A                            Project Study Report                                          On          “To Study of Vegeta...
Poornima College of Engineering (DMS)                                       CertificateThis is to certify that Mr. RAVI KU...
DECLARATIONI RaviKumar Bunkar S/o Mr.Ram Karan Bunkar declare that the project report title“ToStudy of Vegetable buying be...
Acknowledgement         From the depth of my heart I am very thankful to Mr. R.K. Agarwal (Advisor, PGC) &  Dr. R.P. Rajor...
PREFACESince the last few years, the environment of the business world has completelychanged. The modern business placed o...
RESEARCH PROPOSAL             “To Study of Vegetable buying behaviors                     Of consumer in Jaipur City”Agric...
TABLE OF CONTENTSChapterNo.       Chapter Name                                     page N.          CERTIFICATE           ...
EXECUTIVE SUMMARYToday is the time of competitive era and at this time of cut throat competition everyindustry needs to su...
9
ABOUT THE INDUSTRYIntroduction:Agricultural Sector of Indian Economy is one of the most significant parts of India.Agricul...
The average growth rate of agriculture and allied sectors during the last two years i.e.,2006–07 and 2007–08 has been more...
harvest. But the entire years agriculture cannot possibly depend upon only one season.Taking into account this fact, a sec...
Cuisine of IndiaThe cuisine of India is characterized by its use of locally available resources, includingspices and veget...
Around 7000 BC, sesame, eggplant, and humped cattle had been domesticated in theIndus Valley.[By 3000 BC, turmeric, cardam...
Most Indian curries are cooked in vegetable oil. In North and West India, groundnut oil hastraditionally been most popular...
The samosa is a popular North Indian snack, and now commonly found in other parts ofIndia, Central Asia, North America, an...
Bangladesh is very similar to eastern Indian cuisine, particularly that of West Bengal. Fishand shellfish are commonly con...
coconut and depend more on jowar (sorghum) and bajra (millet) as staples. Saraswatcuisine forms an important part of coast...
that of pizza. Though the tandoor did not originate in India, Indian tandoori dishes, such aschicken tikka made with India...
Production area:Vegetables are typically grown in India in field conditions; the concept is opposed to thecultivation of v...
Grapes                 -                           World record in                                                        ...
acceptance of new products with market development efforts has been witnessed latelygiven the fact that there is a good in...
uncover an entire gamut of products, technology and machines used in the production ofpotato products. Along with the exhi...
Customer’s health is the top most priority of vegetable suppliers. Thus, Indian vegetablessuppliers & Indian vegetables ex...
The latest spurt in inflation is fanned by costlier food items and manufactured items as thesecond-round effect of price i...
consumption, the RBI may further tighten monetary policy; particularly raise the share ofcash that banks have to park with...
vegetable crop is processed, and India accounts for just 1.2% of international trade in theseproducts.In April, CIRAD’s Fr...
The Rajasthan government has also allocated a budget of Rs 55 crore for the developmentof the mega-yard, slated to become ...
“This mandi will surely change our lifestyle. It will help us sell our produce as well as throwopen a gamut of other oppor...
If management can understand these customer responses better than the competition, thenit is a potentially significant sou...
Black box model: ENVIRONMENTAL FACTORS                     BUYERS BLACK BOX                                               ...
Information search:Once the consumer has recognised a problem, they search for information on products andservices that ca...
Steps of buyer’s behaviour            33
Information evaluation:At this time the consumer compares the brands and products that are in their evoked set.How can the...
Honda Motorbike, high priced goods, products visible to others, and the higher the risk thehigher the involvement.Types of...
Limited Decision Making:--Buying product occasionally. When you need to obtain information about unfamiliar brandin a fami...
consumer. Government and private agencies use the data to study the welfare of particularsegments of the population, such ...
success, activity , efficiency and practicality, progress, material comfort, individualism,freedom, external comfort, huma...
primary groups. With which there is fairly continuous interaction, such as family, friends,neighbors, and co-workers. Prim...
The general economy of India was also researched on. They had modified their product tosuit the Indian conditions. Their t...
In 2003, the fresh fruit and vegetables market was valued at £7.6bn at current prices,having increased by just 3.9% since ...
vegetables are likely to continue to win market share at the expense of fresh produce, suchas beans and peas. Some sectors...
India Retail IndustryIndia retail industry is the largest industry in India, with an employment of around 8% andcontributi...
The lifestyle and profile of the Indian consumer is going through a rapid transformation. Thepopulation of India is young,...
The Indian retail market, which is the fifth largest retail destination globally, has beenranked the second most attractiv...
numbers of retail outlets in the world. A report by Images Retail estimates the number ofoperational malls to grow more th...
Policy Initiatives:100 per cent FDI is allowed in cash-and-carry wholesale formats. Franchisee arrangementsare also permit...
According to new market research report by RNCOS titled, "Booming Retail Sector inIndia", organized retail market in India...
Advantage:  •   India is the largest producer of milk in the world, and is likely to become the second      largest dairy ...
Growth of Retail Companies in India is still not yet in a matured stage with great potentialswithin this sector still to b...
people to eat more fruit and vegetables may be having a positive effect on the market. TheDepartment of Healths Five-a-Day...
Fresh. In Ranchi and Indore, the protests had political backing and turned violent. Theprotestors, mostly street vendors, ...
Retail rush:Many visible corporate brands are into the retail business: Reliance, ITC, Bharti, BigBazaar, Godrej and Subhi...
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  1. 1. A Project Study Report On “To Study of Vegetable buying behaviors Of consumer in Jaipur City” Submitted in partial fulfillment for the Award of Degree of Master of Business Administration Submitted By: Submitted to: Ravi Kumar Bunkar Dr. R. P. Rajoria MBA part 2nd (Campus Director,PCE) 2008-2010 Department of Management StudiesPoornima college of Engineering, ISI-2, RIICO Ind. Area Sitapura,Jaipur-302022 (Raj.) 1
  2. 2. Poornima College of Engineering (DMS) CertificateThis is to certify that Mr. RAVI KUMAR BUNKAR, a student of Poornima College ofEngineering (DMS) has submitted his report on “To Study of Vegetable buying behaviorsOf consumer in Jaipur City “after successfully completing the project AT jaipur towardsfulfillment of the syllabus requirement prescribed by Rajasthan Technical University, Kotafor MBA Part II . Dr. R.P. Rajoria Campus Director, PCE 2
  3. 3. DECLARATIONI RaviKumar Bunkar S/o Mr.Ram Karan Bunkar declare that the project report title“ToStudy of Vegetable buying behaviors Of consumer in Jaipur City” i after successfullycompleting the project at jaipur based on my project study. This project report is my originalwork and this has not been used for any purpose anywhere.RaviKumar BunkarPCE DMS2008-10 Batch 3
  4. 4. Acknowledgement From the depth of my heart I am very thankful to Mr. R.K. Agarwal (Advisor, PGC) & Dr. R.P. Rajoria (Campus director, PCE) for giving me an opportunity to work on the Management Research Project to broaden the knowledge base and understanding the latest trends and developments in the Vegetable buying behaviors Of consumer. I express my sincere thanks to my project guide, Ms Nidhi Tak Department of ManagementStudies, Poornima college of engineering, Jaipur for guiding me right from the inception till thesuccessful completion of the project. I sincerely acknowledge him for extending their valuableguidance, support for literature, critical reviews of project and the report and above all the moralsupport he had provided to me with all stages of this project. I would like to thank Rajasthan technical university for giving an opportunity to work on avaluable project. I would also like to thank the supporting staff of Poornima college of engineering, for theirhelp and cooperation throughout our project. Ravi Kumar Bunkar MBA 4th Sem. (PCE) Marketing 4
  5. 5. PREFACESince the last few years, the environment of the business world has completelychanged. The modern business placed on a very complex and intricate environment,the constraints and opportunities provided by the nature of the economy and theeconomic system, political and legal framework, social system, geographical anddemographic factors etc. have profound impact on the business. Manydevelopments have taken place during the post-independence period, which wasdue to rapid industrialization. Developments have taken place in the technologysector, finance sector, information technology sector, medical sector, engineeringsector,This report is design to introduce about the vegetable buying bekaviour of consumerIn this report I introduce all retail store, local vendors, Indian economy and consumerbehaviourThis report provides the complete description of consumer behaviour. The report ismade in such a way so that the readers may find it easy to develop a clear-sightedunderstanding about them.I anticipate that the suggestions provided would prove to be useful source ofinformation for the understand and would facilitate growth.: 5
  6. 6. RESEARCH PROPOSAL “To Study of Vegetable buying behaviors Of consumer in Jaipur City”Agriculture sector is the backbone of any economy Agricultural Sector of IndianEconomy is one of the most significant parts of India. Agriculture is the only means ofliving for almost two-thirds of the employed class in India. the current revival inagriculture sector has been possible mainly due to a number of initiatives taken in therecent years. Like new retail store for vegetables come into the existenceTo know the perception regarding vegetable buying behavior of consumer in jaipur city.What are impact of new big retail in consumer mind.To cover all retail store, new vendors of vegetable seller organised and systematicvegetable shops or retails, Descriptive research includes survey and fact finding enquiries of differentKinds. Quantitative research is based on the measurement of quantity or amount of datato analysis. In research methodology we have used random samplingToday is the time of competitive era and at this time of cut throat competition everyindustry needs to survive.. For the better understanding of this sector this internship helped a lot to interns. To know the reasons why the customers are going towards retail and why they areintresed to buy vegetables from local vendorDue to the financial & time constraints the study was limited to our place thus theconclusion arrived in the end rely in short term experienceTime constraints resource constraints were some of the limitations 6
  7. 7. TABLE OF CONTENTSChapterNo. Chapter Name page N. CERTIFICATE 2 DECLARATION 3 ACKNOWLEDGEMNT 4 PREFACE 5 RESEARCH PROPOSAL 6 EXECUTIVE SUMMERY 81. INTRODUCTION TO THE INDUSTRY 102. INTRODUCTION TO THE ORGANIZATIONS 663. RESEARCH METHODOLOGY 99 3.1 Title of the study 100 3.2 Duration of the project 101 3.3 Sample size and method of selecting sample 101 3.4 Type of Research 100 3.5 Objective of study 103 3.6 Limitations of study 1044. ANALYSIS AND INTERPRETATION 1075. FACTS AND FINDINGS 1056. SWOT 1207. RECOMMENDATIO AND SUGGESTIONS 1258. CONCLUSION 1269. APPENDIX 12810. BIBLIOGRAPHY 133 7
  8. 8. EXECUTIVE SUMMARYToday is the time of competitive era and at this time of cut throat competition everyindustry needs to survive.Agriculture sector is the backbone of any economy. For the better understanding ofthis sector this internship helped a lot to interns.To know the reasons why the customers are going towards retail and why they areintresed to buy vegetables from local vendorFor this purpose a research was done in different area of loans. For the researchpart the data collection was the objective to know the experiences of the customer’sperception, behaviour, their preferred. Another task is to make the customers awareof new plans of retail sector.The findings were important for the retail to make its strategy. The research told thatstill people prefer local vendors rather then organised retaiil store. There is also agood indication for the local vendors who are afraid of retai storreI recommended the retail to give emphasis on advertising and launch someinnovative offer to woo the customers. The retail also needs to improve its customerservices and theprice policy.At last I can say that through this benefited in a great way. They adopted myrecommendations in there marketing strategy; they have come with new advertisingcampaign. 8
  9. 9. 9
  10. 10. ABOUT THE INDUSTRYIntroduction:Agricultural Sector of Indian Economy is one of the most significant parts of India.Agriculture is the only means of living for almost two-thirds of the employed class in India.As being stated by the economic data of financial year 2006-07, agriculture has acquired 18percent of Indias GDP.The agricultural sector of India has occupied almost 43 percent of Indias geographicalarea. Agriculture is still the only largest contributor to Indias GDP even after a decline in thesame in the agricultural share of India. Agriculture also plays a significant role in the growthof socio-economic sector in India.In the earlier times, India was largely dependent upon food imports but the successive storyof the agricultural sector of Indian economy has made it self-sufficing in grain production.The country also has substantial reserves for the same. India depends heavily on theagricultural sector, especially on the food production unit after the 1960 crisis in food sector.Since then, India has put a lot of effort to be self-sufficient in the food production and thisendeavor of India has led to the Green Revolution. The Green Revolution came intoexistence with the aim to improve the agriculture in India.Agriculture is one of the strongholds of the Indian economy and it accounts for 18.5 percent of the gross domestic product (GDP). Agriculture draws its significance from the vitalsupply and demand links with the manufacturing sector and is a source of livelihood for therural population of India.The year 2007–08 was a year of record food grain production and procurement. Food grainproduction increased to an all-time record level of 230.67 million tones during 2007–08. Theproduction of the kharif crop suffered due to erratic rains and floods, the present Rabiproduction is likely to be better and thus the overall food grain production in 2008–09 islikely to be even higher. Similarly, oilseeds, milk, fruits and vegetables, and fish productionhas been growing over the past few years to reach new levels. 10
  11. 11. The average growth rate of agriculture and allied sectors during the last two years i.e.,2006–07 and 2007–08 has been more than 4 per cent as compared to the average annualgrowth of 2.5 per cent during the 10th Five-Year Plan.The current revival in agriculture sector has been possible mainly due to a number ofinitiatives taken in the recent years. While public sector investment in the farm sector hasgrown from 1.8 per cent of sectoral gross domestic product (GDP) in 2000–01 to 3.5 percent in 2006–07, private sector investment has increased from 8.9 per cent in 2003–04 to9.9 per cent in 2006–07.The services enhanced by the Green Revolution in the agricultural sector of Indianeconomy are as follows: • Acquiring more area for cultivation purposes • Expanding irrigation facilities • Use of improved and advanced high-yielding variety of seeds • Implementing better techniques that emerged from agricultural research • Water management • Plan protection activities through prudent use of fertilizers, pesticides, and cropping applicationsAll these measures taken by the Green Revolution led to an alarming rise in the wheat andrice production of Indias agriculture. Considering the quantum leap witnessed by the wheatand rice production unit of Indias agriculture, a National Pulse Development Programmedthat covered almost 13 states was set up in 1986 with the aim to introduce the improvedtechnologies to the farmers. A Technology Mission was introduced in 1986 right after thesuccess of National Pulse Development Programmed to boost the oilseeds sector in Indianeconomy. Pulses too came under this programmed. A new seed policy was planned toprovide entree to superior quality seeds and plant material for fruits, vegetables, oilseeds,pulses, and flowers.The Indian government also set up Ministry of Food Processing Industries to stimulate theagricultural sector of Indian economy and make it more lucrative. Indias agricultural sectorhighly depends upon the monsoon season as heavy rainfall during the time leads to a rich 11
  12. 12. harvest. But the entire years agriculture cannot possibly depend upon only one season.Taking into account this fact, a second Green Revolution is likely to be formed to overcomethe restrictions. An increase in the growth rate and irrigation area, improved watermanagement, improving the soil quality, and diversifying into high value outputs, fruits,vegetables, herbs, flowers, medicinal plants, and bio-diesel are also on the list of theservices to be taken by the Green Revolution to improve the agriculture in India.India with its current production of around 32 million MT of fruit, accounts for about 8% ofthe world’s fruit production. The diverse agro-climatic zones the countries make it possibleto grow almost all varieties of fresh fruits and vegetables in India. The fruit production inIndia has recorded a growth rate of 3.9%, whereas the fruit processing sector has grown atabout 20% per annum. However, the growth rates have been extensively higher for frozenfruits & vegetables (121%) and dehydrated fruits & vegetables (24%). There exist over4000 fruit processing units in India with an aggregate capacity of more than 12 lakh MT(less than 4% of total fruits produced). It is estimated that around 20% of the production ofprocessed fruits is meant for exports, the rest caters to the defense, institutional sectorsand household consumption, Mango and mango-based products constitute 50% of exports.Rajasthan has the eighth largest economy with a Net State Domestic Product (NSDP) ofover US$ 11.5 billion. Over the last ten years from 1994 to 2003, the state of Rajasthanunderwent growth at a Compounded Average Growth Rate (CAGR) of 6% increasing fromUS$ 6.4 billion to US$ 11.5 billion.In the years 1995-96 and 2001-02, the industrial sector of the state underwent a growth rateof 6.9% per annum. The growth rate of the service sector was 7.4 %.The main economy of Rajasthan is agrarian based. Agriculture is the leading economy ofthe state accounting for 22.5 per cent. The total cultivated area of the state encompassesabout 20 million hectares and out of this only 20% of the land is irrigated.The principal crops Barley, Wheat, Gram, Pulses, Oil Seeds, Bajra, Pulses, Jowar, MaizeGround Nuts, fruits and vegetables and spices. 12
  13. 13. Cuisine of IndiaThe cuisine of India is characterized by its use of locally available resources, includingspices and vegetables grown across India and in some parts of India for the widespreadpractice of vegetarianism across its society. Each Asian of Indian cuisine is characterisedby a wide assortment of dishes and cooking techniques. As a consequence, it varies fromregion to region, reflecting the varied demographics of the ethnically diverse Indiansubcontinent.Indias religious beliefs and culture have played an influential role in the evolution of itscuisine.]However, Indias cuisine also evolved with the subcontinents cross-culturalinteractions with the neighboring Middle East and Central Asia as well as theMediterranean, making it a unique blend of various cuisines from across Asia. The spicetrade between India and Europe is often cited as the main catalyst for the Age of Discovery.The colonial period introduced European cooking styles to India adding to the flexibility anddiversity of Indian cuisine. Indian cuisine has had a remarkable influence on cuisines acrossthe world, especially those from Southeast Asia. In particular, curry, which originated inIndia, is used to flavor food across Asia.History and influences:As a land that has experienced extensive immigration and intermingling through manymillennia, Indias cuisine has benefited from numerous food influences. The diverse climatein the region, ranging from deep tropical to alpine, has also helped considerably broadenthe set of ingredients readily available to the many schools of cookery in India. In manycases, food has become a marker of religious and social identity, with varying taboos andpreferences (for instance, a segment of the Jain population will not consume any roots orsubterranean vegetables; see Jain vegetarianism). One strong influence over Indian foodsis the longstanding vegetarianism within sections of Indias Hindu, Buddhist and Jaincommunities. People who follow a strict vegetarian diet make up 20–42% of the populationin India, while less than 30% are regular meat-eaters 13
  14. 14. Around 7000 BC, sesame, eggplant, and humped cattle had been domesticated in theIndus Valley.[By 3000 BC, turmeric, cardamom, black pepper and mustard were harvestedin India. Many recipes first emerged during the initial Vedic period, when India was stillheavily forested and agriculture was complemented with game hunting and forest produce.In Vedic times, a normal diet consisted of fruit, vegetables, meat, grain, dairy products andhoney. Over time, some segments of the population embraced vegetarianism, due toancient Hindu philosophy of ahimsa. This practice gained more popularity following theadvent of Buddhism and a cooperative climate where variety of fruits, vegetables, andgrains could easily be grown throughout the year. A food classification system thatcategorised any item as saatvic, raajsic or taamsic developed in Ayurveda. Each wasdeemed to have a powerful effect on the body and the mindLater, invasions from Central Asia, Arabia, the Mughal empire, and Persia, and others hada deep and fundamental effect on Indian cooking. Influence from traders such as the Araband Portuguese diversified subcontinental tastes and meals. As with other cuisines, Indiancuisine has absorbed the new-world vegetables such as tomato, chilli, and potato, asstaples. These are actually relatively recent additions.Islamic rule introduced rich gravies, pilafs and non-vegetarian fare such as kebabs,resulting in Mughlai cuisine (Mughal in origin), as well as such fruits as apricots, melons,peaches, and plums. The Mughals were great patrons of cooking. Lavish dishes wereprepared during the reigns of Jahangir and Shah Jahan. The Nizams of Hyderabad statemeanwhile developed and perfected their own style of cooking with the most notable dishbeing the Biryani.During this period the Portuguese and British introduced foods from the New World such aspotatoes, tomatoes, squash, and chilies as well as cooking techniques like baking.The staples of Indian cuisine are rice, atta (whole wheat flour), and a variety of pulses, themost important of which are masoor (most often red lentil), chana (bengal gram), toor(pigeon pea or yellow gram), urad (black gram) and mung (green gram). Pulses may beused whole, dehusked, for example dhuli moong or dhuli urad, or split. Pulses are usedextensively in the form of dal (split). Some of the pulses like chana and "Mung" are alsoprocessed into flour (besan). 14
  15. 15. Most Indian curries are cooked in vegetable oil. In North and West India, groundnut oil hastraditionally been most popular for cooking, while in Eastern India, Mustard oil is morecommonly used. In South India, coconut oil and Gingelly Oil is common. In recent decades,sunflower oil and soybean oil have gained popularity all over India. Hydrogenated vegetableoil, known as Vanaspati ghee, is also a popular cooking medium that replaces Desi ghee,clarified butter (the milk solids have been removed).The most important/frequently used spices in Indian cuisine are chilli pepper, black mustardseed (rai), cumin (jeera), turmeric (haldi, manjal), fenugreek (methi), asafoetida (hing,perungayam), ginger (adrak, inji), coriander, and garlic (lassan, poondu). Popular spicemixes are garam masala which is usually a powder of five or more dried spices, commonlyincluding cardamom, cinnamon, and clove. Each region, and sometimes each individualchef, has a distinctive blend of Garam Masala. Goda Masala is a popular spice mix inMaharashtra. Some leaves are commonly used like tejpat (cassia leaf), coriander leaf,fenugreek leaf and mint leaf. The common use of curry leaves is typical of all South Indiancuisine. In sweet dishes, cardamom, nutmeg, saffron, and rose petal essence are used.The term "curry" is usually understood to mean "gravy" in India, rather than "spices." Theterm Desi Diet indicates a Diet followed by IndiansGeographical varieties:Northern:North Indian cuisine is distinguished by the proportionally high use of dairy products; milk,paneer, ghee (clarified butter), and yoghurt (yogurt, yoghourt) are all common ingredients.Gravies are typically dairy-based. Other common ingredients include chilies, saffron, andnuts.North Indian cooking features the use of the "tawa" (griddle) for baking flat breads like rotiand paratha, and "tandoor" (a large and cylindrical charcoal-fired oven) for baking breadssuch as naan, and kulcha; main courses like tandoori chicken also cook in the tandoor.Other breads like puri and bhatoora, which are deep fried in oil, are also common. Goat andlamb meats are favored ingredients of many northern Indian recipes. 15
  16. 16. The samosa is a popular North Indian snack, and now commonly found in other parts ofIndia, Central Asia, North America, and the Middle East. A common variety is filled withboiled, fried, or mashed potato. Other fillings include minced meat, cheese (paneer),mushroom (khumbi), and chick pea.The staple food of most of North India is a variety of lentils, vegetables, and roti (wheatbased bread). The varieties used and the method of preparation can vary from place toplace. Popular snacks, side-dishes and drinks include mirchi bada, buknu, bhujiya, chaat,kachori, imarti, several types of pickles (known as achar), murabba, sharbat, aam pannaand aam papad. Popular sweets are known as mithai (means sweetmeat in Hindi), such asgulab jamun, jalebi, peda, petha, rewadi, gajak, bal mithai, singori, kulfi, falooda, khaja, rasmalai, gulkand, and several varieties of laddu, barfi and halwa.Some common North Indian foods such as the various kebabs and most of the meat dishesoriginated with Muslims’ incursions into the country. Considering their shared historic andcultural heritage, Pakistani cuisine and North Indian cuisine are very similar. However,Brazilian cuisine through the Portuguese influence has become very popular in certain partsof Punjab.Eastern:East Indian cuisine is famous for its desserts, especially sweets such as rasagolla,chumchum, sandesh, rasabali, chhena poda, chhena gaja, chhena jalebi and kheeri. Manyof the sweet dishes now popular in Northern India initially originated in the Bengal andOrissa regions. Apart from sweets, East India cuisine offers delights of posta (poppyseeds).Traditional cuisines of Orissa, Bengal, and Assam are delicately spiced. Generalingredients used in Oriya, Bengali, and Assamese curries are mustard seeds, cumin seeds,nigella, green chillies, cumin paste and the spice mix panch phoron or panch phutana.Mustard paste, curd, nuts, poppy seed paste and cashew paste are preferably cooked inmustard oil. Curries are classified into bata (paste), bhaja (fries), chochchoree (less spicyvapourized curries) and jhol (thin spicy curries).These are eaten with plain boiled rice orghonto (spiced rice). A traditional breakfast includes pantabhat or pakhaal, as well ascereals such as puffed rice or pressed rice, in milk, often with fruits. The cuisine of 16
  17. 17. Bangladesh is very similar to eastern Indian cuisine, particularly that of West Bengal. Fishand shellfish are commonly consumed in the eastern part of India. The popular vegetabledishes of Orissa are Dalma and Santula. The most popular vegetable dish of Bengal isSukto. Deep fried, shallow fried and mashed vegetables are also very popular. As insouthern India, rice is the staple grain in Eastern India too. A regular meal consists oflentils, a primary non vegetarian side dish usually made of fish and a few other secondaryside dishes made of vegetables.Southern:South Indian cuisine is distinguished by a greater emphasis on rice as the staple grain, theubiquity of sambar and rasam (also called saaru and rasa), a variety of pickles, and theliberal use of coconut and particularly coconut oil and curry leaves. Curries calledKozhambu are also popular and are typically vegetable stews cooked with spices, tamarindand other ingredients. The dosa, poori, idli, vada, bonda and bajji are typical South Indianfavorites. These are generally consumed as part of breakfast. Other popular dishes includeKesaribath, Upma, Pulao, Puliyodharai and Thengai Sadham. Hyderabadi biryani, apopular type of biryani, reflects the diversity of south Indian cuisine. South Indian cuisineobtains its distinct flavours by the use of tamarind, coconuts, lentils, rice and a variety ofvegetables.Udupi cuisine is one of the popular cuisines of South India.Andhra, Chettinad, Tamil, Hyderabadi, Mangalorean, and Kerala cuisines each havedistinct tastes and methods of cooking. In fact each of the South Indian states has adifferent way of preparing sambar; a connoisseur of South Indian food will very easily tellthe difference between sambar from Kerala, sambar from Tamil cuisine, Sambar fromKarnataka and pappu chaaru in Andhra cuisine.Some popular dishes include the Biriyani,Ghee Rice with meat curry, seafood (prawns, mussels, mackerel) and paper thin Pathirisfrom Malabar area.Western:Western India has three major food groups: Gujarati, Maharashtrian and Goan.Maharashtrian cuisine has mainly two sections defined by the geographical sections. Thecoastal regions, geographically similar to Goa depend more on rice, coconut, and fish. Thehilly regions of the Western Ghats and Deccan plateau regions use groundnut in place of 17
  18. 18. coconut and depend more on jowar (sorghum) and bajra (millet) as staples. Saraswatcuisine forms an important part of coastal Konkani Indian cuisine. Gujarati cuisine ispredominantly vegetarian. Many Gujarati dishes have a hint of sweetness due to use ofsugar or brown sugar. Goan cuisine is influenced by the Portuguese colonization of Goa.North Eastern:The food of the North East is very different from other parts of India. This areas cuisine ismore influenced by its neighbours, namely Burma and the Peoples Republic of China. Forexample it uses less of the well known spices that are popular in other parts of India. Yak isa popular meat in this region of India.Popularity and influence outside IndiaIndian cuisine is one of the most popular cuisines across the globeThe cuisine is popularnot only among the large Indian diaspora but also among the mainstream population ofNorth America and Europe. In 2003, there were as many as 10,000 restaurants servingIndian cuisine in England alone. A survey held in 2007 revealed that more than 1,200Indian food products have been introduced in the United States since 2000. According toBritains Food Standards Agency, the Indian food industry in the United Kingdom is worth£3.2 billion, accounts for two-thirds of all eating out and serves about 2.5 million Britishcustomers every week.Apart from Europe and North America, Indian cuisine is popular in South East Asia toobecause of its strong historical influence on the regions local cuisines. Indian cuisine hashad considerable influence on Malaysian cooking stylesand also enjoys strong popularity inSingapore. Indian influence on Malay cuisine dates back to 19-century. Other cuisineswhich borrow Indian cooking styles include Vietnamese cuisine, Indonesian cuisine andThai cuisine. The spread of vegetarianism in other parts of Asia is often credited to ancientIndian Buddhist practices. Indian cuisine is also fairly popular in the Arab world because ofits similarity and influence on Arab cuisine.The popularity of curry, which originated in India, across Asia has often led to the dish beinglabeled as the "pan-Asian" dish. Currys international appeal has also been compared to 18
  19. 19. that of pizza. Though the tandoor did not originate in India, Indian tandoori dishes, such aschicken tikka made with Indian ingredients, enjoy widespread popularity. Historically, Indianspices and herbs were one of the most sought after trade commodities. The spice tradebetween India and Europe led to the rise and dominance of Arab traders to such an extentthat European explorers, such as Vasco da Gama and Christopher Columbus, set out tofind new trade routes with India leading to the Age of Discovery.Beverages:Tea is a staple beverage throughout India; the finest varieties are grown in Darjeeling andAssam. It is generally prepared as masala chai, wherein the tea leaves are boiled in a mixof water, spices such as cardamom, cloves, cinnamon, and ginger, and large quantities ofmilk to create a thick, sweet, milky concoction. Different varieties and flavors of tea areprepared to suit different tastes all over the country. Another popular beverage, coffee, islargely served in South India. One of the finest varieties of Coffea arabica is grown aroundMysore, Karnataka, and is marketed under the trade name "Mysore Nuggets". Indian filtercoffee, or kaapi, is also especially popular in South India. Other beverages include nimbupani (lemonade), lassi, chaach, badam doodh (almond milk with nuts and cardamom),sharbat and coconut water. India also has many indigenous alcoholic beverages, includingpalm wine, fenny and Indian beer. Theres also bhang, prepared using cannabis, andtypically consumed, especially in North India, during Holi and Vaisakhi. However thepractice of drinking a specific beverage with a meal, or wine and food matching, is nottraditional or common in India.Although the above listed beverages are popular, people prefer to consume drinking waterwith their food because drinking water does not overshadow the taste of the food. In fact itis customary to offer drinking water to guests before serving any hot or cold drinks.Fruits and Vegetables:The fruit and vegetable processing industry in India is highly decentralized having widecapacities. The diverse agro- climatic zones make it possible to grow almost all varieties offresh fruits and green vegetables in India. India is the second largest producer of freshvegetables in the world (ranks next to China) and accounts for about 15% of the world’sproduction of vegetables. 19
  20. 20. Production area:Vegetables are typically grown in India in field conditions; the concept is opposed to thecultivation of vegetables in green houses as practiced in developed countries for highyields. The fruits and vegetables considered important by the horticulture board of India aremostly grown in the areas of Jammu & Kashmir, Himachal Pradesh, hilly regions of NorthUttar Pradesh, Tamil Nadu, Maharashtra, Karnataka, Gujarat, Andhra Pradesh, Assam,Madhya Pradesh, Rajasthan, Punjab, Tripura, West Bengal and Orissa.Growth promotional activities:Since liberalization and withdrawal of excise duty on fruit and vegetable products there hasbeen significant rise in the growth rate of the industry Out of 370 million tons of fruitproduction in the world, India accounts for 30 million tons. No industrial license is requiredfor setting up F & V P industries; setting-up 100% EOUs require specific Govt. approvals.Many subsidies, irrigation plans, loans, pre and post harvesting schemes led to thefollowing figures of production. Fruit & vegetable Total production M. T Indias production status Mango 10 million tons Worlds largest producer Banana 7 million tons Worlds largest producer Pineapple 12.6% of world production Worlds 4th largest producer Oranges 6.3% of world production Worlds 5th largest producer 20
  21. 21. Grapes - World record in productivity Onion - Worlds 2nd largest producer Cauliflower Worlds 3rd largest producerVegetables:More than 40 kinds of vegetables belonging to different groups, namely, solanaceous,cucurbitaceous, leguminous, cruciferous (cole crops), root crops and leafy vegetables aregrown in India in tropical, sub-tropical and temperate regions. Important vegetable cropsgrown in the country are tomato, onion, brinjal, cabbage, cauliflower, okra and peas.India is next only to China in area and production of vegetables and occupies prime positionin the production of cauliflower, second in onion and third in cabbage in the world. The areaand production of major vegetables during 2004-05 is estimated at 6.30 million ha with aproduction of 93.0 million tonnes and average productivity of 14.8 tonnes per ha. Theproduction has increased by 5.7 per cent.India is the fruit and vegetable basket of the world. India being a home of wide variety offruits and vegetables holds a unique position in production figures among other countries.Over 90% of India’s exports in fresh products go to west Asia and East European markets.However, it needs to augment its food and processing industry at a mega scale, accordingto an agriculture consultant.India’s exports of Fresh Fruit and Vegetable have increased Rs. 2437.12 Crores in2007-08. Which is including the products like Fresh Onion, Walnut, Fresh Mangos, FreshGrapes and other fresh Fruits & Vegetables?Abundant investment opportunities are there in expanding the export market. An increasing 21
  22. 22. acceptance of new products with market development efforts has been witnessed latelygiven the fact that there is a good international demand for certain fruits and vegetableproducts. India ranks fifth in the world in cropped area under cultivation and production ofpotatoes. India produces 41% of world’s mangoes, 23%bananas, 24% cashew nuts, 36 %green peas and 10% onion the total export value of the main exporting fruit crop from Indiais mango. Exports of mangoes, grapes, mushrooms have started going to the UnitedKingdom, Middle East, Singapore and Hong Kong. And among vegetable, onion occupiesfirst position Potatoes and green vegetables like okra, bitter gourd, green chilies have goodexport potential.Several customs are associated with the manner of food consumption. Traditionally, mealsare eaten while seated either on the floor or on very low stools or cushions. Food is mostoften eaten without cutlery, using instead the fingers of the right hand. However, thesetraditional ways of dining are being influenced by eating styles from other parts of the world.Eating with your hands is considered important in Indian etiquette because a person eatingwith his hands knows the exact temperature of food before the morsel hits his mouth thuspreventing blisters in mouth due to consumption of hot food.Traditional serving styles vary from region to region in India. A universal aspect ofpresentation is the thali, a large plate with samplings of different regional dishesaccompanied by raita, breads such as naan, puri, or roti, and rice. In South India, a cleanedbanana leaf is often used as a hygienic, visually interesting and environmentally friendly,alternative to plates.In Southern India there is a beverage served cold known as Panner Soda or Gholi Sodawhich is a mixture of carbonated water, rose water, and sugar. Another southern beverageis rose milk, which is served cold.Agriculture has remained the mainstay of the Indian economy, with vegetables like potatoacquiring a special place in the sector. To further enable the importance of potato business,the Indian Council of Agricultural Research (ICAR), Central Potato Research Institute(CPRI), Indian Potato Association (IPA) and the Centre for Agriculture & RuralDevelopment (CARD) are jointly presenting Agrotech 2008. The exhibition will be held from9th-12th December, 2008 at the NASC Complex, Pusa Road, New Delhi, India, and will 22
  23. 23. uncover an entire gamut of products, technology and machines used in the production ofpotato products. Along with the exhibition, a global conference on the prospects andbenefits of potato will also be held at the venue. High profile scientists and entrepreneurswill be attending the conference to share and exchange their ideas and opinions in theGlobal Potato Conference 2008. The last edition of the exhibition was a great success andsaw the presence of eminent scientists, agriculturists, industrial experts, among others.With even a wider presence expected in this edition, we are hopeful of creating successonce again.India the land of the greenery is one of the major vegetable suppliers in the world giving agreat hand to the Indian exporting system. Vegetable exporting is one of the most importantcrops for the developing country like India. Indian vegetables suppliers & Indian vegetablesexporters are concentrating mainly in vegetable such as onion, carrot, French beans,potato, lemon, tapioca, tomato, etc. They have gained the reputation for supplying goodquality and hygienic vegetables to valued customers, with committed and qualified workforce to meet the regular challenges and timely deliveries.Most of the people from the entire world depend upon the Indian market for good qualitystuff so the Indian vegetables suppliers & Indian vegetables exporters take good care aboutthe quality of the vegetables. In Indian market we can see a large variety of vegetables thatare tasty and also have high nutritious value. Hence the vegetable products are leadingIndian economy a lot. Indian vegetables suppliers & Indian vegetables exporters are givingmore attention to the high quality stuff and good packing of vegetables.Indian vegetables suppliers, Indian vegetables exporters:Health is a matter of concern for everyone. The key to good health is adequateconsumption of nutritious fruits and vegetables. To promote this healthy living, Indianvegetables suppliers & Indian vegetables exporters supply premium quality fruits andvegetables. Fresh & nutritional fruits and vegetables provide significant protection againstcancer, heart diseases and other nutritional ailments and are recommended for every agegroup. 23
  24. 24. Customer’s health is the top most priority of vegetable suppliers. Thus, Indian vegetablessuppliers & Indian vegetables exporters work with complete sincerity and loyalty to supplythe best quality fruits and vegetables. To promote easy accessibility, Indian vegetablessuppliers & Indian vegetables exporters’ market products at most nominal prices makingthem highly demanded distributors.Superior quality vegetables and fruits are handpicked from the farms and are further keptunder optimum storage conditions. Indian vegetables suppliers & Indian vegetablesexporters take extreme care in sorting out fruits and vegetables, continually eliminating therotting ones; ensuring that only the best fruits and vegetables reach you from the vegetablesuppliers.Besides being colorful and nutritious, Indian vegetables contain antioxidants that get rid oftoxins in the body. Indian vegetables suppliers & Indian vegetables exporters supply highyielding varieties of vegetables and have adequate packaging facility that helps in retainingpurity, freshness and avoid infestation and decay. The Indian vegetables suppliers & Indianvegetables exporters have an extensive distribution network across the globe that ensurestimely delivery at competitive prices.Indiabizone takes pride in serving esteemed clients who have trusted us over the years forour quality listings and sound business practices. Hence we invite you to the unique sectionwherein details of Indian vegetables suppliers & Indian vegetables exporters are wellarranged for you to access. So contact your vendor today and be a part of the healthyeating regime.Cost of living, already at a 13-year peak, is rising again. Annual inflation, based onwholesale price index (WPI), climbed further to 11.89% in the week ended June 28,outpacing the previous week’s 11.63% and 4.42% during the corresponding week of theprevious year.The government also sharply revised the inflation figure for the week ended May 3 by 0.9%to 8.73% as compared to the provisional data of 7.83%. This suggests that inflation may becurrently close to 13%, forcing RBI to further tighten monetary policy at its review later thismonth, economists said. 24
  25. 25. The latest spurt in inflation is fanned by costlier food items and manufactured items as thesecond-round effect of price increase in auto fuel percolated into the economy. Food itemslike fruits and vegetables, cooking oil, textiles, fertilizers, pesticides and telephoneinstruments became costlier during the week. Food products rose 0.3 per cent and primaryarticles were up 0.9 per cent. Likewise, vegetables were up 3.7% and chemicals andproducts rose 1.2 per cent. However, iron and steel fell 1.4 per cent and fuel remainedunchanged.The finance ministry stated that prices of 30 essential commodities, which include foodgrains, pulses, edible oils, vegetables, dairy products and some other commoditiesincluding kerosene, soap and safety matches have more or less stabilized. In the primaryarticles group, out of a total of 98 articles, 12 articles have shown a decline in prices ascompared to June 21. These include wheat, rice, maize, garlic, cabbage, cumin, blackpepper, ginger and Niger seed.Prices of another 55 articles remained steady. Among manufactured products, out of a total320 commodities, 278 have shown no increase in prices over the previous week. In case of16 commodities, there is a decline in prices. These include penicillin, imported edible oil, pigiron, steel products, and cotton seed oil and de-oiled, the finance ministry stated.According to government data, fruits and vegetables became costlier by 2%, non-foodarticles in the range of 2% to 7%, coconut oil by 11%, rape and mustard oil by 5% andsoybean oil by 5%. Cotton yarn hanks became costlier by 9%, polyester staple fiber by 8%,cotton knitted garments by 3%, cement by 1% and telephone instruments by 19%. Prices ofiron products eased in the range of 2% to 8%.It is estimated that steel and steel products (used in industries like auto, housing, whitegoods, capital goods etc) contribute almost 21 per cent to inflation. Cement prices areexpected to remain soft, thanks to capacity addition.Said Crisis principal economist DK Joshi: ‘Although the pace of inflation was slower in theweek under scrutiny, even a marginal increase at the current level would be highlyuncomfortable and unwelcome. Looking at the magnitude of revision in the provisional WPIfigures, one gets the impression that inflation may be ruling at close to 13% now. To lower 25
  26. 26. consumption, the RBI may further tighten monetary policy; particularly raise the share ofcash that banks have to park with it by about 50 bps later this month.Last month, RBI had raised its benchmark interest rate twice to a six-year high of 8.5% andlifted its cash reserve ratio to 8.75% to prevent money supply in the banking system fromfueling inflation.Last Tuesday, Finance Minister P. Chidambaram said the government was relying onmonetary policy to cool demand and calm prices. Last month, the RBI had raised its mainlending rate by 75 basis points and increased banks reserve requirement by 50 basispoints to contain inflation expectations. Its next scheduled review is on July 29, but it canact before then. Market is expecting further tightening of monetary policy. If at all the RBItouches the rate at which it makes short-term lending to banks, it may be an increase of 25bps.According to Ms Sonal Varma, India economist, Lehman Brothers, the RBI is likely to hikerepo rates by 25 basis points in the monetary policy, while a hike of 50 basis points in theCRR could happen anytime in the July-September quarter. The key challenge before theRBI now is to try and prevent the second round effects of inflation, such as producerspassing on higher input cost to consumers and workers demanding increase in wages dueto higher cost of living. ‘The RBI has already hiked interest rates to moderate credit growthand we expect them to maintain their tightening bias. The rate hikes should help slow downcredit growth,’India gains a foothold in the international fruit and vegetablemarket:With an annual output of 127 million tones of fruit and vegetables, India lies second in theworld producing country rankings, after China. Since the end of the 1990s, it has beeneyeing up the export markets, in the hope of gaining in international visibility and repute.However, yields are still low, and most of what is produced is either consumed in India orlost as a result of poor post harvest management. Moreover, barely 2% of the fruit and 26
  27. 27. vegetable crop is processed, and India accounts for just 1.2% of international trade in theseproducts.In April, CIRAD’s Fruit and Horticultural Crops Department (FLHOR) received a new remitfrom APEDA (Agricultural and processed food Products Export Development Authority), abranch of the Indian Ministry of Trade. Its task is to optimize cropping with a view toexporting tropical (okra or lady’s finger, bitter melon and pointed gourd) and Europeanvegetables (mange tout peas, French beans, mini-sweet corn, sweet corn, etc).CIRAD’s researchers are basing their work on a similar project conducted with APEDA forlynches between 1998 and 2003. The aim was to set up an export chain to Europe. Thisinitial project was a huge success: in 2003, 350 tonnes of lychees were exported, comparedto 5 tonnes in 1998. Moreover, given the difference in hemisphere, they were exported inthe off-season in relation to supplies from Madagascar and Reunion. More recently, CIRADalso worked to establish a pineapple export chain to Dubai, in the United Arab Emirates.The first containers were shipped in December 2005.CIRAD is required to use field observations and produce technical advice notes to advisefarmers and enable them to ensure that their products satisfy the standards imposed byimporting countries. For instance, this concerns the phytosanitary products used, types ofpackaging, public health criteria and also child labor. "Diseases, inappropriate fertilizerrates, nutrient (iron, nitrogen, etc) deficiencies or surpluses, transport and traceability; weassess and correct all kinds of problems", explains Christian Didier, project leader atCIRAD-FLHOR. "Thanks to the progress made on export crops, quality standards for allfruit and vegetables crops will also progress", he adds. Development staff has been trainedto follow up farmers in the field, throughout the year. CIRAD is also involved in setting upresearch stations, as was the case with lychees in Bihar State, which accounts for 75% ofnational output.Asia’s largest vegetable market near Jaipur soon:Jaipur, Aug 21: Asia’s largest ever fruit and vegetable mandi (yard) is coming up at Muhanavillage, around 25 km from here. The mandi, which is to occupy 150 hectare, is likely to costRs 100 crore. Infrastructure development has already started around the mandi. 27
  28. 28. The Rajasthan government has also allocated a budget of Rs 55 crore for the developmentof the mega-yard, slated to become operational by 2006.“The mandi will have facilities like bank branches, post offices, insurance agents and ahospital,” Kesar Singh, the mandi’s secretary, said.As planned, the complex will house 2,000 shops, establishments and cold storages.Mr Singh said the mandi will have commodious and eco-friendly waste disposal facilities. 28
  29. 29. “This mandi will surely change our lifestyle. It will help us sell our produce as well as throwopen a gamut of other opportunities,” said Ramlal Gujar, a local farmer.“It’s a dual benefit for us since it assures different employment avenues for our children,”said Chand Ram, another farmer.At the same time, local household buyers like SK Sharma bemoan the increased distanceto the mandi and complain that daily trips will have to be curtailed in favor of weekend visits.Consumer behavior:As a consumer we are all unique and this uniqueness is reflected in the consumptionpattern and process purchase. The study of consumer behavior provides us with reasonswhy consumers differ from one another in buying using products and services. We receivestimuli from the environment and the specifics of the marketing strategies of differentproducts and services, and responds to these stimuli in terms of either buying or not buyingproduct. In between the stage of receiving the stimuli and responding to it, the consumergoes through the process of making his decision.An important part of the marketing process is to understand why a customer or buyermakes a purchase.Without such an understanding, businesses find it hard to respond to the customer’s needsand wants.Marketing theory traditionally splits analysis of buyer or customer behaviour into two broadgroups for analysis – Consumer Buyers and Industrial BuyersConsumer buyers are those who purchase items for their personal consumptionIndustrial buyers are those who purchase items on behalf of their business or organizationFor a marketing manager, the challenge is to understand how customers might respond tothe different elements of the marketing mix that are presented to them. 29
  30. 30. If management can understand these customer responses better than the competition, thenit is a potentially significant source of competitive advantage.Consumer behavior is the study of when, why, how, where and what people do or do notbuy products It blends elements from psychology, sociology, social, anthropology andeconomics. It attempts to understand the buyer decision making process, both individuallyand in groups. It studies characteristics of individual consumers such as demographics andbehavioral variables in an attempt to understand peoples wants. It also tries to assessinfluences on the consumer from groups such as family, friends, reference groups, andsociety in general.Customer behaviour study is based on consumer buying behaviour, with the customerplaying the three distinct roles of user, payer and buyer. Relationship marketing is aninfluential asset for customer behaviour analysis as it has a keen interest in the re-discoveryof the true meaning of marketing through the re-affirmation of the importance of thecustomer or buyer. A greater importance is also placed on consumer retention, customerrelationship management, personalization, customisation and one-to-one marketing. Socialfunctions can be categorized into social choice and welfare functions.Each method for vote counting is assumed as a social function but if Arrow’s possibilitytheorem is used for a social function, social welfare function is achieved. Somespecifications of the social functions are decisiveness, neutrality, anonymity, monotonocity,unanimity, homogeneity and weak and strong Paretooptimality. No social choice functionmeets these requirements in an ordinal scale simultaneously. The most importantcharacteristic of a social function is identification of the interactive effect of alternatives andcreating a logical relation with the ranks. Marketing provides services in order to satisfycustomers. With that in mind, the productive system is considered from its beginning at theproduction level, to the end of the cycle, the consumer (Kioumarsi et al., 2009).Belch and Belch define consumer behavior as the process and activities people engage inwhen searching for, selecting, purchasing, using, evaluating, and disposing of products andservices so as to satisfy their needs and desires. 30
  31. 31. Black box model: ENVIRONMENTAL FACTORS BUYERS BLACK BOX BUYERSMarketing Environmental Buyer Decision RESPONSEStimuli Stimuli Characteristics Process Problem recognition Information Attitudes Product choiceProduct Economic search Motivation Brand choicePrice Technical Alternative Perceptions Dealer choicePlace Political evaluation Personality Purchase timingPromotion Cultural Purchase Lifestyle Purchase amount decision Post-purchase behaviorThe black box model shows the interaction of stimuli, consumer characteristics, decisionprocess and consumer responses.[1] It can be distinguished between interpersonal stimuli(between people) or intrapersonal stimuli (within people). The black box model is related tothe black box theory of behaviorism, where the focus is not set on the processes inside aconsumer, but the relation between the stimuli and the response of the consumer. Themarketing stimuli are planned and processed by the companies, whereas the environmentalstimuli are given by social factors, based on the economical, political and culturalcircumstances of a society. The buyer’s black box contains the buyer characteristics andthe decision process, which determines the buyer’s response.The black box model considers the buyers response as a result of a conscious, rationaldecision process, in which it is assumed that the buyer has recognized the problem.However, in reality many decisions are not made in awareness of a determined problem bythe consumer. 31
  32. 32. Information search:Once the consumer has recognised a problem, they search for information on products andservices that can solve that problem. Belch and Belch (2007) explain that consumersundertake both an internal (memory) and an external search.Sources of information include: • Personal sources • Commercial sources • Public sources • Personal experienceThe relevant internal psychological process that is associated with information search isperception. Perception is defined as the process by which an individual receives, selects,organises, and interprets information to create a meaningful picture of the worldThe selective perception process:Stage Description:- Selective exposure consumers select which promotional messages they will exposethemselves to.- Selective attention consumers select which promotional messages they will pay attentionto- Selective comprehension consumer interpret messages in line with their beliefs, attitudes,motives and experiences- Selective retention consumers remember messages that are more meaningful orimportant to themThe implications of this process help develop an effective promotional strategy, and selectwhich sources of information are more effective for the brand. 32
  33. 33. Steps of buyer’s behaviour 33
  34. 34. Information evaluation:At this time the consumer compares the brands and products that are in their evoked set.How can the marketing organization increase the likelihood that their brand is part of theconsumers evoked (consideration) set? Consumers evaluate alternatives in terms of thefunctional and psychological benefits that they offer. The marketing organization needs tounderstand what benefits consumers are seeking and therefore which attributes are mostimportant in terms of making a decision.Purchase decision:Once the alternatives have been evaluated, the consumer is ready to make a purchasedecision. Sometimes purchase intention does not result in an actual purchase. Themarketing organization must facilitate the consumer to act on their purchase intention. Theprovision of credit or payment terms may encourage purchase, or a sales promotion suchas the opportunity to receive a premium or enter a competition may provide an incentive tobuy now. The relevant internal psychological process that is associated with purchasedecision is integration.Postpurchase evaluation:The EKB model was further developed by Rice (1993) which suggested there should be afeedback loop, Foxall (2005) further suggests the importance of the post purchaseevaluation and that the post purchase evaluation is key due to its influences on futurepurchase patterns.Types of Consumer Buying BehaviorTypes of consumer buying behavior are determined by:•Level of Involvement in purchase decision. Importance and intensity of interest in a productin a particular situation.•Buyers level of involvement determines why he/she is motivated to seek information abouta certain products and brands but virtually ignores others. High involvement purchases-- 34
  35. 35. Honda Motorbike, high priced goods, products visible to others, and the higher the risk thehigher the involvement.Types of risk:  Personal risk  Social risk  Economic riskThe four type of consumer buying behavior are:Routine Response/Programmed Behavior:--Buying low involvement frequently purchased low cost items; need very little search anddecision effort; purchased almost automatically. Examples include soft drinks, snack foods,milk etc.Extensive Decision Making:/Complex high involvement, unfamiliar, expensive and/or infrequently bought products. Highdegree of economic/performance/psychological risk. Examples include cars, homes,computers, education. Spend a lot of time seeking information and deciding.Informationfrom the companies MM; friends and relatives, store personnel etc. Go through all sixstages of the buying process.Impulse buying:The purchase of the same product does not always elicit the same Buying Behavior.Product can shift from one category to the next For example:Going out for dinner for oneperson may be extensive decision making (for someone that does not go out often at all),but limited decision making for someone else. 35
  36. 36. Limited Decision Making:--Buying product occasionally. When you need to obtain information about unfamiliar brandin a familiar product category, perhaps. Requires a moderate amount of time for informationgathering. Examples include Clothes--know product class but not the brand.Factors of influences:A consumer’s buyer behavior is influenced by four major factors; cultural, social, personal,and psychological factors. These factors cause consumers to develop product and brandpreferences. Although many of these factors cannot be directly controlled by marketers,understanding of their impact is essential as marketing mix strategies can be developed toappeal to the preferences of the target market.When purchasing any product, a consumer goes through a decision process. This processconsists of up to five stages: problem recognition, information search, evaluation ofalternatives, purchase decisions and post purchase behavior. The length of this decisionprocess will vary, ranging from a shorter routine response behavior, to limited problemsolving and a more comprehensive extensive problem solving. A consumer may not act inisolation in the purchase, but rather may be influenced by any of several people in variousroles. The number of people involved in the buying decision increases with the level ofinvolvement and complexity of the buying decision behavior.Buyer- the person who makes the actual purchase.CULTURAL factors include a consumers culture, subculture and social class. These factorsare often inherent in our values and decision processes.Other people often influence a consumer’s purchase decision. The marketer needs to knowwhich people are involved in the buying decision and what role each person plays, so thatmarketing strategies can also be aimed at these people.Data from the Consumer Expenditure Survey are used in a number of different ways by avariety of users. Market researchers find the data useful in analyzing the demand for groupsof goods and services. The data allow them to track spending trends of different types of 36
  37. 37. consumer. Government and private agencies use the data to study the welfare of particularsegments of the population, such as of consumer units with a reference person age 65 andover or under age 25, or for low-income consumer units. Economic policymakers use thedata to study the impact of policy changes in the welfare of different socioeconomic groups.Researchers use the data in a variety ofCultural Factors:In a diversified country like India cultural factors exert the broadest and deepest influenceon consumer behavior; we will look at the role played by the buyer’s culture, subculture,and social class.Culture: Culture is the most fundamental determinant of a person’s wants and behavior.Whereas lower creatures are governed by instinct, human behavior is largely learned. Thechild growing up in a society leans a basic set of values, perceptions, preferences andbehaviors through a process of socialization involving the family and other key institution.Thus a child growing up in America is exposed to the following values: Achievement and 37
  38. 38. success, activity , efficiency and practicality, progress, material comfort, individualism,freedom, external comfort, humanitarianism, and youthfulness.Subculture:Each culture contain smaller group of subculture that provide more specific identificationand socialization for its members. Four types of subculture can be distinguished .Nationalitygroups such as the Irish, polish, Italians, and Puerto Ricans are found with in largecommunities and exhibits distinct ethnic tastes and Jews represent subculture with specificculture preference and taboos.Social Class:Virtually all human societies exhibit social stratification. Stratification sometimes takes theform of a caste system where the members of different caste are reared for certain rolesand cannot change their caste membership .More frequently; stratification takes the form ofsocial classes.Social Classes have several characteristics. First, Person with in each social class tends tobehave more alike than persons from two different social classes. Second, persons areperceived as occupying inferior or superior positions according to their social class. Third, aperson’s social class is indicated by a number of variables, such as occupation, income,wealth, education , and value orientation, rather than by any single variable , fourth,individuals are able to move from one social class to another up or down during theirlifetime. The Extent of this mobility varies according to the rigidity of social stratification agiven society.Social Factors:A consumer’s behavior is also influenced by social factors, such as the consumer’sreference group, family, and social roles and statuses.Reference Group: A person’s behavior is strongly influenced by many group .A personsreference group are those groups that have a direct (face to face) or indirect influence onthe person’s attitudes or behavior. Group having a direct influence on a person are calledmembership group. These are group to which the person belongs and interacts. Some are 38
  39. 39. primary groups. With which there is fairly continuous interaction, such as family, friends,neighbors, and co-workers. Primary group tend to be informal. The person also belong tosecondary group, which tend to be more formal and where there is less continuousinteraction: they include religious organizations, professional associations, and tradeunions.Family Group:Members of the buyer’s family can exercise a strong influence on the buyer’s behavior. wecan distinguish between two families in the buyer’s life . The family of orientation consists ofone’s parents. From parents a persons acquires an orientation towards religious, politics,and economics and a sense of personal ambitions, self –worth, and love. Even if the buyerno longer interacts very much with his or her parents, the parents influence on theunconscious behavior of the buyer can be significant. In countries where parents continueto live with their children, their influence can be substantial.In case of expensive products and services, husband and wives engage in more jointdecision making. The market needs to determine which member normally has the greaterinfluence in the purchase of a particular products or services. Either the husband or thewife, or they have equal influence. The following products and services fall under such:Husband – dominant: life insurance, automobiles, televisionWife – dominant: washing machines, carpeting, non –living – room furniture, kitchenwareEqual: Living – room furniture, vacation, Housing, outside entertainment.How to succeed:Companies like Nokia, Reebok, Coke, PepsiCo and major automobile giants like Toyota,Suzuki, Ford, Chevrolet, Mercedes etc.. Has made a market for themselves in India. Howdid they establish their own individual market in a country like India which is prone todiverse cultures? Let’s take the example of Ford. Before establishing their base in India,they engaged in a lot of researches. Their researches were made on the Indian people’ssocial life, personal tastes and preferences, way of life, how they identify an effectiveproduct and what makes them get attracted towards a product. The social and economicconditions were analyzed. 39
  40. 40. The general economy of India was also researched on. They had modified their product tosuit the Indian conditions. Their technology had to be adjusted and suited to such an extentthat their car is adaptable to Indian conditions. Indians are generally prone to be rough andtough customers and especially taking into account the road conditions and other socialfactors they designed the product in such a way that it’s best suited to the conditions andit’s received by the target customers. Today Ford is enjoying a huge market in India. If anautomobile company from a different country can make wonders why cannot our ownmanufacturers adapt to these techniques.A customer’s want has to be identified and his expectations must be matched with the othereconomic and social factors so that their product is receptive. This can be related to anyproduct. Reebok today is enjoying a huge market in India even though they have hired acompany which is phoenix to manufacture shoes and operate under Reebok. How did theyachieve this? Adapting to social conditions play the most important role in establishing yourbrand in the market.This also means that customers are open to new and different products from time to time.It’s just that they want the product to be flexible and adaptable to their needs andpreferences. People are changing from time to time, so do their tastes and preferences.Identifying those is the first step towards achieving success and the rest depends on theperformance of the product.Internal influences:Consumer behavior is influenced by: demographics, psychographics (lifestyle), personality,motivation, knowledge, attitudes, beliefs, and feelings. Consumer behavior concern withconsumer need consumer actions in the direction of satisfing needs leads to his behaviourbehaviour of every individual depend on thinking processExternal influences:Consumer behavior is influenced by: culture, sub-culture, locality, royalty, ethnicity, family,social class, reference groups, lifestyle, and market mix factors. 40
  41. 41. In 2003, the fresh fruit and vegetables market was valued at £7.6bn at current prices,having increased by just 3.9% since 1999. Marginal growth in the green vegetables andpotatoes sectors is largely responsible for the limited growth of the market. The fresh fruitsector accounts for 38.1% of the overall market and is gaining share. This is probablyexplained by the continuing trend towards convenience eating as fruit generally requireslittle or no preparation, while vegetables usually require preparation and cooking.Meanwhile, both the fruit and vegetables sectors have benefited from widespread publicityabout the positive impact on health of consuming fruit and vegetables regularly. Indeed, thescientific evidence that fruit and vegetable consumption can protect against cancer andother illnesses now appears overwhelming, with studies from around the world highlightingthe benefits of eating even small amounts. In the UK, a government drive to encouragepeople to eat more fruit and vegetables may be having a positive effect on the market. TheDepartment of Healths Five-a-Day Programme, for example, is designed to encourageconsumers to eat five 80 gram portions of fresh fruit and vegetables a day.Most consumers now buy their fresh vegetables and fruit from the grocery multiples, ratherthan specialist fruit and vegetable stores. The multiples tend to display fruit and vegetablesat the entrance to their store in the belief that a display of bright colors presents anattractive and healthy image of their store to consumers. The supermarkets have alsohelped to increase the variety of fruit and vegetables available to the consumer and haveexploited growing demand for convenience products by introducing an ever-growing rangeof prepared fruit and vegetables. These include repacked fruit and vegetable mixes, withthe fruit and vegetables peeled and ready to cook. A wide variety of fresh salad mixes isavailable. Brands have never had the same impact in the fresh fruit and vegetables sectoras in other areas of the food market. However, the main suppliers say that this is nowchanging and the major retailers are increasingly willing to carry brands alongside their ownproducts.Its expects fruit consumption to continue to increase over the next few years, as the trendsof growing demand for convenience foods and concerns over health continue to influenceconsumers. In addition, the growing presence of brands in the fruit sector should also drivedemand. However, consumption of potatoes and other vegetables is likely to continue itsdownward trend. Potatoes are losing out as British people switch from their once staplefood item to more convenient alternatives, such as pasta and rice. Meanwhile, frozen 41
  42. 42. vegetables are likely to continue to win market share at the expense of fresh produce, suchas beans and peas. Some sectors, such as prepared vegetables and salads shouldcontinue to grow rapidly. Intensifying competition among retailers is likely to underminevalue growth with the market expanding by just 3% in value terms between 2004 and 2008. 42
  43. 43. India Retail IndustryIndia retail industry is the largest industry in India, with an employment of around 8% andcontributing to over 10% of the countrys GDP. Retail industry in India is expected to rise25% yearly being driven by strong income growth, changing lifestyles, and favorabledemographic 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 2007to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of7-8% 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 theretailing industry in India will amount to US$ 21.5 billion by 2010 from the current size ofUS$ 7.5 billion.Shopping in India has witnessed a revolution with the change in the consumer buyingbehavior and the whole format of shopping also altering. Industry of retail in India which hasbecome modern can be seen from the fact that there are multi- stored malls, huge shoppingcenters, and sprawling complexes which offer food, shopping, and entertainment all underthe same roof.India retail industry is expanding itself most aggressively; as a result a great demand forreal estate is being created. Indian retailers preferred means of expansion is to expand toother regions and to increase the number of their outlets in a city. It is expected that by2010, India may have 600 new shopping centers.In the Indian retailing industry, food is the most dominating sector and is growing at a rateof 9% annually. The branded food industry is trying to enter the India retail industry andconvert Indian consumers to branded food. Since at present 60% of the Indian grocerybasket consists of non- branded items.India retail industry is progressing well and for this to continue retailers as well as the Indiangovernment will have to make a combined effort. 43
  44. 44. The lifestyle and profile of the Indian consumer is going through a rapid transformation. Thepopulation of India is young, energetic and full of enthusiasm. 50% of the Indian populationis under the age of 25. There has been a transition from price consideration to quality anddesign, as the focus of the customer has changed. The upper and middle- class populationof today needs a feel good experience even if they have to spend a little more for that.People are moving towards luxury and want to experiment with fashion and technology.There is an increasing need of better apparels, cars, mobile phones and consumerdurables.The food & grocery, clothing, consumer durables and books & music sectors are the majorretail sectors. However, unorganized small outlets largely control the sector. Hence there istremendous potential for the organized sector in various formats, such as hypermarkets,supermarkets, specialty stores, category killers and discount chains. 44
  45. 45. The Indian retail market, which is the fifth largest retail destination globally, has beenranked the second most attractive emerging market for investment after Vietnam in theretail sector by AT Kearneys seventh annual Global Retail Development Index (GRDI), in2008. The share of retail trade in the countrys gross domestic product (GDP) was between8–10 per cent in 2007. It is currently around 12 per cent, and is likely to reach 22 per centby 2010.A McKinsey report The rise of Indian Consumer Market, estimates that the Indianconsumer market is likely to grow four times by 2025. Commercial real estate servicescompany, CB Richard Ellis findings state that Indias retail market is currently valued atUS$ 511 billion.Banks, capital goods, engineering, fast moving consumer goods (FMCG), softwareservices, oil marketing, power, two-wheelers and telecom companies are leading the salesand profit growth of India Inc in the fourth quarter of 2008-09. India continues to be amongthe most attractive countries for global retailers. At US$ 511 billion in 2008, its retail marketis larger than ever and drawing both global and local retailers. Foreign direct investment(FDI) inflows as on January 2009, in single-brand retail trading, stood at approx. US$ 25.18million, according to the Department of Industrial Policy and Promotion (DIPP).Indias overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As a democraticcountry with high growth rates, consumer spending has risen sharply as the youthpopulation (more than 33 percent of the country is below the age of 15) has seen asignificant increase in its disposable income. Consumer spending rose an impressive 75per cent in the past four years alone. Also, organized retail, which accounts for almost 5 percent of the market, is expected to grow at a CAGR of 40 per cent from US$ 20 billion in2007 to US$ 107 billion by 2013.India has emerged the third most attractive market destination for apparel retailers,according to a new study by global management consulting firm AT Kearney. It further saysthat in India, apparel is the second largest retail category, representing 10 per cent of theUS$ 37 billion retail market. It is expected to grow 12-15 per cent per year. Apparel, alongwith food and grocery, will lead the organized retailing in India. India has one of the largest 45
  46. 46. numbers of retail outlets in the world. A report by Images Retail estimates the number ofoperational malls to grow more than two-fold, to cross 412, with205 million square feet by 2010, and a further 715 malls to be added by 2015, with majorretail developments even in tier-II and tier-III cities in India. • Marks & Spencer Reliance India is planning to open 35 more stores over the next five years, according to Mark Ashman, CEO of the company. The 51:49 joint ventures between UK’s Marks and Spencer and Reliance Retail Ltd already have 15 stores in India. • Future Group has been restructured to test the new rules on FDI under Press Notes 2, 3 and 4 issued in February 2009. The company plans to bring in up to US$ 148.7 million in foreign investment. Although FDI is permitted only in single-brand retail and not permitted in multi-brand retail businesses like Future Groups, the conglomerate has created two layers of operations to take advantage of the three Press Notes that allow FDI up to 49 per cent in operating-cum-investment companies as long as they are owned and controlled by Indians. • Carrefour SA, Europe’s largest retailer, may start wholesale operations in India by 2010 and plans to set up its first cash-and-carry outlet in the National Capital Region. Currently, Carrefour exports goods worth US$ 170 million from India to Europe, UAE, Indonesia, Europe, Thailand, Singapore and Malaysia. • Jeweler’s manufacturer and retailer, Gitanjali Group and MMTC are jointly setting up a chain of exclusive retail outlets called Shuddi–Sampurna Vishwas. The joint venture, which plans to open around 60 stores across India by end of this year, will retail hallmarked gold and diamond jewelers. • Mahindra Retail, a part of the US$ 6.7-billion Mahindra Group, plans to invest US$ 19.8 million by 2010 to step up its specialty retail concept Mom and Me. 46
  47. 47. Policy Initiatives:100 per cent FDI is allowed in cash-and-carry wholesale formats. Franchisee arrangementsare also permitted in retail trade.51 per cent FDI is allowed in single-brand retailing.Growth of Retail Companies in India:Growth of Retail Companies in India exhibits the boom in the retail industry in India overthe years. The increase in the purchasing power of the Indian middle classes and the influxof the foreign investments has been encouraging in the Growth of Retail Companies inIndia.Growth of Road Ahead:According to industry experts, the next phase of growth is expected to come from ruralmarkets, with rural India accounting for almost half of the domestic retail market, valuedover US$ 300 billion. Rural India is set to witness an economic boom, with per capitaincome having grown by 50 per cent over the last 10 years, mainly on account of risingcommodity prices and improved productivity.According to retail and consumer products division, E&Y India, basic infrastructure,generation of employment guarantee schemes, better information services and access tofunding are also bringing prosperity to rural households. The rural market, product designwill need to go beyond ideas like smaller sizes (such as single use sachets) to creategenuinely new products, according to Ramesh Srinivas, national industry director(consumer markets), KPMG India.According to the Investment commission of India, the overall retail market is expected togrow from US$ 262 billion to about US$ 1065 billion by 2016, with organized retail at US$165 billion (approximately 15.5 per cent of total retail sales). India is expected to be amongthe top 5 retail markets in the world in 10 years. 47
  48. 48. According to new market research report by RNCOS titled, "Booming Retail Sector inIndia", organized retail market in India is expected to reach US$ 50 billion by 2011. • Number of shopping malls is expected to increase at a CAGR of more than 18.9 per cent from 2007 to 2015. • Rural market is projected to dominate the retail industry landscape in India by 2012 with total market share of above 50 per cent. • Organized retailing of mobile handset and accessories is expected to reach close to US$ 990 million by 2010. • Driven by the expanding retail market, third party logistic market is forecasted to reach US$ 20 billion by 2011.The Indian food market, according to the India Food Report 2008 by Research andMarkets is estimated at over US$ 182 billion, and accounts for about two thirds of the totalIndian retail market. Further, according to consultancy firm McKinsey & Co., the retailfood sector in India is likely to grow from around US$ 70 billion in 2008 to US$ 150 billionby 2025, accounting for a large chunk of the world food industry, which would grow to US$400 billion from US$ 175 billion by 2025.The growth of the food industry in India stems from the consistently increasing agriculturaloutput. With the second largest arable and area in the world, India is one of the key foodproducing countries in the world, second only to China.In fact, the year 2008 has been a record year for India’s food grain sector with increasedproduction, acreage under cultivation and record procurements.Further, according to an Economic Times analysis, one out of every five listed companies inIndia confirmed higher profits during the first half of fiscal 2008–09, with farm inputs andfarm machinery companies achieving the biggest profits.According to Mr Subodh Kant Sahai, the Union Minister of State for MFPI, the foodprocessing industry in India was seeing growth even as the world was facing economicrecession. According to the minister, the industry is presently growing at 14 per cent against6–7 per cent growth in 2003–04. Foreign direct investments (FDI) totaling US$ 143.80million was put into the food processing industry in 2007–08 against US$ 5.70 million in theprevious fiscal. 48
  49. 49. Advantage: • India is the largest producer of milk in the world, and is likely to become the second largest dairy products producer in the coming years. • It is the second largest producer of fruits and vegetables. • It is home to the largest number of livestock in the world. • It is the third largest producer food grains. • It has the third largest output of fish. • With above 9500 spices from medicinal and aromatic plants, India is truly a treasure trove of spices, accounting for 25-30 per cent of the world’s production. India is the largest producer consumer and exporter of spices, with major spices produced being black pepper, cardamom (small & large), ginger, garlic, turmeric, chilli etc. 49
  50. 50. Growth of Retail Companies in India is still not yet in a matured stage with great potentialswithin this sector still to be explored. Apart from the retail company like Nilgiris ofBangalore, most of the retail companies are sections of other industries that have steppedin the retail sector for a better business. The Growth of Retail Companies in India is mostpronounced in the metro cities of India; however the smaller towns are also not laggingbehind in this. The retail companies are not only targeting the four metros in India but alsois considering the second graded upcoming cities like Ahmadabad, Baroda, Chandigarh,Coimbatore, Cochin, Ludhiana, Pune, Trivandrum, Simla, Gurgaon, and others. The SouthIndian zone have adopted the process of shopping in the supermarkets for their dailyrequirements and this has also been influencing other cities as well where manyhypermarkets are coming up day to day.Reasons for the fast Growth of Retail Companies in India:The retail companies are found to be rising in India at a remarkable speed with the yearsand these have brought a revolutionary change in the shopping attitude of the Indiancustomers. The Growth of Retail Companies in India is facilitated by certain factors like -  existing Indian middle classes with an increased purchasing power  rise of upcoming business sectors like the IT and engineering firms  change in the taste and attitude of the Indians  effect of globalization  heavy influx of FDI in the retail sectors in IndiaIn 2003, the fresh fruit and vegetables market was valued at £7.6bn at current prices,having increased by just 3.9% since 1999. Marginal growth in the green vegetables andpotatoes sectors is largely responsible for the limited growth of the market. The fresh fruitsector accounts for 38.1% of the overall market and is gaining share. This is probablyexplained by the continuing trend towards convenience eating as fruit generally requireslittle or no preparation, while vegetables usually require preparation and cooking.Meanwhile, both the fruit and vegetables sectors have benefited from widespread publicityabout the positive impact on health of consuming fruit and vegetables regularly. Indeed, thescientific evidence that fruit and vegetable consumption can protect against cancer andother illnesses now appears overwhelming, with studies from around the world highlightingthe benefits of eating even small amounts. In the UK, a government drive to encourage 50
  51. 51. people to eat more fruit and vegetables may be having a positive effect on the market. TheDepartment of Healths Five-a-Day Programmed, for example, is designed to encourageconsumers to eat five 80 gram portions of fresh fruit and vegetables a day.Most consumers now buy their fresh vegetables and fruit from the grocery multiples, ratherthan specialist fruit and vegetable stores. The multiples tend to display fruit and vegetablesat the entrance to their store in the belief that a display of bright colors presents anattractive and healthy image of their store to consumers. The supermarkets have alsohelped to increase the variety of fruit and vegetables available to the consumer and haveexploited growing demand for convenience products by introducing an ever-growing rangeof prepared fruit and vegetables. These include repacked fruit and vegetable mixes, withthe fruit and vegetables peeled and ready to cook. A wide variety of fresh salad mixes isavailable. Brands have never had the same impact in the fresh fruit and vegetables sectoras in other areas of the food market. However, the main suppliers say that this is nowchanging and the major retailers are increasingly willing to carry brands alongside their ownproducts.Its expects fruit consumption to continue to increase over the next few years, as the trendsof growing demand for convenience foods and concerns over health continue to influenceconsumers. In addition, the growing presence of brands in the fruit sector should also drivedemand. However, consumption of potatoes and other vegetables is likely to continue itsdownward trend. Potatoes are losing out as British people switch from their once staplefood item to more convenient alternatives, such as pasta and rice. Meanwhile, frozenvegetables are likely to continue to win market share at the expense of fresh produce, suchas beans and peas. Some sectors, such as prepared vegetables and salads shouldcontinue to grow rapidly. Intensifying competition among retailers is likely to underminevalue growth with the market expanding by just 3% in value terms between 2004 and 2008.Protests against retail chains getting into fruits and vegetables:At least three major cities saw protests in May against Reliance, Indias largest corporation,entering the business of retailing fresh vegetables and fruits through its brand Reliance 51
  52. 52. Fresh. In Ranchi and Indore, the protests had political backing and turned violent. Theprotestors, mostly street vendors, fear the companys low prices will destroy their market.While it is too early to know if their fears are founded in reason or hype, the protests alsostem from the fact that they feel cheated by a government that is in a hurry to promote largeretail businesses and refuses to keep its promises made to small vendors and retailers,who control about 95 per cent of the countrys overall retail business.India has an estimated 12 million street vendors in its cities—the 2004 National Policy ForUrban Street Vendors pegs it at 10 million—and roughly 2.5 per cent of each cityspopulation is engaged in vending on streets."About one-fourth of these vendors sellvegetables and fruits, says Madhu Kishwar, senior fellow at the Centre for the Studies ofDeveloping Societies, Delhi. But "there has been little progress on the 2004 policy, whichrecognised the value of Services Street vendors provide and the states duty to protect theirrights, says Kishwar, who was among the people pushing for the policy.Who is to take the hit?"We want a level playing field, says Arbind Singh, coordinator of the National Association ofStreet Vendors of India in Patna."There is no government recognition, credit availability orinstitutional support for street vendors. They have to wage daily battles with the police,municipal authorities and local goons, and bribe them on a weekly basis, Singh says. "Seethis against the single-window clearance for the industry, and youll realise our grievance.Like industries, we too generate employment and offer services. Why should we bediscriminated against? asks Basant Haryana, leader of a street vendors union in Jaipur."Our protest was peaceful. It wasnt led by narrow political interests. Rather it came fromthose fearing loss of livelihood, says fellow union leader Ghanshyam Kotwal. "The Ranchiprotest turned violent due to goons infiltrating our rally, says Kaushal Kishore of theJharkhand Educated Unemployed Footpath Vendors Association."We have very little, andthat too we will lose to competition that has unfair government support.Singh says the retail chains low prices are because of their ability to take losses over years—leading losses—to out-price competitors. "Once the small players are gone. 52
  53. 53. Retail rush:Many visible corporate brands are into the retail business: Reliance, ITC, Bharti, BigBazaar, Godrej and Subhiksha. India has not allowed FDI in multi-brand retailing. Butinternational behemoths like Wal-Mart, which has a deal with Bharti, are raring for jointventures. (Wal-Mart is worlds largest retailer and the second largest corporation. Labourunions, womens rights groups, and grassroots organisations have long argued that thereason for Wal-Marts cheap prices is how shoddily it treats its employees. Wal-Mart had toleave Germany and South Korea because it did not get the kind of room for its policies as inthe US and other countries.)Fresh fruits and vegetables (FFV) are a small part of this retail juggernaut. "Even if retailchains do very well, they will capture only 10 per cent of the FFV market in another five to10 years, says P Chengappa, professor of agricultural marketing at the University ofAgricultural Sciences, Bangalore."Retail chains do well in non-perishable items but fail tocapture the market of perishables. Besides, the Indian market is too large, with too manycommodities and far too many small players. Bangalore alone consumes about 10,000tonnes of FFV every day. Nobody would have the money to come up with cold storagechains and backward integration of the supply chain to control such a market.This doesnt mean there is no money to be made in the retail of perishables. "In India,organised retail of perishables may be small, but some successful players have beenaround for long: Mother Dairy and Safal are two significant brands. Both are cooperativesand havent affected vendors in any way, says Ashok Gulati, chairperson of the south Asiaoffice of the International Food Policy Research Institute. The institute is due to come outwith a study on FFV retails led by Thomas Reardon, a known authority on retail business indeveloping countries. Gulati, a supporter of the retail revolution, says farmers will benefit byway of a better price.All for farmers:Better price for farmers is the high point of the policy sales pitch of everybody, from thegovernment to retail chains like Reliance Fresh. Sources close to Reliance say the 53

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