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“A study of Consumer
   Behavior Towards
Leading Organized Food
 And Grocery Retail In
       Noida. “
     Faculty Guide: Dr.Nidhi Bhatia



          Submitted by: Devriti R.L.Rana
                         A1802010152
                              Section D
                     MBA-IB (2010-12)
Why I Chose The Topic…
•   There were many reasons that made me choose this topic for research.
    Some of the major reasons are –

•   I am a student of consumer behaviour and this report will help me get a
    deeper insight of the subject.

•   Consumer behaviour is a virtual aspect, so it is very difficult to understand
    and this report will aim towards making the understanding easy.

•   The reason why I chose retail out of all sectors were because its
    contribution is remarkable to the national GDP of the country as it
    contributes around 14% to the GDP .

•   It is the fastest growing sector. Its growth rate recorded at a compound
    annual rate of 6.4% since 1998.
Contd…
• The organised retail sector in India has changed the entire
  traditional retailing system making it more structured and
  has been registering growth rates of approximately 40 per
  cent over the last three years and it grew to about Rs
  35,000 crore in 2005, and close to Rs 70,000 crore in 2010.

• India is rated the fifth most attractive emerging retail
  market: a potential goldmine and it was ranked second in a
  Global Retail Development Index of 30 developing
  countries drawn up by AT Kearney.

• Also Food and apparel retailing are key drivers of growth
Contd…
• Retailing is being hailed as the future of Indian industry, spurred by
  country’s huge consumer market of $ 300 billion per year by 2010
  and it is forecasted that aggregate consumption will grow to rupees
  70 trillion by 2025 (McKinsey report, 2007).

• The food and grocery also contributes a whopping rupees 7, 43,900
  crores out of the total retail market which is approximately of
  rupees 12, 00,000 crores.

• Organized market is the upcoming retail market trend in India
  which is showing tremendous growth over the last few years.

• The changing demographic trends that are shifting consumption of
  people from unorganized to organized sectors.
Objectives of the study
•   To study the consumer behaviour towards the leading organised food and
    grocery sector in Noida.

•   To understand the perception of consumer towards the organised food
    and grocery retails in Noida.

•   To analyse and study how the demographics can influence the perception
    of the consumers towards decision making of consumption.

•   To study the instant growth of the organised sector of food and grocery
    retailing in Noida and India as a whole.

•   To measure the significance of demographic variables on shopping
    behaviour dimensions.

•   To provide recommendations accordingly.
Scope of the study
• The aim of this research paper is to study the Indian consumer
  behaviour & their choice and preference towards the Organized
  Food & Grocery retail in Noida.

• It is to assess the impact of demographics on consumer buying
  preferences of the products offered by the leading organised food
  and grocery retail’s in Noida (India).

• In this study four different leading organized Food & Grocery
  Retailers viz. Food Bazaar, Spencer’s Retail, Easy day and Safal Pure
  Veg have been taken to examine the consumer’s perception for
  these retailers .

• Respondents were selected by using the simple random sampling
  method and participation being voluntary. Around 300 respondents
  from Noida are interviewed using a structured questionnaire.
LIMITATIONS…
• The time given (3 months) was too less for the completion of
  the research.
• It was difficult to collect data as the retail outlets were not
  too open to allow retrieving their intrinsic information.
• The customers (few of them) were not very cooperative at
  the time of data collection.
• The research is limited to just the leading 4 outlets and
  300 customers of these 4 retail outlets within Noida.
• Therefore the data is not very accurate because it is collected
  from only few people.
Contd…..
• Organized F&G retail is a vast explanation therefore it is
  difficult to collect the accurate data, which is related to my
  topics.
• The responses given by respondents were not always
  accurate because the respondents gave the response
  according to their understanding.
• Survey is a time consuming process but the time to collect the
  data for research was very less.
Research Methodology
                 Description                      Type
1. Objective                   Study the consumer behaviour towards
                               the leading organised food and grocery
                               sector in Noida.
2. Research Design             Exploratory and Descriptive.
3. Population                  9 leading F&G stores in India.
4. Sampling Frame              4 food and grocery retail outlets in Noida.
5. Sampling Technique          Excel sheet to define each question
                               through a graph or a pie-chart and SPSS
                               for hypothesis testing(chi square test).
6. Sample Area                 Spencer’s Retail, Food Bazaar, Safal Pure
                               Veg and Easy Day.
7. Sample size                 300 respondents of Noida
Description                      Type



Primary Data                 Collected through a structured
                             questionnaire.

Secondary Data               Government studies, Internet, Newspaper
                             articles and Online journals.

Hypothesis                   1. Hypothesis states that Demographics
                             and Consumer Behaviour are inter-
                             related.

                             2. This hypothesis tests if Food Bazaar is
                             Consumer’s favourite choice amongst all
                             its competitors being studied.
Findings
•   Both our hypothesis prove to be correct. Firstly, that Demographics and Consumer Behaviour are inter-
    related and that Food Bazaar is the most preferred F&G retail outlet amongst all other outlets that
    were analysed in Noida.

•   Out of 300 respondents surveyed in Noida, 127 were Male and 173 were Females. So the ratio of
    Females Food & Grocery shoppers is more than male in Noida.

•   74% of the Female respondents looked for Reasonable price and Variety while shopping, whereas 87%
    of men looked for spacious outlet, brand name and easy store direction.

•   It was analysed that the consumption pattern and behaviour of each gender was similar within its
    gender type.

•   Under the age factor, maximum shoppers for the F&G were between the 20-29 age groups that
    comprise of 129 respondents out of 300 respondents and the least accounting to 20 respondents
    belonging to the age group of > 40. The second highest accounting to 98 respondents fell between the
    age of 30-39 and the remaining 43 were less than the age of 20.

•   Consumption behaviour of 20-29 and < 20 categorised individuals were similar as they gave brand a lot
    of weightage while purchasing products.

•   Whereas the respondents between the age group of 30-39 looked for reasonable price and variety of
    products. While making consumption and the respondents falling under the category of > 40 age group
    wanted good customer service that influenced their consumption behaviour towards the retail outlet.
•Whereas the respondents between the age group of 30-39 looked for reasonable price and variety of
products. While making consumption and the respondents falling under the category of > 40 age
group wanted good customer service that influenced their consumption behaviour towards the retail
outlet.

•20-29 and < 20 age group gave Brand name high preference whereas > 40 age group did not really care
about brand. Their preference being 0% towards it.

•Out of 300 respondents, 170 respondents chose Food Bazaar, 50 chose Easy day , 45 chose Spencer’s Retail
and only 35 opted for Safal Pure Veg .

•Food Bazaar was preferred for following reasons –
1. Wednesday bazaar
2. Outlet first, brand second
3. Its effective mode of payment options.
4. Variety of goods
5. Heavy discounts, sales and schemes
6. Easy store direction, good shelf display and very interactive salesmen and spacious retail outlets.

•Consumer behaviour for consumption of F&G items by Noida civilians is generally done between 1-3
months duration.

•Food bazaar caters to all aspects such as Variety, Serviceability, Discounts and Mode of Payment and 100
respondents out of 170, who chose food bazaar over its competitors, supported this statement.
Respondents believe Spencer’s Retail, Easy day and Safal Pure Veg provide good service that increases their
frequency of visit to these stores.
Recommendations
•Service not only refers to the in- house services like exchange of products, assisting
customers and so on. It also refers to easy accessibility to the store, proximity of store to
the residence, credit facility by the store, less traffic in the approach road, free home
delivery at the earliest, reducing the lengthy queues at the ticket counter, effective
complaint handling system and error free billing.

•Each and every activity of the Foodworld should lead to satisfaction of the customer or
even to a higher degree called customer delight. There are factors that define satisfaction
like low level prices, high quality, high ethical standards and environmentally friendly
products, prompt complaint handling, skilful and professional salesmen, safe mode of
payment, better layout of the store, honest dealings by the store, prompt service, early
opening of the store and least billing errors. Retailers should consider all these factors to
increase the level of satisfaction among the customers.

•Good ambience can be given through air conditioning of the store, free parking, proper
lighting, good security, neat and clean wash rooms, elevators, cleanliness and proper
ventilation or even having play area for children.
•   Major promotional tools used by the stores are discounts and coupons, exchange
    offers, low priced products and other attractive schemes, that help them in
    customer retention.

•   Promotional factors do play a major role deciding and choosing a store.

•   Good variety in retail stores acts as a major motivator for customers to visit a store
    again and again. For majority of customers variety came in the form of having a
    bakery within the store, food section, more private labels and national brands and
    finally a lot of fresh fruits and vegetables.

•   A loyal customer reduces the cost of retailer. Therefore the retailer should leave
    no stone unturned to maintain and increase the loyalty of customers. For the
    same, loyalty programs needs to be introduced like bonus points, free insurance,
    preferred customer status, cash back schemes and other special offers which
    satisfy the customer.

•   Retailers should help customers to explore the store. For this shopping should be
    made more adventurous by continuously upgrading the product portfolio, by
    changing the layout and by providing the touch and feel experience.
Conclusion



Under progress…….

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Consumer behavior towards leading organized f&g retail.

  • 1. “A study of Consumer Behavior Towards Leading Organized Food And Grocery Retail In Noida. “ Faculty Guide: Dr.Nidhi Bhatia Submitted by: Devriti R.L.Rana A1802010152 Section D MBA-IB (2010-12)
  • 2. Why I Chose The Topic… • There were many reasons that made me choose this topic for research. Some of the major reasons are – • I am a student of consumer behaviour and this report will help me get a deeper insight of the subject. • Consumer behaviour is a virtual aspect, so it is very difficult to understand and this report will aim towards making the understanding easy. • The reason why I chose retail out of all sectors were because its contribution is remarkable to the national GDP of the country as it contributes around 14% to the GDP . • It is the fastest growing sector. Its growth rate recorded at a compound annual rate of 6.4% since 1998.
  • 3. Contd… • The organised retail sector in India has changed the entire traditional retailing system making it more structured and has been registering growth rates of approximately 40 per cent over the last three years and it grew to about Rs 35,000 crore in 2005, and close to Rs 70,000 crore in 2010. • India is rated the fifth most attractive emerging retail market: a potential goldmine and it was ranked second in a Global Retail Development Index of 30 developing countries drawn up by AT Kearney. • Also Food and apparel retailing are key drivers of growth
  • 4. Contd… • Retailing is being hailed as the future of Indian industry, spurred by country’s huge consumer market of $ 300 billion per year by 2010 and it is forecasted that aggregate consumption will grow to rupees 70 trillion by 2025 (McKinsey report, 2007). • The food and grocery also contributes a whopping rupees 7, 43,900 crores out of the total retail market which is approximately of rupees 12, 00,000 crores. • Organized market is the upcoming retail market trend in India which is showing tremendous growth over the last few years. • The changing demographic trends that are shifting consumption of people from unorganized to organized sectors.
  • 5. Objectives of the study • To study the consumer behaviour towards the leading organised food and grocery sector in Noida. • To understand the perception of consumer towards the organised food and grocery retails in Noida. • To analyse and study how the demographics can influence the perception of the consumers towards decision making of consumption. • To study the instant growth of the organised sector of food and grocery retailing in Noida and India as a whole. • To measure the significance of demographic variables on shopping behaviour dimensions. • To provide recommendations accordingly.
  • 6. Scope of the study • The aim of this research paper is to study the Indian consumer behaviour & their choice and preference towards the Organized Food & Grocery retail in Noida. • It is to assess the impact of demographics on consumer buying preferences of the products offered by the leading organised food and grocery retail’s in Noida (India). • In this study four different leading organized Food & Grocery Retailers viz. Food Bazaar, Spencer’s Retail, Easy day and Safal Pure Veg have been taken to examine the consumer’s perception for these retailers . • Respondents were selected by using the simple random sampling method and participation being voluntary. Around 300 respondents from Noida are interviewed using a structured questionnaire.
  • 7. LIMITATIONS… • The time given (3 months) was too less for the completion of the research. • It was difficult to collect data as the retail outlets were not too open to allow retrieving their intrinsic information. • The customers (few of them) were not very cooperative at the time of data collection. • The research is limited to just the leading 4 outlets and 300 customers of these 4 retail outlets within Noida. • Therefore the data is not very accurate because it is collected from only few people.
  • 8. Contd….. • Organized F&G retail is a vast explanation therefore it is difficult to collect the accurate data, which is related to my topics. • The responses given by respondents were not always accurate because the respondents gave the response according to their understanding. • Survey is a time consuming process but the time to collect the data for research was very less.
  • 9. Research Methodology Description Type 1. Objective Study the consumer behaviour towards the leading organised food and grocery sector in Noida. 2. Research Design Exploratory and Descriptive. 3. Population 9 leading F&G stores in India. 4. Sampling Frame 4 food and grocery retail outlets in Noida. 5. Sampling Technique Excel sheet to define each question through a graph or a pie-chart and SPSS for hypothesis testing(chi square test). 6. Sample Area Spencer’s Retail, Food Bazaar, Safal Pure Veg and Easy Day. 7. Sample size 300 respondents of Noida
  • 10. Description Type Primary Data Collected through a structured questionnaire. Secondary Data Government studies, Internet, Newspaper articles and Online journals. Hypothesis 1. Hypothesis states that Demographics and Consumer Behaviour are inter- related. 2. This hypothesis tests if Food Bazaar is Consumer’s favourite choice amongst all its competitors being studied.
  • 11. Findings • Both our hypothesis prove to be correct. Firstly, that Demographics and Consumer Behaviour are inter- related and that Food Bazaar is the most preferred F&G retail outlet amongst all other outlets that were analysed in Noida. • Out of 300 respondents surveyed in Noida, 127 were Male and 173 were Females. So the ratio of Females Food & Grocery shoppers is more than male in Noida. • 74% of the Female respondents looked for Reasonable price and Variety while shopping, whereas 87% of men looked for spacious outlet, brand name and easy store direction. • It was analysed that the consumption pattern and behaviour of each gender was similar within its gender type. • Under the age factor, maximum shoppers for the F&G were between the 20-29 age groups that comprise of 129 respondents out of 300 respondents and the least accounting to 20 respondents belonging to the age group of > 40. The second highest accounting to 98 respondents fell between the age of 30-39 and the remaining 43 were less than the age of 20. • Consumption behaviour of 20-29 and < 20 categorised individuals were similar as they gave brand a lot of weightage while purchasing products. • Whereas the respondents between the age group of 30-39 looked for reasonable price and variety of products. While making consumption and the respondents falling under the category of > 40 age group wanted good customer service that influenced their consumption behaviour towards the retail outlet.
  • 12. •Whereas the respondents between the age group of 30-39 looked for reasonable price and variety of products. While making consumption and the respondents falling under the category of > 40 age group wanted good customer service that influenced their consumption behaviour towards the retail outlet. •20-29 and < 20 age group gave Brand name high preference whereas > 40 age group did not really care about brand. Their preference being 0% towards it. •Out of 300 respondents, 170 respondents chose Food Bazaar, 50 chose Easy day , 45 chose Spencer’s Retail and only 35 opted for Safal Pure Veg . •Food Bazaar was preferred for following reasons – 1. Wednesday bazaar 2. Outlet first, brand second 3. Its effective mode of payment options. 4. Variety of goods 5. Heavy discounts, sales and schemes 6. Easy store direction, good shelf display and very interactive salesmen and spacious retail outlets. •Consumer behaviour for consumption of F&G items by Noida civilians is generally done between 1-3 months duration. •Food bazaar caters to all aspects such as Variety, Serviceability, Discounts and Mode of Payment and 100 respondents out of 170, who chose food bazaar over its competitors, supported this statement. Respondents believe Spencer’s Retail, Easy day and Safal Pure Veg provide good service that increases their frequency of visit to these stores.
  • 13. Recommendations •Service not only refers to the in- house services like exchange of products, assisting customers and so on. It also refers to easy accessibility to the store, proximity of store to the residence, credit facility by the store, less traffic in the approach road, free home delivery at the earliest, reducing the lengthy queues at the ticket counter, effective complaint handling system and error free billing. •Each and every activity of the Foodworld should lead to satisfaction of the customer or even to a higher degree called customer delight. There are factors that define satisfaction like low level prices, high quality, high ethical standards and environmentally friendly products, prompt complaint handling, skilful and professional salesmen, safe mode of payment, better layout of the store, honest dealings by the store, prompt service, early opening of the store and least billing errors. Retailers should consider all these factors to increase the level of satisfaction among the customers. •Good ambience can be given through air conditioning of the store, free parking, proper lighting, good security, neat and clean wash rooms, elevators, cleanliness and proper ventilation or even having play area for children.
  • 14. Major promotional tools used by the stores are discounts and coupons, exchange offers, low priced products and other attractive schemes, that help them in customer retention. • Promotional factors do play a major role deciding and choosing a store. • Good variety in retail stores acts as a major motivator for customers to visit a store again and again. For majority of customers variety came in the form of having a bakery within the store, food section, more private labels and national brands and finally a lot of fresh fruits and vegetables. • A loyal customer reduces the cost of retailer. Therefore the retailer should leave no stone unturned to maintain and increase the loyalty of customers. For the same, loyalty programs needs to be introduced like bonus points, free insurance, preferred customer status, cash back schemes and other special offers which satisfy the customer. • Retailers should help customers to explore the store. For this shopping should be made more adventurous by continuously upgrading the product portfolio, by changing the layout and by providing the touch and feel experience.