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1. INTRODUCTION:
1.1 Drivers of Retailing in India:
Rising income: Over the past decade, India’s middle & high income population has
increased at a rapid pace of over 10% p.a. The number of house holds earning above Rs.
150000 p.a is about 80 m by the end of 2007.
Change in consumer behavior: There has been change in shopping behavior in urban
India over past few years with consumer looking for convenience. They want everything
under one roof & bigger choice of products with an increase in double income house
holds, people do not have much leisure time & seek convenience of one stop shopping in
order to make the best of their time. They also look for speed & efficiency. Increased
awareness has also meant that consumers now seeks more information, variety, product
availability, better quality & hygiene as well as improved consumer service. The concept
of value for money is picking up.
Explosion of media: Media bombardment has exposed the Indian consumers to the
lifestyles of more affluent countries& raised their aspirations & expectations regarding
their shopping experience. They want better choice, value, service & convenience.
Entry of corporate sector: Large business houses like Tata’s ITC, RPG Group, the
piramals and the Rahejas have initiated the investment in retailing. Big business houses
today are in position to provide the Indian masses with shopping satisfaction,
entertainment, quality products, polite salesperson, product information & discount.
New entrepreneur: The growing attractiveness of retail trade has begun to draw new
entrepreneur with ideas & venture capitalists with funds. Subhiksha an innovative discount
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2. grocery chain in Chennai has expanded to total of 50 stores in less than 3 yrs. & one of
most successful retail startups in recent past.
Venture capitalists like ICICI are increasingly willing to invest in Retail business.
Foreign retail looking for Entry options: With opening of Economy, more & more
MNCs have entered the Indian business arena via JVs, Franchises of even self owned
stores. The 1st MNC to get in was spencers which entered into tie up with RPL group &
Dairy form. International $ 10 bn Hong Kong & used comp. & port of Jardine Matheson
group. Wal-mart the largest world retail; also plans to foray India 4th largest retail market
in world.
1.2 Influences on a growing brand:
The initial sales of virtually all brands of packaged goods follow a similar pattern in that they
rise to an early peak, and then settle down to a lower, steadier level. The rise is partially
influenced by increasing distribution, but more heavily by increasing sales per shop, an
indication of consumer repeat purchase. Simple models based on test market experience can
be applied to the earliest retail audit data measuring national sales and distribution, & these
can be used to forecast the path of sales during the period (which averages rather more than
two years) before a brand reaches its stable national level. This period is tending to shorten as
markets become more crowded and competitive.
This puts increased emphasis on the importance of early plans for restaging.
Trade & consumer promotions account for more money than advertising, out of the average
manufacturer’s total expenditure above & below the line. There is a significant dissonance
between the short-term demand for promotions to increase sales, & the long term (but
normally less insistent) demand for advertising to increase the numbers and loyalty of
consumers. This dissonance is frequently expressed by budgetary adjustments during the last
quarter of any year, under unplanned & often crisis conditions, to enable tonnage sales targets
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3. to be met. The pressures to increase promotions are increasing over tie because of growing
strength of retail trade.
Advertising, expressed as a share of advertising voice in a market, can be viewed in parallel
with the market share of an individual brand. For large brands, the market share normally
exceeds the advertising share; for smaller brands, the opposite is true. This general
relationship is strong evidence for the existence of advertising- related scale economies for
large brands.
A study examined the influence of advertising share on market share, allowing for the
possible contamination of the reverse influence of the sales level on the advertising level. In
the cases of about 70 percent of ongoing brands, there is an apparent relationship (from
advertising to sales) which is both linear and casual. The dynamic difference regression
describing this relationship can be used for two purposes: first, to predict the effect on market
share of a change in advertising weight within the regression; & second, to demonstrate the
financial productivity of any campaign change having effects beyond its parameters.
The marginal extra productivity of a new campaign can also be estimated approximately by
the use of the moving demand curve technique. Another productive device, the use of
advertising and price elasticity, can be used not only for sales maximization, but also for sales
optimization to maximize profit. Although the data needed to compute this elasticity are
difficult to put together, the technique of manipulating them operationally is relatively simple
to understand & apply.
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4. Trade promotions:
Influences on
Consumer promotions: Advertising:
a growing
brand
Price: Distribution:
1.3 Distribution:
Even for a new brand with growing distribution, shops running out of stock can be a problem
that can cause widespread switching away from one brand to its competitors during the
period just before the end of its sales cycle. With an ongoing brand, although the absolute
level of distribution is generally steady once the distributional base has been built, the
disappearance of retail stocks remain a real & continuous problem.
This can put consumers in dilemma. They will normally buy a substitute brand if the brand
they are looking for is not available. This will happen in 58 percent of cases, according to
Nielsen data. If the size they seek is not on shelf, they will buy a different brand altogether in
further 30 percent of cases. Retailers should realize that in case of missing brand, 42 percent
of consumers will leave the store with no purchase in the product category. In the case of the
missing size, 18 percent will leave. These represent absolute losses of business, in most cases
to other stores.
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5. This dilemma is by no means uncommon. Nielson data describe the product categories in
which homemakers are more loyal, and those in which they are less loyal to the brand they
are looking for during any particular shopping trip. Among the categories in which
homemakers will not readily accept a substitute are: dentifrice, instant coffee, floor wax, &
detergents. Among the categories in which substitutes are more readily acceptable are: toilet
tissues, crackers, ready to eat cereals & canned beans. During the course of a year,
homemakers will buy a number of different brands but on many individual shopping trips
they will be looking for a particular brand (perhaps for use by a particular member of the
family), & will not buy another if this is not available. Interestingly enough, Nielsen shows a
degree of correlation between the long-term level of advertising investments & the product
fields in which customers are unwilling to substitute. This is but one example of the many
beneficial side effects of advertising.
However, retailers running out of stock remain a stubborn problem, with dangers of marginal
but real losses of business. A normal out- of –stock level is considered to be 3 percent. With a
computerized stock control system linked to the checkout, there is no real reason for
manufacturers and retailers even to accept as much as this. But 6 percent & more is by no
means uncommon. With the resultant level of sales loss (which is as much as 6 percent of
case sales over a year in a specific and typical Nielsen example), manufacturers even more
than retailers will continue to pay a significant penalty for their inability to solve what is in
essence a relatively simple mechanical problem, and one which is in the interests of
manufacturers and retailers alike to solve.
1.4 Five key variable retail factors:
1. Penetration: percentage (normally of households) buying at least one pack of a
brand.
2. Purchase frequency: number of purchase occasions per buyer.
3. Frequency distribution: number of buyers who buy a brand at different frequencies
(once, twice & so forth)
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6. 4. Repeat buying: percentage of buyers who continue to buy the brand.
5. Multiband buying: percentage of buyers who also purchase another brand or brands.
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7. LITERATURE REVIEW
1. “Branding: - Hub of the Corporate wheel”, A brief history of brand necessity of
branding; Indian journal of marketing; Volume xxxiii, Number: 11 (November, 2003)
Some brands appeal to the rational part of a person, to the elements of logic & good sense
(the thinking dimension) such as fuel economy bikes (like Hero – Honda), toothpaste which
prevents decay (like Colgate) and cholesterol free foods (like saffola oil) others appeal to the
sense of smell, taste, sight and sound such as fashion and cosmetic product.
Some of the researches conducted shows that we have as little as four seconds to get a
shopper's attention. The study explains what you need to do to guarantee that you own that
four seconds from understanding your competitive arena and context to understanding the
nature of today’s shopper. From there they explain how you can optimize the creation of your
products, your retail impact and your communications. Finally, they demonstrate how to
activate the process through retailizing your entire organization from top to bottom and we
how to verify the results.
Brand influence consumer decisions to buy in any way. Research shows that the real driving
force behind market leadership is perceived value-not price or inherent product attribute. As
long as a brand to offer consumers superior perceived value, then good market performance
will follow, which makes consistency a high important feature of brand behavior.
2. “Changing Trends in retailing and FMCG industry in India”, Marketing
Mastermind, the ICFAI University Press, (October 2004)
Bt the turn of 20th century, the face of the Indian retailing industry had changed significantly.
The retailing industry, dominated by the unorganized sector until the early 1990s, witnessed a
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8. rapid growth in the organized sector with the entry of corporate groups such as Tata, RPG,
ITC and Bennet Coleman & company into the retailing market.
With the liberalization and growth of the Indian economy since the early 1990s, the Indian
consumer witnessed an increasing exposure to new domestic and foreign products through
different media such as television and internet. Social changes such as increase in the number
of nuclear families and the growing number of working couples resulting in increase
spending power, also contributed to an increase in the Indian consumer personal
consumption.
Thee changes had a positive impact, leading to the rapid growth in the retailing industry.
Increased availability of retail space, rapid urbanization, and qualified manpower also
boosted the growth of the organized retailing sector.
3. “Factors that shape a Brand during its Growth and Maturity, Chapter 4”, WHAT’S
IN A BRAND? , John Philip Jones, Tata McGraw Hill, 1998.
Customers normally buy a substitute brand if the brand they are looking for is not available.
This will happen in 58% of cases, according to Nielsen data. If the size they seek is not on
shelf, they will buy another size of same brand in 52% of cases, and buy a different brand
altogether in further 30% of cases. Retailers should realize that in the case of missing brand,
42% of customers will leave the store with no purchase in the product category. In the case of
missing size, 18% will leave. These represent absolute losses of business, in most cases to
other stores.
Among the categories in which homers will not readily accept a substitute are: dentifrice,
instant coffee, floor wax, & detergents. Among the categories in which substitutes are more
readily acceptable are: toilet tissues, crackers, ready-to eat cereals, and canned beans. During
the course of a year, homemakers will buy a number of different brands, but on many
individual shopping trips they will be looking for a particular brand (perhaps for use by a
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9. particular member of the family), and will not buy another if this is not available.
Interestingly enough, Nielsen shows a degree of correlation between the long-term level of
advertising investments and the product fields in which customers are unwilling to substitute.
This is but one example of the many beneficial side effects of advertising.
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11. 4. RESEARCH METHODOLOGY
Research is a scientific and systematic search for pertinent information on a specific topic. In
generalized way one can say “search for knowledge” is research.
4.1 Rationale of the study
Main rational behind the analysis of brand survival in the age if retail power is due to the
increasing brand consciousness among the consumers on one hand and growing realization on
the other. On one hand consumers are understanding brand equity, have learned brand value,
while on other side increasing consumerism has resulted in life more n more busy than ever,
they so value convenience, time and hassle equally.
So the study is conducted to figure out the relative importance of retail factors and brand value
in relation to each other.
4.2 Research Type
It is a descriptive research that includes surveys & fact findings enquiries regarding malls
culture in Indore. As its main characteristics is that I as a researcher has no control over these
variables i.e, demographical factor, buying behavior, promotional strategy. I only reported
what was happened & what is happening. The method of research utilized in descriptive
research is survey method. It’s an analytical research, on the other hand, the researcher has to
use facts or information already available, & analyze these to make a critical evaluation of the
material.
4.3 Motivation in research
Desire to get degree along with its consequential benefits.
Desire to face challenges in solving the unsolved problems.
Desire to get intellectual joy of doing some creative work.
Desire to get respectability.
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12. 4.4 Sample Size
The information was thus collected from hundred (100) shoppers as per the objective of the
study and the results are described. The sample consists of all toothpaste users comprising
different age, income & profession groups. Sampling procedure is random sampling.
4.5 Sample Unit
The study has been carried out at Indore.
Census survey has been conducted for acquiring the information.
Shoppers were randomly taken into consideration for the acquisition of relevant and
meaningful data.
4.6 Data collection tools
Primary data has been collected through questionnaires. It included close-ended
objective questions for collecting information.
Secondary data has been collected through various books, magazines, journals and
internet.
4.7 Data analysis tools
Primary data was analyzed through percentage analysis & correlation. It includes
statistical methods such as graphs, percentage, pie charts, tables etc.
Secondary data was analyzed through interpretations and applied logic.
4.8 Conclusions and report
Valid interpretation of gathered information is done to supply with meaningful
recommendations.
Summary of findings is provided.
The report in the form of record is made available.
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13. Q.1. Age group?
Data Table
Age Group Respondents %
Below 25 yrs. 34
25 - 40 45
40 - 60 17
Above 60 4
Total 100
Interpretation:
Majority of the sample falls between age group of 25-40 (Middle age group) yrs.Next major
group comprised of teenagers & youngsters falling below 25 yrs.
Upper middle age group (40-60 yrs) was comparatively less - 17%.
Least is the respondents above 60 yrs of age – only 4%
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14. Q.2. Household Annual income group?
Data Table
Income group Respondents %
Below Rs. 50,000 12
50,000 - 1,00,000 19
1,00,000 - 5,00,000 53
Above 5,00,000 16
Total 100
Interpretation:
Majority of sample size belong to Income group of 1- 5 lacs. – 53%
Rest of the Income groups was approximately equal.
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15. Q.3. Profession?
Data Table
Profession Respondents %
Student 40
Service 42
Business 9
Home maker 9
Total 100
Interpretation:
Majority consist of service & students about 40%.
Business & homemakers are comparatively less 9%.
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16. Q.4. Purchase pattern?
Data Table
Frequency Kirana Shop Super Bazaar Departmental
Always 36 15 8
Often 38 30 27
Occasionally 15 44 31
Rarely 11 9 30
Never 0 2 4
Interpretation:
The graph clearly shows that even after advent & popularization of modern trade, all the
respondents purchase from mom & pop stores.
Also most respondents (74%) were either buying always or often from these stores.
For super bazaars majority (74%) of people were buying often or occasionally.
Whereas purchase from departmental stores is about equally distributed among buyers
buying often, occasionally & rarely.
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17. Q .5. Rate these factors responsible for shopping in these stores?
“Convenience of all under one roof ”
Data Table
Importance Respondents %
Not important 5
Less important 5
Neutral 7
Important 61
Very Important 22
Interpretation:
Convenience is sought as a basic factor of shopping in the present time as - about 83% of
candidate rate it as important & very important.
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18. Q .5. Rate these factors responsible for shopping in these stores?
“Better quality”
Data Table
Importance Respondents %
Not important 0
Less important 0
Neutral 6
Important 40
Very Important 54
Interpretation:
Good quality is must for any retailer to maintain as none of the buyers sampled rated it as not
important or even less important, in fact 0nly 6% were neutral rest 94% said it to be
important and very important.
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19. Q.5. Rate these factors responsible for shopping in these stores?
“Good variety”
Data Table
Importance Respondents %
Not important 0
Less important 0
Neutral 10
Important 61
Very Important 29
Interpretation:
People now days are increasingly seeking for wide range of variety, none of the buyer rated
this factor as not important in fact 90% of respondents rated it as important or very important.
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20. Q.5. Rate these factors responsible for shopping in these stores?
“Courteous sales people”
Data Table
Importance Respondents %
Not important 4
Less important 6
Neutral 27
Important 52
Very Important 11
Interpretation:
Courteous sales people has comparatively low priority to other factors as only about 63% of
the respondents consider courteous sales people as important where as rest considers it as
either neutral, less important or even unimportant.
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21. Q.5. Rate these factors responsible for shopping in these stores?
“Competitive pricing”
Data Table
Importance Respondents %
Not important 2
Less important 5
Neutral 27
Important 34
Very Important 32
Interpretation:
Also people are growing less price-sensitive as about 60% of respondents consider it as either
important or very important, rest 40% rates it as neutral, less or even unimportant.
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22. Q.5. Rate these factors responsible for shopping in these stores?
“Bulk buying”
Data Table
Importance Respondents %
Not important 9
Less important 14
Neutral 38
Important 32
Very Important 7
Interpretation:
There has been a paradigm shift in bulk buying behavior which was very usual previously but
recently due to other contributing factors people believe less in bulk buying.
Figures too justify it as only 40% minority considers it to be important or very important,
where as majority 60% finds it to be neutral, less important or even unimportant.
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23. Q.5. Rate these factors responsible for shopping in these stores?
“Status symbol”
Data Table
Importance Respondents %
Not important 12
Less important 20
Neutral 33
Important 22
Very Important 13
Interpretation:
The response for this parameter is almost symmetrical with majority responding it as neutral,
rest equally as important, very important and less or not important.
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24. Q.7. Are respondents normally predetermined on what to purchase before you
come to the store?
Data Table
Response Respondents %
Yes 73
No 27
Total 100
Interpretation:
This signifies that majority of buyers make their shopping lists before going for purchasing
but there is yet 30% of buyers who are not determined about what they have to purchase
before actually shopping, these are the impulsive buyers which easily fall prey to smart
selling tactics or attractive offers.
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25. Q.8. At the time of shopping respondents decide?
Data Table
Frequency Only product Brand & product Decide on the floor
Always 8 14 10
Often 39 27 20
Occasionally 19 45 27
Rarely 32 5 37
Never 2 9 6
Interpretation:
Buyers are less consistent about their mind make up for only product, both brand & product
and to be decided at the shopping time itself, as average % of respondents rating at always
and never are overall very less about 10% & 5% respectively.
However,
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26. Often people decide about their only the product to be bought,
Occasionally both brand and product to be bought are pre-decided.
Again buyers who leave their decision at the actual shopping time are the impulsive buyers,
ratio for which is though less but significant.
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27. Q.9. Factors affecting respondent’s purchase decision?
Data Table
Intensity Brand Retailer's opinion Promotional schemes Packaging
Affect very much 56 8 43 22
Affect some what 42 42 40 43
Doesn't affect so much 2 50 17 35
Interpretation:
The factor affecting most to the buyers is the Brand; second in order are promotional
schemes.
However major (50%) respondents were found to be unaffected by Retailer’s opinion,
Packaging was rated as averagely affecting.
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28. Q.10. How many toothpaste brands customers use?
Data Table
No. of Brands used Respondents %
One 20
Two 31
Three 36
Four 8
Five 5
Interpretation:
Statistics shows that near 20% of respondents use single brand of toothpaste which represents
the ratio of hard core loyal.
About 13% of respondents use 4 or 5 brands representing brand switchers.
While majority of respondents (67%) use two or three brands of tooth paste.
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29. Q.10. Favorite toothpaste brands of consumers?
Data Table
Brands Respondents %
Colgate 32
Pepsodent 27
Close - up 28
Meswaq 2
Babool 2
Cibaca 3
Himalaya 2
Dabur 2
Neem 2
Interpretation:
Colgate was observed to be the most favorite brand used by 32% of respondents while
nearest competitors were Pepsodent (27%) and Close-up (28%).
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30. Q.11. Reaction of consumer on not finding his favorite toothpaste brand?
Data Table
Reaction Respondents %
Don't mind going to another Retailer 41
Buy other favorite brands without any problem 22
Buy other brands but you feel compromising 16
Ask Retailer to keep asked brand in his store 18
Don't mind trying other brands not mentioned 3
Interpretation:
In this case Brand was seen to be overpowering Retailer as supported by 41% respondents,
loyal enough towards their favorite brand that they didn't mind going to another retailer but
didn’t switched over. While 22% bought other preferred brands without any problem, only
3% are found to be innovators ready to try brands not used before.
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31. Q.12. Reaction of consumer on not finding required toothpaste pack size?
Data Table
Reaction Respondents %
Purchase another brand of same size 13
Purchase different size of same brand 63
Go to another shop for particular size of your desired brand 24
Interpretation:
Only 13% of were observed to be switching brand on not finding desired size, 63% purchased
the desired brand compromising on size and 24% preferred going to another retailer rather
than compromising on either brand or size.
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32. Q.13. Retailers advice affects you in following way?
Data Table
Reaction Respondents %
Try the product he suggests. 23
Show interest but don't act as he says. 50
Ignore his suggestions. 21
Argue with Retailer. 6
Total 100
Interpretation:
Retailer's advice was to affect only 23% of respondents positively who tried the product the
retailer suggested while rest acted as per their own will.
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33. Q.14. Would you like to go to a shop which displays only 2 or 3 of your
favorite brands (But no other brand)?
Data Table
Response Respondents %
Yes 39
No 61
Total 100
Interpretation:
Here, the retailer is benefited over brands; as 61% of respondents preferred a Retailer
displaying multiple brands over one with only 2 or 3 favorite brands. Here, visibility
increases awareness as well as retention, which may at a later stage result into sales of even
new brands.
Hence it is observed that as far as innovators, switchers & impulsive buyers are concerned,
Retailers are found to be more powerful than brand.
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34. Correlative analysis
Correlations between AGE and Brand
VAR00001 VAR00002
Spearman's VAR00001 Correlation 1.000 -.007
rho Coefficient
N 100 100
VAR00002 Correlation -.007 1.000
Coefficient
N 100 100
Interpretation:
The correlation value between Age & Brand consciousness is not very much
significant yet a negative correlation mean Brand consciousness is more found in
consumers of old age as compared to younger ones.
Correlation between Income and Brand
VAR00001 VAR00002
Spearman's VAR00001 Correlation 1.000 .007
rho Coefficient
N 100 100
VAR00002 Correlation .007 1.000
Coefficient
N 100 100
Interpretation:
Similarly, correlation value between Income & Brand consciousness is not very much
significant yet a positive correlation exist showing that Brand consciousness is more
in high/upper income group as compared to low income groups.
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35. Correlation between Profession and brand
VAR00001 VAR00003
Spearman's VAR00001 Correlation 1.000 -.100
rho Coefficient
N 100 100
VAR00003 Correlation -.100 1.000
Coefficient
N 100 100
Interpretation:
The correlation is significant here. A small correlation value implies - Students and
service class are not as much brand conscious as business class and home makers.
Correlation between AGE and Retailer’s opinion
VAR00001 VAR00002
Spearman's VAR00001 Correlation 1.000 .130
rho Coefficient
N 100 100
VAR00002 Correlation .130 1.000
Coefficient
N 100 100
Interpretation:
Age and Retailer’s opinion are positively correlated. Small correlation signifies that older
people are more responsive towards retailer’s opinion as compared to younger ones
Older the person more effective is the Retailer’s opinion & vice versa.
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36. Correlation between Income and Retailer’s opinion
VAR00001 VAR00003
Spearman's VAR00001 Correlation 1.000 .130
rho Coefficient
N 100 100
VAR00003 Correlation .130 1.000
Coefficient
N 100 100
Interpretation:
A positive significant correlation value between income and Retailer’s opinion shows
that Retailer’s opinion is more effective on upper income group than lower income
groups.
Correlation between Profession and Retailer’s opinion
VAR00001 VAR00003
Spearman's VAR00001 Correlation 1.000 .047
rho Coefficient
N 100 100
VAR00003 Correlation .047 1.000
Coefficient
N 100 100
Interpretation:
Professions studied under research are positively correlated to Retailer’s opinion which
means Retailer’s opinion has increasing effect on profession in the following order.
Students < Service < Business < Home makers, hence students are least affected
whereas housewives are most affected by Retailer’s opinion.
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37. 6.1 Results:
1. Brand consciousness amongst consumers decreases as the age increases.
2. Similarly, brand consciousness amongst consumers increases with the increasing
income.
3. Students and service class are not as much brand conscious as business class and
home makers.
4. Even after advent & popularization of modern trade, all the respondents purchase
from mom & pop stores quite often.
5. Convenience, Good quality & wide range of variety are sought as basic factors of
shopping. Courteous sales people, price sensitivity & bulk buying has comparatively
low priority to other factors.
6. Majority of buyers make their shopping lists before going for purchasing but there is
yet 30% of buyers who are not determined about what they have to purchase before
actually shopping, these are the impulsive buyers which easily fall prey to smart
selling tactics or attractive offers.
7. Buyers are less consistent about their mind make up for only product, both brand &
product and to be decided at the shopping time itself, as average % of respondents
rating at always and never are overall very less.
8. Often people decide about their only the product to be bought, occasionally both
brand and product to be bought are pre-decided. Again buyers who leave their
decision at the actual shopping time are the impulsive buyers, ratio for which is
though less but significant.
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38. 9. The factor affecting most to the buyers is the Brand; second in order are promotional
schemes. Half of the respondents were found to be unaffected by Retailer’s opinion,
Packaging was rated as averagely affecting.
10. Near 20% of respondents use single brand of toothpaste which represents the ratio of
hard core loyals. About 13% of respondents use 4 or 5 brands representing brand
switchers. While majority 67% use two or three brands of tooth paste.
11. Colgate was observed to be the most favorite brand used by 32% of respondents while
nearest competitors were Pepsodent (27%) and Close-up (28%).
12. 61% of respondents preferred a Retailer displaying multiple brands over one with
only 2 or 3 favorite brands.
13. Only 13% of were observed to be switching brand on not finding desired size, 63%
purchased the desired brand compromising on size and 24% preferred going to
another retailer rather than compromising on either brand or size.
14. Retailer's advice was to affect only 23% of respondents positively who tried the
product the retailer suggested while rest acted as per their own will.
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39. 6.2 Recommendations:
It was observed that 61 percent of respondents preferred a Retailer displaying multiple
brands over one with only 2 or 3 favorite brands. This implies that visibility increases
awareness as well as retention, which may at a later stage result into sales of even new
brands.
Research shows that as far as innovators, switchers & impulsive buyers are
concerned, Retailers are found to be more powerful than brand and focusing on POPs
and other purchase point activities large benefits can be derived and hence its strongly
recommended.
Only 13 percent of respondents were observed to be switching brand on not finding
desired size, 63 percent purchased the desired brand compromising on size and 24
percent preferred going to another retailer rather than compromising on either brand
or size.
Therefore it is recommended that Retailers should always stock the various Brands
and their respective variants accordingly.
It is recommended that instead of considering each other as competitor, Brand
(manufacturer) and Retailer should work on mutual cooperation so as to ensure
smoother operations and effective marketing.
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40. IMPLICATIONS OF THE STUDY
The project titled “Brand Survival in the age of Retail Marketing with special
reference to Toothpaste market in Indore” is useful for any marketer involving
channel interaction between Brand and Retailer.
It deals with the study of the buying behavior and preference of customers from any
retailer based on several attributes. Also, it will prove to be very helpful for designing
effective marketing strategies for retailer as well as manufacturer selling via retailer.
Various factors affecting buyer’s purchase behavior have been studied with their
relative importance to each other. Hence these findings can be used to focus more
important areas effectively.
During the course of this project it was seen that demographics plays a vital role in
deciding the importance of both Brand and Retailer’s opinion. This can be used for
effective segmentation and targeting market.
The work would have been more useful if more data would have been available for research
purpose.
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41. CONCLUSION:
Brand was seen to be overpowering Retailer as supported by 41 percent of total
respondents, loyal enough towards their favorite brand to such an extent that they didn't mind
going to another retailer but were not willing to switch over. 22 percent of total respondents
bought other preferred brands without any problem, only 3 percent were found to be
innovators ready to try brands not used before.
Hence it is observed that as far as innovators, switchers & impulsive buyers are concerned,
Retailers are found to be more powerful than brand.
In other cases Brand was observed to be having an edge over the Retailers.
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42. LIMITATIONS:
In any project that is carried out, there are certain limitations & constraints that refrain student
from collecting more data & making the project more accurate. The following limitations were
faced during completion of this project:
1. Time Constraints:
Since the project was only of two months duration, the sample size had to be
restricted to 100 respondents, which may not represent the entire universe.
Also due to lack of time study was limited to Indore market which otherwise could
have been expanded to larger geographical area.
2. Busy Schedule of respondents:
Another limitation faced during the project was that the respondents were reluctant to
give time due to their busy schedule.
3. Error in response:
Because of some non-responses, errors still might have cropped up.
42
43. QUESTIONNAIRE
Section: A
Q.1. Annual income group:
o Below Rs. 50,000.
o 50,000 – 1, 00,000.
o 1, 00,000 – 5, 00,000.
o Above 5, 00,000.
Q.2. your age group:
o Below 25 years.
o 25 – 40.
o 40 – 60.
o Above 60.
Q.3. your profession:
o Student.
o Service.
o Business.
o Home maker.
Section: B
Q.4. Tick your purchase pattern?
Always Often Occasionally Rarely Never
Nearest kirana shop
Super Bazaars
43
44. Departmental Stores
Q .5.Rate these factors responsible for shopping in these stores.
Not imp. Less imp. neutral imp Very imp.
Convenience of all under one roof
Better quality.
Good variety.
Courteous sales people.
Competitive pricing.
Abundant quantity.
Status symbol.
Q.7. Are you normally predetermined on what to purchase before you come to the store?
o Yes.
o No.
Q.8. Before shopping you decide:
Statements Always Often Occasionally Rarely Never
Only about a product you have to buy.
Both Product & the brand which you will buy.
You leave the decision to betaken at the time
you reach shopping floor.
Q.9. Factors affecting your purchase decision:
Affect very much Affect some what Doesn’t affect so much
Brand
Retailer’s opinion
Promotional Schemes
Attractive packaging.
Q.10. which brands you use for the following:
44
45. Commonly used Brand names
Tooth
Q.11. Do you have any specific favorite brand amongst those mentioned in Q.10?
If yes, please specify.
Favorite brand
Tooth
Section: C
Q.12. On not finding your favorite toothpaste brand:
o You don’t mind going to another retailer.
o You buy other brand mentioned in Q.10 without any problem.
o You buy other brand but you feel compromising.
o You ask retailer to keep that brand in his store.
o You don’t mind trying other brands not mentioned above by you.
Q.13. Retailers advice affects you in following way –
(In your toothpaste buying behavior)
o You try the product he suggests.
o You listen to his suggestions but you don’t act to it.
o You ignore his suggestions.
o You argue with retailer.
Q.14. Would you like to go to a shop which displays only 2 or 3 of your favorite brands?
(But no other brand of toothpaste)?
o Yes.
o No.
45
46. REFERENCES
I. Bibliography
1. Balaji MS, Supriya MB, Corporate Branding: “Understanding corporate brands &
corporate branding”, Marketing mastermind, vol. VI, Issue 12, December 2006.pp
(25-32).
2. Kapoor Priya, The Advertising, Marketing & Media Review: “Brand Journey
POND’S”, Pitch, Vol. IV, Issue 4, January 15 – February 15, 2007. pp (64-66).
3. Saraf Vikas,”Branding:- Hub of the Corporate wheel, ”Indian Journal of Marketing ,
Vol. XXXIII, Issue 11, November 2003
4. Sudhir Vinita, The Advertising, Marketing & Media Review, “Pitch on Retail”, Pitch,
Vol. IV, Issue 4, January15 – February 15, 2007. pp (22-31).
5. Gupta Vivek, Neelam A, Market Research, “Changing Trends in Retailing and FMCG
Industry in India”, marketing Mastermind, vol. IV, Issue 10, October 2004. pp(65-83).
6. Dr.Nandgopal R., Chinnaiyan P., “Brand Preference of soft drinks in Rural
Tamilnadu”, Indian journal of Marketing, vol. XXXIII, Issue 1, January 2003. Pp
(14-17).
7. Prof. Saxena Pritee, Spokes characters in Advertising, “Retailization:Brand survival
in the age of Retailer Power”, advertising Express.
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