8447779800, Low rate Call girls in Rohini Delhi NCR
A study of consumer perception on big bazaar
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. 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. 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. 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. 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. 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. 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. 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. 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. 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 $billions)
Share organized retail 7 12 71%
Size of organized 78,300 Cr 2,30,000 Cr 194%
retail(in Rs)
HR Institute of Higher Education, Hassan Page 10
11. Perception
2.1.4 Indian retail types
Branded
stores
Convenien Specialty
t stores stores
Shopping Formats
markets Departme
ntal stores
Hyper
Discount Super
markets
stores markets
PRESENT INDIAN SCENARIO
* Unorganized market: Rs. 583,000 crores
* Organized market: Rs.5, 000 crores
* 5X growth in organized retailing between 2000-2005
HR Institute of Higher Education, Hassan Page 11
12. Perception
* Over 4,000 new modern Outlets in the last 3 years
* Over 5,000,000 sq. ft. of mall space under development
* The top 3 modern retailers control over 750,000 sq. ft. of retail space
* Over 400,000 shoppers walk through their doors every week
* Growth in organized retailing on par with expectations and projections of the last 5
Years: on course to touch Rs. 35,000 crores (US$ 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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
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. 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. 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. 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. 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. 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. 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. 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. 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
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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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