Rs.10-15 lakh in the set up of each outlet. The cost would include investment inleasing out spaces and doing up the outlet in terms of branding and interiors. The outlets willthen be handed over to franchisee for day-to-day operations. Franchisees would need toinvest in stocks while returns will be in the form of margins generated from sales. The retailoutlets will also provide add-on services like installation, after sales services, centralmonitoring etc.to customers. 14. Vishal Group launched their first hyper market Vishal Mega mart in Udaipur thismonth. Spread over 25,000 sq.ft, the store offers extensive range of men’s, women’s andkids’ range of fashion clothing. Beside fashion attire, it will also have separate sections andcounters for watches, sunglasses, fashion accessories, gifts and novelties, electricalappliances, digital diaries, perfumes, cosmetics and grocery items etc. Currently, Vishal Mega Mart operates 29 fully integrated and self-owned storesspread over a total shopping area of 5,70,000 sq.ft in 21 cities across IndiaM.P.B.I.M, Bangalore 35
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET15. RPG Retail is planning to foray into books retail, with the launch its own bookstores“Books and Beyond” by October this year. “Books and Beyond” will follow the Music Worldstrategy for its expansion. The first standalone outlet will be launched in Kolkata beforemoving ahead with pan-India expansion. “The outlets are to occupy spaces between 15,000-18,000 sq.ft and will also include the concept of a Music. Meanwhile, RPG is also planning to expand its retail brand Music World to theMiddle East market. The format would primarily target areas with a substantial chunk ofIndian population. “For the Middle East market.16. Murjani India, a subsidiary of the Murjani Group, focuses on attracting internationalbrands and retail concepts to India. Murjani forged a separate deal with The Warnaco Group,a New York-based apparel company, granting Warnaco exclusive rights to distribute theCalvin Klein Underwear line of products in India and supply Calvin Klein Jeans toMurjani.The broad plan is to open at least 40 Calvin Klein-branded stores during the first fiveyears of the operation, with construction beginning as early as March 2007.17. EMKE group, the biggest retail chain based in the UAE with operations spread across theMiddle East is all set to enter the Indian retail sector with mega shopping malls andhypermarkets. The group which has the flagship "LULU" Hypermarkets and departmentstores chain with 48 branches in all major cities of Gulf, controls 34 per cent market share ofthe Middle East retail sector. The proposed shopping mall is coming up in Cochin, thecommercial capital of Kerala. Apart from this one million sq. ft shopping mall, the projectalso consists of a 250 room five star hotel and an International standard convention centrewhich will be set up in the second phas18. Pantaloon enters healthcare retailPantaloon Retail is preparing to enter the healthy & beauty segment with beauty salons anddiagnostic healthcare centres. The first retail outlet catering to the Big Bazaar profilecustomers, “Star and Sitara”, will open in Bangalore in March. The salon would be spreadacross 2,500 sq.ft and will offer services for both sexes. Thereafter Pantaloon plans to enterAhmedabad, Mumbai, Hyderabad, and other cities where the group would have a mallpresence through Kshitij The diagnostic centres will offer eye, skin, dental treatments andM.P.B.I.M, Bangalore 36
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETpreventive care. They will also include pharmaceuticals, beauty centres and will also providealternative treatments like ayurveda and homeopathy.19. Pantaloon Retail & Liberty Shoes ink MOU on Large Format Footwear RetailingPantaloon Retail (India) Limited & Liberty Shoes Limited on September 2, entered into a JVfor setting up a chain of stores for footwear retailing and other accessories. PRIL will hold51% and Liberty 49% stake in the new company; having an authorized capital of rs.25rore.The company will set up a chain of large format footwear stores across the country, with eachstore covering an area of 10,000-15,000 sq. ft.The proposed JV will combine the property and retail expertise of Pantaloon with the designsourcing & merchandising expertise of Liberty. This will provide a focused attention to thefootwear category, which today commands a sizeable portion of the consumer spending. TheMOU is only for retailing and not for manufacturing; it will retail all brands and productssources from all over the world as well as India.20. Deccan chronicle buys odysseyMedia group Deccan Chronicle Holdings (DCHL) on September 5 had acquired South India-based retail chain Odyssey for Rs 61 crore, in an all-cash deal, and upped its revenue andprofit targets for this fiscal.DCHL, which went public earlier this year, said as part of thedeal, it has acquired 100 per cent equity of Odyssey, which currently has 40,000 sq.ft of retailspace in 12 locations in six cities -- Chennai, Hyderabad, Trichy, Coimbatore, Salem andvarnasi. Odyssey has lined up major expansion plans, including growth in western andnorthern India by March 2008. The retail chain sells books, music, toys, greeting cards andFMCG products of leading domestic and international brands, including that of ITC,Cadbury, Duracell, Parker and Penguin.21. Oswal group targets 120 sensa storesM.P.B.I.M, Bangalore 37
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETTwo years after the split of Ludhiana -based yarn manufacturer Oswal Group, a breakawaygroup led by Ashok Oswal is foraying into retail with major expansion plans for the existingfashion chain stores AOs and Sensa , through Amram Trading Pvt . Ltd. Sensa, among India’s first multi-brand intimate wear retail chains with about 16brands, plans to set up 120 stores by the next three years with total investment of Rs.30 crore.22. Adidas India to expand retail in tier II & III townsAdidas India is planning to expand its distribution network in North India, targeting the tier IIand III towns. To add on to the current 80 exclusive outlets, company plans to open 60 newbrand stores. Adidas India is following a franchise model and prefers to be located on highstreets and through stand alones.23. US footwear major marks 2006 for India launchThe $325-million privately-owned fashion company and US footwear major Global BrandMarketing, Inc. (GBMI) will launch retail operations in India next year, with the opening ofexclusive brand stores across the country. Founded in late 1996, GBMI is the majority owner of Pony International, LLC, ownerof the Dry- shoD brand and retail store chain Global Feet and Global Feet Kids, and theauthorized global footwear licensee of Diesel, XOXO, Nautica, and Mecca. Based inCalifornia, GBMI designs, develops and markets stylish apparel, footwear and accessories formen, women and children, and is distributed in over 130 countries worldwide.24. Derby Clothing to open Colombo shop-in-shopChennai-based apparel retailer Derby Clothing Pvt. Ltd is to open a shop-in-shop inColombo, Sri Lanka on November 15. The outlet is a new venture of DSI group Samson &Sons Ltd. – the largest footwear brand in Sri Lanka. The launch is part of the current fiscalsexpansion targets for the company, which hopes to set up 12 more stores this year. Derby Clothing currently has 14 exclusive stores, eight of which are company-ownedand six are franchised. The existing stores are spread over Tamil Nadu, Andhra Pradesh,M.P.B.I.M, Bangalore 38
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETKerala, Karnataka and Gujarat (one store at Ahmedabad). With typical store size of around800 sq.ft. and median shop-in-shop space of about 150 sq.ft., average investment per store isaround Rs.25 lakh. The company is also setting up two new manufacturing units at Chennai, to buttressits current production capacity of 20,000 shirts and 9,000 trousers.25. Dabur India is planning an entry into the consumer retail business especially in the areaof health and wellness. Presently their plan will be Focused and specialized with health andwellness being the obvious option at the moment. The new business could be through daburIndia or a separate company. The idea behind the move is that the company would sell itsown brands and also offer a complete portfolio of products, catering to the health consciousurban Indian. This model would be close to one followed by retailer boots in the UK. Dabur India is still exploring various formats and working on possible store sizes. Ifdabur ventures into this specialty format, it will have to set up stores measuring close to2000-2500 square feet. The company may also in for an arrangement with one of theupcoming multi-brand or hypermarket retail chains.26. Redtape –Indians finest fashion footwear and lifestyle brand known for its internationalstyle, quality and elegance and its core competency lies in providing excellent quality to itscustomers. Red tape is one of the brands which have been able to get world wide recognition,acceptance and admiration. Globally, red tape is recognized as a stylish and high fashion brand. It is planning toexpand 50 retail outlets by the end of this year in India. Currently it has 40 retail outlets inIndia & two international stores in sharjah & Dubai.It has moved from men’s footwear to women’s footwear called ‘miss red tape’. It has alsodiversified its brand in to men’s apparel and accessories like belts, wallets & so on. Thecompany is also planning to introduce women apparel line same time next year. It is alsoplanning to set up its own manufacturing base of customersM.P.B.I.M, Bangalore 39
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET REVIEW OF LITERATURE The retail sector in India is highly fragmented and organized retail in the country is ata very nascent stage. Of the 12 million retail outlets, more than 80% are run by small familybusinesses which use only household labour. China and Brazil, took 10-15 years to raise theshare of their organized retail sectors from 5% to 20% and 38% respectively. India too ismoving towards growth and maturity in the retail sector at a fast pace.Value retailing: more hypermarkets in the offing The hypermarket route has emerged as one of the most preferred formats forinternational retailers entering India. In most emerging retail markets, such has EasternEurope, Latin America and china; hypermarkets have been the major high growth format.Hypermarkets provide consumers with a combination of good prices, overall shoppingconvenience and experience. Product range and quality. Currently there are less than 50hypermarkets in India, operated by 4-5 big retailers. The report says that India’s 67 citieswith population of half a million or more have potential to absorb many more hypermarketsin the next 4-5 years. On the success of hypermarkets, the report draws a parallel between consumerbehaviour in India and china. It says that there is a similarity in the buying pattern of theIndian and Chinese consumers. In china. Most hypermarkets are located with in the citylimits as consumers do their shopping more than once a week, have low passenger carpenetration and limited refrigeration space at home.Malls to move beyond the metros The boom in the retail sector is also associated with rise of malls across India. Thereare 220 mall projects in the pipeline till 2007, 139 in the big 8 cities-including the metros-and81 in other tier II cities. Increasing awareness levels in tier II cities are eroding the ‘urbanaspiration’ lead of the metros and the international brands have started looking at thesesmaller cities to increase their penetration.Organized retail penetration highest across footwear, clothingM.P.B.I.M, Bangalore 40
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET The footwear and clothing categories have seen the highest organized retailpenetration (ORP). Footwear has a 22% ORP which is driven by high levels of franchisingactivity and dominance of home-grown players as well as MNC retailer Batas dominantmarket share. Clothing, with a 12% penetration, is also hotting up for further organized retailpresence due to high level of branding activities by apparel retailers and merchandisingspread across formats such as department stores, hypermarkets, own retail outlets andfranchises. The report says that though the food & grocery segment contributes about 41%ofprivate consumption expenditure and about 77% of total retail sales, it is largely controlled bythe unorganized small outlet sector- penetration of organized retail is about 1% in thissegment. Other segments like books and music, jewellery, consumer durables, homefurnishings, medical care and health & beauty have seen limited penetration of organizedretail and will require innovative and aggressive plans on the part of Indian and internationalretailers to fully exploit their potential.Franchising is the way ahead The report says multinational retailers are firming up their India entry strategies. Ifthey are already present here, they are undergoing rapid expansions. Franchising is gainingsteam with the retailers and franchisee activity in tier II cities is pegged to rise. The reportforecasts a number of strategic partnership opportunities between Indian and internationalretailers. An international retailer looking to enter India needs to be extremely well versedwith local retail culture and know-how. The number of states and union territories in Indianumber 35 and languages, cultures; habits and consumer preferences are different in everyone of them. Companies have to understand and retain customers. A 5% reduction incustomer defections can treble profits.M.P.B.I.M, Bangalore 41
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETFraud and theft: an expensive affair The report also lists fraud and theft as key challenges for the sector in the future.Theft, including employee pilferage, vendor frauds and inaccuracy in supervision andadministration costs the Indian industry a huge amount every year. The implications and sizeof this loss will be more significant as retailers continue to scale up and increase productlines.Shorted of talented professionals Though the retail industry is expected to create 2 million jobs by 2010, shortage ofprofessionals remains a big challenge. There has been a rise in the number of retailmanagement programmes and institutes, which is expected to bridge the gap in availability oftalented professionals. However, talented professionals will put increased pressure on wagecosts. Therefore, operating margins, especially for mid-sized retailers are likely to comeunder pressure.An agile and adaptive supply chain is key Logistical issues, constant changes in consumer preferences and patterns, crowdedmarketplaces, efficient customer responsiveness and swiftly evolving retail formats are thehallmarks of today’s retail environment in India and pose a huge challenge for drivinggrowth. As Indian and international retailers continue to grow their presence regionally, thereeill be a pressing need for a single, enterprise-wide IT platform to manage operations, whichwill become increasingly complex. In the last 2-3 years, several retailers, ranging from F&B operations to discountclothing, have implemented Supply Chain Management (SCM) solutions to improve corebusiness processes such as global sourcing, distribution, logistics, innovation, transparencyand visibility in financials and inventory, compliances and management of point of sale(POS) data. Going ahead, both FMCG and retail sectors are likely to see an increase inthe adoption of SCM.M.P.B.I.M, Bangalore 42
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET Further the lack of a distribution sector and specialized distribution companies is amajor obstacle for retailers to fully utilize India’s retail potential. The report says privatelogistics companies offering specialized services, refrigerated transport and warehousefacilities across the country, along with timely distribution of supplies to retail outlets willcreate some of the much needed back-end support for retailers to enhance operationalperformance. If addressed urgently and seriously, infrastructure can translate into India’sbiggest opportunity.M.P.B.I.M, Bangalore 43
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET DESIGN OF THE STUDYRESEARCH GAP OR BACKGROUND OF THE STUDYIn the competitive world super markets are increasing day by day. They are alsoimplementing newer methods of attracting the customers. This has resulted in enhancementof customer satisfaction. Hence this has evoked me to do a research investigation in to theanalysis of customer satisfaction level towards supermarket.RESEARCH TITLE:‘‘Analysis of customer satisfaction towards supermarket”PROBLEM STATEMENT:To assess the customer satisfaction level towards food and grocery retailing and designmarketing strategies for enhancement of customer happiness.This study will help the supermarket to ascertain their customer satisfaction level. Thus aresearch titled “analysis of customer satisfaction level towards supermarket” was carried on.OBJECTIVE OF THE STUDY • To decide on the parameters which effect the customer satisfaction while shopping for food and groceries. • To measure these parameters. • To analyze the existing marketing strategies of various retail brands. • To know the quality of service. • To suggest better marketing strategies to improve customer relations.M.P.B.I.M, Bangalore 44
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETRESEARCH METHODOLOGY:RESEARCH DESIGN: Research design is a detailed blue print used to guide the researchstudy towards its objectives. The process of designing a research study involves manyinterrelated decisions. The most significant decision is the choice of research approach as itdetermines how the information will be obtained. The type of research is descriptive approach which means asking questions to peoplewho are believed to possess the desired information. It measures the magnitude of people’sknowledge, attitudes and buying behaviour. In survey method the data collection is throughstructured direct interview. Structured direct interview is a formal questionnaire (i.e. set ofquestions) that is structured and direct and the interviewer is instructed to ask the personsthose questions only in the order given in the questionnaire. This type of interview is referredto as “Structured survey”. Its advantage is that, less skilled interviewers can be used resultingin lower cost per interview. It gives standardized information and hence editing, tabulatingand analyzing of the data are more easily done.SOURCES OF DATA COLLECTION:Primary data: It has been collected using the structured questionnaire with personalinterviews with the customers at the stores and through personal observations.Secondary data: It bas been collected from various magazines, papers, Text books and relatedwebsites.SAMPLING DESIGN:SAMPLING TECHNIQUE:Stratified random sampling: Under this sampling design item has an equal chance ofinclusion in the sample. All choices being independent of one another. It gives each possiblesample combination an equal probability of being chosen.M.P.B.I.M, Bangalore 45
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET • SAMPLING UNIT: The survey was conducted at five food retail brands such as food world, subhiksha, spencers, fabmall and reliance fresh. • SAMPLE SIZE: Simple random sample has been taken as 100 respondents with 20 respondents from each of the retail outlet brands. • SAMPLE DESCRIPTION: Sample is taken for this research is from Rajaji nagar, Mahalaxmi layout of Bangalore north. Selection of respondents for the study conducted review and feedback for 14 days. Each day I selected the random time slot to go to stores for interviewing customer. The procedure I adopted to distribute the questionnaire to all the customer present in the retail stores and interviewed who were agreeable to answering questions. This way the above procedure ensured randomness of respondentsRESEARCH ANALYSIS:The data so generated would be subjected to rigorous statistical treatment and the inferenceswill be drawn accordingly. The basic analytical tools like bar charts and pie charts will beused.RESEARCH LIMITATIONS: Sample size is small because of the time constraint. Respondent may provide data from their memory recall, there may only be rough estimates. Survey is limited considering the wide spread location of customers over Rajaji nagar, Mahalaxmi layout in Bangalore metropolitan. The sample size is small hence arriving at an overall opinion of the supermarket is difficult.M.P.B.I.M, Bangalore 46
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETSCOPE OF THE STUDY: It will help the supermarket to understand the level of customer happiness. It will help the supermarket to retain the service. It will help the supermarket strength and weakness. This study will also reveal the customers attitude towards supermarket.CONTRIBUTION FROM THE STUDY: • This research study would help the supermarkets to improve the service. • The study analysis the schemes employed by the supermarkets to influence the purchase. • The study would help to the stores in improving the existing level of satisfaction among customers. • The study seeks competitive analysis of pricing among retailers. • The study contributes to identify problems if any in the field of customer satisfaction in the grocery retail sector and come out with a solution.M.P.B.I.M, Bangalore 47
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET DATA ANALYSIS AND INTERPRETATIONTABLE 1: FREQUENCY OF PURCHASE BY RESPONENDS TO STORE SL.No. Particulars No. of Respondents Percentage 1. Daily 33 33 2. Weekly 31 31 3. Monthly 36 36 4. Occasionally 00 0 Total 100 100Source: Field Study GRAPH-1 Frequeancy of visit by consum ers to store 40 35 No.of Respondents 30 25 20 15 10 5 0 daily w eekly monthly occassionaly Frequqancy of visit INTERPRETATION From the above table and graph it is clear that out of 100 respondents surveyed, 33% of them purchase daily, 31% of them purchase weekly, 36 of them purchase monthly and there are no respondents who purchase occasionally. This clearly shows that frequency of purchase by the consumers is very high. Respondents who purchase regularly visit store weekly and monthly. It is found that many of the respondents purchase on Saturday and Sunday. M.P.B.I.M, Bangalore 48
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET TABLE 2: DATA SHOWING CUSTOMERS REGULAR PURCHASE FROM THE STORE SL.No. Particulars No. of Respondents Percentage 1. Yes 86 86 2. No 14 14 Total 100 100Source: Field Study GRAPH 2: Customer regular purchase from the store No 14% Yes 86% INTERPRETATION The response given by respondents 86% buys regularly from the same store and 14% of respondents don’t buy from the same store. As we can conclude that major of the customers buy from the same store because supermarkets are near to respondent residence and avail membership benefits from the store like offers, gifts apart from low prices. M.P.B.I.M, Bangalore 49
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETTABLE 3: DATA SHOWING RESPONENDS PREFER OTHER STORE FOR SHOPSL.No. Particulars No. of Respondents Percentage1. Provisional Store 12 122. Other Supermarket 02 02Total 14 100Source: Field StudyGRAPH 3: Customer preference to other store 12, 86% 2, 14%INTERPRETATIONThe above chare shows that 12% of respondents prefer provisional store which is locatedvery near to their home and 2% of them prefer other supermarket. This clearly indicates thatthe supermarket has the potential market in food retailing. Most of respondents do notpurchase entire grocery from supermarket and that it is because supermarket does not provideprice reduction on the items like rice, dhal etc which they usually buy in bulk quantity.M.P.B.I.M, Bangalore 50
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET TABLE 4: DATA SHOWING CUSTOMERS RESPONSE OVER RESONS FOR SHOPPING IN THE STORE SL.No. Particulars No. of Respondents Percentage 1. Location & conveyance 31 31 2. Wide range of 24 24 merchandises 3. Low prices 23 23 4. Ambience & services 13 13 5. Discounts 09 09 Total 100 100Source: Field Study GRAPH 4: Customer reasons for shopping in the store No.of Respondents 35 30 25 20 15 10 5 0 Location Ambience & Wide Range of Low Prices Discounts Merchandises Services INTERPRETATION It is depicted from the chart that, 31% of respondents say’s Location and conveyance, 21% of respondents say’s Wide range of merchandises,3% of respondents say’s Low prices, 13% of respondents say’s Ambience & services and 9% respondents say’s Discounts. From the analysis of chart we can conclude that most of the respondents buy from the store because of location, wide range of products and low prices. M.P.B.I.M, Bangalore 51
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET TABLE 5: DATA SHOWING THE RATINGS FOR DIFFERENT ATTRIBUTES OF LOCATION & AMBIENCESL.N Particular No .of Respondents Cumulative Rankingo s Score Strongly Agree Neither Disagree Strongly Agree Agree Disagree 5 4 or 2 1 Disagre e 31. Store 55 30 00 15 00 425 5 location is convenient2. Store 66 29 00 05 00 456 3 looks modern & well equipped3. Ambience 66 31 00 03 00 460 2 is appealing4. Well 61 28 04 07 00 443 4 arranged, clean & ventilated5. Store 69 31 00 00 00 469 1 timings are convenientSource: Field Study Cumulative score = The Number of respondents * Weight = 55x5 + 30x4 + 15x2 =425 = 66x5 + 29x4 + 5x2 =456 = 66x5 + 31x4 + 3x2 =460 = 61x5 + 28x4 + 4x3 + 7x2 =443 = 69x5 + 31x4 =469 M.P.B.I.M, Bangalore 52
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET GRAPH 5: Rating for different attributes of Location & Ambience 500 456 460 469 425 443 450Cumulative score 400 350 300 250 Cumulative score 200 150 Rating 100 50 5 3 2 4 1 0 store store looks ambience is well store location is modern & appealing arranged, timings are convenient well clean & convenient equipped ventilated Attributes INTERPRETATION Store timings are convenient attribute is ranked as first by considering cumulative score. Most of the respondents rated strongly agree by 69 respondents and agree by 31 respondents. This indicates that customers are very much satisfied about time convenience of shopping. Ambience attribute is rated as second. Most of the respondents rated strongly agree by 66 respondents and 31 of them rated agree. Store need to improve the space as they carry three category sections in one store which results non convenience in shopping by customers From the cumulative score the store looks modern & well equipped attribute has been ranked third. 66 respondents consider modern and well equipped attribute strongly agree and 29 of them felt agree. Store has to take measures in visual merchandising such as design, graphics etc. Well arranged, clean & ventilated attribute has been ranked as fourth as major of the respondents said strongly agree, 28 of them felt agree and 7 of them rated disagree. Vegetables need to be kept fresh as this is been purchased daily by customers and constitutes more revenue to the store. Convenient of store attribute ranked as sixth & is considered as strongly agree by 55 respondents and agree by 30 respondents. Study indicates there is a lot of market. M.P.B.I.M, Bangalore 53
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET.TABLE 6: DATA SHOWING THE RATINGS GIVEN BY RESPONDENTS FORDIFFERENT COMPONENTS OF QUALITY & MERCHANDISESL.No Particulars No .of Respondents Cumulative Ranking Score Excellent Good Fair Poor Very 5 4 3 2 poor 11. Fruits & 57 25 18 00 00 439 3 vegetables are fresh2. Large 44 16 16 24 00 380 6 varieties of fruits & vegetables3. Well 48 23 26 03 00 416 4 known brand names4. Prices are 69 22 09 00 00 460 1 reasonable5. Display of 62 28 10 00 00 452 2 products makes it easy to choose6. Discounts 46 24 19 11 00 405 5 on bulk purchaseSource: Field Study Cumulative score = The Number of respondents * Weight =57x5 + 25x4 + 18x3 =439M.P.B.I.M, Bangalore 54
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETGRAPH 6: Rating for different components of Quality & Merchandise 500 460 452 439 450 416 405 380 400 Cumulative score 350 300 250 Cumulative score 200 Ranking 150 100 50 3 6 4 1 2 5 0 1 2 3 4 5 6 ComponendsINTERPRETATIONBy using the cumulative score the prices are reasonable attribute is ranked as one. 69respondents consider prices are reasonable component as excellent and 22 of them rated pricecharged is affordable and only 9 of them price charged are high. Prices on certain foodproduct brands need to be priced low.From the calculation by using cumulative score the weighate given for display of productsmakes it easy to choose component is 452 & ranked second, as 62 respondents rated excellentfor display of products makes it easy to choose component, 28 of respondents felt good and10 of them rated fair.From the data of cumulative score fruits & vegetables are fresh component has been rankedas third. 57 respondents consider Fruits & vegetables are fresh component as excellent, 25 ofthem felt good, 18 of them rated fair and none for poor. Vegetables still need to be cleanlywashed and kept freshly.Well known brand names component ranked as fourth and is considered as excellent by 48respondents, 23 of respondents rated good and 26 of them felt fair. International brands haveto be kept in store.M.P.B.I.M, Bangalore 55
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETA discount on bulk purchase component is ranked fifth. Most of the respondents ratedexcellent by 46 respondents, 24 of them felt good and 19 of the respondent rated fair.Customers who buys in bulky needs to be given better discounts especially for restaurants,hotels and resorts. Discounts on the bulk purchase of certain brands have to be increased bykeeping competitive prices.Weighate given for the large varieties of fruits & vegetables component is 380 and has beenranked sixth.44 respondents consider large varieties of fruits & vegetables component asexcellent, 16 of them rated good and 16 of them felt poor. Some stores have to keep largevarieties of vegetables as customer purchase daily..M.P.B.I.M, Bangalore 56
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET TABLE 7: DATA SHOWING THE CUSTOMERS RATING ON THE DIFFERENT SALES PERSONNEL ATTRIBUTESSL.No Particulars No .of Respondents Cumulative Ranking Score Strongly Agree Neither Disagree Strongly Agree 4 Agree or Disagree 5 Disagree 2 1 31. Employees are 53 26 07 14 00 418 4 knowledgeable & friendly2. They give 59 38 00 03 00 453 3 prompt services3. Sales people 62 37 00 01 00 460 2 are friendly & helpful4. Sales staff are 73 27 00 00 00 473 1 clean & presentable Source: Field Study Cumulative score = The Number of respondents * Weight =53x5 + 26x4 + 07x3 + 14x2 = 418 M.P.B.I.M, Bangalore 57
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET GRAPH 7: Rating for attributes of sales personalsales staff are clean 1 473 sales people are 2 friendly & helpful 460 They give prompt 3 service 453 Employees are 4 knowledgeable 418 Cumulative score RatingINTERPRETATIONFrom the above cumulative data, it is clear that the rank given for the attributes of salespersonal are first for sales staff are clean and presentable, second for sales people are friendlyand helpful, third for they give prompt service and fourth for Employees are knowledgeable &friendly. There are certain aspects like giving prompt services, offers information etc need tobe improved. M.P.B.I.M, Bangalore 58
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET TABLE 8: DATA SHOWING THE RESPONSE GIVEN BY RESPONENDS ON RATINGS FOR DIFFERENT COMPONENTS OF SERVICESSL.No Statements No .of Respondents Cumulati Ranking ve Score Very Satisfied Neither Dissatisfied Very Satisfied satisfied nor dissatisfied 5 4 dissatisfied 2 3 11. Free home 58 19 00 03 00 372 7 delivery is provided2. Store is 74 26 00 00 00 474 1 willingly handles returns and exchange the products3. They respond 69 31 00 00 00 469 2 through phones and mails4. Billing 66 34 00 00 00 466 3 services are fast and correctly5. Post sales 48 43 00 09 00 430 6 problems solved immedidetly6. Store loyalty 55 41 00 04 00 447 4 programmes7. Parking is 61 27 00 12 00 437 5 sufficient Source: Field Study Cumulative score = The Number of respondents * Weight M.P.B.I.M, Bangalore 59
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETGRAPH 8: Rating for different components of services 437 447 430 7 5 6 4 5 6 466 469 474 4 3 3 2 2 1 372 1 7 0 100 200 300 400 500 Cumulative score RatingINTERPRETATIONStore is willingly handles returns and exchange the products component has been ranked first.Stores need to be improved on the exchange of products by giving value gifts.From the cumulative score they respond through phones & mails component has been rankedsecond. Most of the satisfied respondents said there should be improvement in sendingweekly mails regarding offers available by stores.By using cumulative score the ranking given for the attribute of billing services are fast andcorrectly is three. Print on the bill need to be dark.Store loyalty programmes component is ranked as fourth. Most of the respondents who aredaily customers said that loyalty programs such as party tickets and cinema tickets need to beconsidered which it could add more in building relation ship and sales.A chart depicts that parking is sufficient component is ranked as fifth. Though fewsupermarkets have luxurious space in house store, it is also necessary to have parkingfacilities for customers who comes by car.M.P.B.I.M, Bangalore 60
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETA chart shows that post sales problems solved immedidetly component has been ranked assixth.48 respondents rated very satisfied for post sales problems solved immedidetlycomponent, 43 of respondents rated satisfied 9 for dissatisfied.Free home delivery is provided component is ranked as seventh and considered as verysatisfied by 58 respondents and 19 of respondents rated satisfied. Free home delivery has to bincreased up to 4kms.M.P.B.I.M, Bangalore 61
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETTABLE 9: DATA SHOWING THE OVERALL OPINION OF RESPONDENTS ONSUPERMARKETSL.No. Particulars No. of Respondents Percentage1. Extremely satisfied 54 542. Satisfied 43 433. Not satisfied 03 034. Not at all satisfied 00 00Total 100 100Source: Field StudyGRAPH 9: Rating of customer satisfaction 0 Not at all satisf ied 3 Not satisf ied 43 Satisf ied 54 Extremely satisf ied 0 10 20 30 40 50 60INTERPRETATIONThe above table clearly indicates that 54% of respondents are extremely satisfied and 43% ofrespondents are extremely satisfied. The survey indicates that most or almost all the customerare extremely satisfied tore and it is because of quality and availability of wide range ofproducts, free home delivery, replacement on dissatisfied products, good packing facilities,price reduction on total purchase salesperson are friendly and helpful, good services, etc.M.P.B.I.M, Bangalore 62
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET TABLE 10: OCCUPATION OF THE RESPONDENT VISITING THE STORE SL.No. Particulars No. of Percentage Respondents 1 Employees 22 22 2 Professional 26 26 3 Business 23 23 4 Housewife 21 21 5 Student 08 08 Total 100 100Source: Field Study GRAPH 10: Graph depicting occupation of respondents 22% 26% 8% 21% 23% Employee Professional Business Housew ife Student INTERPRETATION Respondent refer to the customer that have been selected for the study on random basis on the basis of occupation. On the basis of survey I found that 26% of respondent who visit store are professional, 23% of the respondent are business, 22% of them are employees, 21% of respondent are housewife and only 8% who visit store are students. M.P.B.I.M, Bangalore 63
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKETTABLE 11: DATA SHOWING THE RESPONENDS INCOME CATEDORYSL.No Particulars No of Respondents Total Below 15k 15k-30k 30k-50k Above 50k1. Employee 06 07 06 03 222. Professional 11 09 06 00 263. Business 14 04 05 234. Housewife 00 00 00 00 005. Student 08 00 00 00 08Total 25 30 16 08 79Source: Field StudyGRAPH 11: Graph showing respondents income category above 50 3 5 30-35 6 6 4 14 15-30 7 9 11 below 15k 6 0 0 8 0 5 10 15 20 25 30 35 Employee Professional Business Housewife StudentINTERPRETATIONThe chart depicts that, out of 100 respondents 30 of respondent belongs to income group of15-30 thousand per month, 25 of them belongs to below 15,000k, 16 of respondents belong to30-50k, only 8 of them belong to above 50,000k and 21 of respondents don’t belong to anyincome category as the respondents occupation are housewife and they are not earning.M.P.B.I.M, Bangalore 64
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET TABLE 12: RESPONENDS DISTANCE FROM HOME TO STORE SL.No. Particulars No. of Respondents Percentage 1 Below 2kms 67 67 2 2-5kms 24 24 3 5-10kms 09 09 Total 100 100Source: Field Study GRAPH 12: Graph showing responends distance from home to store 5-10 kms 9% 2-5 kms 24% Below 2 kms 67% INTERPRETATION From the above chart it is clear that 67% of respondents distance from home to shop is below 2 kms, 24%of respondent are belong to 2-5kms and only 9%of respondents belong to radius of 5-10 kms. M.P.B.I.M, Bangalore 65
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET MAJOR FINDINGS OF THE RESEARCH 1. The people who visit supermarket belong to the higher group that is Rs 15,000-30,000 per month. 2. Customers who visit store are very regular and most of the customers who purchase daily are of fruits and vegetables. 3. The survey indicates that major of the customers purchase regularly from the same store as store staff identifies their daily customers and has good relationship management by store. 4. It is evident that most of the respondents make their purchases weekly and monthly and most of the customers shop on Saturday and Sunday. 5. The study reveals that some of the customers still prefer to buy in the tradition kirana shop as they are located in the customer’s residential area. 6. Most of the respondents have mentioned that location conveyance, wide range of merchandise and low prices are the main reasons for shopping in the store. 7. Location and ambience is rated as strongly agree and agree by majority of the respondents in terms of attributes such as store location is convenient, store looks modern & well equipped, ambience is appealing and store timings are convenient. 8. It is found that the most of the respondents has rated as excellent for the quality and merchandise components. Some of the respondents said good and fair. 9. More then 75% of respondents have rated strongly agree and agree for the attributes of sales personnel. Few of the respondents have said disagree for the attribute employees are knowledgeable & friendly. 10. Service attributes has been rated very satisfied by most of the respondents. Some of the respondents have rated satisfied for the service attributes. Few of the customers felt dissatisfied with attributes such as post sales problems solved immedidetly and parking is sufficient. 11. Most of the respondents are of the opinion that very much satisfied with shopping at supermarket and 43% of the respondents rated satisfied at their shopping in supermarket.M.P.B.I.M, Bangalore 66
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET RECOMMENDATIONS • Retailers should learn quickly to build a retail brand directly and not at factors like priming location, value pricing or product assortment to build their business. • Retailers should maintain customer data and communication to build a relationship among customers • Education and tanning of staff needs to be done to enhance customer service. • Retailers should use advertisement promotions to drive store traffic For example: mailing a brad sheet to its customers giving them details of the promotional offers available and price comparisions across brands. • Retailers should also understand that the retail experience has become a popular leisure activity and they are vulnerable to any new competition for the customer’s entertainment. • Retailers should build their brands with images that seek to entertain and involve their customers. • In an era of hyper competition retailers should adopt E- retailing which would benefit to deliver better services, assortments, products information, speed, price and so on. • Retailers should maintain consistency in the visual imaginary for all products and the other is colour coding of displays to aid easy recognition of sections and departments. • International brands should be made available in Supermarket. • Supermarket should have more cash counters. • Special offers should be notified through the e-mails. • Improve on telephone booking and delivery. • Supermarket should play music. • Supermarket should display products in their corresponding sectionsM.P.B.I.M, Bangalore 67
    • ANALYSIS OF CUSTOMER SATISFACTION TOWARDS SUPERMARKET BIBLIOGRAPHY TITLE AUTHOR 1) MARKETING MANAGEMENT PHILIP KOTLER 2) MARKETING AN INTRODUCTION GARY ARMSTRONG PHILIP KOTLER 3) LOGISTICS AND RETAIL JOHN FERNIE AND LEIGH SPARKS. MANAGEMENT 4) BUSINESS RESEARCH METHODS COOPER AND SCHINDLER MAGAZINES & JOURNAL: 1) RETAIL BIZ 2) INDIAN JOURNAL OF MARKETING 3) BUSINESS LINE (CATALYST) 4) ECONOMIC TIMES(BRAND EQUOTY) 5) BUSINESS WORLD WEBSITES: 1) WWW.RETAILINDIA.COM 2) WWW.GOOGLE.COM 3) WWW.AMAZOM.COMM.P.B.I.M, Bangalore 68