to analyze the shifting people towards super markets
Sushil mandlekar
1. 1
TO STUDY STORE CHOICE BEHAVIOR FOR
GROCERY PRODUCTS IN ORGANIZED
RETAIL OUTLET WITH RESPECT TO
NAGPUR CITY
A PROJECT REPORT
Submitted To
RASHTRASANT TUKDOJI MAHARAJ NAGPUR UNIVERSITY, NAGPUR
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF
THE DEGREE OF MBA
SUBMITTED BY
SUSHIL KUMAR U. MANDLEKAR
Project Guide
AVINASH BHOWATE
ASSISTANT PROFESOR
March-2015
GREEN HEAVEN INSTITUTE OF MANAGEMENT AND
RESEARCH, NAGPUR
2. 2
CERTIFICATE
This is to certify that Sushil Kumar u. Mandlekar is a bonafide student of
Master of Business Administration of Green Heaven Institute of
Management and Research, Nagpur. He / she has completed his / her project
entitled “To study store choice behavior for grocery products in
organized retail outlet with respect to Nagpur city”, submitted in partial
fulfillment of MBA program of the RASHTRASANT TUKADOJI
MAHARAJ NAGPUR UNIVERSITY, Nagpur, under my guidance and
supervision in the academic year 2014-15.
Project Guide Director
Prof. Avinash Bhowate Dr. T. Kalyani
Green Heaven Institute of Management and Research,
Near Hotel Sun & Sand, Wardha road, Nagpur.
3. 3
DECLARATION
I, Sushil Kumar u. Mandlekar hereby declare that the project
entitled To study store choice behavior for grocery products in
organized retail outlet with respect to Nagpur city has been carried out by
me under the guidance of Prof. Avinash Bhowate.
This project is submitted to RASHTRASANT TUKADOJI
MAHARAJ NAGPUR UNIVERSITY, Nagpur in partial fulfillment of the
academic requirement for Master of Business Administration during the
academic year 2014-15.
This is the outcome of my own research work based on personal study
and has not been submitted previously for award of any degree or diploma to
this university or any other university.
Sushil Kumar U. Mandlekar
4. 4
ACKNOWLEDGEMENT
Completing a task is never alone journey. It is often the result of a
valuable contribution from a number of individuals in every possible way,
which ultimately helps in achieving the objective.
Firstly I would like to thank Dr. T. Kalyani Director and Prof. Avinash
Bhowate Project Guide, for their kind support and giving me the
opportunity to present this project.
I am thankful to all the members of management of the college, who
provided me to all the information that I needed to complete this project.
This project would not have been accomplished without their valuable
support.
I would like to acknowledge the contribution of my parents and all my
friends who have been instrumental in successful completion of the project.
Place: Nagpur Sushil Kumar U. Mandlekar
Date:
5. 5
TABLE OF CONTENTS
Sr. No. Particulars Page No.
1 Introduction 1-4
2 Research Methodology
Introduction to research
Research Methodology
Problem statement
Aims and objectives
Scope and limitations
Hypothesis/Hypotheses
5-11
3 Literature of review 12-14
4
Data Collection
Primary Data
Secondary Data
15-37
5 Finding & Suggestions 38-41
6 Bibliographies & Annexure 42-46
6. 6
ABSTRACT
I did my project in store choice behavior for grocery products in organized retail outlet
with respect to Nagpur city. Project is mandatory by college and university.
Organized retailers actually work as a retail outlet catering to varied needs of the
customers. The purchasing pattern of the customer has changed recent days. Customer’s
buying behavior is influenced by social factors, such as the group to which the customers
belong and social status. In a group, several individuals may interact to influence the
purchase decision. Change in consumption pattern is due to outsourcing business per
capita, income of middle age, population in big cities is rising rapidly and easier access to
credit. Retail shopping space is also growing exponentially and has increased to 54
million square meters. The development of organized shopping malls has literally been a
revolution in India. Retailing is one of the largest business activities in India and one of
the largest sources of employment in the country. Due to drastic change in the behavior
of the consumer, in the view of growing economy, earning capacity, less time and fast
track life the emerging challenge for the retail in India and in Nagpur city is to maintain
the quality in competitive rate structure. Data was collected from questionnaire filled up
by the consumers visited to organized retail shops. 100 consumers were selected by
Random Sampling Method. Introduction of organized retailing has not been able to
replace traditional markets, which are still popular among the pocket conscious people,
but has definitely added a new adventure to the shopping experience.
I get more experience through survey. I have learnt lots of things like communication
skills and convincing power and also get an experience how to interact with the people. I
learned the actual market condition and sales environment.
We observed that Indian public is mostly unaware about retail industry and even not
giving any priority to shopping experience only 27% to 38% of the population has
purchased grocery product in Big Bazaar, reliance fresh, Westside, Apana Bhandar,
pantaloons etc.
8. 8
Introduction:
India is one of the fastest growing economies in the world and one of the largest in term
of purchasing power parity. It has been called a nation of shopkeepers since centuries.
Trading is one of the most significant sectors of the Indian economy. The contribution of
this sector in the total Gross Domestic Product is 14 percent and near about 3 crores
peoples derives their income from this treading activities. Majority of them are laborers
involved in small retail treading activity. These small traders now will have to face
competition with organized large departmental stores like, Wal-Mart, Tesco, Metro,
Kasino, Big Bazar, Pyramid, Pantaloons, Westside, Apana Bhandar, Reliance Fresh,
Super General Shoppe etc.
With the changing demographics across the world the organized retailing is taking shape
where people buy their daily and monthly purchases. In a way, large area, usually lined
with many products, brands with width and depth. Organized retailers actually work as a
retail outlet catering to varied needs of the customers. The purchasing pattern of the
customer was changed recent days. Customer’s buying behavior is influence by social
factors, such as the group to which the customer belong and social status. In a group,
several individual may interact to influence the purchase decision. Up to 2002, consumers
even in India, top cities such as Mumbai, Delhi has no choice to purchase their daily
foods and consumers good from small scale Mom & Dad Stores. However, the shopping
experience for India’s urban consumers is now changing completely. Because of the
outsourcing business per capita income of middle age population in big cities is rising
fast and easier access to credit are bringing a change in consumption pattern. Retail
shopping space is also growing exponentially and has increased to 54 million square
meters.
The development of organized shopping malls has literally been a revolution in India.
The opening of the Indian Economy in the early 1990s brought a wide range of new
household’s appliances, stylish apparel, and other consumer goods, along with the plenty
of media exposure. But what the Indian consumer still lacked was a world-class shopping
experience: a pleasant, open, relaxing, air-conditioned place to compare prices, quality
and styles without other customers trying to squeeze through the shop doorway or shout
over one’s head to proprietor.
9. 9
India is the country having the most unorganized retail market. Traditionally it was a
family’s livelihood, with their shop in the front and house at the back, while they run the
retail business. More than 99 per cent retailers have a space less than 500 square feet of
shops. The Indian retail sector is estimated at around 900,000 crores, of which the
organized sector accounts for a mere 2 per cent indicating a huge potential market
opportunity that is laying in the waiting for the consumer. Purchasing power of Indian
urban consumer is growing and branded merchandise in categories like Apparels,
Cosmetics, Shoes, Watches, Beverages, Food and even jewelry, are slowly becoming
lifestyle products that are widely accepted by the urban Indian consumer. Indian retailers
need to advantage of this growth and aiming to grow, diversify and introduce new
formats have to pay more attention to the brand building process. The emphasis here is on
retail as a brand rather than retailers selling brands. The focus should be on branding the
retail business itself. A number of large corporate houses – Tata’s, Raheja’s, Piramal’s,
Goenka’s – have already made their foray into this arena, with beauty and health stores,
supermarkets, self-service music stores, new age book stores, every- day- low price
stores, computers and peripherals stores, office equipment stores and home-
building constructions stores. Today the organized players have attacked
every retail category.
Wal-Mart, the world’s biggest retailer, was established in 1962. Its founder
Sam Walton had expanded Wal-Mart into a chain of discount stores and all
its stores were built on the principle of attracting customers of the lower
income group by providing a variety of products under one roof at a low
price. Also the malls are providing the facilities for customers to pay the
higher amount on installment basis, and/or giving interest free finance, credit
card facility, gift hamper, free products and many other discount facilities.
10. 10
1. Indian Retailing can be classified in two sectors:
1) Organized Retailing, which has developed in India in following format.
Shopper stop — Departmental store format
Big Bazaar — Hyper market
Food world — Super market
Pantaloons and the home store — specially retailing
2) Un-organized Retailing.
Retailing is subjected to the constant changes, which increase both the risk and the
influenced by many forces such as:
Population
Mobility of consumer
Increased in personal income
Changes in the distribution of income
Consumer credit
Competitive changes
Technological innovation
Government policies, etc.
1. The essential elements for a successful retail trade can be classified as, a.
Selection of proper goods
b. Perfect knowledge about the goods
c. Sales policy
d. Adequate capital
e. Business location
f. Education and business
g. Attractive display and advertisement
h. Providing credit facility
12. 12
2. Methodology
2.1. Significance of the Study
Retailing is one of the largest business activity in India and one of the largest sources of
employment in the country. According to a study by Industry Body FICCI, the total retail
trade in India was worth Rs. 11, 00,000 crores in the year 2003. Of the approximately 12
million retail shops, 96% occupy floor space less than 500 square feet. The large number
of retail shops is in the un-organized sector, such as Grocery, Vegetable shop etc. Only
about 2% of outlet in the organized sector, such as retail chains, departmental stores, and
special stores. The boom in India’s retail industry is mainly due to the rise in shopping
Malls across the country in the past 5-6 years even as their management has emerged as a
big challenge.
The Indian market comprises of three different types of consumer such as rich consumers
having tremendous purchasing capacity, middle class consumers having adequate
purchasing power, and the bottom line consumers who possess low purchasing power.
Big retailers would not reach up to the bottom; they would be concentrating their
attention towards the reach and middle classes. The Mall culture is affecting the small
retailers. There are the major reasons of which the challenge has arisen for the small
stores. Usually the mentality of average people in India, have the product in a cheap rate
and in addition it should also have the quality. Such behavior of consumer has made
market much more competitive, but it has many prospects, so the big companies like ITC,
Big Bazar, Tru Mart, Chaupal, Reliance etc. have jumped into the retail market. These
companies trying to attract the customer by providing the goods in discount rate, less than
MRP, certain gift hampers, free product on purchase etc. Due to such methods or
schemes of attracting the customer by the giant and organized players in retail trade, the
small and un- organized shopkeeper’s i.e. the sole traders are finding themselves difficult
to maintain the customer’s fluency. The mode of buying the product on credit by the
customer from the sole trader has also decreased. This happens especially with Grocery
shops, small readymade cloth stores and small other stores. As the economy in the boom
condition people do have enough money in their hand to purchase the product in cash, or
on credit cards, so they are getting attached towards such Big Bazaar, Tru-Mart. It also
because such retailers are able to maintain the quality and packed products. Due to drastic
13. 13
change in the behavior of the consumer in the view of growing economy, earning
capacity, less time and fast track life the emerging challenge for the retail in India and in
Nagpur city is to maintain the quality in competitive rate structure.
14. 14
2.2. Area of the Research
Attempts have taken to study the view of consumers regarding organized and un-
organized retailing and their preferences towards the consumer goods in Nagpur City. For
this research Nagpur City is considered as the area of research. It is one of the important
cities in Maharashtra, as well as in the country. It is second capital of Maharashtra. It is
located at geographical center of India and well connected by rail, road and air with rest
of the country and three national highways are also passing through the city. To cater the
need of increasing importance of city, Cargo Hub, Mihan project has already started and
some IT companies have already started functioning and like Infosys, Mahindra-Satyam
have decided to launch their projects in near future. The Mall culture was started in
Nagpur city 4-5 years back by setting up Westside and then Big Bazaar. Cooperative
consumer stores were started long back, but the culture remains same as small retailers.
More consumers are attracting towards Big Bazaar because of its publicity, big space,
marketing strategy, display of various products and discount facilities. Displaying various
products less than one roof makes the consumers convenient to choose the product freely
and can handle the products by themselves hence the consumers are purchasing some
products which are not of their prime importance. Markets in Sitabuldi, Sadar, Central
Avenue, and GandhiBaug meet the city’s shopping needs. Dharampeth and Itwari have
emerged as a popular alternative.
15. 15
The total area covered by shopping mall in Sitabuldi on 10lack sq. ft. with a hotel,
recreation Centre and multiplex theatres built in. Six new shopping malls in Nagpur will
come up by 2008-09 at an investment of Rs. 1,000 crores. The Nagpur Municipal
Corporation has allocated unused land to infrastructure development companies for a
twenty-year lease of Rs. 545 crores. BSEL infrastructure Realty and Unity Infra projects
have bagged the projects. These malls would be located in Netaji Market and Water
Works Department in Sitabuldi, in Gokulpeth Market, Grain Market in Wardhman Nagar,
in Jaripatka and in Pachpoli Flyover near Kamal Square. Some of the recently built
notable landmarks are MHKS Mall at Chaoni, Mangalam Marvel at W.H.C. Road, The
Triangle at Kingsway and Inland at Central Avenue.
Big Bazaar is first Mall and organized retail shop in the city and hence we have taken
into consideration for our research project as a case study.
16. 16
2.3. Objectives of the Study
Aim: To study store choice behavior for grocery products in organized retail outlet with
respect to Nagpur city‖
Objective:
To understand the consumer buying pattern of grocery.
To find out impact of promotional activities by the retail stores.
To find out the consumer preference for the retail outlets.
To find out the services provided by retail sector in Nagpur city
2.4. Technique of data collection
For conducting this research program, primary data was collected from the consumers
who visited and made purchases from Big Bazaar.
Primary data was collected through interview and questionnaire.
Data related with the retail shopkeepers was collected from the small retail shopkeepers
from Sitabuldi and Wardhman nagar area.
The secondary data have been use to know the different statistics regarding the
development of retail marketing and big retailers.
Books, journals, reports, articles published in the newspapers are the sources of
secondary data.
The secondary data was also collected from internet.
17. 17
2.5. Sampling
The consumers and small retailers are the universe of the research. It is very difficult to
collect information from every consumer, so we used the sampling method for research.
Big Bazaar has two outlets in Nagpur city (Ramdas Peth and Wardhman nagar), so data
was collected from the consumers visited to these outlets. 100 consumers were selected
by Random Sampling Method.
A Questionnaire was prepared for consumers and this was filled up by the way of
contacting the consumers and making some queries regarding their opinion.
Samples from Nagpur city was selected by Random Sampling method. Two outlets of
Big Bazaar are the places of observations. Specific sampling method have adopted for
Big Bazaar.
100 consumers from different locality and different economic status have selected for the
study. The total data collected, after filling up the questionnaires from 100 consumers, is
analyzed in this chapter. The presentation is with tabular form and its explanation and
using graphic presentation. The graphic presentations are self-explanatory hence tables
are not presented.
Total 100 consumers from Metropolitan Township of Nagpur city were administered the
preset purposive but small questionnaire and the responses recorded are presented here.
Here both secondary data as well as primary data is used for which research methodology
is taken as below:
Secondary data:-
A. Sample period: - 3 month.
B. Sources of data collection: Secondary sources are considered like:
1) Research Papers 2) Websites 3) Journals 4) Magazine
C. Reason for Secondary data: - Secondary sources like previous research papers
knowledge base which will help her in this project. So secondary data analysis is taken
into consideration in order to make the analysis.
Primary Data:-
A. Sample Size: - 100 Nos.
B. Sample city: - Nagpur city
C. Sampling Technique: - Convenience sampling technique will be used for project.
19. 19
3.1 Review of Literature
Organized retailing will lead to affect the traditional unorganized retailers. Furthermore
the comparative analysis regarding the acceptability of mall concept and the impact of
shopping malls on the general living standards of the society is being considered. There is
an increased customer shopping patterns which has led to emergency of big retail chains
in metros, mini metros and change in the customer’s tastes and preferences leading to
radical transformation in their life style and the spending pattern there by giving rise to
new business opportunities. This generic growth, driven by changing life style and strong
increment in income is to be supported by the favorable demographic patterns. The
development of mega malls in India is adding a new dimension to this booming retail
sector. The groups of visionary corporate working constantly to improve upon urban
shopping experience through the shopping malls concept is the latest move in the retail
sector.
Percentage Share of organized and unorganized sectors in retail industry
India is a nation of shopkeepers as well as shoppers. It is a common practice that retailers
and marketers often strive to learn how and why people shop. The decision making
regarding purchase of goods and services as become more complex and includes a
number of factors which are important for customers. There are wooed by advertising,
news articles and direct mailings providing information in this IT age along with the
mixed messages. The addition of a number of variety stores, goods stores and shopping
malls with the availability of multi component products and electronic purchasing
capabilities have played a crucial role in widening the choice for customers and have
complicated decision making.
The phenomenal growth of retail in India is reflected in the rapid increase in number of
super markets, departmental stores and hyper markets in the country. However, this
unpredicted growth trend has been challenged by the shadow of the current economic
slowdown, which has raised a fair of dip in consumption and slow down of growth for
Indian organized retailers. At a time when consumer spending is on decline, success will
lie with those retailers that can drive customer loyalty by responding to the demands of
the customer.
20. 20
The developing economies, specifically India are appearing on the world retail industry
radar due to the size and potential of their markets. As organized retail presents enormous
business opportunities, big names such as Reliance, Birla’s and Tata’s along with the
Foreign Super Market Chains (in partnership with Indian companies) have been making
an entry in to the sector. Fearing loss of business and employment, traders and hawkers
have held large –scale protests in various parts of the country. In the light of this, the
Ministry of Commerce and Industry commissioned the Indian council for research on
international economic relations (ICRIER) to analyze the impact of organized retailing on
unorganized retail, formers and intermediaries as a possible input to future policy-
making.
According to the author the process is classified into following frame:
1) focus on customer concerns,
2) enquiring front line employees so that the customers are properly treated,
3) express sincere understanding of customer’s desires, wants and means,
4) Apologize and rectify the situation where the customer feels that the retailer was
wrong.
Unless and until a retailer understands a specific class of factors that influences
customer’s satisfaction, induces to develop this loyalty towards a particular retail format
and liking for a particular buying behavior.
22. 22
Data Collection Tool Used:
Questionnaire: - The data collection tool used for the research is “Questionnaires” to
get the primary data for the empirical research to study store choice behavior for grocery
products in organized retail outlet with respect to Nagpur city.
No. of the respondents based on the age
Age
Frequency Percent Valid Percent Cumulative
Percent
Valid
11-20 18 18.0 18.0 18.0
21-30 35 35.0 35.0 53.0
31-40 32 32.0 32.0 85.0
41-Above 15 15.0 15.0 100.0
Total 100 100.0 100.0
Interpretation:
18% of respondents age lies up to age of 11-20
35% of respondent age lies between 21-30
32% of respondents age between 31-40
15% of respondents age is above 41-Above
No. of the respondents based on the Gender
23. 23
Gender
Frequency Percent Valid Percent Cumulative
Percent
Valid
Male 65 65.0 65.0 65.0
Female 35 35.0 35.0 100.0
Total
100 100.0 100.0
Interpretation:
65% of respondents are male
35% of respondent are female
24. 24
No. of the respondents based on the Qualification
Qualification
Frequency Percent Valid Percent Cumulative
Percent
Valid
10th 6 6.0 6.0 6.0
12th 20 20.0 20.0 26.0
Degree 57 57.0 57.0 83.0
Others 17 17.0 17.0 100.0
Total 100 100.0 100.0
Interpretation:
6% of respondents qualification is up to 10th
20% of respondents are 12th
.
57% of respondents are Degree.
17% of respondents are others.
25. 25
No. of the respondents based on the occupation
Occupation
Frequency Percent Valid Percent Cumulative
Percent
Valid
Student 34 34.0 34.0 34.0
Govt. employee 4 4.0 4.0 38.0
Private employee 34 34.0 34.0 72.0
Business 23 23.0 23.0 95.0
House wife 5 5.0 5.0 100.0
Total 100 100.0 100.0
Interpretation:
34% of respondents are students.
4% of respondents are Govt. employee.
34% of respondents are Private employee.
23% of respondents are Business.
23% of respondents are House wife.
26. 26
No. of the respondents based on the income
Interpretation:
21% of respondent’s income is up to 10000.
45% of respondent’s income lies between 11000-20000.
12% of respondent’s income lies between 21000-30000.
13% of respondent’s income lies between 30000-above.
Income
Frequency Percent Valid Percent Cumulative
Percent
Valid
Up to 10000 21 21.0 21.0 21.0
11000 – 20000 45 45.0 45.0 66.0
21000 – 30000 21 21.0 21.0 87.0
30000-Above 13 13.0 13.0 100.0
Total 100 100.0 100.0
27. 27
Customer feedback analysis: -
Interpretation:
30% of respondents prefer Big Bazaar for purchased grocery product.
2% of respondents prefer D-Mart for purchased grocery product.
22% of respondents prefer Reliance Fresh for purchased grocery product.
9% of respondents prefer Westside for purchased grocery product.
25% of respondents prefer ApanaBhandar for purchased grocery product
12% of respondents prefer Pantaloons for purchased grocery product
1. From where you purchased grocery product?
Frequency Percent Valid Percent Cumulative
Percent
Valid
BIG bazaar 30 30.0 30.0 30.0
D-Mart 2 2.0 2.0 32.0
Reliance Fresh 22 22.0 22.0 54.0
Westside 9 9.0 9.0 63.0
Apana Bhandar 25 25.0 25.0 88.0
Pantaloons 12 12.0 12.0 100.0
Total 100 100.0 100.0
28. 28
2. How often the do you purchased?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Once a week 44 44.0 44.0 44.0
Once in 15 days 15 15.0 15.0 59.0
Once a month 28 28.0 28.0 87.0
Twice in a month 13 13.0 13.0 100.0
Total 100 100.0 100.0
Interpretation:
44% of the people purchased in the once a week.
15% of the people purchased in the once in 15 days.
28% of the people purchased in the once a month.
13% of the people purchased in the twice in a month
29. 29
3. Why do you purchase grocery product in this particular retail store?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Ambience 41 41.0 41.0 41.0
Quality 17 17.0 17.0 58.0
Store image 19 19.0 19.0 77.0
Price 23 23.0 23.0 100.0
Total 100 100.0 100.0
Interpretation:
41% of the people prefer ambience in this particular retail store.
17% of the people prefer quality in this particular retail store.
19% of the people prefer store image in this particular retail store.
23% of the people prefer price in this particular retail store.
30. 30
4. Why do you select this particular retail store?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Nearby home town 16 16.0 16.0 16.0
Customer service 12 12.0 12.0 28.0
Low price 53 53.0 53.0 81.0
Others 19 19.0 19.0 100.0
Total 100 100.0 100.0
Interpretation:
16% of respondents select this particular store because it is nearby home town.
12% of respondents select this particular store because of customer service.
53% of respondents select this particular store because of low price.
19% of respondents select this particular store because of other reason.
31. 31
5. What is the mode of prefer payment to purchased grocery product in store?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Cash payment 72 72.0 72.0 72.0
Credit card 28 28.0 28.0 100.0
Total 100 100.0 100.0
Interpretation:
72% of the people prefer paid in cash payment.
28% of the people prefer paid in credit card.
32. 32
6. Do you come to know promotional scheme operate by this store?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 65 65.0 65.0 65.0
No 35 35.0 35.0 100.0
Total 100 100.0 100.0
Interpretation:
65% of respondents consider promotional schemes while purchasing a product in
organized retail stores.
35% of respondents do not consider promotional schemes while purchasing a
product in organized retail stores.
33. 33
7. What you suggestion store to communicate the scheme
Frequency Percent Valid Percent Cumulative
Percent
Valid
Radio 5 5.0 5.0 5.0
News Paper 23 23.0 23.0 28.0
TV 39 39.0 39.0 67.0
Hording 10 10.0 10.0 77.0
Others 23 23.0 23.0 100.0
Total 100 100.0 100.0
Interpretation:
5% of the people radio recommend store to communicate the scheme.
23% of the people newspaper recommend store to communicate the scheme.
39% of the people TV recommend store to communicate the scheme.
10% of the people Hording recommend store to communicate the scheme.
23% of the people other recommend store to communicate the scheme
34. 34
8. Which sales promotional activity attracts you more?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Offers 39 39.0 39.0 39.0
Discount 33 33.0 33.0 72.0
Gift on purchase 16 16.0 16.0 88.0
Prices off 12 12.0 12.0 100.0
Total 100 100.0 100.0
Interpretation:
39% of respondents are attracted due to offer.
33% of respondents are attracted due to discount.
16% of respondents are attracted due to gift on purchase.
12% of respondents are attracted due to price off.
35. 35
9. What do you think about the price of the grocery products?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Highly satisfied 44 44.0 44.0 44.0
Satisfied 53 53.0 53.0 97.0
Moderate 3 3.0 3.0 100.0
Total 100 100.0 100.0
Interpretation:
44% of respondents are highly satisfied about the price of the grocery product.
53% of respondents are satisfied about the price of the grocery product.
3% of respondents are moderate about the price of the grocery product.
36. 36
10. In which sales promotional activities are you satisfied more in retail outlets?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Payback offer 18 18.0 18.0 18.0
Monthly saving offer 26 26.0 26.0 44.0
Gift voucher 13 13.0 13.0 57.0
Big day offer (SS5D) 32 32.0 32.0 89.0
Others if any 11 11.0 11.0 100.0
Total 100 100.0 100.0
Interpretation:
18% of the people are satisfied payback offer.
26% of the people are satisfied monthly saving offer.
13% of the people are satisfied gift vouchers.
32% of the people are satisfied big days offer (SS5D).
11% of the people are satisfied others if any.
37. 37
11. What do you think about the sales service of organized retail outlets?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Excellent 11 11.0 11.0 11.0
Good 54 54.0 54.0 65.0
Average 35 35.0 35.0 100.0
Total 100 100.0 100.0
Interpretation:
11% of respondents think excellent about the sales service.
54% of respondents think well about the sales services.
35% of respondents think average about the sales services.
38. 38
12. In which department you prefer to buy more products in retail outlet?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Food 16 16.0 16.0 16.0
clothing zone 10 10.0 10.0 26.0
grocery 37 37.0 37.0 63.0
durable items 37 37.0 37.0 100.0
Total 100 100.0 100.0
Interpretation:
16% of the people prefer to buy food products in retail outlet.
10% of the people prefer to buy clothing products in retail outlet.
37% of the people prefer to buy grocery products in retail outlet.
37% of the people prefer to buy durable products in retail outlet.
39. 39
13. What is your opinion about the advertisement in organized retail outlets?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Highly satisfied 62 62.0 62.0 62.0
Average 38 38.0 38.0 100.0
Total 100 100.0 100.0
Interpretation:
62% of respondents are highly satisfied about the advertisement in the
organized retail outlets.
38% of respondents are satisfied about the advertisement in the organized retail
outlets.
40. 40
14. What is your opinion about organized retail outlets on available of
product?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Excellent 57 57.0 57.0 57.0
Good 30 30.0 30.0 87.0
Average 13 13.0 13.0 100.0
Total 100 100.0 100.0
Interpretation:
57% of respondents are excellent about the opinion in the organized retail
outlets.
30% of respondents are good about the opinion in the organized retail outlets.
13% of respondents are average about the opinion in the organized retail outlets.
41. 41
15. What do you think about Big Day (SS5D) offer?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Excellent 22 22.0 22.0 22.0
Good 51 51.0 51.0 73.0
Average 27 27.0 27.0 100.0
Total 100 100.0 100.0
Interpretation:
22 % of respondents think excellent about the services after big day.
51% of respondents think well about the services after big day.
27% of respondents think average about the services after big day.
42. 42
Interpretation:
22% of respondent average billing range in organized retail outlets below-1000.
37% of respondent average billing range in organized retail outlets 1100-2000.
16% of respondent average billing range in organized retail outlets 2100-3000.
6% of respondent average billing range in organized retail outlets 3100-4000.
19% of respondent average billing range in organized retail outlets 4100-above.
16. May I know your average billing range in organized retail outlets?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Up to-1000 22 22.0 22.0 22.0
1100-2000 37 37.0 37.0 59.0
2100-3000 16 16.0 16.0 75.0
3100-4000 6 6.0 6.0 81.0
4100-Above 19 19.0 19.0 100.0
Total 100 100.0 100.0
43. 43
17. Are you satisfied to visit this particular store of organized retail outlets?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Highly satisfied 52 52.0 52.0 52.0
Average 48 48.0 48.0 100.0
Total 100 100.0 100.0
Interpretation:
52% of respondents are highly satisfied visit these particular organized retail
outlets.
48% of respondents are average visit these particular organized retail outlets.
45. 45
Conclusion
There is no doubt the world is changing and consumer behavior is evolving faster than
what would have normally expected. Consumers and producers are brought together
electronically in ways we have never before experienced. One of the most exciting
aspects of the new digital world is that consumers can interact directly with other people
who live around the block or around the people.
Impact of Organized Retailing
The growth of corporate retail will take place by destroying the self-organized small
retail in India. Reliance and Big Bazaar are presenting themselves as friends and
liberators of farmers and they refer to small traders as middleman, as if they are not giant
middleman. At least in the case of small traders, farmers have a choice in the terms of
whom to sell. Reliance and Big Bazaar are monopolistic buyers who in due course of
time will drive down procurement prices of agriculture and manufactured products. They
claim that they are paying more to the farmers, but the truth is that they are at present
procuring from the existing Mandis (markets) all across the nation, and not straight from
the farmers, so there is no question of paying better returns to the farmers.
Benefits of organized retailing to consumer and society can be summarized as,
1. Beautiful interiors with entertainment facility
2. Extremely pleasing ambience
3. Mall offers you much more than just shopping
4. Huge gaming zone where kids can utilize the time at the optimum
5. Malls are always being constructed at prime location and in high profile areas. The
changing trend, convenience of shopping, getting variety of items under one roof attracts
and induces people of all age group to frequently visit malls.
6. Generates employment opportunities, direct and indirect, for thousands of people.
46. 46
2. Effects of Organized retailing in Nagpur city
1. All-in-one stores. With everything from groceries and vegetables to footwear, clothes,
cosmetics, furnishings and electrical items available less than one roof, a growing middle
class with higher disposable incomes is heading for the malls in droves.
2. For some, it is a way to chill out on movies and food in the added comfort of a fully
air-conditioned space. ―In short, it is a living room for most of them.‖
3. On festivals, the malls can undoubtedly compete with a meal what with the carnival-
like atmosphere and no elbow room for the visitors.
47. 47
Suggestions
From the above overall study I find that there are some differences in the study store
choice behavior for grocery products in organized retail outlet with respect to Nagpur
city‖
To improve more in there store choice behavior for grocery product in organized retail
outlets I can suggest that
Retail outlets should provide quick and fast service to the customer
Keeping the stock of the different verities of goods.
Applying various methods of demand creation.
Helping in the effective distribution of consumer goods.
Extending credit facilities to the consumers.
Providing many personal services to the consumers.
Providing essential data and information to the manufacturers about the trend
in marketing changes in fashion, tests, etc.
The making available the good according to the season.
Gives proper advice to the customer.
51. 51
QUESTIONNAIRE:
To study store choice behavior for grocery products in organized retail outlet
with respect to Nagpur city
Name:
Gender: Male Female
Age: 11 – 20 21 – 30 31 – 40 41- above
Qualification: 10th 12th Degree Others
Occupation: Student Govt. employee Private employee
Business House wife
Monthly Income: Up to 10000 11000 – 20000
21000 – 30000 31000 - ABOVE
1. From where you purchased grocery product?
Big Bazar Reliance Fresh Apna Bhanda Super general Shoppe
D-Mart Westside pantaloons
2. How often the do you purchased?
Once a week once in 15 days
• Once a month Twice in a month
3. Why do you purchase grocery product in this particular retail store?
• Ambience Quality Store image
• Price Others
4. Why do you select this particular retail store?
Nearby home town Customer service
Store image Low price Others
5. What is the mode of prefer payment to purchased grocery product in store?
Cash payment Credit card Debit card
6. Do you come to know promotional scheme operate by this store?
Yes (How_____________________________________)
No (if no then Q. No.7)
7. What you suggestion store to communicate the scheme
• Radio TV Newspaper
Hoarding Others
52. 52
8. Which sales promotional activity attracts you more?
Offer Discount
Gift on purchase Prices off
9. What do you think about the price of the grocery products?
• Highly satisfied Satisfied
• Moderate Dissatisfied Highly dissatisfied
10. In which sales promotional activities are you satisfied more in retail outlets?
• Payback offer Monthly saving offer
• Gift voucher Big day offer (SS5D)
• Others if any
11. What do you think about the sales service of organized retail outlets?
• Excellent Good
• Average Bad
• Very bad
12. In which department you prefer to buy more products in retail outlet?
• Food Toys and sports
• Home appliances Grocery
Others Durable product (soap, men, grooming)
13. What is your opinion about the advertisement in organized retail outlets?
• Highly satisfied Average
• Dissatisfied Highly Dissatisfied
14. What is your opinion about organized retail outlets on available of product?
Excellent Good Average Poor Very poor
15. What do you think about Big Day (SS5D) offer?
• Excellent Average Good Poor Very poor
16. May I know your average billing range in organized retail outlets?
• Below 1000 1100-2000 2100-3000
• 3100-4000 4100-Above
17. Are you satisfied to visit this particular store of organized retail outlets?
Highly satisfied
Average
Dissatisfied
Highly Dissatisfied
