A study of consumer perception on big bazaar

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A study of consumer perception on big bazaar

  1. 1. Perception Introduction Liberalization of the economy in the nineties and the entry of large players in the retail business have brought the retail industry into spotlight. Big players and national retail chains are changing the rules of the game. After supermarkets, departmental stores and convenience stores, Indian retail has seen concept of hypermarkets coming of age. The hypermarkets are not new to the western countries. Players like Wal-mart, Metro have established hypermarkets in many countries. In India, hypermarket concept is in nascent stage, retailers like Pantaloons and RPG have started hypermarket operations and they are having plans to expand aggressively to all the regions of India. A large number of international retailers have evinced interest in India, despite the absence of favorable government policy for foreign players. Before go further we have to know about what is retail? The word “retail” is derived from the French word ‘retailer’ which implies “To cut again” or “to break bulk”. Retailing is derived from the French Word “retailer” which means “to cut a piece off”. “Retailing includes all the activities involved in selling goods or services to the final consumers for personal, non-business use”. Philip Kotler In general words retailing includes all activities involved in selling goods or services directly to final consumers for personal, non-business use. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. Thus, Retailing can be defined as “a set of business activities that adds value to the products and services sold to final consumer’s fir their personal, family, or household use”. Any organization selling to final consumers – whether a manufacturer, wholesaler or retailer- is doing retailing. It does not matter how the goods or services are sold (by HR Institute of Higher Education, Hassan Page 1
  2. 2. Perception person, mail, telephone, vending machine or internet) or where they are sold (in store, on the street, or in consumer's home). OBJECTIVES i. To know the consumer perception towards the apparel brands of Big Bazaar. ii. To measure the awareness about Big Bazaar Private label apparels. iii. To study the purchasing pattern of Big Bazaar consumers. iv. To study the determinants of purchase decision making. v. To know the customers satisfaction levels regarding Big Bazaar apparels. vi. To measure the expectations of customers about Big Bazaar apparels. SCOPE OF THE STUDY The research was conducted relating to apparels among customers in Big Bazaar, Banashankari Branch, and Bangalore. The research was restricted to only one branch. The research is aimed at understanding the following aspects related to consumer perception towards the apparel brands of Big Bazaar and the extent to which they have awareness relating to that. • Impression of branding • Brand awareness • Factors influencing the purchase decisions • Satisfaction level of customers • Expectations of customers HR Institute of Higher Education, Hassan Page 2
  3. 3. Perception Research Methodology SAMPLING METHOD: A sample is considered during a research when the size of the population is very large. A set is chosen to represent the whole population; this set is called a ‘sample’. A sample is a representative of the population under study. Similarly a sample was chosen for the research and was chosen by a simple random sampling. SAMPLING FRAME: The sampling frame represents the group of Big Bazaar customers who were contacted during the survey. SAMPLING SIZE: The total sample size for the data collection for the research purpose was 50 respondents. DATA COLLECTION METHODS: The sources of data collection were: 1] PRIMARY DATA: HR Institute of Higher Education, Hassan Page 3
  4. 4. Perception The primary data is the first hand information collected during the research. These are the original observations collected from the targeted segment of different methods. The primary data is collected through structured questionnaires and direct interview with customers and with organization people. 2] SECONDARY DATA: The secondary data is collected through the materials given by the organization; books; retail journals and magazines and internet. TOOLS FOR DATA COLLECTION; Structured Questionnaires were the tools for data collection for the research purpose. The Questionnaire was neatly designed and constructed for the purpose in line with the objectives of the study. LIMITATIONS OF THE STUDY • Time constrain has prohibited from going deep into the subject. • The information obtained or the collection of data is limited • The study is purely academic • The inexperience makes analysis less precise when compared to professional analysis. • Due to time constraints study is restricted to Bangalore only. • Only the customers of big bazaar were considered as respondents. • The information provided by the respondents could be HR Institute of Higher Education, Hassan Page 4
  5. 5. Perception 2.1 INDUSTRY PROFILE INTRODUCTION The word "Retail" originates from a French-Italian word. Retailer-someone who cuts off or sheds a small piece from something. Retailing is the set of activities that markets products or services to final consumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplying them to customers on a relatively small scale. Retailer is a Person or Agent or Agency or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer. HR Institute of Higher Education, Hassan Page 5
  6. 6. Perception 2.1.1 INDIAN RETAIL INDUSTRY: Retail industry is the largest industry in INDIA, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in INDIA is expected HR Institute of Higher Education, Hassan Page 6
  7. 7. Perception to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in INDIA will be worth US$ 175- 200 billion. INDIA retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in INDIA by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in INDIA will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. Shopping in INDIA has witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in INDIA which has become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof. INDIA retail industry is expanding itself most aggressively; as a result a great demand for real estate is being created. INDIAN retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, INDIA may have 600 new shopping centers. In the INDIAN retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the INDIA retail industry and convert INDIAN consumers to branded food. Since at present 60% of the INDIAN grocery basket consists of non- branded items. INDIAN retail industry is progressing well and for this to continue retailers as well as the INDIAN government will have to make a combined effort. INDIAN retailing industry has seen phenomenal growth in the last five years (2001-2006). Organized retailing has finally emerged from the shadows of unorganized retailing and is contributing significantly to the growth of INDIAN retail sector. The “INDIA Retail Sector Analysis (2006-2007)” report helps clients to analyze the opportunities and factors critical to the success of retail industry in INDIA. INDIAN retail industry is going through a transition phase. Most of the retailing in our country is still in the unorganized sector. The spread out of the retails in US and INDIA HR Institute of Higher Education, Hassan Page 7
  8. 8. Perception shows a wide gap between the two countries. Though retailing in INDIA is undergoing an exponential growth, the road ahead is full of challenges. 2.1.2 SCENARIO OF RETAILING IN INDIA Retailing is the most active and attractive sector of last decade. While the retailing industry itself has been present since ages in our country, it is only the recent past that it has witnessed so much dynamism. The emergence of retailing in INDIA has more to do with the increased purchasing power of buyers, especially post-liberalization, increase in product variety, and increase in economies of scale, with the aid of modern supply and distributions solution. INDIAN retailing today is at an interesting crossroads. The retail sales are at the highest point in history and new technologies are improving retail productivity. though there are many opportunities to start a new retail business, retailers are facing numerous challenges. KEY CHALLENGES: 1) LOCATION: "Right Place, Right choice “Location is the most important ingredient for any business that relies on customers, and is typically the prime consideration in a customer’s store choice. Locations decisions are harder to change because retailers have to either make sustainable investments to buy and develop real estate or commit to long term lease with developers. When formulating decision about where to locate, the retailer must refer to the strategic plan: HR Institute of Higher Education, Hassan Page 8
  9. 9. Perception * Investigate alternative trading areas. * Determine the type of desirable store location * Evaluate alternative specific store sites. 2) MERCHANDISE: The primary goal of the most retailers is to sell the right kind of merchandise and nothing is more central to the strategic thrust of the retailing firm. Merchandising consists of activities involved in acquiring particular goods and services and making them available at a place, time and quantity that enable the retailer to reach its goals. Merchandising is perhaps, the most important function for any retail organization, as it decides what finally goes on shelf of the store. 3) PRICING: Pricing is a crucial strategic variable due to its direct relationship with a firm's goal and its interaction with other retailing elements. The importance of pricing decisions is growing because today's customers are looking for good value when they buy merchandise and services. Price is the easiest and quickest variable to change. 4) TARGET AUDIENCE: "Consumer the prime mover""Consumer Pull", however, seems to be the most important driving factor behind the sustenance of the industry. The purchasing power of the customers has increased to a great extent, with the influencing the retail industry to a great extent, a variety of other factors also seem to fuel the retailing boom HR Institute of Higher Education, Hassan Page 9
  10. 10. Perception . 5) SCALE OF OPERATIONS: Scale of operations includes all the supply chain activities, which are carried out in the business. It is one of the challenges that the INDIAN retailers are facing. The cost of business operations is very high in INDIA. 2.1.3 Size of Indian retail 2008 2010 Percentage change Size of retail in 353 416 18% INDIA(in $billions) Share organized retail 7 12 71% Size of organized 78,300 Cr 2,30,000 Cr 194% retail(in Rs) HR Institute of Higher Education, Hassan Page 10
  11. 11. Perception 2.1.4 Indian retail types Branded stores Convenien Specialty t stores stores Shopping Formats markets Departme ntal stores Hyper Discount Super markets stores markets PRESENT INDIAN SCENARIO * Unorganized market: Rs. 583,000 crores * Organized market: Rs.5, 000 crores * 5X growth in organized retailing between 2000-2005 HR Institute of Higher Education, Hassan Page 11
  12. 12. Perception * Over 4,000 new modern Outlets in the last 3 years * Over 5,000,000 sq. ft. of mall space under development * The top 3 modern retailers control over 750,000 sq. ft. of retail space * Over 400,000 shoppers walk through their doors every week * Growth in organized retailing on par with expectations and projections of the last 5 Years: on course to touch Rs. 35,000 crores (US$ 7 Billion) or more by 2005-06 * Major players - Food and grocery - Fashion - Others - Food world - Shoppers' Stop - Vivek's - Subhiksha - Westside - Planet M - Nilgris - Lifestyle - Music World HR Institute of Higher Education, Hassan Page 12
  13. 13. Perception - Adani- Rajiv's - Pyramid - Crossword 2.1.5 TRADITIONAL RETAIL SCENE IN INDIA INDIA is the country having the most unorganized retail market. Traditionally the retail business is run by Mom & Pop having Shop in the front & house at the back. More than 99% retailers function in less than 500Sq.Ft of area. All the merchandise was purchased as per the test & vim and fancies of the proprietor also the pricing was done on ad hock basis or by seeing at the face of customer. Generally the accounts of trading & home are not maintained separately. Profits were accumulated in slow moving & non-moving stocks which were to become redundant or consumed in-house. Thus profits were vanished without their knowledge. The Manufactures were to distribute goods through C & F agents to Distributors & Wholesalers. Retailers happen to source the merchandise from Wholesalers & reach to end-users. The merchandise price used to get inflated to a great extent till it reaches from Manufacturer to End-user. Selling prices were largely not controlled by Manufacturers. Branding was not an issue for majority of customers. More than 99% customers are price sensitive & not quality or Brand Sensitive at the same time they are Brand conscious also. Weekly Bazaar in many small tows was held & almost all the commodities were on the scene including livestock. Bargaining was the unwritten law of market. Educational qualification level of these retailers was always low. Hence market was controlled by handful of distributors &/or Wholesalers. Virtually there was only one format of retailing & that was mass retail. Retailer to consumer ratio was very low, for all the categories without exception. Varity in terms of quality, Styles were on regional basis, community based & truly very low range was available at any given single place. Almost all the purchases / (buying) by mass population was need oriented & next turn may be on festivals, Marriages, Birthdays & some specific occasions. Impulsive buying or consumption is restricted to food or vegetables etc. Having extra pair of trousers or Shirts or Casuals & Formals & leisure wear & sports wear & different pair of shoes for occasions is till date is a luxury for majority population except for those HR Institute of Higher Education, Hassan Page 13
  14. 14. Perception living in Metros. Purchasing power of INDAN urban consumer is very low and that of Branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food, Jewellery, are slowly seeping into the lifeline of INDIN City folks. However electronic & electrical home appliances do hold appropriate image into the minds of consumers. Brand name does matter in these white goods categories. In the coming times also majority of organized retailers will find it difficult to keep balance with rest of the unbranded retail market which is very huge. Retailing consists of those business activities involved in the sale of goods and services to consumers for their personal, family, or household use. Retailing comprises of four elements customer orientation, coordinated effort, value-driven, and goal orientation 2.1.6 Drivers of change in retailing  Changing demographics and industry structure  Expanding Computer technology  Emphasis on lower cost and prices  Emphasis on convenience and service  Focus on productivity  Added experimentation 2.1.7 INDIA emerging as most attractive retail market According to AT Kearney’s report – ‘Emerging Market Priorities for Global Retailers’, The 2006 Global Retail Development Index TM, INDIA ranks as the most attractive emerging market as a retail destination. INDIA’s retail market has grown by 10% on an average in the past five years. The report attributes the changing retail landscape in the country to the increasing mobility among the middle and upper classes and increasing urbanization 2.1.8 Essentials of Retailing Customer orientation- The retailer makes a careful study of the needs of the customer and attempts to satisfy those needs. HR Institute of Higher Education, Hassan Page 14
  15. 15. Perception Goal orientation – The retailer has clear cut goal and devises strategies to achieve those goals. Value driven approach- the retailer offers good value to the consumer with merchandise having the price and quality appropriate for the target market. Co-ordinated efforts- Every activity of the firm is aligned to the goal and is designed to Maximize its efficiency and deliver value to the consumer 2.1.9 Organized Retail is evolving with changing customer aspirations Organized retailing in most economies has typically passed through four distinct phases in its evolution cycle. In the first phase, new entrants create awareness of modern formats and rise consumer expectations. In the second phase consumers demand modern formats as the markets develop – thereby leading to strong growth. As with the life cycle in any industry, the high rate of growth would lead to a stage where the market would reach maturity and all the players would strengthen their positions. This will be followed by the final phase where the market would reach saturation, the growth would be limited and for sustainable growth, retailers would explore new markets as well as evaluate inorganic opportunities. . 2.1.10 Growth Factors in INDIAN Organized Retail sector: The growth factors in INDIAN organized sector are various but it is mainly due to the fact that INDIA's economy is booming. Also, the rise in the working population which is young, pay- packets which are hefty, more nuclear families in urban areas, rise in the number of women working, more disposable income and customer aspiration, western influences and growth in expenditure for luxury items. All these are the factors for the growth in INDIAN organized retail sector. In fact, INDIA retail industry is the fastest growing industry in INDIA and it accounts for 10% of the country's GDP. In 2006, the retail industry in INDIA amounted to US$ 200 billion and out of this; the organized retail sector in INDIA amounted to US$ HR Institute of Higher Education, Hassan Page 15
  16. 16. Perception 6.4 billion. By 2010, the INDIAN organized retail sector is expected to rise to US$ 23 billion. In 2003, the INDIAN organized retailing sector accounted for more than 4.5 million sq. ft of space absorption by malls. Many INDIAN companies have entered the retail industry in INDIA and this is also a factor in the growth of INDIAN organized retail sector. Reliance Industries Limited is planning to invest US$ 6 billion in the organized retail sector in INDIA by opening 1500 supermarkets and 1000 hypermarkets. Bharti Telecoms is planning a joint venture worth £ 750 million with Tesco a global retail giant. Pantaloons are planning to invest US$ 1 billion in order to increase its retail space to 30 million square feet. Such huge investment is also a factor in the growth of the organized retail sector in INDIA. Global retail giants are also entering the retail industry in INDIA and this is also one of the factors in the growth of the organized retail sector in INDIA. The global retail giants who are entering the organized retail sector in INDIA are: • Wall- Mart • Tesco • Carrefour SA • Metro AG The factors for growth in INDIAN organized retail sector are many and that’s the reason behind its massive growth. But for this to continue both the INDIAN retailers and the government will have to work together 2.1.11 RETAIL MARKET PREDICTION HR Institute of Higher Education, Hassan Page 16
  17. 17. Perception Retail Market Prediction 700 600 500 400 300 200 100 0 2006 2010 2015 US $ Billion HR Institute of Higher Education, Hassan Page 17
  18. 18. Perception Category Market Size $ billion 2006 % Share 2006 Food, Beverages and Tobacco 195 65% Personal Care 15 5% Apparel 21 7% Footwear 5 2% Furnishings 4 1% Consumer Durables & IT 14 5% Furniture 9 3% Jewellery & Watches 15 5% Medical Care and Health Services8 3% Recreation 2 0.6% Others 12 4% 300 100% 100% 3% 20% 20% 30% 36% 80% 40% 55% 60% 81% 85% 40%2.1.12 RETAIL MARKET COMPARISION 20% 0% HR Institute of Higher Education, Hassan Page 18 US Taiwan Malaysia Thailand Brazil Indonesia Poland China India Traditional Channel Modern Channel
  19. 19. Perception INDIAN Organized Retail Sector's Impact on Lifestyles The INDIAN organized retail sector's impact changed the lifestyle of the INDIAN consumers drastically. The evident increase in consumerist activity is colossal which has already chipped out a money making recess for the INDIAN organized retail HR Institute of Higher Education, Hassan Page 19
  20. 20. Perception sector. With the onset of a globalized economy in INDIA, the INDIAN consumer's psyche has been changed. People have become aware of the value of money. Nowadays the INDIAN consumers are well versed with the concepts about quality of products & services. These demands are the visible impacts of the INDIAN organized retail sector. Since the liberalization policy of 1990, the INDIAN economy, and its consumers are getting whiff of the latest national & international products, the with help of print & electronic media. The social changes with the rapid economic growth due to trained personnel’s, fast modernization; enhanced availableness of retail space is the positive effects of Liberalization. The growth factors of organized retail in INDIA are:- • Increase in per capita income which in turn increases the household consumption • Demographical changes and improvements in the standard of living Change in patterns of consumption and availability of low-cost consumer credit • Improvements in infrastructure and enhanced availability of retail space • Entry to various sources of financing The non-food sector, segments comprising apparel, accessories, fashion, and lifestyle felt the significant change with the emergence of new stores formats like convenience stores, mini Marts, mini supermarkets, large supermarkets, and hyper marts. Even food retailing has became an important retail business in the national arena, with large format retail stores, establishing stores all over INDIA. With the entry of packaged foods like MTR, ITC Ashirwad, fast foods chains like McDonald's, KFC, beverage parlors’ like Nescafe, Tata Tea, Café Coffee and Barista, the INDIAN food habits has been altered. These stores have earned the reputation of being 'super saver locations'. INDIA will be a unique business arena in whole of the global economy, for the social and economic parameters would overrule the big bang of the vivid competition. Previously mastered by the unorganized retail sector, INDIA opened up late as an economy in 1990 until then the idea of retail formats were spread by the government. HR Institute of Higher Education, Hassan Page 20
  21. 21. Perception Employment Generation by INDIAN Organized Retail Sector Lots of employment generation by INDIAN Organized Retail Sector in the near future. INDIA is going through a radical economic change. Though it is very infant stage, people can feel the climate is changing. The unorganized retailers takes the lion's share in the INDIAN retail sector, but the organized retailers are growing at a good pace, and promises an increase of proportion of 9 - 10% by 2010. This is to be the largest sector after the agricultural sector. The increase in the number of consumers twinned with the introduction of organized sector has brought numerous corporate investments in retail sector. The entry of super markets, enormous departmental stores, and shopping malls has encouraged the retailers to look at new business plans of expansion. An economic growth on a monumental scale is offered by the INDIAN retail sector, equally in the national and international market which in turn will generate a huge source of employment and a variety of options for the consumers. The Ernst & Young's report 'The Great INDIAN Retail Story', anticipates that the INDIAN retail sector would come up with 2 million employment opportunities within the year 2010. Benefits to the economic growth:- • Better quality products and services would lead to better competition • More exports bring more foreign direct investments • Organized INDIAN retail sector would encourage tourism • Along with the employment boom there would be a vast development in the expertise of the human resource HR Institute of Higher Education, Hassan Page 21
  22. 22. Perception • There would remain future scope for improvements in agriculture, small, and medium scaled with the help of the INDIAN retail sector The present employment in the retail business is nearly 4 crores and around 20 crores depend on this sector. There is a scope of better exposure to the international standards with the entry of transnational companies, which in turn is encouraging more & more retail management programs to open up and help bridging the gap of supply & demand of talented professionals for management. 2.1.13 Scope of the INDIAN Retail Market: The scope of the INDIAN retail market is immense for this sector is poised for the highest growth in the next 5 years. The INDIA retail industry contributes 10% of the country’s GDP and its current growth rate is 8.5%. In the INDIAN retail market the scope for growth can be seen from the fact that it is expected to rise to US$ 608.9 billion in 2009 from US$ 394 billion in 2005. The organized retailing sector in INDIA is only 3% and is expected to rise to 25- 30% by the year 2010. There are under construction at present around 325 departmental stores, 300 new malls, and 1500 supermarkets. This proves that there is a tremendous scope for growth in the INDIAN retail market. The growth of scope in the INDIAN retail market is mainly due to the change in the consumer’s behavior. For the new generation have preference towards luxury commodities which have been due to the strong increase in income, changing lifestyle, and demographic patterns which are favorable. The scope of the INDIAN retail market has been seen by many retail giants and that’s the reason that many new players are entering the INDIA retail industry The major INDIAN retailers are: HR Institute of Higher Education, Hassan Page 22
  23. 23. Perception • Pantaloons Retail INDIA Ltd • Shoppers Stop • Bata INDIA Ltd • Music World Entertainment Ltd Judging the scope for growth in the INDIA retail industry many global retail giants are also entering the INDIAN retail market. They are: • Tesco • Metro AG • Wall- Mart The scope for growth in the INDIAN retail market is seen mainly in the following cities: • Mumbai • Delhi • Pune • Ahmadabad • Bengaluru • Hyderabad • Kolkata • Chennai The scope of the INDIAN retail market is very vast. And for it to reach its full potential the government and the INDIAN retailers will have to make a determined effort 2.1.14 Functions of retailing: Retailers play a significant role as a conduit between manufactures, wholesalers, suppliers, and consumers. In this context, they perform various functions like storing, breaking bulk, holding stock, as a channel of communication, storage, advertising, and certain additional services. HR Institute of Higher Education, Hassan Page 23
  24. 24. Perception Storing: Manufacturers usually make one or a variety of products and would like to sell their inventory to a few buyers to reduce costs. Final consumers, in contrast, prefer a large variety of goods and services to choose from and usually buy them in small quantities. Retailers are able to balance the demands of both sides, by collecting an assortment of goods from different sources, buying them in sufficiently large quantities, and selling them to consumers in small units. The above process is referred to as the storing process. Through this process, retailers undertake activities and perform functions that add to the value of the products and services sold to the consumer. Supermarkets in the US offer, on an average, 15,000 different items from 500 companies. Customers are able to choose from a wide range of designs, sizes, and brands from one location. If each manufacturer had a separate store for its own products, customers would have to visit several stores to complete their shopping. While all the retailers offer an assortment, they specialize in types of assortment offered and the market to which the offering is made. Westside provides clothing and accessories, while a chain like nil irises specializes in food and bakery items. Shoppers stop targets the elite urban class, while pantaloons is targeted at the middle class. Breaking bulk: Breaking bulk is another function performed by retailing. The word retailing is derived from the French word retailer, meaning to cut a piece of. To reduce transportation costs, manufacturers and wholesalers typically ship range cartons of the products, which are then tailored by the retailers into smaller quantities to meet individual’s consumptions needs. Holding stock: Retailers also offer the service of holding stock for the manufacturers. Retailers maintain an inventory that allows for instant availability of the products to the consumers. It helps to keep prices stable and enables the manufacturer to regulate production. HR Institute of Higher Education, Hassan Page 24
  25. 25. Perception Consumers can keep a small stock of products at home as they know that this can be replenished by their retailer and can save on inventory carrying costs. Additional Services: Retailers ease the change in ownership of merchandise by providing services that make it convenient to buy and use products. Providing products guarantees, after-sales services and dealing with consumer complaints are some of the services that add value to the actual product at the retailers end. Retailers also offer credit and hire- purchase facilities to the customers to enable them to buy a product now and pay for it later. Retailers fill orders, promptly process, deliver and install products. Salespeople are also employed by retailers to answer queries and provide additional information about the displayed products. The display itself allows the consumer to see and test products before actual purchase. Retail essentially completes transactions with customers. Activities performed by retailers: The four major activities, as an carried out by retailers are; 1. Arrange for assortment of offerings 2. Breaking quantity 3. Holding stock 4. Extending services HR Institute of Higher Education, Hassan Page 25
  26. 26. Perception Arranging assortment Providing Activities of Services retailers Breaking bulk Arranging assortment: An assortment is a retailer’s selection of merchandise. It includes both the depth and breadth of products carried. Retailers have to select the combination of assortments from various categories. The assortments must include suitable items of multiple brands, SKUs, and price points. They should be on account of physical dimensions and attributes. Retailers need to consider certain factors while devising assortment plans for those stores: profitability associated with particular merchandise mix, store image, layout and the level of compatibility between the existing merchandise. for example, food world , a leading food supermarket positioned as a one- stop shopping centre, deals in multiple product categories along with all possible variant of brands , stocks keeping units , and physical attributes in order to meet the expectations of their consumers and survive in the business . whereas , Subhiksha, a grocery chain in south INDIA has impressive assortments of only the fast moving brands and SKUs rather than all available variants in the market. Their assortment plan is governed by location, size, and store image (value for money) of their stores. HR Institute of Higher Education, Hassan Page 26
  27. 27. Perception Breaking bulk: Breaking bulk means physical repacking of the products by retailers in small unit sizes according to customer’s convenience and stocking requirements. Normally, retailers receive large quantities of sacks and cases of merchandise from suppliers to reduce their transportation costs. In order to meet their customers’ requirements retailers have to break or arrange the bulk into convenient units. This entire function of the retailers adds value to the offerings not only for the end customers but also for the suppliers in the value chain. Even in the earlier days of generic and commodity-based trading most of the retailers used to perform this important function in the value chain. This function receives negligible attention from the retailers now due to the introduction of new product categories, such as FMCG and ready to wear apparel. Holding stock: To ensure the regular availability of the offering retailers maintain appropriate levels of inventory. Consumers normally depend on the retailers directly to replenish their stocks at home. Therefore, retailers, on periodic basis, maintain the required level of stocks to meet the regular or seasonal fluctuations in the demand. Retailers need to maintain equilibrium between the range and variety carried and sales which it gives rise to. Retailers have to face the negative consequences of holding unwanted level of stock for the instance too little stock will hamper the sales value, where as too much stock will increase the retailers cost of operation. Generally, in small town of INDIA most retailers have arrangements with the nearby ware house to stock the goods. Some are so small that they have to stock only on the shop floor. Retailers in the organizer sector to a certain extent are using effective software packages for maintaining adequate level of inventory. At the same time, retailers avail of just in tine deliveries with the help of efficient consumer response systems, which reduces the burden of maintaining high level of stocks. Extending Services: HR Institute of Higher Education, Hassan Page 27
  28. 28. Perception Retailers provide multiples services to immediate costumers and other members of the value chain. The set of services extended by particular retailers may be part of their core product offering or it may add on to their product or service. Retailers offer credit, home delivery, after sales services and information regarding new products to their customers, thereby making the shopping experience convenient and enjoyable. At the same time they provide stocking place, reach to the ultimate costumers, and information about the concerned target segment to the suppliers. For ex: time zone, the first organizer retail chain of wrist watches in INDIA, started by leading watch manufacturers Titan, set up in all its stores, service centers’ with proper equipment and trained man power.. HR Institute of Higher Education, Hassan Page 28
  29. 29. Perception 2.2 COMPANY PROFLE 2.2.1 Future Group Future Group is India’s leading business group that caters to the entire Indian consumption space. Led by Mr. Kishore Biyani, “Rajah of Retail” the Future Group operates through six verticals: Retail, Capital, Brands, Space, Media and Logistics. Apart from Pantaloon Retail, the group’s presence in the retail space is complemented by group companies, Indus League Clothing, which owns leading apparel brands like Indigo Nation, Cullers and Urban Yoga, and Galaxy Entertainment Limited that operates Bowling Co, Sports Bar, F123 and Brew Bar. The group’s joint venture partners include French retailer ETAM group, US- based stationary products retailer, Staples and UK-based Lee Cooper. Group Company, Planet Retail, owns and operates the franchisee of international brands like Marks & Spencer, Next, Debenhams and Guess in India. The group’s Indian joint venture partners include, Manipal Healthcare, Talwalkar’s, Blue Foods and Liberty Shoes. Future Capital Holdings, the group’s financial arm, focuses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels. The group has launched a consumer credit and financial supermarket format, Future Money and soon plans to offer insurance products through a joint venture with Italian insurance major, Generali. The group is currently developing over 50 malls and consumption centers across the country and has formed a joint venture company focusing on mall management with Singapore-based Capital and, one of Asia’s largest property companies. HR Institute of Higher Education, Hassan Page 29
  30. 30. Perception 2.2.2 Future Group Manifesto Future” – the word which signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re-learn our ability to evolve. We, in Future Group, will not wait for the Future to unfold itself but create future scenarios in the consumer space and facilitate consumption because consumption is development. Thereby, we will effect socio-economic development for our customers, employees, shareholders, associates and partners. Our customers will not just get what they need, but also get them where, how and when they need. We will not just post satisfactory results, we will write success stories. We will not just operate efficiently in the Indian economy, we will evolve it. We will not just spot trends; we will set trends by marrying our understanding of the Indian consumer to their needs of tomorrow. It is this understanding that has helped us succeed. And it is this that will help us succeed in the Future. We shall keep relearning. And in this process, do just one thing. Rewrite Rules. Retain Values. 2.2.3 PANTALOON RETAIL (INDIA) LIMITED HR Institute of Higher Education, Hassan Page 30
  31. 31. Perception In the year 1989, Kishore Biyani established Manz Wear Pvt.Ltd first jeans outlet by the company. On September 25, 1992, the name Menz wear pvt.Ltd was changed to Pantaloons Fashions India Ltd [PFIL].In the year 1993 PFIL launched its first formal shirt brand – John Miller. August, 8 1997 was the landmark day when first Pantaloons store- 8,000 Sq.ft was opened at Gariahat in kolkatta. And the name PFIL was changed to PRIL [Pantaloon Retail India Limited]. Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer marker. Headquartered in Mumbai (Bombay), the company operates over 5 million square feet of retail space, has over 450 stores across 40 cities in India and employs over 18,000 people. The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, all, Top 10, mBazaar and Star and Sitara. The company also operates an online portal, futurebazaar.com. HR Institute of Higher Education, Hassan Page 31
  32. 32. Perception A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and E-Zone focused on catering to the consumer electronics segment. Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space. PRIL is tied up with Arvind mills a leading manufacturer of fabric & apparel in India. PRIL brands are John Miller, Annabelli, AFL, Indigo Nation, Provogue, Jockey, Ajile, Wranglers, and Manz Chillers and so on. 2.2.4 BIG BAZAAR Big Bazaar- ‘Isse Sasta aur accha kahin nahin’ On October 12, 2001, the company launched its ‘Big Bazaar’ with 30,000 Sq.ft. in Kolkatta as its offering in the value retailing segment. By removing inefficiencies from the distribution chain we are able to unleash attractive savings which are passed on to the consumer. Big Bazaar is India’s first hypermarket in the discount store format. Big Bazaar provides more than 2,00,000 items- food, grocery, utensils, kitchen needs, home needs, bath needs, toys, stationery, electronics and white goods which are sold at a HR Institute of Higher Education, Hassan Page 32
  33. 33. Perception discount to the maximum retail price. Price is the principal value proposition at these stores. A big driver at Big Bazaar is the product variety. This is achieved by selling a wide range of products and through the “Shop-in-Shop” format. As a result, a typical Big Bazaar comprises shops that stock medicines, optical accessories, camera rolls, bakery products, dry fruits, crockery, glassware, health and beauty products, ladies accessories, electronics, infant necessities, watches, clocks, computer accessories, food and beverages, stationery, readymade garments, household appliances, home furnishings, luggage. We believe this is a win- win situation as the customer is assured of product availability, the shop owner can benefit of the infrastructure and we enjoy assured income without needing to stock inventory. Also the Shop-in-Shop offering is able to increase the customer traffic into the stores. The Big Bazaar has been positioned to the customer as a place where the customer can shop for each and everything for which it goes to a market. Mr. Kishore Biyani made a observation that some retail shops had a restrictive atmosphere and kept out the common folk. So he launched the hypermarket, Big Bazaar by welcoming one and all with a smile. This has made common people throng Big Bazaar with hope and expectations of getting a fair and attractive deal. No one will deny that this strategy is a very unique strategy and very Indian in its approach-the whole country became a Big Bazaar for Biyani The Big Bazaar has emerged as a classless destination where every one from the society comes together without any fear or inhibition. TAG LINE OF BIG BAZAAR: “ISSE ACHCHA AUR SASTA KAHI NAHI”- has proved as great crowd puller. The tagline promises that it would offer good quality products at the cheapest price in the town. This one liner message in the local language also proved to be very effective to pull the crowds and for advertisers it is something revealingly potent. HR Institute of Higher Education, Hassan Page 33
  34. 34. Perception 2.2.5 FUNCTIONAL DEPARTMENT: Board of Directors Managing Director Head Head – Risk Retail Head Head Management Business Projects Operations Head Chief-Finance Head-human Head information Marketing & Company resources technology Bazaar HR Institute of Higher Education, Hassan Page 34
  35. 35. Perception 2.2.6 Organization Structure of Big Bazaar HR Institute of Higher Education, Hassan Page 35
  36. 36. Perception Store manager Asst store manager Dept manager Sales manage Asst dept, informa r manager tion Secur Customer Visual ity Cashier Team leader service dept merchandising s Team member Human Asst Dm Marketing resource .manager Administration Maintenanc e House keeping HR Institute of Higher Education, Hassan Page 36
  37. 37. Perception 2.2.7 Group Mission “We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development.” “We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses.” “We shall infuse Indian brands with confidence and renewed ambition.” “We shall be efficient, cost- conscious and committed to quality in whatever we do.” “We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.” Group Vision “Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.” 2.2.8 CORE VALUES • Indian ness: confidence in ourselves. • Leadership: to be a leader, both in thought and business. • Respect & Humility: to respect every individual and be humble in our conduct. • Introspection: leading to purposeful thinking. • Openness: to be open and receptive to new ideas, knowledge and information. • Valuing and Nurturing Relationships: to build long term relationships. HR Institute of Higher Education, Hassan Page 37
  38. 38. Perception • Simplicity & Positivity: Simplicity and positivity in our thought, business and action. • Adaptability: to be flexible and adaptable, to meet challenges. • Flow: to respect and understand the universal laws of nature. 2.2.9 PARTNER COMPANIES: Home Solutions Retail (India) Ltd. Home Solutions Retail (India) Ltd. (HSRIL) leads the groups foray in the home improvement and consumer electronics retailing segment. It caters to home management requirements and products, including furnishings and textiles, furniture, consumer electronics, home electronics and home services. It operates retail formats like Home Town, Furniture Bazaar, Collection I, E-Zone, Electronics Bazaar and Got It. Future Capital Holdings Future Capital is the financial arm of the group and is involved in asset management (both private equity and real estate funds) with plans to get into other financial services including insurance, credit and other consumer related financial services. Its associate companies are Kshitij Investment Advisory Co. Ltd., Indivision Investment Advisers Ltd., and Ambit Investment Advisory Co. Ltd. Future Media India Ltd. Future Media India Ltd. is a part of the Future Group, aimed at creation of media properties in the ambience of consumption and thus offer active engagement to brands and consumers. Indus League Clothing Ltd. The group owns a majority stake in Indus League Clothing Ltd., one of the leading apparel manufacturers and marketers in India. Some of its leading brands include Indigo Nation, Seculars, Urbana, Urban Yoga and Jealous 21. HR Institute of Higher Education, Hassan Page 38
  39. 39. Perception Future Bazaar India Ltd. Future Bazaar India Ltd. is a subsidiary of Pantaloon Retail (India) Limited. It owns and operates the online shopping portal futurebazaar.com Galaxy Entertainment Corporate Ltd. The group owns a stake in Galaxy Entertainment Corporate Ltd., which operates chains like Bowling Company, Sports Bar and Brew Bar. Joint Ventures Companies Capital and Retail India The group is a joint venture partner in Capital and Retail India, along with Singapore- based Capital and Limited. The company provides retail management services to retail properties owned or managed by various group companies and investment funds. Foot mart Retail Foot mart Retail is a joint venture with Liberty Shoes and is engaged in the retailing of footwear products in India. Planet Retail Holdings Ltd. The group is a joint venture partner in Planet Retail Holdings Ltd., which operates sports, lifestyle and leisure retail chain. It also owns the franchisee and distribution rights of brands like Marks & Spencer, Guess, Debenhams and Puma in India. Future Generali India Life Insurance Company Limited Future Generali India Life Insurance Company Limited (FGILICL) was incorporated on October 30, 2006 to establish and conduct the business of life insurance in India, which comprises of whole life insurance, endowment insurance, double benefit and multiple benefits insurance etc. . . . HR Institute of Higher Education, Hassan Page 39
  40. 40. Perception Staples Inc .USA Staples, a Fortune 500 company is the world’s largest office products company and is committed to making it easy for customers to buy a wide range of office products, including supplies, technology, furniture, and business services. With over 2000 stores across the globe and $27 billion in sales, Staples serves businesses of all sizes and consumers in 27 countries. Staples invented the office superstore concept in 1986 and is head quartered, outside, Boston.Staples Future Office Products Pvt. Ltd. was formed in May ’07 with an aim to make it easy for Indian customers to run their offices by providing over 7000 products covering the entire gamut of technology, stationery, furniture. Blue Foods Private Limited Blue Foods Private Limited specializes in niche multi cuisine restaurants across the country. The company operates popular restaurants and food courts Cream Centre, Bombay Blues, Copper Chimney, Spaghetti Kitchen, Noodle Bar, Gelato and The Spoon. Talwalkars Better Value Private Limited Popularly known as Talwalkars, it is India's largest chain of health centres. It has 33 ultramodern branches across major cities in the country, with a membership of over 50,000 Axiom Telecom LLC, UAE Axiom Telecom is the largest and leading, authorized distributor and retailer for international brands such as Nokia, Sony Ericsson, Samsung, Motorola, Thuraya and i- mate in Middle East and Europe. Etam Future Fashions Limited With a network of more than 3,500 sales outlets in 40 countries and regions, the Etam Group is an international player in the women's fashion market with a turnover of Euro 960.2 Million in 2006. Liberty Shoes Limited HR Institute of Higher Education, Hassan Page 40
  41. 41. Perception Liberty Shoes Limited is the only Indian company that is among the top 5 manufacturers of leather footwear in the world with a turnover exceeding US$100 Million. Lee Cooper Founded in 1908, Lee Cooper is the oldest jeans company in Europe having a large and enviable collection for men and women, which combines classics with quality. 2.2.10 Major Milestones 1987- Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, India’s first formal trouser brand. 1991- Launch of BARE, the Indian jeans brand. 1992 -Initial public offer (IPO) was made in the month of May. 1994 -The Pantaloon Shoppe – exclusive menswear store in franchisee format launched across the nation. The company starts the distribution of branded garments through multi- brand retail outlets across the nation. 1995-John Miller – Formal shirt brand launched 1997-Pantaloons – India’s family store launched in Kolkata. 2001-Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket chain launched. 2002-Food Bazaar, the supermarket chain is launched 2004-Central – ‘Shop, Eat, Celebrate In The Heart Of Our City’ India’s first seamless mall is launched in Bangalore. 2005- Fashion Station - the popular fashion chain is launched aLL – ‘a little larger’ - exclusive stores for plus-size individuals is launched HR Institute of Higher Education, Hassan Page 41
  42. 42. Perception 2006-Future Capital Holdings, the company’s financial arm launches real estate funds Kshitij and Horizon and private equity fund Indivision. Plans forays into insurance and consumer credit. Multiple retail formats including Collection i, Furniture Bazaar, Shoe Factory, EZone, Depot and futurebazaar.com are launched across the nation. Group enters into joint venture agreements with ETAM Group and Generali. 2.2.11COMPETITORS The main competitors in the Hypermarket segment for Big Bazaar are:- • SPAR • SPENCER’S HYPERMARKET [RPG GROUP] • RELIANCE MARKET [RELIANCE MARKET] • STAR INDIA BAZAAR [ TRENT-TATA GROUP] • HYPERCITY [ RAHEJE GROUP] 2.2.12AWARDS AND RECOGNITION 2008 Coca-Cola Golden Spoon Awards 2008 • Most Admired Food & Grocery Retail Visionary of the Year: Kishore Biyani • Most Admired Food & Grocery Retailer of the Year - Hypermarkets: Big Bazaar HR Institute of Higher Education, Hassan Page 42
  43. 43. Perception • Most Admired Retailer of the Year - Dynamic Growth in Network Expansion across Food, Beverages & Grocery: Future Group • Most Admired Food & Grocery Retailer of the Year - Consumer's Choice: Big Bazaar 2007 Images Retail Awards Most Admired Retail Face of the Year: Kishore Biyani Most admired retailer of the year: Large format, multi product store: Big Bazaar Reader’s Digest Trusted Brands Platinum Awards Trusted Brands Platinum Award (Supermarket Category) – Big Bazaar 2006 Ernst & Young Entrepreneur of the Year Award Ernst & Young Entrepreneur of the Year (Services) – Kishore Biyani CNBC Indian Business Leaders Awards The First Generation Entrepreneur of the Year – Kishore Biyani • Lakshmipat Singhania – IIM Lucknow National Leadership Awards Young Business Leader – Kishore Biyani Images Retail Awards Best Value Retail Store – Big Bazaar Best Retail Destination – Big Bazaar Best Food & Grocery Store – Food Bazaar HR Institute of Higher Education, Hassan Page 43
  44. 44. Perception Retail Face of the Year – Kishore Biyani Readers’ Digest Awards Platinum Trusted Brand Award - Big Bazaar. CNBC Awaaz Consumer Awards Most Preferred Large Food & Grocery Supermarket – Big Bazaar. 2.2.13 PRODUCT and SERVICE PROFILE: APPARELS  Denim & T-shirts  Fabrics & cut piece  Formal wear  Casual wear  Party wear  Ethnic wear  Accessories  Under garments  Night wear  Dress materials  Sarees FOOD:  Staples  Ready to eat  Ready to cook HR Institute of Higher Education, Hassan Page 44
  45. 45. Perception  International food  Spices  Imported bazaar  Tea & coffee FARM PRODUCTS:  Fruits  Vegetables  Imported fruits  Dairy products CHILL STATION  Soft Drinks  Packaged Juices  Milk items  Frozen Food  Ice Creams HOME & PERSONAL CARE:  Shampoos  Detergents  Soaps  Liquid wash  Creams  Deodorants  Home cleaners  Utensils  Plastics  Crockery  Sundries ELECTRONICS BAZAAR: HR Institute of Higher Education, Hassan Page 45
  46. 46. Perception  TV sets  Washing machines  Refrigerators  Personal care products  mBazaar  Micro waves  Small appliances  Laptops  Computer appliances FASHION & JEWELLARY  Foot wear Bazaar  Beauty care  Navaras  Star parivar FURNITURE BAZAAR  Living Room  Bed Room  Kitchen  Dinning hall  Kids Room  Bean Bags  Paintings  Decorative items CHILD CARE & TOYS  Kids wear  Toy Bazaar  Stationery  Child care OTHER SERVICES HR Institute of Higher Education, Hassan Page 46
  47. 47. Perception  Mr. right  Bakery  Loot mart  Tulsi  Future Money  Future Generalli 2.2.14 SWOT ANALYSIS:- Strengths:- • High brand equity • EDLP [ Every Day Low Pricing] • Point of Purchase promotions • Strong emphasis on brand building • Professional management • Project management capabilities • Experienced marketing team & executive staff. • Strong culture, ethics and values are followed • Emphasis on providing total customer satisfaction • High quality standards are met during the purchase process • Training personnel for adopting continual improvement methods. • Process up gradation and review of quality objectives. • Good employee-employer relationship. HR Institute of Higher Education, Hassan Page 47
  48. 48. Perception • Variety of stuffs under single roof • State-of-art-infrastructure Weakness:- • Failing revenue/ Sq.ft • Unable to meet store opening targets. • General perception. Opportunities:- • Population of the country is growing where the scope of market is kept on increasing for the retail sector. • Organized Retail, presently nearly 5% in India so it acts as a great opportunity to the organization for its growth. • Evolving consumer preferences. • Economy is developing as the employment opportunities are increasing and the income of the people is also increasing which increases life standards of people. Threats:- • Stiff Competition from foreign retail sectors. • Continuous improvement in technology. • Changes in government policies and regulations. • Unorganized Retail sectors. HR Institute of Higher Education, Hassan Page 48
  49. 49. Perception 3.1 Review of literature 3.1.1 The Meaning of Perception Perceptions vary from person to person. Different people perceive different things about the same situation. But more than that, we assign different meanings to what we perceive. And the meanings might change for a certain person. One might change one's perspective or simply make things mean something else. This is a famous picture. What does it look like to you? HR Institute of Higher Education, Hassan Page 49
  50. 50. Perception Some people see a young lady looking away. Others see an old lady looking down. Depending on how you look at it, part of the picture might be the young woman's nose and eyelash, or it might be a wart on the old woman's nose. What is the young woman's ear might be the old woman's eye. What is the young woman's necklace might be the old woman's mouth. The picture hasn't really changed. You just emphasize different parts of it and assign them different meaning. Look at these two arrows. Which horizontal line is the longest? They are exactly the same size. However the top one looks longer than the bottom one. It is on optical illusion tricking us into assigning a different meaning to what we see. We fill in a lot of blanks with our minds. If we have incomplete perceptions, which we practically always do to a certain extent, our minds fill in the rest. HR Institute of Higher Education, Hassan Page 50
  51. 51. Perception Are those letters? Or are they just lines and blotches on the paper? How do you know? Do you see a vase or do you see two faces looking at each other? The meaning of something will change when you look at it differently. You can look at anything differently and it will have a different meaning. There is no fixed meaning to anything. You can always change perspectives and change meanings. Why not change them to what you prefer them to be? 3.1.2 The Presuppositions of Transformational Processing Transformational Processing is based on certain major presuppositions. This is the foundation that makes processing possible at all. There is no reason to regard these statements as ultimately true. They are simply beliefs that we choose to adhere to. We are not going to attempt to prove them. Their usefulness will be clearly demonstrated to you as you get results with processing. HR Institute of Higher Education, Hassan Page 51
  52. 52. Perception The reason I call these statements presuppositions is that we suppose that they are true before we proceed. Calling them presuppositions rather than axioms or truths affords us a certain honest self-reflection. When later on these rules will be proven to you, you must realize that this is because we started out with them as basis, so they will most naturally be proven when used. We will elaborate more on the framework transformational processing is based on later. It can be explained and structured in more precise detail. At this point it is sufficient that you understand the major ideas. Truth is relative There is no absolute truth. The value of any datum is relative to the person using it, the context it is being used in, and the desired outcome. The "better" truths are the ones that align things in a more useful for the person using them. In process facilitator training we attempt to supply you with the truths that would be most useful for you in helping people. In transformational processing you attempt to leave people with more useful truths than you found them with. Truth is simple More basic, more wide-spanning, or more useful truths are usually more simple. Complexity indicates that one has moved away from basic truths. We will assume that in any complex situation there will be simple truths to find if one digs a little deeper. This process facilitator training will eventually make things very simple for you. One of your jobs as a process facilitator is to make life more simple for your clients. A belief will prove what it assumes Any basic belief that a person holds will prove itself. If you believe people are good, you will find good people. If you believe people are bad, you will find bad people. Therefore there is no absolute truth value that can be assigned to a belief, because they can all be proven. The only real measure of a belief is how useful it is to you. As a process facilitator you would want to choose beliefs that give the best results with your clients. And you would like to help your clients have beliefs that serve them best. HR Institute of Higher Education, Hassan Page 52
  53. 53. Perception The map is not the territory To communicate and to think, we construct maps of reality. Simplified models illustrating how we have perceived things to work. That can be very useful in discussing and teaching things. But the map is never really the same as the territory that it attempts to describe. In learning about processing you will be presented with certain maps of how people work. They might be useful to you. But never forget that they are only simplified models. People work the way they work, and if that is different from what the book says, deal with the person, not with the book. The natural state is wholeness People aren't really broken. They basically have all the abilities and knowledge they need. If it appears differently it is because they perceive themselves as being fragmented into parts that they aren't quite aware of. As process facilitators we help people to become aware of their own basic wholeness, and of having all the resources they need. The person is creating her own reality We regard the person as the center of her life. We assume that she is basically cause over anything that is going on. She might not realize it, though. We help the person to become aware of how she is causing situations in her life, so that she can consciously create the reality she prefers. A person is not his/her behavior We regard the person as being separate from anything she is doing or creating. That allows us to change anything that is not desirable. There are no negative characteristics that a person just has to live with. Anything that can be perceived can be changed. A person is basically good We assume that anybody is basically, deep down a good well-intentioned person, doing what she is doing because she wants things to be good, fun, interesting, pleasurable, and so forth. There is no reason to live with or suppress negative characteristics. If we dig deeper we will always find that underneath things are alright. We work on setting people free, so that they can manifest their basic goodness better in life. HR Institute of Higher Education, Hassan Page 53
  54. 54. Perception Any part of a person is there for a good purpose Anything that a person has created for herself is created with a basic good intention. It is done to accomplish something. Things don't just happen randomly. There are no parts of a person that just need to be cut off and thrown away. If we add all the aspects of a person together she will be whole and complete, and everything will fit together. We should treat any aspect of the person with respect and understanding. The natural state of life is to have fun and learn Life is supposed to be enjoyable, one is supposed to get something out of it. If life is hard and one doesn't see the point, then one isn't looking deep enough. As process facilitators we work on changing the hardships and mysteries of life into excitement and learning. Perception is the process by which organisms interpret and organize sensation to produce a meaningful experience of the world. Sensation usually refers to the immediate, relatively unprocessed result of stimulation of sensory receptors in the eyes, ears, nose, tongue, or skin. Perception, on the other hand, better describes one's ultimate experience of the world and typically involves further processing of sensory input. In practice, sensation and perception are virtually impossible to separate, because they are part of one continuous process. Thus, perception in humans describes the process whereby sensory stimulation is translated into organized experience. That experience, or percept, is the joint product of the stimulation and of the process itself. Relations found between various types of stimulation (e.g., light waves and sound waves) and their associated percepts suggest inferences that can be made about the properties of the perceptual process; theories of perceiving then can be developed on the basis of these inferences. Because the perceptual process is not itself public or directly observable (except to the perceiver himself, whose percepts are given directly in experience), the validity of perceptual theories can be checked only indirectly. Historically, systematic thought about perceiving was the province of philosophy. Philosophical interest in perception stems largely from questions about the sources and validity of what is called human knowledge (epistemology). Epistemologists ask whether HR Institute of Higher Education, Hassan Page 54
  55. 55. Perception a real, physical world exists independently of human experience and, if so, how its properties can be learned and how the truth or accuracy of that experience can be determined. They also ask whether there are innate ideas or whether all experience originates through contact with the physical world, mediated by the sense organs. As a scientific enterprise, however, the investigation of perception has especially developed as part of the larger discipline of psychology. For the most part, psychology bypasses the questions about perceiving raised by philosophy in favour of problems that can be handled by its special methods. The remnants of such philosophical questions, however, do remain; researchers are still concerned, for example, with the relative contributions of innate and learned factors to the perceptual process. Such fundamental philosophical assertions as the existence of a physical world, however, are taken for granted among most scientific students of perceiving. Typically, researchers in perception simply accept the apparent physical world particularly as it is described in those branches of physics concerned with electromagnetic energy, optics, and mechanics. The problems they consider relate to the process whereby percepts are formed from the interaction of physical energy (for example, light) with the perceiving organism. Of further interest is the degree of correspondence between percepts and the physical objects to which they ordinarily relate. How accurately, for example, does the visually perceived size of an object match its physical size as measured It is impossible to set up any yardstick for relationship between a buyer and a seller. No two organizations can have similar set of rules for maintaining relationship. Even if on a particular occasion a situation prompted a particular behavior, it is not necessary that a similar behavior is necessary on another occasion. The time, place and group of person might be the same but behave in different way, though circumstances and situations might be identical. To a great extent relationship depends upon the: character of contracting parties. This is thus a study of human behavior and forms part of the behavioral science. Here the contracting parties do not mean only those who are in direct contact but also include those HR Institute of Higher Education, Hassan Page 55
  56. 56. Perception who might be present around. No person is acting in isolation. Therefore, there is always an influence of surroundings on human behavior. A buyer is also a seller. A seller is also a buyer. Both could also be customers. To make the point clear let us take the example of a trader who buys goods for resale or a buyer who buys goods and then sells it after value addition. Therefore, you can not show same behavior when you are in the role of a buyer as then your priorities are different then when you are in the role of a seller. Let us for some time consider our own behavior in our own house with our family members. Are we at all times act in similar manner in a given set of situation? Perhaps not! What are the factors that motivate our behavior? It is my sincere opinion that our senses, mental state of mind and our capacity of physical endurance to react to given situation play an important role in our behavior as seller, buyer or customer. At no two given time perhaps we are in alike condition. Our behavior will therefore, show different relationships. The relationship is product of our own emotions. We may be have more or less in similar given condition if we can control our emotions. This is very difficult if perhaps not impossible. Looking purely from the viewpoint of a customer the relationship could be short time or long time. It is Primarily dependent on the objective of the customer and the supplier or vendor.. A customer will always wish for a long term relationship with the vendor. The vendor on the other hand has his own values and objectives. The whole talk about customer satisfaction or customer delight turn meaningless when all over the place we see customers not satisfied with the service level provided by the vendors. Whether it is seller’s market or buyer’s market in India generally the customer is taken for granted and his endurance is tested to breaking limit. We have live examples of customer taken for a ride all around us. The voter is customer to the Government elected by him. In return he is entitled for certain basic fulfillments of promises by the elected members of the Government. This is the guarantee clause attached to the democratic system. But where are we in customer satisfaction. What about a builder who has taken advance from persons who booked the flats and then fails to provide the flats by scheduled dates? Or if he has provided the flat then the work is not done as promised. HR Institute of Higher Education, Hassan Page 56
  57. 57. Perception We talk of customer focused management. Who is the customer we are talking about? It is the ultimate user of goods and services? It is an intermediate customer like trader or value adder? Or it is the internal as also external customer? Perhaps we are referring to the ultimate customer. Who so ever it may be, there is a foundation laid to build up or develop relationship on business objectives. The business objectives are based on the return on the investment. Speaking as a matter of fact no businessman will extend any facility without charging the price to remain remunerative on the investment made. The talk about the customer focus is a mere slogan and a jargon used by management pundits. To explain the point precisely let us see some of the motives kept in mind to set objectives for customer satisfaction. 1. Personal Gains : 0ne of the parties for it’s hidden desire of some personal gain develops relationship by showing friendship, nearness and some advantage. The personal gain is so intense that the party pretend to be a well wisher of the other. In more than 60% cases innocent people fall prey to the cunnings of one party and repent later. There are several cases in Indian industry where for personal gains deals have been finalized both in public and private sectors. Some have been termed as scams other as scandals. This does nor require any further explanation. 2. Mutual Gains: The two parties In this situation joint together for mutual gain irrespective of the fact that by their personal gains the organization they serve and the ultimate customer is going to suffer. This involves a give and take policy. One is giving advantage to the other for mutual gains at the cost of their organizational interest. Both are cheats and form an unholy alliance. The organization should see through their game plan and take corrective action in time lest loose the ultimate customers. Unfortunately such mutual gain programmes are on rise in present day economic scene. Many a time dealership is awarded on consideration of mutual gains. This is very common in large variety of consumer durable, projects floated for investments in mutual funds, plantation programme etc. Where every day we read in newspapers that customers are left with hardly any avenue for relief. The principal party and agents just disappear in thin air. Very little legal remedy is available against such unholy alliances. Many eminent personalities have formed such unholy alliances for mutual gains to attract simple customers. HR Institute of Higher Education, Hassan Page 57
  58. 58. Perception 3. Social Gains: Alliance formed for social gains are those where society at large is the gainer. Nationalization of banks, petroleum companies, coal-mining industry are few examples of alliances formed for social gain. The objective was to ensure proper and planned growth of core, sector and save the customers and public at large from exploitation. The story is however, different as desired objectives could not be reached due to formation of alliances in Government and within organizations based on personal or mutual gains. Nowhere the focus is on customer. Many of us have experienced rude and unbearable treatment at nationalized banks while drawing our own money. We are drawing our money and not begging. I have seen a senior citizen at the bank counter virtually begging for hours to get his pension cheque encashed. It is an ordeal to get the bank draft made at the banks. However, this are easy if one enters into unholy alliance for mutual and personal gains. 4. Organizational Gains : This is the area where we should have main thrust for long- term benefit to customers. Customer focused management should be the only objective of every organisation. It is at this place that buyer, seller and customer should form a strategic alliance without taking advantage of one or the other. If they join hand and work for all round gain then the result would be great. The theory of organizational gain in many western nations, Japan and some other southeastern countries have already been recognized. These countries have long back focused their business on customer satisfaction and customer delight. Unfortunately, in India even alliance made with industrial giants and premier brand names of these countries could not show the same results. The only reason that come to my mind is that we as Indian do not have a sincere desire or managerial attitude towards customer focused business or trade. The Indian entrepreneurs perhaps still not aware of market volatility and the foreign partners have studied the Indian business mentality. Unfortunately, the economic planners and their mentor have not seen the plight of ultimate customer both in the industrial or domestic consumables. There remains a gap in programmes and implementation. This is again due to the relationship developed for personal or mutual gains. It is for this reason that Indian economy is not able to reach to a level where it should be after 51 years of independence and our rich heritage. None of our programmes and policies are really customer oriented. HR Institute of Higher Education, Hassan Page 58
  59. 59. Perception It is therefore, right time that management at least in Indian industry try and focus attention on the customers. 5. One Time Gains : There are situations where a relationship is made for one time gain. Both the parties join together, fulfil the task expected from each and then depart with no obligation what so ever on either side. All onetime contracts are example of such one time gain. Once the deal is concluded the relationship is severed. But do we have such one time gain contracts? 6. Permanent Gains : Such alliances are made in business world for long time gain to both the sides i.e., the buyer and seller. This is more or less lifetime alliance and therefore, permanent in nature. The buyer or customer gets goods or services from a supplier for a life time use. The seller on the other hand buildup a life time goodwill. This is based on zero defect principle. The seller ensures that after sales service is provided to the customer for the life time utility of the product, goods and services. The customer receives maximum return on his investment. A satisfied customer is perhaps the best and least costly advertiser. A dissatisfied customer is perhaps the worst enemy moving loose in the cruel world of business. Recommendation of a delightful customer is having stronger unpack on prospective customers than any amount of multimedia advertisements. A goodwill build upon satisfied customers will be more potent for growth in sales than any sales promotion gimmicks adopted by any smart salesman. Several examples of customer’s delight are available for goods and services. A customer makes sacrifice and in return he expect that he is relieved of after purchase headaches and botherations. For the sacrifices made the customer expects sound sleep in the night. 7. Promotional Gains : Such alliances are formed at the time of launching of a new products and or a company. Glorious future is projected to lure the prospective customers. Alliance is made between the launcher and brokerage agency or advertising agency. Both the partners to the alliance are gainers. The customer may or may not be the gainer. Opening of economy and liberalization in trade in the country brought a sea of change in customer’s perception of buyer and seller relationship. The customer today is not only very demanding but also likes to know the relationship between the supplier of goods and services and its relationship with the manufacturer or principal and its antecedents. It is on this relationship depends the guarantee and warranty terms to which the customer is HR Institute of Higher Education, Hassan Page 59
  60. 60. Perception entitled. A customer expects trouble free service during the guarantee period. Thereafter it is expected that a product will last to its full productive life with minimum down time and the vendor will provide the required support service to ensure that customer is not put to trouble. What is the scene today? There has been a wide gap between the preaching and practice. Very few organizations in the country with certainty can say that their main concern is the customer, By and large even today customers are taken for granted. The objective today also is same what it was yesterday! Just pass on the goods. Get the payment and forget the customer. It is indeed surprising to see the cases pending before the consumer courts. Some of the TV channels have also started programmes to help customers and provide some assistance in solving customer-related problems. To narrate some examples of famous brand names and their customer oriented programmes I first refer to a customer’s letter in a newspaper where after making advance payment a company could not supply a well advertised cooking range for weeks. It is only after prolonged correspondence and follow up the money was returned to the prospective customer without any interest. A friend has some time back purchased a Samsung TV set from an authorized dealer. The TV set developed some problem and it stopped showing picture. Inspite of regular complaints the TV set is still not rectified as the dealer feel that guarantee period is over and dealer’s responsibility is over. Beside, the service engineer i& over worked attending long list of complaints. The famous AIWA brand of music system came out with sales promotional scheme on its music system with supply of fifty CDs free of cost. Many of the customers are still to get all the CDs. A local dealer of computer came out with a sale promotional scheme of cash discount if an Ink Jet printer and a scanner is taken as a package. I become a victim myself when the scanner was collected back by the dealer for repairs after three days of delivery and only after scanning four or five pictures. It is now more than three weeks that a brand new scanner highly recommended by the dealer is not returned after repairs. Most-depressing part is that neither the dealer nor the service center at Delhi could provide positive reply except that they want me to bear some more time with them These are few examples of customer oriented, customer focused management by International Brands. What return is there on the investment made by the customer? The vendor is concerned with getting his money and goes for all sorts of savings by remaining understaffed and under prepared for immediately and promptly attending to the HR Institute of Higher Education, Hassan Page 60
  61. 61. Perception complaints. The situation in large number of big and small public and private sectors is still worse as far as purely Indian market is concerned. What we are now witnessing is an era of takeovers, mergers and business adjustments. Survivals first than the customer is buzz word. In such a situation the customer is out of focus. Commitment is lacking and generally there is an air of doubt and mistrust. Delayed deliveries, cost-over run projects, untimely payments frequent rejections are the consequences. MNCs entry in the local market has created an atmosphere of uncertainty. Top it all the ‘Swadeshi’ slogan led to a situation of panic and every surviving industry small or big want to make a quick-buck and run away leaving the customer marooned. Be it power supply, railway amenities, air services or public distribution system, what is customer level of satisfaction compared to the price paid? How the international customer rates us in global scene? We have to admire the patience of Indian customer that against all the adverse conditions he is surving. The deaf ear given by the seller is not motivating the buyer but some how he is compelled to tag along with the market conditions hoping to get better days. We leave lot of things to luck and destiny while making financial investments. If it works we are lucky. It is destiny if things do not work. If issue relating to complaint are followed up the customer is a naggingone. Customer perception is an important component of our relationship with our customers. Given that 90% plus of our orders at some point involve the phone, how we handle the telephone is essential to creating a perception for our customer that aligns with the company mission of service. The following is a great way of handling the phone. 1. The greeting is: Good Morning/Afternoon this is Joshua with (your company name). How may I help you? 2. Always ask and receive a response from people before you put them on hold: Would you please hold...? Then be sure they are not on hold very long otherwise offer to call them back HR Institute of Higher Education, Hassan Page 61
  62. 62. Perception 3. Remember to smile on the phone. Slow down and speak plainly and clearly. Smiling stretches your vocal cords, and gives a more upbeat presentation to the customer. Slowing down ensures that the customers perception is of an organized systematic company that can handle their project. Getting it done right and on time consistently. 4. If you transfer a call and know who is calling, tell the name of the caller to your co- worker so they can greet the person by their name. 5. Under no circumstances should any interaction with a client be used to express any sense of overwhelm that you may have. We are swamped, we are so busy, etc. may be acceptable office banter in most companies but it really should not be! If I am a customer and I am looking to get a rush project done, this type of comment tells me that I might want to consider looking elsewhere. Customers do not care how busy we are when they call and ask: How busy are you? What they really care about is can we take care of another project they have for us. 6. If we have to contact a customer with bad news of any kind realize that your tone of voice and approach to it set the tone. We do not want to be nonchalant as if it is not big deal. Nor do we want to act like a terrible calamity occurred. Here are keys to contacting customers with bad news: HR Institute of Higher Education, Hassan Page 62
  63. 63. Perception 4. Methodology 4.1 Type of Research: Descriptive method has been used in this research for the collection of data .As the research is related to the study of impact of advertising, which can more effectively be studied through direct question, experimental research will not be much effective. Also, considering the constraint, descriptive research is the most suitable design for this research. 4.1.1 Qualitative research Qualitative research allows you to explore perceptions, attitudes and motivations and to understand how they are formed. It provides depth of information which can be used in its own right or to determine what attributes will subsequently be measured in quantitative studies. Verbatim quotes are used in reports to illustrate points and this brings the subject to life for the reader. However, it relies heavily on the skills of the moderator, is inevitably subjective and samples are small. Techniques include group discussions/workshop sessions, paired interviews, individual in-depth interviews and mystery shopping (where the researcher plays the role of a potential student, etc in order to replicate the overall experience). 4.1.2 Quantitative research Quantitative research is descriptive and provides hard data on the numbers of people exhibiting certain behaviors’, attitudes, etc. It provides information in breadth and allows you to sample large numbers of the population. 4.1.3 Descriptive research: Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables or conditions in a situation. The methods involved range from the survey which describes the status quo, the correlation study which investigates the relationship between variables, to developmental studies which seek to determine changes over time. HR Institute of Higher Education, Hassan Page 63

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