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-457200-676275<br />A<br />PROJECT REPORT<br />ON<br />    <br />1943100198755<br />UNDER THE SUPERVISION OF:SUBMITTED BY:<br />    DR. ANAND KUMAR JAIN         VIDYA BHOOSHAN SINGH<br /> (Center manager,  (JIML-09-R-22)<br /> Hariyali Kisaan bazaar, Raebareli)   Jaipuria Institute of Management<br />       Lucknow<br />acknowledge<br />I acknowledge with deep gratitude the precious guidance, due support and valuable suggestions provided by my project guides Mr.  R.k. Shukla regional Head & Dr. Anand Kumar Jain, center manager (Hariyali Kisaan Bazaar, Raebareli) from time to time, which helped me a great deal in completing this project timely and successfully. Their constant encouragement, keen interest in the topic and critical comments & suggestions has contributed immensely in making this project study worthwhile.<br />I extend my gratitude to Hariyali Kisaan Bazaar and my Manager Mr. R.K. Shukla, Institute faculty and all my colleagues, friends for their encouragement, support, guidance and assistance for undergoing industrial training and for preparing the project report.<br />declaration<br />I hereby declare that the project report titled:<br /> “BUYING BEHAVIOR OF THE RURAL CUSTOMER” submitted in partial fulfillment of the requirement for the Post Graduation diploma in Management (Retail), Jaipuria Institute of Management, is my original work and has not been submitted for the award of any other degree, diploma, fellowship, or any other similar title or prizes.<br />PLACE: RAEBARELI<br />DATE: SATURDAY 26TH, JUNE<br />VIDYA BHOOSHAN SINGH <br />Table of contents<br />Introduction about Retail Sector  <br />Growth and current status of the Retail sector <br />Employment and Output in the Retail Sector <br />Organized vs. Unorganized Retail<br />Growth India Retail - Total vs. Organized<br />India Retail - Share of Categories (per cent)<br />Share of Organized Sector in Total Retail by Category (%)<br />Organized Retail Expansion by Format<br />Investment Opportunities in the Retail Sector -<br />The Potential of the Indian Retail Sector<br />Challenges of the Retail Sector:<br />Organized Retail in Rural India <br />Company Profile<br />About DSCL<br />Sugar: Gomti sugar<br />Hariyali Kisaan Bazaar<br />Chlor alkal<br />Caustic soda<br />Plastics<br />PVC Resin<br />DSCL Building Products<br />Cement<br />Textiles<br />Agri-business<br />Core values and beliefs<br />Research methodology<br />Recommendation & suggestions <br />Bibliography<br />Annexure <br />Introduction about the retail sector<br />Indian Retail<br />The growth of the retail trade in India is associated with the growth in the Indian economy. Gross domestic product (GDP) grew by an annual rate of 6.6 per cent during 1994-00 but the growth slackened to 4.7 per cent per annum during the next three years before the growth remarkably rose to 8.7 per cent per annum in the last four years (Table 2.3). This meant a substantial rise in disposable income of Indian households since the mid-1990s. Based on the Market Information Survey of Households (MISH) of the National Council of Applied Economic Research (NCAER), the number of people in the income groups of “aspirers” and the middle class with annual income ranging from Rs. 90,000 to one million, more than doubled from 157 million to 327 million during the last decade 1995-96 to 2005-06.3 The data from the Central Statistical Organization (CSO) indicate that the growth of real private final consumption expenditure, which dipped from an average of 5.7 per cent per annum during 1994-00 to 4 per cent per annum during 2000-03, shot up to 6.7 per cent per annum during 2003-07. Retail sales (in nominal terms) in the country also followed a similar pattern: a high annual growth of 13.6 per cent during 1994-00, a  low growth of 4.8 per cent during 2000-03 and a smart pick up in the last four years, 2003-07 at around 11 per cent. <br />GDP, Private Final Consumption Expenditure and Retail Sales Growth, 1994-07 (Compound Annual Growth Rate)<br />The international consulting firm, A.T. Kearney, annually ranks emerging market economies based on more than 25 macroeconomic and retail-specific variables through their Global Retail Development Index (GRDI). For the last three years (2005, 2006, and 2007) India has been ranked as number one indicating that the country is the most attractive market for global retailers to enter. The high economic growth during the last few years raising disposable incomes rapidly, favourable demographics placing incomes on younger population with less dependency, and urbanization are some of the major factors fueling the Indian retail market. <br />Employment and Output in the Retail Sector <br />Retail is a labour-intensive economic activity. According to the Economic Census carried out by the CSO in 1998, the country had a total of 10.69 million enterprises engaged in retail trade, of which 5.23 million were in the rural areas and 5.46 million in the urban areas. The total employment in these enterprises in 1998 was 18.54 million of which 7.88 million was in the rural sector and 10.65 million in the urban sector. Economic Census has been carried out for 2005 but its detailed results are yet to be released. However, according to NSSO’s Employment and Unemployment Survey for 2004-05, employment in the retail trade has been 35.06 million, divided between rural (16.08 million) and urban (18.98 million) sectors.4 This constituted about 7.3 per cent of the workforce in the country (459 million). Wholesale trade, on the other hand, contributed to an employment of 5.48 million, of which only 1.71 million was in the rural sector and 3.77 million in the urban sector.<br />The NSSO data also indicated that retail employment was about 30.62 million in 1999-00 with 12.15 million in rural areas and much higher at 18.47 million in theurban areas. This means that an additional employment of 4.44 million was added in this sector during the five-year period, 2000-05, showing an annual employment growth of 2.7 per cent per annum. However, it is interesting to note that the retail employment growth has been quite large in the rural sector – there has been a massive rise in employment in rural retailing of 3.93 million during 2000-05 – and the urban sector has also shown an employment growth, but only of 0.51 million during this period.<br />According to CSO estimates, total domestic trade, both wholesale and retail included, constituted about 15.1 per cent of India’s GDP in 2006-07, a successive increase in share from 13 per cent of GDP in 1999-00. Taking into account the fact that retail trade is more labour intensive than wholesale trade, the contribution of retail trade alone to GDP can be estimated to be around 11-12 per cent in 2006-07. <br />Organized vs. Unorganized Retail<br />Indian retail is dominated by a large number of small retailers consisting of the local kirana shops, owner-manned general stores, chemists, footwear shops, apparel shops, paan and beedi shops, hand-cart hawkers, pavement vendors, etc. which together make up the so-called “unorganized retail” or traditional retail.5 The last 3-4 years have witnessed the entry of a number of organized retailers6 opening stores in various modern formats in metros and other important cities. Still, the overall share of organized retailing in total retail business has remained low. <br />Table gives the category-wise growth of Indian retail, total as well as the organized sector, in recent years. While total retail sales have grown from Rs. 10,591 billion (US$ 230 billion) in 2003-04 to Rs. 14,574 billion (US$ 322 billion) in 2006- 07, which is at an annual compound growth rate of about 11 per cent, the organized retail sales grew much more at about 20 per cent per annum from Rs. 350 billion  <br />Growth India Retail - Total vs. Organized<br />(US$ 7.6 billion) in 2003-04 to Rs. 598 billion (US$ 13.2 billion) in 2006-07. As a result, the share of organized retail in total retail grew, although slowly, from 3.3 per cent in 2003-04 to 4.1 per cent in 2006-07.Food and grocery constitutes the bulk of Indian retailing and its share was about twothirds in 2003-04 gradually falling to about 60 per cent in 2006-07 (Table 2.5). The next in importance is clothing and footwear, the share of which has been about 7 per cent in 2003-04 and rose to 9 per cent in 2006-07. The third biggest category is noninstitutional healthcare whose share has slowly reduced from 9 per cent in 2003-04 to 8 per cent in 2006-07. The next is furniture, furnishing, appliances and services, whose share rose from about 5 per cent in 2003-04 to 7 per cent in 2006-07. <br />The category of jewellery, watches, etc. constituted about 6 per cent of total Indian retailing in 2006-07, rising from 5 per cent in 2003-04.<br /> India Retail - Share of Categories (per cent)<br />While the overall share of organized retailing remains low, its share in certain categories is relatively high and in certain other categories quite low. Thus, for clothing and footwear, the share is already in the range of 19-22 per cent, for the category of sports goods, entertainment, equipment and books the share is 12-16 per cent, and for furniture, furnishing, appliances and services, the share is 10-13 per cent (Table 2.6). In contrast, the share of organized sector in the largest category of food and grocery retailing, although growing, remains just below one per cent. <br />Share of Organized Sector in Total Retail by Category (%)<br /> The growth in organized retailing in recent years can also be gauged by the rise of shopping malls as well as the rising number of modern retail formats. In 1999, India had just three shopping malls measuring less than one million sq. ft. By the end of  2006, the country had 137 shopping malls equivalent to 28 million sq. ft. The pace of construction of shopping malls is progressing rapidly and the number of malls is expected to be about 479 by the end of 2008 with a capacity of 126 million sq. ft. (ICICI Property Services-Technopak Advisers Pvt. Ltd., 2007).<br />Organized Retail Expansion by Format<br />Investment Opportunities in the Retail Sector<br />AT Kearney’s study on global retailing trends found that India is the least competitive as well as least saturated of all major global markets. This implies that there are significantly low entry  barriers for players trying to setup base in India, in terms of the competitive landscape. The report further stated that global retailers such as Walmart, Carrefour,Tesco and Casino would take advantage of the more favourable FDI rules that are likely in India and enter the country through partnerships with local retailers. Other retailers such as Marks & Spencer and the Benetton Group, who operate through a franchisee model, would most likely switch to a hybrid ownership structure. <br />A good talent pool, unlimited opportunities, huge markets and availability of quality raw materials at cheaper costs is expected to make India overtake the world's best retail economies by 2042, according to industry players.<br />The retail industry in India, according to experts, will be a major employment generator in the future. Currently, the market share of organized modern retail is just over 4 per cent of the total retail industry, thereby leaving a huge untapped opportunity. <br />The Potential of the Indian Retail Sector<br />The high growth projected in domestic retail demand will be fuelled by:<br />The migration of population to higher income segments with increasing per capita  Incomes.<br />Changing consumer attitudes especially the increasing use of credit cards.<br />The growth of the population in the 20 to 49 years age band<br />There is retail opportunity in most product categories and for all types of formats<br />Food and Grocery: The largest category; largely unorganised today<br />Home Improvement and Consumer Durables: Over 20 per cent p.a. CAGR estimated in the next 10 years<br />Apparel and Eating Out: 13 per cent p.a. CAGR projected over 10 years .<br />Opportunities for investment in supply chain infrastructure: Cold chain and logistics.<br /> India also has significant potential to emerge as a sourcing base for a wide variety of goods for international retail companies<br />Many international retailers including Wal-Mart, GAP, JC Penney etc. are already procuring from India.<br />The sector is expected to see an investment of over $30 billion within the next 4-5 years, catapulting modern retail in the country to $175-200 billion by 2016, according to Technopak estimates.<br />Challenges of the Retail Sector:<br />Underdeveloped supply chain<br />Underdeveloped lgistics infrastructure <br />Absence of the national cold chain network <br />Lack of national distribution networks and hubs <br />Inadequate Utilities<br />Lack of adequate and reliable power , water and gas sources<br />Inadequate public transport facilities  <br />Inadequate telecommunication facilities.<br />IT Infrastructure Hurdles <br />Low automation leveling supply chain and point of sale systems <br />No real time link between supplier-warehouses- retail- stores <br />Lack of online presence of retailers <br />Real estate hurdles<br />High real estate costs<br />Archaic and user- unfriendly lands laws<br />Lack of proper city planning models <br />Taxation hurdles <br />VAT and multiple taxation issues<br />Large grey market presence <br />Supply base hurdles <br />Fragmented supply base <br />Underdeveloped supplier relationship management programs<br />Inadequate quality assurance processes<br />Inadequate Human Resources<br />Lack of trained person at all levels <br />Stringent employment and industry laws <br />Fragmented industry approach to human resources <br />Limited consumer insight <br />Lack of detailed region- specific customer data <br />Lack of adequate data on consumer spending pattern <br />Absence of central body to aggregate industry information <br />Insufficient Government Incentives <br />Lack f industry specific incentives<br />Inconsistent agriculture and fertilizer subsidies <br />Policy related hurdles <br />Lack of industry status  for retail<br />Numerous license, permit and registration requirements<br />Farmer and retailer unfriendly apmc  Act<br />Organized Retail in Rural India<br />INTRODUCTION <br />We have entered the 21st century at a time when the demography of our population is changing significantly to drive organized retail growth. India now has a large young working population with a median age of 24. The number of nuclear families in urban areas is growing fast. Then there is the increase in working women population. Add to these the emerging opportunities in the service sector. Lifestyle habits are shifting from austerity to complete self-indulgence and Indians are now unapologetic about spending lavishly on non-essential goods such as luxury watches, cars, and hi-tech products. <br />India can be said to have entered the second phase of retail growth when there is high-speed growth. <br />There are retail chains like Tata's Westside, Pantaloon's Big Bazaar and Rahejas' Shoppers' Stop, to name a few, along with global players such as McDonald's and Benetton, trying to tap country's vast potential. Bringing all these under one roof are mega malls such as Lifestyle, Fun Republic and Big Bazaar. Now, top names in international malls such as Marks and Spencer and Mango are also eying the Indian market. It is only later that the retailing scene will move to the other phases when the fruits of rapid growth will result in economies of scale and greater efficiency leading finally to consolidation through mergers and acquisitions. Thus, retailing in India has a very long haul ahead. <br />Quantum Jump in Rural Retail Outlets <br />In India for a long time a large chunk of retail outlets were grocery shop. This pattern had been changing in recent years, in urban and rural markets. Of late, India's largely rural population has also caught the eye of retailers looking for new areas of growth. A slew of supermarket chains, including those of the Tata and ITC, are set to storm the rural areas of the country as corporate realize the huge potential of the untapped market ITC launched the country's first rural mall 'Chaupal Sagar', offering a diverse product range from FMCG to electronic appliances to automobiles, attempting to provide farmers a one-stop destination for all of their needs. Companies such as Godrej and DCM Shriram Consolidated are launching `one-stop shops' for farmers and their communities. Godrej Agrovet, for instance, is planning to set up 1,000 Aadhar stores across rural India by 2010. DCM Shriram plans to set up 35 rural/semi-urban utility marts over 2006-07. Positioned as a one-stop shop, the Hariyali Kisaan Bazaar Chain will cater to a variety of farmers' needs by providing access to retail banking, LPG outlets and even a motorcycle showroom. <br />As clear from the story on Reliance Fresh and Metro, organized retail sector can bring a revolutionary change in rural India unless it goes for quick short-term gains. With Wal-Mart famous for its 'Always Low Prices' coming in India with Bharati as equal partner, Indian farmers and rural craftsmen can hope for a better direct deal. Retailing does not benefit just the consumer. It can give huge benefits to other industries, to government, and to the entire economy. <br />The rural market is no longer a non-player in the retail game. It is now accounting for over one-third of the market for most durable and non-durable products. Even manufacturers are developing new products with the rural consumer in mind besides using village-oriented marketing strategies for brand promotions. Whether it is Rani Mukherjee promoting the chocolate Munch or master batsmen Sachin wowing village lads with a soft drink, both ad makers as well as top company honchos know where to put their money and how. The rural market is no longer of hypothetical empirical value but is well researched and reached by most companies looking to tap India's vast and abundant bounty. <br />Company Profile<br />32004001143000<br />Sir Shri Ram<br />Nothing can better sum up the homage paid to great son and philanthropist of Delhi, Barey Lalaji, Sir Shri Ram who began as a humble worker and went on to set up one of India's largest business houses - the DCM Group. Not only did Lalaji achieve great height in business enterprise; he also participated in full measure in the crucial early stages of nation building.<br />Everyone is familiar with the name of multiple facets of the industries and institutions on which he left his imprint - be it the DCM Limited, Bengal Potteries, Jay Engineering Works, many sugar mills, Sindri Fertilizers, the Lady Shri Ram College, Shriram College of Commerce, Delhi School of Economics and umpteen others. But who is this Barey Lalaji? Born into a family of Agarwal banias of modest means, Shri Ram, in the 79 years of his life, built an industrial empire manufacturing a vast variety of goods like - textiles, sugar, alcohol, heavy, chemicals, vanaspati, pottery, fans, sewing machines, electric motors and capacitors.<br />The industrial legacy that he left behind was valued at Rs 600 million at the time of his death. Reared in milieu which graft nepotism, black marketing and tax evasion were considered a must for success in business, Shri Ram set for himself rigid standards of morality in his dealings with the public and government and made no compromises in order to earn more money or gain a favor. While himself deprived of opportunities for higher education, he nevertheless understood how, important such education was in building the future of a nation.<br />As a result he helped to finance a network of schools, colleges, industrial institutes and research laboratories. He was also the founder chairman of the Industrial Finance Corporation and Chairman of Sindri Fertilizers, the first national venture in the public sector in free India<br />Chairman’s & Vice Chairman’s Desk<br />The road ahead <br />10287001828800<br />We are an integrated business conglomerate, with a group turnover of Rs. 2940 crores. Our business portfolio comprises of primarily two types of business i.e.<br />(i)  Energy Intensive products<br />(ii) Agri products (inputs as well as outputs) and services. <br />We have manufacturing facilities at Kota (Rajasthan), Bharuch (Gujarat), and Ajabapur, Rupapur, Hariawan and Loni(UP). Our hybrid seed operations are at Hyderabad (India), Vietnam, Philippines and Thailand.<br />Our strengths are:<br />Strong energy management expertise both in the area of generation as well as effective utilisation of energy.<br />Deep understanding and knowledge of Indian rural milieu developed with over 40 years of close work with farmers to improve his economics.<br />Well-established presence and strong brand across the entire agri-space in India.<br />Integration through Integrated manufacturing facilities and thru utilization of competencies/resources across businesses is a major value enhancer.<br />We are building on the above strengths to develop a business profile which enjoys strong cost competitive position and delivers superior value to our customers simultaneously. <br />We are further integrating our business portfolio to add value added products/services and solutions to the commodity businesses.<br />We have implemented plans resulting in significant volume growth in past 2-3 years in most of our existing commodity businesses and expect significant value/growth through value add businesses in longer term.<br />The company has invested Rs.1300 crores in the past three years and plans to invest approximately Rs. 500 crores in the next two years, to expand its business operations.<br />DSCL is a Rupees 15.50 billion, public listed company, based in North  India with a core<br />sector business portfolio comprising fertilizers, Chlor alkali, chemicals, plastics, cement, textiles and sugar. <br />A leading Indian organization, DSCL aspires to become a world-class enterprise that is responsive to change, outward looking, competitive, delivers superior quality at low cost, with focused businesses and robust financials.<br /> DSCL has been built on core values of being caring, credible and fair with all stakeholders, committed to continuous improvement; and being a responsible corporate citizen. <br />DSCL has built an enabling work culture and believes in releasing human energy within the organization through participation, teamwork, professionalism, entrepreneurship, openness and upholding human dignity.<br />The Company is committed to enhancing the employability of individuals through competence building via continuous training and development activities <br />DSCL believes in a pro-active Industrial Relations policy and has an enviable track record in this field. Employee welfare is given utmost priority and is institutionalized across the organization.<br />DSCL has initiated  several management  initiatives  in the  recent  past  for  upgrading the organization,  the  major  ones  being  Institution  Building,  Quality  Management.<br />About DSCL<br />DSCL, a Rs.1,550 crore+ diversified business group based in North India. Its primary businesses are:<br />Agri-Business (Urea fertilizer, Sugar, Farm inputs marketing such as DAP, Pesticides,<br />Seeds, Agri retailing - Hariyali Kisaan Bazaar)<br />Plastics (PVC and PVC compounds)<br />Chemicals (Chlor-Alkali)<br />DSCL Building Products (Fenesta door and window profiles)<br />Other business interests comprise of Cement, Textiles and Energy Services. <br />Founded by Sir Shriram in 1889 (as DCM limited), today DSCL (which spun of as a separate company in 1990) is managed by Mr. Ajay S. Shriram, Chairman and Senior Managing Director and Mr. Vikram S. Shriram, Vice Chairman and Managing Director along with a highly professional executive team.<br />DSCL has strong brand equity reflective of credibility, ethical values and consistent high quality product image.<br />With over 30 years of experience in managing large scale process industries with sustained high level of performance, DSCL meets the needs of a wide range of customers from farmers to industrial users, from house builders to business owners.<br />Fostering enduring relationships is at the core of DSCL's business philosophy - with vendors, business partners, and customers and within the organization between employees.<br />As a leading equal opportunity employer in India, DSCL has a motivated and dynamic Management team of highly qualified professionals and dedicated workmen and staff whose work has shown the way towards creating “Team Excellence”<br />Fertilizers<br />DSCL fertilizer operations are characterized by highly optimized production process delivering high capacity utilization & proven abilities in erection, commissioning.<br />Operation & troubleshooting of Ammonia/Urea plant.<br />HIGHLIGHTS:<br />Date of Commissioning of plant February 1969<br />Present production capacity (Urea) 3, 30,000MT/Annum<br />Capacity utilization19%<br />DSCL's Urea operation has consistently earned production and productivity awards for its performance. Its well-established distribution network in North and West India allows the unit to service farmer needs effectively with a consistently high quality product. It is for these reasons that SHRIRAM Urea enjoys a premium position its markets.<br />Sugar:<br />Sugar is a key component of our agri-business portfolio. Our sugar operations functioned as an independent company within our Group until March 2004 when they were merged in DSCL.<br />These sugar operations commenced in 1998 in central Uttar Pradesh, where the first sugar mill was established through a green field project at Ajbapur. We later acquired an existing sugar mill in the same region, at Rupapur, in 2003 emerging as a major sugar producer in central Uttar Pradesh.Two new sugar mills at Hariawan and Loni were commissioned this year. We now have a combined installed capacity of 33,000 (tonnes crushed daily and a power generating capacity (bagasse based) of 70.5 MW .  which is being further expanded to 94.5 MW,with an exportable surplus of 51.5 MW for the grid. .All our sugar plants are self-sufficient to meet their own power requirements from bagasse. We are also exporting power to the UP state grid.<br />Gomti sugar<br />  <br />Gomti Sugar Ltd., a unit of Ghaghara Sugar Ltd., an enterprise of DCM Shriram Consolidated Limited, New Delhi, is a 6000 tcd sugar mill situated at Ajbapur village, JB Ganj, Kheri district, in central UP.<br />The plant was commissioned in November 1997 with a crushing capacity of 3125 tcd. The continued efforts in the cane development front and growth thrust of the Management have made possible to reach today s crushing level of 6000 tcd<br />Hariyali Kisaan Bazaar <br />On 16th July 2002, the first retail outlet was inaugurated at village Del Pandarva (Distt. Hardoi) on the Delhi-Lucknow highway near the DSCL's Gomti Sugar complex. <br />This 10,000 sq ft store is a one-stop shop providing the farmer with a range of multi-brand agri inputs such as fertilizers, seeds pesticides, micro- nutrients, bio-fertilizers, agricultural implements, tools and farm fuels. <br />The store is also geared to provide farmers with expert agronomic guidance and services like soil testing, water testing, pesticide application services etc. Other value added farm services are to be added in due course. <br />After the initial pilot phase comprising of 4 stores in different parts of the country, it is proposed to roll out the concept nationally.<br />In the future, Hariyali Kisaan Bazaars plans to move beyond agri into other categories like durables, furniture, electrical, fast-moving consumer goods, to cater to other needs of farmers as customers.<br />   <br />quot;
Hariyali Kisaan Bazaarquot;
 - a rural business centre, is a pioneering micro level effort, which is creating a far-reaching positive impact in bringing a qualitative change and revolutionizing the farming sector in India. <br /> DCM Shriram Consolidated Ltd. (DSCL), capitalising its over 35 years of experience in the agri-input markets & first hand knowledge of Indian farmers, is setting up a chain of centres  aimed at providing end-to-end ground level support to the Indian farmer & thereby improving his quot;
profitabilityquot;
 & quot;
productivityquot;
.  <br />   <br />The key constraints of the Indian farming sector, being addressed by quot;
Hariyaliquot;
 are:<br />Lack of last mile delivery mechanism of modern agriculture know- how & practices.<br />Lack of availability of critical good quality agri-inputs.<br />quot;
Middlemenquot;
 driven farmer interface.<br />High cost credit.<br />Lack of direct access to buyers of varied & high value crops.<br />The quot;
Hariyali Kisaan Bazaarquot;
 chain, seeks to empower the farmer by setting up centres, which provide all encompassing solutions to the farmers under one roof. <br />Each quot;
Hariyali Kisaan Bazaarquot;
 centre operates in a catchment of about 20 kms. A typical centre caters to agricultural land of about 50000-70000 acres and impacts the life of approx. 15000 farmers.<br />Each centre is engaged in: <br />Bridging the last mile: Provides handholding to improve the quality of agriculture in the area. Provides 24X7 support through a team of qualified agronomists based at the centre.<br />   <br />Quality Agri-Inputs: Provides a complete range of good quality, multi-brand agri inputs like fertilizers, seeds, pesticides, farm implements & tools, veterinary products, animal feed, irrigation items and other key inputs like diesel, petrol at fair prices.<br />Financial Services: Provides access to modern retail banking & farm credit through simplified and transparent processes as also other financial services like insurance etc. Farm Output Services: Farm produce buyback opportunities, access to new markets &• output related services.<br /> Other Products and Services: Fuels, FMCG, Consumer Goods and Durables, Apparels etc.<br />These centers provide the much needed respect/dignity and freedom to the Indian farmer. In the near future, Hariyali Kisaan Bazaars plan to move beyond agri to meet the other needs of farmers as customers. <br />Technology as an important enabler<br />IT has been a critical backbone to the chain of centers. It is being used to provide online support on latest technical advancements, weather forecasts, mandi (market) prices, fair  & transparent billing to farmers as well as in maintaining extensive farmer databases with micro information about the farmers' field to provide customized service to the farmers.<br />Farmer Response<br />The ground-level Agri-support is already yielding results in the farmer's fields. Whether it is adoption rate of high yielding seeds, right doses of fertilization, productivity of cattle-feed, moisture conservation measures, adoption of new crops/allied occupations or adoption of new technologies like zero tillage, the farmers in catchment of Hariyali centres are already way ahead of the national averages.<br />Each HKB centre caters to communities within a 25-30 km perimeter and impacts the life of about 20,000 households. HKB’s business model is to provide targeted services to farmers in remote regions. As such, it is a pioneering project because it contributes to rural and agricultural development while being a profitable business venture. It also reinforces the need for farming communities to have access to information and technology.<br />In June 2009, DSCL announced the plan to add 300 stores to the existing 300 by 2012. The group is currently present in eight states and is India’s largest rural retail chain.<br />Hariyali Kisaan Bazaar: reaching out to farmers in rural 0703580India<br />From the retail store, farmers can obtain farm inputs, weather information and market pricescredit: DCSL <br />In a room at the back of an agro-input store near Karnal in Haryana, northern India, a group of 60 farmers have gathered for training. They interact enthusiastically with the trainer, asking questions, giving their views. When asked what they appreciate about the particular services provided, they respond, quot;
Here we buy everything we need for the farm under one roof. And if we need assistance, the Hariyali people come and help us in the field.quot;
<br />The store at Ladwa, near Karnal, is not unique but one of over 300 stores spread across eight states, from Uttar Pradesh and Punjab in the north to Andhra Pradesh in the south. First established in 2002, Hariyali Kisaan Bazaar represents a retail revolution in rural India. By understanding and supplying farming families with all their agricultural and household needs, the Hariyali centres aim to engender trust and provide their customers with quality products and long-term advice.<br />The concept of Hariyali grew from an agricultural extension programme of DSCL, a well-known Indian conglomerate producing fertilizer, seed and sugar. Trained agronomists were posted in rural areas to advise sugarcane growers. Knowing of the parent company's expertise, farmers began to ask advisors to help them buy good quality farm inputs, at a reasonable price and in time with their seasonal needs. To respond to this request, DSCL set up five pilot stores which, by 2005, quickly expanded as farmers requested more outlets, and a greater choice of products and brands.<br />A quality guarantee<br />The Hariyali outlets were a completely new concept for rural India and Sanjay Chhabra, head of retail operations, recalls the scepticism when the first stores were established. quot;
When we started people told us it would be very difficult, but this wasn't the case. There was a latent demand, the farmers wanted quality and we listened to them to supply them with what they need.quot;
<br />00<br />Retail stores provide good quality farm inputs at a reasonable price credit: WREN media<br />Each outlet store is based on a campus of four to five acres, with a fuel station, banking facilities, farm demonstration area, green recreation zones, and the retail store. From the one site, farmers can obtain farm inputs and financial and agricultural advisory services. Day-to-day household goods are also available, as well as weather information and market prices.<br />Chhabra continues, quot;
Farmers come from over 40km away to refuel because we guarantee 100 per cent quality and quantity. Even with cooking gas, we have a retail outlet where we sell gas on government fixed rates, which they might get for higher price in other places, but at Hariyali the farmers know they are definitely getting what they pay for, which is not a common concept here in rural India.quot;
<br />Improving agricultural productivity<br />Across the flat lands of Haryana, farmers grow wheat, sugarcane and rice. The region contributed heavily to the Green Revolution but yields have since stagnated and farmers now struggle to make a profit. Their children, they report, are not interested in agriculture. The 3,000 or more farmers that interact with the Hariyali centre at Ladwa own on average between 2-4 hectares but many farms are much smaller. Labour shortage is another serious constraint for farmers in this region.<br />To increase profitability, Hariyali advisors have worked with the farmers to introduce new cultivation practices, such as recommending intercropping sugarcane with onions, to adopt zero tillage in wheat, or use raised beds for growing mustard. Farmers are also encouraged to diversify into new crops like sunflower, which can be grown after potato in the late winter/spring season, as well as to consider introduction of new machinery, for example a paddy planter which can help resolve labor problems with transplanting rice.<br />An understanding approach   <br />00Farmers are able to test new machinery before they buycredit: WREN media<br />Hariyali staff understand that purchase of new equipment can be a large financial commitment so, as Sudhir Asthana, head of agri-services, says, quot;
We are happy to trial machinery for farmers to see it working in their fields. They may even start on rentals before making a major purchase.quot;
<br />Understanding the needs of farmers has been the key to Hariyali’s success. A recent development has been to increase farmers' confidence through teaching them English and IT skills. quot;
By providing them with new skills,quot;
 says Asthana, quot;
farmers have a better chance to access information that can help them.quot;
 The farmers have responded well to these new opportunities and report positively on the relationship with Hariyali staff. quot;
We have almost like family relations with Hariyali staff,quot;
 says one farmer. quot;
We trust them and like working with them. They understand us very well.quot;
<br />Renowned for their pioneering and entrepreneurial approach, Hariyali plans to continue listening and responding to farmers to provide the services they need. quot;
We need to constantly evolve so we can provide what is required to help improve agricultural productivity in the regions where we work,quot;
 says Chhabra. quot;
But one of our biggest challenges is to reach out to more farmers. We are the only service for around 20 per cent of the farmers in the area around Lawda, for example. We have to continue reaching out, as we know there are many more farmers who would benefit from working alongside our staff.quot;
<br />Future Plans<br />Hariyali Kisaan Bazaar has plans to rapidly scale up the operations & create a national<br />footprint covering all the major agricultural markets of the country. This would mean catering to cultivable land of over 30 million acres and touching the lives of over 10 million farmers.<br />Chlor alkal<br />The Chemical Business derives its core strength from its Chlor-alkali operations. With an<br />installed capacity of approx. <br />110,000 TPA (49,550 TPA based on mercury cells & 62,000 tpa based on membrane cells) and  a market share of approx. 8% in the Indian Chlor- alkali industry DSCL is a leading producer in the country.<br />The strategic thrust of the business is to use it existing infrastructure and market presence to build value added products and services.<br />As a first step, DSCL has moved aggressively to enter the water treatment area by setting up a state-of-the-art plant situated at Kota, Rajasthan for a latest 3rd generation Polyaluminium Chloride (capacity 39,000 tap).<br />Marketed under the brand name Excoriate these products provide outstanding coagulation/flocculation properties.<br /> DSCL s Chemical Business provides total customer solutions with its nationally accredited Shriram Environment and Allied Services(SEAS) operations and laboratories.<br />Caustic soda<br />Caustic Soda is a basic product very widely used in diverse industrial sectors, either as a raw material or as an auxiliary chemical. As mentioned ealier, it is produced along with chlorine. <br />It is mainly used in the manufacture of pulp and paper, newsprint, viscose yarn, staple fiber, Aluminum, cotton, textiles, toilet and laundry soaps, detergents, dyestuffs, drugs and pharmaceuticals, vanaspati, petroleum refining.<br />Caustic soda is produced in two forms - lye and solids. Solids can be in the form of flakes or granules.<br />Three technologies are available world over for production of caustic soda   mercury cell process, diaphragm process, and membrane cell process. All three processes are in use in India, although there is strong trend indicating a shift towards the environmentally better membrane cell process. We manufacture Caustic soda through more environmentally friendly membrane technology.<br />Dscl have a total caustic soda capacity of approx.110,000 tons per annum at two locations in India. At Kota, Rajasthan our capacity is 50,000 tons per annum of mercury (rayon) grade caustic.<br />Plastics<br />DSCL s core plastics business is based on a state-of-the-art computer process controlled PVC Resin (33,000 tpa).<br />Based on the carbide manufacturing process this plant also generates valuable Other Products such as high purity Calcium Carbide.<br />In a subsidiary company Shriram Polytech Limited (SPL) the business operates one of India s largest PVC Compounds facilities (20,000 tpa). This plant supplies customizedproductstoover200industrialcustomers.<br />SPL has also set up an Innovative Polymer Applications Centre (IPAC) which is focusing on development of further specialty and value added polymer products, innovative customer specific application solutions and moving in a calibrated manner up the product-value chain.<br />DSCL has introduced a new division, DSCL Building Products, the next step in plastics adding on to the value chain. <br />PVC Resin<br />Based on the Calcium carbide based process and closely linked with the Carbide and Chemicals operations at Kota, DSCL s PVC resin plant enjoys unique cost advantages with a built in flexibility to quickly respond to customer needs.<br />DSCL's core philosophy is of a caring, credible and ethical organization. We believe in building lasting relationships. The working philosophy is one of continuous improvement<br />through learning initiatives, technology and process up gradation. This has created exciting new opportunities of growth and diversification for the group.<br />PolyTech is focused on providing enhanced value to the customers in diverse application<br />areas through customized solutions and quick and interactive response.<br />DSCL Building Products<br />DSCL's Building Products group is manufacturing and marketing UPVC window systems. In due course other related products will also be developed to become a premier full range supplier of building products to the industry.<br />To bring out the best in UPVC window systems, DSCL Building Products   in technical collaboration with HW Plastics, UK   has introduced Fenesta UPVC Window Systems in India.<br />These products have a very wide acceptance in Europe and America and have several advantages over existing products serving the same market.<br />Cement<br />DSCL s Cement Business is Indias only plant that converts  waste generated at Kotainto<br />Consistent quality, premium grade cement products.<br />Shriram Cement is produced in a computer process controlled highly automated plant. <br />The product has created for itself strong brand equity and is a recognized market leader in its areas of distribution.<br />Textiles<br />The textile group comprising of Swatantra Bharat Mills and DCM Silk Mills earlier situated in 112 acres of prime land in the heart of Delhi has relocated to Tonk, Rajasthan. <br />Agri-business<br />We regard our agri business as a key growth driver for us. We believe that the agricultural sector is a high potential area where we, with our expertise and strengths accumulated over decades of presence in this sector, can add considerable value and capitalise on emerging opportunities.<br />With the objective to move towards providing total   Solutions to the farmers, we have initiated a   Rural Retailing  initiative recently which we believe holds immense promise in terms of untapped opportunities, scalability and growth potential. Being implemented under our Hariyali Kisaan Bazaar initiative, we offer multiple products and services to the rural and farming community, including agri inputs, diesel and petrol (under alliance with BPCL), consumer goods, durables, apparels, insurance, agronomy advisory, credit, and contract farming as a part of this initiative. It is proposed to extend the offerings to other products and services over a period.<br />All of our agri business activities are supported by a strong Shriram brand equity that our products enjoy in the marketplace. We offer online agronomy services to farmers through 100 centres   Shriram Krishi Vikas Kendras   established by us across the country that operate with the objective to increase farmer profitability by providing them effective agronomy services. <br />The Shriram Krishi Vikas Kendras help upgrade farming methods and also provide assistance to the farming and rural community in the educational, hygiene and sanitation needs of the community as well as health care support for animal husbandry.<br />Core Values and Beliefs <br />DSCL's core values and beliefs are a reflection of its commitment to build a world class,<br />learning organization, striving for excellence in all its endeavors.<br />Customer Focus<br />Be sensitive to the needs of the customer; develop superior customer insight<br />Commitment to surpass expectations and deliver superior value<br />Innovation and Excellence<br />Strive to think differently and promote creativity<br />Make continuous improvement a way of life; drive excellence<br />People Development<br />Continuously improve and upgrade the skills and competencies of our people<br />Support people to realize their potential<br />Team work<br />Work closely as a cohesive, well-knit team<br />Inculcate a spirit of openness and collaboration<br />Relationships and Human Dignity<br />Value people and partnerships<br />Nurture understanding, compassion, trust and respect in all relationships<br />Social Responsibility and Ethics<br />Be a socially responsible corporate, addressing the needs of the community and <br />environment<br />Conduct business ethically<br />Social Responsibility<br />A Responsible Corporate Citizen Continuing with the long history of social commitment projects started by the founder Sir Shriram, DSCL has been making meaningful contributions to the society in the different areas. <br />Agriculture Extension activity<br />DSL s Shriram Krishi Vikas Kendra s (SKVK's) operate with the objective to impart scientific knowledge to the farmers to enhance their profitability covering crop cycle and harvesting etc. SKVK's support the farmers in their work and life through adoption of villages.<br />Health Care<br />In its endeavor to serve the society around its operating locations, DSCL has equipped Maharao Bhim Singh (MBS) Hospital, Kota with a state of art intensive care unit - 'The Shriram ICU' and Private rooms- 'The Shriram Wards'.<br />The company organizes healthcare camps in its adopted villages and centres to create Awareness on diseases like AIDS and Cancer. Periodic Eye check-up camps are arranged and Family Planning programmers encouraged by incentive schemes for the villages around its areas of operation Education<br />Research methodology<br />objective TO STUDY<br />“BUYING BEHAVIOUR OF THE RURAL CUSTOMER”<br />RESEARCH DESIGN<br />Exploratory Research: Initially we collect the information in an unstructured and informal way from different customer segments of Hariyali Kisaan Bazaar. We have also spend lots of time at customer desk for understanding customer problems and buying behavior.<br />Descriptive Research: With the help of Exploratory Research we are able to define problem and behavior more clearly and establish variable to answer research question.<br />Determining and designing research instruments.<br />There are several methods of collection of data telephonic survey, mail survey, personal interview or group survey. We have used survey technique with the help of structured questionnaire with 11 close ended questions.<br /> <br />Sampling Technique<br />The sample chosen from target population (i.e. target customer of the Hariyali Kisaan Bazaar) of size 100 respondents for the purpose of study and random sampling method has been used.<br />Collection and Analysis of Data <br />Primary Data <br />We have done field research for primary data collection as secondary data was not available. We have select 100 respondents from the target area.<br />Analysis <br />Manual analysis.<br />Graphical representation through Ms- Word and analysis of the data through the excel.<br />Ques1. Please choose your most preferred buying style?<br />Total Response<br />Most Preferred Buying Style 0246810121416Urban HighIncomeGroup Urban LowIncomeGroupRural HighIncomeGroup Rural LowIncomeGroup  Single Item Buying fromDifferent StoresBulk Buying from Same Store Retail Buying from Same Store Do not have any Fixed Style <br />The study shows about the buying style where we found the 39% of the respondent prefer the single item buying from the different store, 23% bulk from same store, 23% retail buying from same store and 15 % do not have any fixed style of the buying , after segmenting the respondent we found that the urban high income group customer most  prefer the bulk buying from same store where the rural high income group customer are most prefer the single buying from different store and urban low equally preferred the all style, and  rural low  most preferred the single buying from the different store and it is higher than the rural high also.<br />Ques2. What do you normally buy?<br />Total Response<br />Category wise Response<br />Products Normally Bought 0%10%20%30%40%50%60%70%80%90%100%Urban Highincome Group Urban LowIncome GroupRural HighIncome Group Rural LowIncome Group Agri Products Specialty GoodsShopping Goods FMCG Products <br />The study shows the product category preferred by the customer where 39% customer preferred the agri 24% FMCG 21% shopping gods and 16% specialty goods. When we segmented the respondent then the response was 44%urban high 30% urban low, 12 % rural high and 8 % of the rural high preferred the FMCG product. 72% rural low 68% rural high and 15% urban high preferred the agri products. Specialty goods mostly purchased by the urban low customer .<br />Ques3. What is the most important thing about a product when you decide to buy it? <br />Urban High Income Group Urban Low Income Group<br />Factors which influenced the buying decision1 02468101214PriceQualityBrand value EasilyavailabilityMost imp.Important Less Important not imp at all<br />Rural High Income Group     Rural Low Income Group    <br />The study shows the factors which affect the buying behavior there is the price, quality, brand value and easily availability of the products. Where the brand value and the quality is most important for the urban high and low income group. Where the price play the most important role in the rural high and low income group and the brand value is not important at all.<br />Ques4. From where do you like to buy?<br />Urban High Income Group Urban Low Income Group<br />0%20%40%60%80%100%Mostoften OftenAverage RarelyNot at allPlace from where Products Bought Company outlets Retail storeMom pop store Open market 0%20%40%60%80%100%Mostoften Average Not at allPlace from where Products Bought Company outlets Retail storeMom pop store Open market <br />Rural High Income Group    Rural Low Income Group<br /> <br />The study shows the behavior of the customer from where they purchase the products. The urban customer prefers the company outlets and retail outlets most often and the urban low prefer the mom and pop stores for the purchasing.<br />The rural customer also having the interest to purchase the products from the retail store and the rural customer have no interest to purchase from the company outlets.<br />Ques5. If you prefer to buy from retail store please rank in order of preference of liking.<br />Urban High Income Group Urban Low Income Group<br /> 0%20%40%60%80%100%Mostoften Average Not atallPreferred Store Big BazaarVishal mega mart Hariyali kisaanBazaar0%20%40%60%80%100%MostOften Average Not at allPreferred Store Big BazaarVishal mega mart Hariyali kisaanBazaar<br />Rural High Income Group    Rural Low Income Group<br />0%20%40%60%80%100%Mostoften Average Not at allPreferred Store Big BazaarVishal mega mart Hariyali kisaanBazaar 0%20%40%60%80%100%Mostoften Average Not at allPreferred Store Big BazaarVishal mega mart Hariyali kisaanBazaar<br />The study shows the retail store preferred by the customer.  The 64%urban high income group customers,78% urban low income group customer , 82%  rural high income group,78%rural low income group  most prefer the Hariyali kisaan bazaar. The big bazaar is preferred by the urban customer by very less percentage and the rural customer not prefer the it at all. Vishal mega mart is often preferred by the urban high and low income group. There is the major finding is that the rural customer purchase the products from the Hariyali kisaan bazaar and they are not interested in the other store.<br />Ques6. What are the reasons which are responsible for your visit to Hariyali Kisaan Bazaar?<br />Urban High Income Group           Urban Low Income Group<br />0%10%20%30%40%50%60%70%80%90%100%Mostoften Average Not at allResponsible Factor for Visited Customer  Customer Service Availability of VariousProduct at one Place PriceAssurance of Quality <br />Rural High Income Group    Rural Low Income Group  <br />The study shows the factors which is responsible for the customer visit. There is price, assurance of the quality and availability of the products play the most important role for the urban low and high income group visit in the Hariyali kisaan bazaar. The rural customers have also belief on the assurance of quality, reasonable price and availability of the products at the one place. The most of the customer says that there is very poor customer service in HKB.<br />Ques7. What are the reasons which are responsible for your not visiting to Hariyali Kisaan bazaar?<br />All Responses<br />Area Wise Responses<br />Responsible Factor for not visiting 0%10%20%30%40%50%60%70%80%90%100%Urban HighIncomeGroup Urban LowIncomeGroupRural HighIncomeGroup Rural LowIncomeGroup Lace of AwarenessPrice Distance and TransportFacilitiesFrequently not Available of theProducts<br />The study shows the factors which is responsible for not visiting the customers. Customer is not visited 40%, Due to lack of the awareness 36% due to distance and transport facilities, 13% due to frequently not available of the products and 11% due to high price. The urban low income group says the price is satisfactory and it is not more responsible for the not visiting. Due to lack of the awareness most of the customer of all income groups is not visited to Hariyali kisaan bazaar. For the urban customer there is also distance and transport problem. <br />Ques8. What makes you loyal to a particular brand?<br />All Responses  <br />Area wise responses<br />Criteria for the loyalty of the Brand  0%10%20%30%40%50%60%70%80%90%100%Urban HighIncomeGroup Urban LowIncomeGroupRural HighIncomeGroup Rural LowIncomeGroup Money value delivered from it Social Status attached to it Quality Associated to it Image of the Brand in theMarket <br />The study shows the criteria for the loyalty of the brand. The 45% customers are loyal for the quality associated to it , 22% customers are loyal for social status attached to it, 29%  customers are loyal for money value delivered from it and 4% customer are loyal for the image of the brand in the market . after segmenting the market we found most of the urban customer loyal for the quality associated and social status attached to it and another side the rural customer have loyalty for the quality associated to it but they have not loyalty for the social attachment to it. Money value delivered from it most important criteria for the brand loyalty they also tried to check what will be the return from this product in term of the money. <br />Ques9. How much branding of product is important for you?<br />Total Response<br />Area wise Response<br />The study shows the importance of the branding for the products. There is the 9% very important, 42 % response is important, 38%less important, 8% very less important 3% not important at all. The urban high income group gives the 55% importance of the branding where the rural don’t give the more importance to the branding. The response of the rural low income group branding is not important at all.Ques10. Your buying is mostly influenced by? <br />All Response<br />Area wise Responses<br />Factors Responsible for Influenced Buying0%10%20%30%40%50%60%70%80%90%100%FamilyMembers Friends PeerGroupsCloseColleaguesCommunityLeaders Some bodyWho hasalreadybought theproductRural Low Income Group Rural High Income Group Urban Low Income GroupUrban High Income Group <br />The study shows the factors which influence the buying behavior of the customer. The family members influence the all category of the customer. Friends and peer groups also influence the all category of the customers except the rural high income group. Close colleagues also influence the all category. Rural high and low income group mostly influence by the community leaders. <br />Ques11.How you classify yourself as a consumer?<br />The study shows the classification of the consumer on the basis of the certain class. There are 29% early majority customer 25% early adopter 21% innovator 14% late majority and only 11% laggards. This is the most important to position the  new product  in the specific class. <br />Recommendation and suggestion<br />There is one major finding on the basis of the buying style of the rural customer. The rural low income group preferred to purchase single item from different stores and the urban low income groups preferred the retail buying from same store. The rural high income group mostly goes through the bulk buying from the same store comparison to rural low income group. The urban high income group purchases the bulk from the same store. The overall view shows the high income group go through bulk purchase than the low income group so company need to focus on the high income groups because after doing the one time effort they can generate the more revenue for the company. <br />The rural high and low income group are basically engaged with the Agri products and the urban high and low income group focus on the FMCG and specialty goods. There is need to cater the customer needs according to there buying habit and advertiser the products accordingly.<br />The most of the customer prefer the quality rather than the quantity so company should focus on the quality than the quantity or cheap price. The rural low income group customer prefers the low price product because of the low income but they don’t want to leave the quality product.<br />There is one major finding that shows the customer liking of the place from where they are purchasing the products. The customer liking is gradually changing towards the retail stores and specialty store than the open market. This is the tremendous opportunity for the retail organization in the semi rural market. <br />The rural customer are having the interest to purchase the product from retail store but  they have fear the product will be more costly than the open market so need to make it sure to customer the products are not costly than the open market and the quality is better than the open market. <br />There is need to create awareness about the product quality and the usage of the new technical product. <br />The rural customers have the desire to purchase the product but due to lack of proper guidance they are not able to do this so this is also opportunity to educates customers and make them potential customer.<br />The finding shows the most of the rural customer have the interest to purchase the products from hariyali kisaan bazaar because it cater the need of the farmers very perfectly and customer have the faith on the HKB products and services.<br />The rural customer have less interest in the brand than the urban customer so there is need to focus on the quality than the branding for the products.<br />The buying behavior of the customer influenced by the family groups, friends, peer groups close colleagues community leaders and somebody who has already bought  and the rural customer’s buying behavior mostly influenced by the family group and the community leaders so there should be educate the family members and the community leader by the seminars, exhibition and by other promotional offers.<br />There is the percentage of the innovator customer in the rural market is also high in the high income group so there is no constraints of the adoptability.<br />The rural customer have the ability to purchase the new products but they are waiting for the others purchasing so if we understand their need and make them loyal for the company then they can purchase the products regularly from the same store.<br />The company has needed to focus on their customer relationship management because the customers are not satisfied by the service of the HKB. <br />They will have to focus on the CRM of the company and manage the database of the customer to cater the needs accordingly and provide the all relevant information to customer related to the farming and the market.<br />The company must improve the quality and the availability of the products in the store at the reasonable rate.<br />There is need to promotional activities and other loyalty programs to make the huge customer base for the Hariyali Kisaan Bazaar.   <br />Bibliography<br />Websites:<br />www.retailindustry.com<br />www.dscl.org.com<br />www.mapsofindia.com<br />www.moneycontrol.com<br />www.hariyali.cm<br />www.googlebooks.com<br />Books: <br />Research methodology – C.R. kothari<br />Consumer behavior      <br />Marketing management – kotler<br />QUESTIONNAIRE<br />This questionnaire is for research study only and to be filled by the respondents. The confidentiality of the information would be kept secured. The purpose of the questionnaire responses are for academic needs only.<br />Name of respondent: ……………………..Gen………………………………………….<br />Contact no: ………………………………. Age………………………………………….<br />Profession: ………………………………………………………………………………...<br />Locality: …………………………………………………………………………………...<br />Ques1. Please choose your most preferred buying style?<br />Single item buying from different stores<br />Bulk buying from same store<br />Retail buying from same store<br />Do not have any fixed style<br />Ques2. What do you normally buy?<br />FMCG products<br />Shopping goods (cloths, shoes, electrical appliances)<br />Specialty goods (high priced goods, luxury goods)<br />Agri products <br />Ques3. What is the most important thing about a product when you decide to buy it? (Rank, 1- most important, 2- important, 3- less important, 4- not important at all)<br />Price <br />Quality <br />Brand value <br />Easy availability <br />Ques4. From where you like to buy? (Rank you preferences as 1- most often, 2-generaly, 3- average, 4- rarely, 5- not at all)<br />Open market<br />Mom & Pop stores<br />Retail stores<br />Company outlets<br />Ques5. I f you prefer to buy from retail store please rank in order of preference of liking.<br />(rate 1to 5, 1-most liked , 5- least liked )<br />Hariyali Kisaan bazaar <br />Vishal mega mart <br />Big bazaar <br />Any other …………………<br />Ques6. What are the reasons which are responsible for your visit to Hariyali Kisaan bazaar?(please rate 1 to 5  )<br />Assurance of quality<br />Price <br />Availability of various  products at one place <br />Customer service <br />Any other reason …………..<br />Ques7. What are the reasons which are responsible for your not visiting to Hariyali Kisaan bazaar?<br />Frequently not availability of the products <br />Distance and transport facility <br />Price <br />Lack awareness<br />Any other suggestion ……………….<br />Ques8. What makes you loyal to a particular brand?<br />Image of the brand in the market<br />Quality associated to it<br />Social status attached to it<br />Money value delivered from it<br />Ques9. How much branding of product is important for you?<br />Very important<br />Important<br />Less important<br />Very less important<br />Not important at all<br />Ques10. Your buying is mostly influenced by?<br />Family members<br />Friends<br />Peer group <br />Close colleagues<br />Community leaders<br />Somebody who has already bought the product<br />Ques11. How you classify yourself as a consumer?<br />Innovator<br />Early adopter<br />Early majority<br />Late majority<br />Laggards<br />
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100
Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100

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Retail project on hariyali hyper market by Vidya Bhooshan Singh 8960188100

  • 1. -457200-676275<br />A<br />PROJECT REPORT<br />ON<br /> <br />1943100198755<br />UNDER THE SUPERVISION OF:SUBMITTED BY:<br /> DR. ANAND KUMAR JAIN VIDYA BHOOSHAN SINGH<br /> (Center manager, (JIML-09-R-22)<br /> Hariyali Kisaan bazaar, Raebareli) Jaipuria Institute of Management<br /> Lucknow<br />acknowledge<br />I acknowledge with deep gratitude the precious guidance, due support and valuable suggestions provided by my project guides Mr. R.k. Shukla regional Head & Dr. Anand Kumar Jain, center manager (Hariyali Kisaan Bazaar, Raebareli) from time to time, which helped me a great deal in completing this project timely and successfully. Their constant encouragement, keen interest in the topic and critical comments & suggestions has contributed immensely in making this project study worthwhile.<br />I extend my gratitude to Hariyali Kisaan Bazaar and my Manager Mr. R.K. Shukla, Institute faculty and all my colleagues, friends for their encouragement, support, guidance and assistance for undergoing industrial training and for preparing the project report.<br />declaration<br />I hereby declare that the project report titled:<br /> “BUYING BEHAVIOR OF THE RURAL CUSTOMER” submitted in partial fulfillment of the requirement for the Post Graduation diploma in Management (Retail), Jaipuria Institute of Management, is my original work and has not been submitted for the award of any other degree, diploma, fellowship, or any other similar title or prizes.<br />PLACE: RAEBARELI<br />DATE: SATURDAY 26TH, JUNE<br />VIDYA BHOOSHAN SINGH <br />Table of contents<br />Introduction about Retail Sector <br />Growth and current status of the Retail sector <br />Employment and Output in the Retail Sector <br />Organized vs. Unorganized Retail<br />Growth India Retail - Total vs. Organized<br />India Retail - Share of Categories (per cent)<br />Share of Organized Sector in Total Retail by Category (%)<br />Organized Retail Expansion by Format<br />Investment Opportunities in the Retail Sector -<br />The Potential of the Indian Retail Sector<br />Challenges of the Retail Sector:<br />Organized Retail in Rural India <br />Company Profile<br />About DSCL<br />Sugar: Gomti sugar<br />Hariyali Kisaan Bazaar<br />Chlor alkal<br />Caustic soda<br />Plastics<br />PVC Resin<br />DSCL Building Products<br />Cement<br />Textiles<br />Agri-business<br />Core values and beliefs<br />Research methodology<br />Recommendation & suggestions <br />Bibliography<br />Annexure <br />Introduction about the retail sector<br />Indian Retail<br />The growth of the retail trade in India is associated with the growth in the Indian economy. Gross domestic product (GDP) grew by an annual rate of 6.6 per cent during 1994-00 but the growth slackened to 4.7 per cent per annum during the next three years before the growth remarkably rose to 8.7 per cent per annum in the last four years (Table 2.3). This meant a substantial rise in disposable income of Indian households since the mid-1990s. Based on the Market Information Survey of Households (MISH) of the National Council of Applied Economic Research (NCAER), the number of people in the income groups of “aspirers” and the middle class with annual income ranging from Rs. 90,000 to one million, more than doubled from 157 million to 327 million during the last decade 1995-96 to 2005-06.3 The data from the Central Statistical Organization (CSO) indicate that the growth of real private final consumption expenditure, which dipped from an average of 5.7 per cent per annum during 1994-00 to 4 per cent per annum during 2000-03, shot up to 6.7 per cent per annum during 2003-07. Retail sales (in nominal terms) in the country also followed a similar pattern: a high annual growth of 13.6 per cent during 1994-00, a low growth of 4.8 per cent during 2000-03 and a smart pick up in the last four years, 2003-07 at around 11 per cent. <br />GDP, Private Final Consumption Expenditure and Retail Sales Growth, 1994-07 (Compound Annual Growth Rate)<br />The international consulting firm, A.T. Kearney, annually ranks emerging market economies based on more than 25 macroeconomic and retail-specific variables through their Global Retail Development Index (GRDI). For the last three years (2005, 2006, and 2007) India has been ranked as number one indicating that the country is the most attractive market for global retailers to enter. The high economic growth during the last few years raising disposable incomes rapidly, favourable demographics placing incomes on younger population with less dependency, and urbanization are some of the major factors fueling the Indian retail market. <br />Employment and Output in the Retail Sector <br />Retail is a labour-intensive economic activity. According to the Economic Census carried out by the CSO in 1998, the country had a total of 10.69 million enterprises engaged in retail trade, of which 5.23 million were in the rural areas and 5.46 million in the urban areas. The total employment in these enterprises in 1998 was 18.54 million of which 7.88 million was in the rural sector and 10.65 million in the urban sector. Economic Census has been carried out for 2005 but its detailed results are yet to be released. However, according to NSSO’s Employment and Unemployment Survey for 2004-05, employment in the retail trade has been 35.06 million, divided between rural (16.08 million) and urban (18.98 million) sectors.4 This constituted about 7.3 per cent of the workforce in the country (459 million). Wholesale trade, on the other hand, contributed to an employment of 5.48 million, of which only 1.71 million was in the rural sector and 3.77 million in the urban sector.<br />The NSSO data also indicated that retail employment was about 30.62 million in 1999-00 with 12.15 million in rural areas and much higher at 18.47 million in theurban areas. This means that an additional employment of 4.44 million was added in this sector during the five-year period, 2000-05, showing an annual employment growth of 2.7 per cent per annum. However, it is interesting to note that the retail employment growth has been quite large in the rural sector – there has been a massive rise in employment in rural retailing of 3.93 million during 2000-05 – and the urban sector has also shown an employment growth, but only of 0.51 million during this period.<br />According to CSO estimates, total domestic trade, both wholesale and retail included, constituted about 15.1 per cent of India’s GDP in 2006-07, a successive increase in share from 13 per cent of GDP in 1999-00. Taking into account the fact that retail trade is more labour intensive than wholesale trade, the contribution of retail trade alone to GDP can be estimated to be around 11-12 per cent in 2006-07. <br />Organized vs. Unorganized Retail<br />Indian retail is dominated by a large number of small retailers consisting of the local kirana shops, owner-manned general stores, chemists, footwear shops, apparel shops, paan and beedi shops, hand-cart hawkers, pavement vendors, etc. which together make up the so-called “unorganized retail” or traditional retail.5 The last 3-4 years have witnessed the entry of a number of organized retailers6 opening stores in various modern formats in metros and other important cities. Still, the overall share of organized retailing in total retail business has remained low. <br />Table gives the category-wise growth of Indian retail, total as well as the organized sector, in recent years. While total retail sales have grown from Rs. 10,591 billion (US$ 230 billion) in 2003-04 to Rs. 14,574 billion (US$ 322 billion) in 2006- 07, which is at an annual compound growth rate of about 11 per cent, the organized retail sales grew much more at about 20 per cent per annum from Rs. 350 billion <br />Growth India Retail - Total vs. Organized<br />(US$ 7.6 billion) in 2003-04 to Rs. 598 billion (US$ 13.2 billion) in 2006-07. As a result, the share of organized retail in total retail grew, although slowly, from 3.3 per cent in 2003-04 to 4.1 per cent in 2006-07.Food and grocery constitutes the bulk of Indian retailing and its share was about twothirds in 2003-04 gradually falling to about 60 per cent in 2006-07 (Table 2.5). The next in importance is clothing and footwear, the share of which has been about 7 per cent in 2003-04 and rose to 9 per cent in 2006-07. The third biggest category is noninstitutional healthcare whose share has slowly reduced from 9 per cent in 2003-04 to 8 per cent in 2006-07. The next is furniture, furnishing, appliances and services, whose share rose from about 5 per cent in 2003-04 to 7 per cent in 2006-07. <br />The category of jewellery, watches, etc. constituted about 6 per cent of total Indian retailing in 2006-07, rising from 5 per cent in 2003-04.<br /> India Retail - Share of Categories (per cent)<br />While the overall share of organized retailing remains low, its share in certain categories is relatively high and in certain other categories quite low. Thus, for clothing and footwear, the share is already in the range of 19-22 per cent, for the category of sports goods, entertainment, equipment and books the share is 12-16 per cent, and for furniture, furnishing, appliances and services, the share is 10-13 per cent (Table 2.6). In contrast, the share of organized sector in the largest category of food and grocery retailing, although growing, remains just below one per cent. <br />Share of Organized Sector in Total Retail by Category (%)<br /> The growth in organized retailing in recent years can also be gauged by the rise of shopping malls as well as the rising number of modern retail formats. In 1999, India had just three shopping malls measuring less than one million sq. ft. By the end of 2006, the country had 137 shopping malls equivalent to 28 million sq. ft. The pace of construction of shopping malls is progressing rapidly and the number of malls is expected to be about 479 by the end of 2008 with a capacity of 126 million sq. ft. (ICICI Property Services-Technopak Advisers Pvt. Ltd., 2007).<br />Organized Retail Expansion by Format<br />Investment Opportunities in the Retail Sector<br />AT Kearney’s study on global retailing trends found that India is the least competitive as well as least saturated of all major global markets. This implies that there are significantly low entry barriers for players trying to setup base in India, in terms of the competitive landscape. The report further stated that global retailers such as Walmart, Carrefour,Tesco and Casino would take advantage of the more favourable FDI rules that are likely in India and enter the country through partnerships with local retailers. Other retailers such as Marks & Spencer and the Benetton Group, who operate through a franchisee model, would most likely switch to a hybrid ownership structure. <br />A good talent pool, unlimited opportunities, huge markets and availability of quality raw materials at cheaper costs is expected to make India overtake the world's best retail economies by 2042, according to industry players.<br />The retail industry in India, according to experts, will be a major employment generator in the future. Currently, the market share of organized modern retail is just over 4 per cent of the total retail industry, thereby leaving a huge untapped opportunity. <br />The Potential of the Indian Retail Sector<br />The high growth projected in domestic retail demand will be fuelled by:<br />The migration of population to higher income segments with increasing per capita Incomes.<br />Changing consumer attitudes especially the increasing use of credit cards.<br />The growth of the population in the 20 to 49 years age band<br />There is retail opportunity in most product categories and for all types of formats<br />Food and Grocery: The largest category; largely unorganised today<br />Home Improvement and Consumer Durables: Over 20 per cent p.a. CAGR estimated in the next 10 years<br />Apparel and Eating Out: 13 per cent p.a. CAGR projected over 10 years .<br />Opportunities for investment in supply chain infrastructure: Cold chain and logistics.<br /> India also has significant potential to emerge as a sourcing base for a wide variety of goods for international retail companies<br />Many international retailers including Wal-Mart, GAP, JC Penney etc. are already procuring from India.<br />The sector is expected to see an investment of over $30 billion within the next 4-5 years, catapulting modern retail in the country to $175-200 billion by 2016, according to Technopak estimates.<br />Challenges of the Retail Sector:<br />Underdeveloped supply chain<br />Underdeveloped lgistics infrastructure <br />Absence of the national cold chain network <br />Lack of national distribution networks and hubs <br />Inadequate Utilities<br />Lack of adequate and reliable power , water and gas sources<br />Inadequate public transport facilities <br />Inadequate telecommunication facilities.<br />IT Infrastructure Hurdles <br />Low automation leveling supply chain and point of sale systems <br />No real time link between supplier-warehouses- retail- stores <br />Lack of online presence of retailers <br />Real estate hurdles<br />High real estate costs<br />Archaic and user- unfriendly lands laws<br />Lack of proper city planning models <br />Taxation hurdles <br />VAT and multiple taxation issues<br />Large grey market presence <br />Supply base hurdles <br />Fragmented supply base <br />Underdeveloped supplier relationship management programs<br />Inadequate quality assurance processes<br />Inadequate Human Resources<br />Lack of trained person at all levels <br />Stringent employment and industry laws <br />Fragmented industry approach to human resources <br />Limited consumer insight <br />Lack of detailed region- specific customer data <br />Lack of adequate data on consumer spending pattern <br />Absence of central body to aggregate industry information <br />Insufficient Government Incentives <br />Lack f industry specific incentives<br />Inconsistent agriculture and fertilizer subsidies <br />Policy related hurdles <br />Lack of industry status for retail<br />Numerous license, permit and registration requirements<br />Farmer and retailer unfriendly apmc Act<br />Organized Retail in Rural India<br />INTRODUCTION <br />We have entered the 21st century at a time when the demography of our population is changing significantly to drive organized retail growth. India now has a large young working population with a median age of 24. The number of nuclear families in urban areas is growing fast. Then there is the increase in working women population. Add to these the emerging opportunities in the service sector. Lifestyle habits are shifting from austerity to complete self-indulgence and Indians are now unapologetic about spending lavishly on non-essential goods such as luxury watches, cars, and hi-tech products. <br />India can be said to have entered the second phase of retail growth when there is high-speed growth. <br />There are retail chains like Tata's Westside, Pantaloon's Big Bazaar and Rahejas' Shoppers' Stop, to name a few, along with global players such as McDonald's and Benetton, trying to tap country's vast potential. Bringing all these under one roof are mega malls such as Lifestyle, Fun Republic and Big Bazaar. Now, top names in international malls such as Marks and Spencer and Mango are also eying the Indian market. It is only later that the retailing scene will move to the other phases when the fruits of rapid growth will result in economies of scale and greater efficiency leading finally to consolidation through mergers and acquisitions. Thus, retailing in India has a very long haul ahead. <br />Quantum Jump in Rural Retail Outlets <br />In India for a long time a large chunk of retail outlets were grocery shop. This pattern had been changing in recent years, in urban and rural markets. Of late, India's largely rural population has also caught the eye of retailers looking for new areas of growth. A slew of supermarket chains, including those of the Tata and ITC, are set to storm the rural areas of the country as corporate realize the huge potential of the untapped market ITC launched the country's first rural mall 'Chaupal Sagar', offering a diverse product range from FMCG to electronic appliances to automobiles, attempting to provide farmers a one-stop destination for all of their needs. Companies such as Godrej and DCM Shriram Consolidated are launching `one-stop shops' for farmers and their communities. Godrej Agrovet, for instance, is planning to set up 1,000 Aadhar stores across rural India by 2010. DCM Shriram plans to set up 35 rural/semi-urban utility marts over 2006-07. Positioned as a one-stop shop, the Hariyali Kisaan Bazaar Chain will cater to a variety of farmers' needs by providing access to retail banking, LPG outlets and even a motorcycle showroom. <br />As clear from the story on Reliance Fresh and Metro, organized retail sector can bring a revolutionary change in rural India unless it goes for quick short-term gains. With Wal-Mart famous for its 'Always Low Prices' coming in India with Bharati as equal partner, Indian farmers and rural craftsmen can hope for a better direct deal. Retailing does not benefit just the consumer. It can give huge benefits to other industries, to government, and to the entire economy. <br />The rural market is no longer a non-player in the retail game. It is now accounting for over one-third of the market for most durable and non-durable products. Even manufacturers are developing new products with the rural consumer in mind besides using village-oriented marketing strategies for brand promotions. Whether it is Rani Mukherjee promoting the chocolate Munch or master batsmen Sachin wowing village lads with a soft drink, both ad makers as well as top company honchos know where to put their money and how. The rural market is no longer of hypothetical empirical value but is well researched and reached by most companies looking to tap India's vast and abundant bounty. <br />Company Profile<br />32004001143000<br />Sir Shri Ram<br />Nothing can better sum up the homage paid to great son and philanthropist of Delhi, Barey Lalaji, Sir Shri Ram who began as a humble worker and went on to set up one of India's largest business houses - the DCM Group. Not only did Lalaji achieve great height in business enterprise; he also participated in full measure in the crucial early stages of nation building.<br />Everyone is familiar with the name of multiple facets of the industries and institutions on which he left his imprint - be it the DCM Limited, Bengal Potteries, Jay Engineering Works, many sugar mills, Sindri Fertilizers, the Lady Shri Ram College, Shriram College of Commerce, Delhi School of Economics and umpteen others. But who is this Barey Lalaji? Born into a family of Agarwal banias of modest means, Shri Ram, in the 79 years of his life, built an industrial empire manufacturing a vast variety of goods like - textiles, sugar, alcohol, heavy, chemicals, vanaspati, pottery, fans, sewing machines, electric motors and capacitors.<br />The industrial legacy that he left behind was valued at Rs 600 million at the time of his death. Reared in milieu which graft nepotism, black marketing and tax evasion were considered a must for success in business, Shri Ram set for himself rigid standards of morality in his dealings with the public and government and made no compromises in order to earn more money or gain a favor. While himself deprived of opportunities for higher education, he nevertheless understood how, important such education was in building the future of a nation.<br />As a result he helped to finance a network of schools, colleges, industrial institutes and research laboratories. He was also the founder chairman of the Industrial Finance Corporation and Chairman of Sindri Fertilizers, the first national venture in the public sector in free India<br />Chairman’s & Vice Chairman’s Desk<br />The road ahead <br />10287001828800<br />We are an integrated business conglomerate, with a group turnover of Rs. 2940 crores. Our business portfolio comprises of primarily two types of business i.e.<br />(i) Energy Intensive products<br />(ii) Agri products (inputs as well as outputs) and services. <br />We have manufacturing facilities at Kota (Rajasthan), Bharuch (Gujarat), and Ajabapur, Rupapur, Hariawan and Loni(UP). Our hybrid seed operations are at Hyderabad (India), Vietnam, Philippines and Thailand.<br />Our strengths are:<br />Strong energy management expertise both in the area of generation as well as effective utilisation of energy.<br />Deep understanding and knowledge of Indian rural milieu developed with over 40 years of close work with farmers to improve his economics.<br />Well-established presence and strong brand across the entire agri-space in India.<br />Integration through Integrated manufacturing facilities and thru utilization of competencies/resources across businesses is a major value enhancer.<br />We are building on the above strengths to develop a business profile which enjoys strong cost competitive position and delivers superior value to our customers simultaneously. <br />We are further integrating our business portfolio to add value added products/services and solutions to the commodity businesses.<br />We have implemented plans resulting in significant volume growth in past 2-3 years in most of our existing commodity businesses and expect significant value/growth through value add businesses in longer term.<br />The company has invested Rs.1300 crores in the past three years and plans to invest approximately Rs. 500 crores in the next two years, to expand its business operations.<br />DSCL is a Rupees 15.50 billion, public listed company, based in North India with a core<br />sector business portfolio comprising fertilizers, Chlor alkali, chemicals, plastics, cement, textiles and sugar. <br />A leading Indian organization, DSCL aspires to become a world-class enterprise that is responsive to change, outward looking, competitive, delivers superior quality at low cost, with focused businesses and robust financials.<br /> DSCL has been built on core values of being caring, credible and fair with all stakeholders, committed to continuous improvement; and being a responsible corporate citizen. <br />DSCL has built an enabling work culture and believes in releasing human energy within the organization through participation, teamwork, professionalism, entrepreneurship, openness and upholding human dignity.<br />The Company is committed to enhancing the employability of individuals through competence building via continuous training and development activities <br />DSCL believes in a pro-active Industrial Relations policy and has an enviable track record in this field. Employee welfare is given utmost priority and is institutionalized across the organization.<br />DSCL has initiated several management initiatives in the recent past for upgrading the organization, the major ones being Institution Building, Quality Management.<br />About DSCL<br />DSCL, a Rs.1,550 crore+ diversified business group based in North India. Its primary businesses are:<br />Agri-Business (Urea fertilizer, Sugar, Farm inputs marketing such as DAP, Pesticides,<br />Seeds, Agri retailing - Hariyali Kisaan Bazaar)<br />Plastics (PVC and PVC compounds)<br />Chemicals (Chlor-Alkali)<br />DSCL Building Products (Fenesta door and window profiles)<br />Other business interests comprise of Cement, Textiles and Energy Services. <br />Founded by Sir Shriram in 1889 (as DCM limited), today DSCL (which spun of as a separate company in 1990) is managed by Mr. Ajay S. Shriram, Chairman and Senior Managing Director and Mr. Vikram S. Shriram, Vice Chairman and Managing Director along with a highly professional executive team.<br />DSCL has strong brand equity reflective of credibility, ethical values and consistent high quality product image.<br />With over 30 years of experience in managing large scale process industries with sustained high level of performance, DSCL meets the needs of a wide range of customers from farmers to industrial users, from house builders to business owners.<br />Fostering enduring relationships is at the core of DSCL's business philosophy - with vendors, business partners, and customers and within the organization between employees.<br />As a leading equal opportunity employer in India, DSCL has a motivated and dynamic Management team of highly qualified professionals and dedicated workmen and staff whose work has shown the way towards creating “Team Excellence”<br />Fertilizers<br />DSCL fertilizer operations are characterized by highly optimized production process delivering high capacity utilization & proven abilities in erection, commissioning.<br />Operation & troubleshooting of Ammonia/Urea plant.<br />HIGHLIGHTS:<br />Date of Commissioning of plant February 1969<br />Present production capacity (Urea) 3, 30,000MT/Annum<br />Capacity utilization19%<br />DSCL's Urea operation has consistently earned production and productivity awards for its performance. Its well-established distribution network in North and West India allows the unit to service farmer needs effectively with a consistently high quality product. It is for these reasons that SHRIRAM Urea enjoys a premium position its markets.<br />Sugar:<br />Sugar is a key component of our agri-business portfolio. Our sugar operations functioned as an independent company within our Group until March 2004 when they were merged in DSCL.<br />These sugar operations commenced in 1998 in central Uttar Pradesh, where the first sugar mill was established through a green field project at Ajbapur. We later acquired an existing sugar mill in the same region, at Rupapur, in 2003 emerging as a major sugar producer in central Uttar Pradesh.Two new sugar mills at Hariawan and Loni were commissioned this year. We now have a combined installed capacity of 33,000 (tonnes crushed daily and a power generating capacity (bagasse based) of 70.5 MW . which is being further expanded to 94.5 MW,with an exportable surplus of 51.5 MW for the grid. .All our sugar plants are self-sufficient to meet their own power requirements from bagasse. We are also exporting power to the UP state grid.<br />Gomti sugar<br /> <br />Gomti Sugar Ltd., a unit of Ghaghara Sugar Ltd., an enterprise of DCM Shriram Consolidated Limited, New Delhi, is a 6000 tcd sugar mill situated at Ajbapur village, JB Ganj, Kheri district, in central UP.<br />The plant was commissioned in November 1997 with a crushing capacity of 3125 tcd. The continued efforts in the cane development front and growth thrust of the Management have made possible to reach today s crushing level of 6000 tcd<br />Hariyali Kisaan Bazaar <br />On 16th July 2002, the first retail outlet was inaugurated at village Del Pandarva (Distt. Hardoi) on the Delhi-Lucknow highway near the DSCL's Gomti Sugar complex. <br />This 10,000 sq ft store is a one-stop shop providing the farmer with a range of multi-brand agri inputs such as fertilizers, seeds pesticides, micro- nutrients, bio-fertilizers, agricultural implements, tools and farm fuels. <br />The store is also geared to provide farmers with expert agronomic guidance and services like soil testing, water testing, pesticide application services etc. Other value added farm services are to be added in due course. <br />After the initial pilot phase comprising of 4 stores in different parts of the country, it is proposed to roll out the concept nationally.<br />In the future, Hariyali Kisaan Bazaars plans to move beyond agri into other categories like durables, furniture, electrical, fast-moving consumer goods, to cater to other needs of farmers as customers.<br /> <br />quot; Hariyali Kisaan Bazaarquot; - a rural business centre, is a pioneering micro level effort, which is creating a far-reaching positive impact in bringing a qualitative change and revolutionizing the farming sector in India. <br /> DCM Shriram Consolidated Ltd. (DSCL), capitalising its over 35 years of experience in the agri-input markets & first hand knowledge of Indian farmers, is setting up a chain of centres aimed at providing end-to-end ground level support to the Indian farmer & thereby improving his quot; profitabilityquot; & quot; productivityquot; . <br /> <br />The key constraints of the Indian farming sector, being addressed by quot; Hariyaliquot; are:<br />Lack of last mile delivery mechanism of modern agriculture know- how & practices.<br />Lack of availability of critical good quality agri-inputs.<br />quot; Middlemenquot; driven farmer interface.<br />High cost credit.<br />Lack of direct access to buyers of varied & high value crops.<br />The quot; Hariyali Kisaan Bazaarquot; chain, seeks to empower the farmer by setting up centres, which provide all encompassing solutions to the farmers under one roof. <br />Each quot; Hariyali Kisaan Bazaarquot; centre operates in a catchment of about 20 kms. A typical centre caters to agricultural land of about 50000-70000 acres and impacts the life of approx. 15000 farmers.<br />Each centre is engaged in: <br />Bridging the last mile: Provides handholding to improve the quality of agriculture in the area. Provides 24X7 support through a team of qualified agronomists based at the centre.<br /> <br />Quality Agri-Inputs: Provides a complete range of good quality, multi-brand agri inputs like fertilizers, seeds, pesticides, farm implements & tools, veterinary products, animal feed, irrigation items and other key inputs like diesel, petrol at fair prices.<br />Financial Services: Provides access to modern retail banking & farm credit through simplified and transparent processes as also other financial services like insurance etc. Farm Output Services: Farm produce buyback opportunities, access to new markets &• output related services.<br /> Other Products and Services: Fuels, FMCG, Consumer Goods and Durables, Apparels etc.<br />These centers provide the much needed respect/dignity and freedom to the Indian farmer. In the near future, Hariyali Kisaan Bazaars plan to move beyond agri to meet the other needs of farmers as customers. <br />Technology as an important enabler<br />IT has been a critical backbone to the chain of centers. It is being used to provide online support on latest technical advancements, weather forecasts, mandi (market) prices, fair & transparent billing to farmers as well as in maintaining extensive farmer databases with micro information about the farmers' field to provide customized service to the farmers.<br />Farmer Response<br />The ground-level Agri-support is already yielding results in the farmer's fields. Whether it is adoption rate of high yielding seeds, right doses of fertilization, productivity of cattle-feed, moisture conservation measures, adoption of new crops/allied occupations or adoption of new technologies like zero tillage, the farmers in catchment of Hariyali centres are already way ahead of the national averages.<br />Each HKB centre caters to communities within a 25-30 km perimeter and impacts the life of about 20,000 households. HKB’s business model is to provide targeted services to farmers in remote regions. As such, it is a pioneering project because it contributes to rural and agricultural development while being a profitable business venture. It also reinforces the need for farming communities to have access to information and technology.<br />In June 2009, DSCL announced the plan to add 300 stores to the existing 300 by 2012. The group is currently present in eight states and is India’s largest rural retail chain.<br />Hariyali Kisaan Bazaar: reaching out to farmers in rural 0703580India<br />From the retail store, farmers can obtain farm inputs, weather information and market pricescredit: DCSL <br />In a room at the back of an agro-input store near Karnal in Haryana, northern India, a group of 60 farmers have gathered for training. They interact enthusiastically with the trainer, asking questions, giving their views. When asked what they appreciate about the particular services provided, they respond, quot; Here we buy everything we need for the farm under one roof. And if we need assistance, the Hariyali people come and help us in the field.quot; <br />The store at Ladwa, near Karnal, is not unique but one of over 300 stores spread across eight states, from Uttar Pradesh and Punjab in the north to Andhra Pradesh in the south. First established in 2002, Hariyali Kisaan Bazaar represents a retail revolution in rural India. By understanding and supplying farming families with all their agricultural and household needs, the Hariyali centres aim to engender trust and provide their customers with quality products and long-term advice.<br />The concept of Hariyali grew from an agricultural extension programme of DSCL, a well-known Indian conglomerate producing fertilizer, seed and sugar. Trained agronomists were posted in rural areas to advise sugarcane growers. Knowing of the parent company's expertise, farmers began to ask advisors to help them buy good quality farm inputs, at a reasonable price and in time with their seasonal needs. To respond to this request, DSCL set up five pilot stores which, by 2005, quickly expanded as farmers requested more outlets, and a greater choice of products and brands.<br />A quality guarantee<br />The Hariyali outlets were a completely new concept for rural India and Sanjay Chhabra, head of retail operations, recalls the scepticism when the first stores were established. quot; When we started people told us it would be very difficult, but this wasn't the case. There was a latent demand, the farmers wanted quality and we listened to them to supply them with what they need.quot; <br />00<br />Retail stores provide good quality farm inputs at a reasonable price credit: WREN media<br />Each outlet store is based on a campus of four to five acres, with a fuel station, banking facilities, farm demonstration area, green recreation zones, and the retail store. From the one site, farmers can obtain farm inputs and financial and agricultural advisory services. Day-to-day household goods are also available, as well as weather information and market prices.<br />Chhabra continues, quot; Farmers come from over 40km away to refuel because we guarantee 100 per cent quality and quantity. Even with cooking gas, we have a retail outlet where we sell gas on government fixed rates, which they might get for higher price in other places, but at Hariyali the farmers know they are definitely getting what they pay for, which is not a common concept here in rural India.quot; <br />Improving agricultural productivity<br />Across the flat lands of Haryana, farmers grow wheat, sugarcane and rice. The region contributed heavily to the Green Revolution but yields have since stagnated and farmers now struggle to make a profit. Their children, they report, are not interested in agriculture. The 3,000 or more farmers that interact with the Hariyali centre at Ladwa own on average between 2-4 hectares but many farms are much smaller. Labour shortage is another serious constraint for farmers in this region.<br />To increase profitability, Hariyali advisors have worked with the farmers to introduce new cultivation practices, such as recommending intercropping sugarcane with onions, to adopt zero tillage in wheat, or use raised beds for growing mustard. Farmers are also encouraged to diversify into new crops like sunflower, which can be grown after potato in the late winter/spring season, as well as to consider introduction of new machinery, for example a paddy planter which can help resolve labor problems with transplanting rice.<br />An understanding approach <br />00Farmers are able to test new machinery before they buycredit: WREN media<br />Hariyali staff understand that purchase of new equipment can be a large financial commitment so, as Sudhir Asthana, head of agri-services, says, quot; We are happy to trial machinery for farmers to see it working in their fields. They may even start on rentals before making a major purchase.quot; <br />Understanding the needs of farmers has been the key to Hariyali’s success. A recent development has been to increase farmers' confidence through teaching them English and IT skills. quot; By providing them with new skills,quot; says Asthana, quot; farmers have a better chance to access information that can help them.quot; The farmers have responded well to these new opportunities and report positively on the relationship with Hariyali staff. quot; We have almost like family relations with Hariyali staff,quot; says one farmer. quot; We trust them and like working with them. They understand us very well.quot; <br />Renowned for their pioneering and entrepreneurial approach, Hariyali plans to continue listening and responding to farmers to provide the services they need. quot; We need to constantly evolve so we can provide what is required to help improve agricultural productivity in the regions where we work,quot; says Chhabra. quot; But one of our biggest challenges is to reach out to more farmers. We are the only service for around 20 per cent of the farmers in the area around Lawda, for example. We have to continue reaching out, as we know there are many more farmers who would benefit from working alongside our staff.quot; <br />Future Plans<br />Hariyali Kisaan Bazaar has plans to rapidly scale up the operations & create a national<br />footprint covering all the major agricultural markets of the country. This would mean catering to cultivable land of over 30 million acres and touching the lives of over 10 million farmers.<br />Chlor alkal<br />The Chemical Business derives its core strength from its Chlor-alkali operations. With an<br />installed capacity of approx. <br />110,000 TPA (49,550 TPA based on mercury cells & 62,000 tpa based on membrane cells) and a market share of approx. 8% in the Indian Chlor- alkali industry DSCL is a leading producer in the country.<br />The strategic thrust of the business is to use it existing infrastructure and market presence to build value added products and services.<br />As a first step, DSCL has moved aggressively to enter the water treatment area by setting up a state-of-the-art plant situated at Kota, Rajasthan for a latest 3rd generation Polyaluminium Chloride (capacity 39,000 tap).<br />Marketed under the brand name Excoriate these products provide outstanding coagulation/flocculation properties.<br /> DSCL s Chemical Business provides total customer solutions with its nationally accredited Shriram Environment and Allied Services(SEAS) operations and laboratories.<br />Caustic soda<br />Caustic Soda is a basic product very widely used in diverse industrial sectors, either as a raw material or as an auxiliary chemical. As mentioned ealier, it is produced along with chlorine. <br />It is mainly used in the manufacture of pulp and paper, newsprint, viscose yarn, staple fiber, Aluminum, cotton, textiles, toilet and laundry soaps, detergents, dyestuffs, drugs and pharmaceuticals, vanaspati, petroleum refining.<br />Caustic soda is produced in two forms - lye and solids. Solids can be in the form of flakes or granules.<br />Three technologies are available world over for production of caustic soda mercury cell process, diaphragm process, and membrane cell process. All three processes are in use in India, although there is strong trend indicating a shift towards the environmentally better membrane cell process. We manufacture Caustic soda through more environmentally friendly membrane technology.<br />Dscl have a total caustic soda capacity of approx.110,000 tons per annum at two locations in India. At Kota, Rajasthan our capacity is 50,000 tons per annum of mercury (rayon) grade caustic.<br />Plastics<br />DSCL s core plastics business is based on a state-of-the-art computer process controlled PVC Resin (33,000 tpa).<br />Based on the carbide manufacturing process this plant also generates valuable Other Products such as high purity Calcium Carbide.<br />In a subsidiary company Shriram Polytech Limited (SPL) the business operates one of India s largest PVC Compounds facilities (20,000 tpa). This plant supplies customizedproductstoover200industrialcustomers.<br />SPL has also set up an Innovative Polymer Applications Centre (IPAC) which is focusing on development of further specialty and value added polymer products, innovative customer specific application solutions and moving in a calibrated manner up the product-value chain.<br />DSCL has introduced a new division, DSCL Building Products, the next step in plastics adding on to the value chain. <br />PVC Resin<br />Based on the Calcium carbide based process and closely linked with the Carbide and Chemicals operations at Kota, DSCL s PVC resin plant enjoys unique cost advantages with a built in flexibility to quickly respond to customer needs.<br />DSCL's core philosophy is of a caring, credible and ethical organization. We believe in building lasting relationships. The working philosophy is one of continuous improvement<br />through learning initiatives, technology and process up gradation. This has created exciting new opportunities of growth and diversification for the group.<br />PolyTech is focused on providing enhanced value to the customers in diverse application<br />areas through customized solutions and quick and interactive response.<br />DSCL Building Products<br />DSCL's Building Products group is manufacturing and marketing UPVC window systems. In due course other related products will also be developed to become a premier full range supplier of building products to the industry.<br />To bring out the best in UPVC window systems, DSCL Building Products in technical collaboration with HW Plastics, UK has introduced Fenesta UPVC Window Systems in India.<br />These products have a very wide acceptance in Europe and America and have several advantages over existing products serving the same market.<br />Cement<br />DSCL s Cement Business is Indias only plant that converts waste generated at Kotainto<br />Consistent quality, premium grade cement products.<br />Shriram Cement is produced in a computer process controlled highly automated plant. <br />The product has created for itself strong brand equity and is a recognized market leader in its areas of distribution.<br />Textiles<br />The textile group comprising of Swatantra Bharat Mills and DCM Silk Mills earlier situated in 112 acres of prime land in the heart of Delhi has relocated to Tonk, Rajasthan. <br />Agri-business<br />We regard our agri business as a key growth driver for us. We believe that the agricultural sector is a high potential area where we, with our expertise and strengths accumulated over decades of presence in this sector, can add considerable value and capitalise on emerging opportunities.<br />With the objective to move towards providing total Solutions to the farmers, we have initiated a Rural Retailing initiative recently which we believe holds immense promise in terms of untapped opportunities, scalability and growth potential. Being implemented under our Hariyali Kisaan Bazaar initiative, we offer multiple products and services to the rural and farming community, including agri inputs, diesel and petrol (under alliance with BPCL), consumer goods, durables, apparels, insurance, agronomy advisory, credit, and contract farming as a part of this initiative. It is proposed to extend the offerings to other products and services over a period.<br />All of our agri business activities are supported by a strong Shriram brand equity that our products enjoy in the marketplace. We offer online agronomy services to farmers through 100 centres Shriram Krishi Vikas Kendras established by us across the country that operate with the objective to increase farmer profitability by providing them effective agronomy services. <br />The Shriram Krishi Vikas Kendras help upgrade farming methods and also provide assistance to the farming and rural community in the educational, hygiene and sanitation needs of the community as well as health care support for animal husbandry.<br />Core Values and Beliefs <br />DSCL's core values and beliefs are a reflection of its commitment to build a world class,<br />learning organization, striving for excellence in all its endeavors.<br />Customer Focus<br />Be sensitive to the needs of the customer; develop superior customer insight<br />Commitment to surpass expectations and deliver superior value<br />Innovation and Excellence<br />Strive to think differently and promote creativity<br />Make continuous improvement a way of life; drive excellence<br />People Development<br />Continuously improve and upgrade the skills and competencies of our people<br />Support people to realize their potential<br />Team work<br />Work closely as a cohesive, well-knit team<br />Inculcate a spirit of openness and collaboration<br />Relationships and Human Dignity<br />Value people and partnerships<br />Nurture understanding, compassion, trust and respect in all relationships<br />Social Responsibility and Ethics<br />Be a socially responsible corporate, addressing the needs of the community and <br />environment<br />Conduct business ethically<br />Social Responsibility<br />A Responsible Corporate Citizen Continuing with the long history of social commitment projects started by the founder Sir Shriram, DSCL has been making meaningful contributions to the society in the different areas. <br />Agriculture Extension activity<br />DSL s Shriram Krishi Vikas Kendra s (SKVK's) operate with the objective to impart scientific knowledge to the farmers to enhance their profitability covering crop cycle and harvesting etc. SKVK's support the farmers in their work and life through adoption of villages.<br />Health Care<br />In its endeavor to serve the society around its operating locations, DSCL has equipped Maharao Bhim Singh (MBS) Hospital, Kota with a state of art intensive care unit - 'The Shriram ICU' and Private rooms- 'The Shriram Wards'.<br />The company organizes healthcare camps in its adopted villages and centres to create Awareness on diseases like AIDS and Cancer. Periodic Eye check-up camps are arranged and Family Planning programmers encouraged by incentive schemes for the villages around its areas of operation Education<br />Research methodology<br />objective TO STUDY<br />“BUYING BEHAVIOUR OF THE RURAL CUSTOMER”<br />RESEARCH DESIGN<br />Exploratory Research: Initially we collect the information in an unstructured and informal way from different customer segments of Hariyali Kisaan Bazaar. We have also spend lots of time at customer desk for understanding customer problems and buying behavior.<br />Descriptive Research: With the help of Exploratory Research we are able to define problem and behavior more clearly and establish variable to answer research question.<br />Determining and designing research instruments.<br />There are several methods of collection of data telephonic survey, mail survey, personal interview or group survey. We have used survey technique with the help of structured questionnaire with 11 close ended questions.<br /> <br />Sampling Technique<br />The sample chosen from target population (i.e. target customer of the Hariyali Kisaan Bazaar) of size 100 respondents for the purpose of study and random sampling method has been used.<br />Collection and Analysis of Data <br />Primary Data <br />We have done field research for primary data collection as secondary data was not available. We have select 100 respondents from the target area.<br />Analysis <br />Manual analysis.<br />Graphical representation through Ms- Word and analysis of the data through the excel.<br />Ques1. Please choose your most preferred buying style?<br />Total Response<br />Most Preferred Buying Style 0246810121416Urban HighIncomeGroup Urban LowIncomeGroupRural HighIncomeGroup Rural LowIncomeGroup Single Item Buying fromDifferent StoresBulk Buying from Same Store Retail Buying from Same Store Do not have any Fixed Style <br />The study shows about the buying style where we found the 39% of the respondent prefer the single item buying from the different store, 23% bulk from same store, 23% retail buying from same store and 15 % do not have any fixed style of the buying , after segmenting the respondent we found that the urban high income group customer most prefer the bulk buying from same store where the rural high income group customer are most prefer the single buying from different store and urban low equally preferred the all style, and rural low most preferred the single buying from the different store and it is higher than the rural high also.<br />Ques2. What do you normally buy?<br />Total Response<br />Category wise Response<br />Products Normally Bought 0%10%20%30%40%50%60%70%80%90%100%Urban Highincome Group Urban LowIncome GroupRural HighIncome Group Rural LowIncome Group Agri Products Specialty GoodsShopping Goods FMCG Products <br />The study shows the product category preferred by the customer where 39% customer preferred the agri 24% FMCG 21% shopping gods and 16% specialty goods. When we segmented the respondent then the response was 44%urban high 30% urban low, 12 % rural high and 8 % of the rural high preferred the FMCG product. 72% rural low 68% rural high and 15% urban high preferred the agri products. Specialty goods mostly purchased by the urban low customer .<br />Ques3. What is the most important thing about a product when you decide to buy it? <br />Urban High Income Group Urban Low Income Group<br />Factors which influenced the buying decision1 02468101214PriceQualityBrand value EasilyavailabilityMost imp.Important Less Important not imp at all<br />Rural High Income Group Rural Low Income Group <br />The study shows the factors which affect the buying behavior there is the price, quality, brand value and easily availability of the products. Where the brand value and the quality is most important for the urban high and low income group. Where the price play the most important role in the rural high and low income group and the brand value is not important at all.<br />Ques4. From where do you like to buy?<br />Urban High Income Group Urban Low Income Group<br />0%20%40%60%80%100%Mostoften OftenAverage RarelyNot at allPlace from where Products Bought Company outlets Retail storeMom pop store Open market 0%20%40%60%80%100%Mostoften Average Not at allPlace from where Products Bought Company outlets Retail storeMom pop store Open market <br />Rural High Income Group Rural Low Income Group<br /> <br />The study shows the behavior of the customer from where they purchase the products. The urban customer prefers the company outlets and retail outlets most often and the urban low prefer the mom and pop stores for the purchasing.<br />The rural customer also having the interest to purchase the products from the retail store and the rural customer have no interest to purchase from the company outlets.<br />Ques5. If you prefer to buy from retail store please rank in order of preference of liking.<br />Urban High Income Group Urban Low Income Group<br /> 0%20%40%60%80%100%Mostoften Average Not atallPreferred Store Big BazaarVishal mega mart Hariyali kisaanBazaar0%20%40%60%80%100%MostOften Average Not at allPreferred Store Big BazaarVishal mega mart Hariyali kisaanBazaar<br />Rural High Income Group Rural Low Income Group<br />0%20%40%60%80%100%Mostoften Average Not at allPreferred Store Big BazaarVishal mega mart Hariyali kisaanBazaar 0%20%40%60%80%100%Mostoften Average Not at allPreferred Store Big BazaarVishal mega mart Hariyali kisaanBazaar<br />The study shows the retail store preferred by the customer. The 64%urban high income group customers,78% urban low income group customer , 82% rural high income group,78%rural low income group most prefer the Hariyali kisaan bazaar. The big bazaar is preferred by the urban customer by very less percentage and the rural customer not prefer the it at all. Vishal mega mart is often preferred by the urban high and low income group. There is the major finding is that the rural customer purchase the products from the Hariyali kisaan bazaar and they are not interested in the other store.<br />Ques6. What are the reasons which are responsible for your visit to Hariyali Kisaan Bazaar?<br />Urban High Income Group Urban Low Income Group<br />0%10%20%30%40%50%60%70%80%90%100%Mostoften Average Not at allResponsible Factor for Visited Customer Customer Service Availability of VariousProduct at one Place PriceAssurance of Quality <br />Rural High Income Group Rural Low Income Group <br />The study shows the factors which is responsible for the customer visit. There is price, assurance of the quality and availability of the products play the most important role for the urban low and high income group visit in the Hariyali kisaan bazaar. The rural customers have also belief on the assurance of quality, reasonable price and availability of the products at the one place. The most of the customer says that there is very poor customer service in HKB.<br />Ques7. What are the reasons which are responsible for your not visiting to Hariyali Kisaan bazaar?<br />All Responses<br />Area Wise Responses<br />Responsible Factor for not visiting 0%10%20%30%40%50%60%70%80%90%100%Urban HighIncomeGroup Urban LowIncomeGroupRural HighIncomeGroup Rural LowIncomeGroup Lace of AwarenessPrice Distance and TransportFacilitiesFrequently not Available of theProducts<br />The study shows the factors which is responsible for not visiting the customers. Customer is not visited 40%, Due to lack of the awareness 36% due to distance and transport facilities, 13% due to frequently not available of the products and 11% due to high price. The urban low income group says the price is satisfactory and it is not more responsible for the not visiting. Due to lack of the awareness most of the customer of all income groups is not visited to Hariyali kisaan bazaar. For the urban customer there is also distance and transport problem. <br />Ques8. What makes you loyal to a particular brand?<br />All Responses <br />Area wise responses<br />Criteria for the loyalty of the Brand 0%10%20%30%40%50%60%70%80%90%100%Urban HighIncomeGroup Urban LowIncomeGroupRural HighIncomeGroup Rural LowIncomeGroup Money value delivered from it Social Status attached to it Quality Associated to it Image of the Brand in theMarket <br />The study shows the criteria for the loyalty of the brand. The 45% customers are loyal for the quality associated to it , 22% customers are loyal for social status attached to it, 29% customers are loyal for money value delivered from it and 4% customer are loyal for the image of the brand in the market . after segmenting the market we found most of the urban customer loyal for the quality associated and social status attached to it and another side the rural customer have loyalty for the quality associated to it but they have not loyalty for the social attachment to it. Money value delivered from it most important criteria for the brand loyalty they also tried to check what will be the return from this product in term of the money. <br />Ques9. How much branding of product is important for you?<br />Total Response<br />Area wise Response<br />The study shows the importance of the branding for the products. There is the 9% very important, 42 % response is important, 38%less important, 8% very less important 3% not important at all. The urban high income group gives the 55% importance of the branding where the rural don’t give the more importance to the branding. The response of the rural low income group branding is not important at all.Ques10. Your buying is mostly influenced by? <br />All Response<br />Area wise Responses<br />Factors Responsible for Influenced Buying0%10%20%30%40%50%60%70%80%90%100%FamilyMembers Friends PeerGroupsCloseColleaguesCommunityLeaders Some bodyWho hasalreadybought theproductRural Low Income Group Rural High Income Group Urban Low Income GroupUrban High Income Group <br />The study shows the factors which influence the buying behavior of the customer. The family members influence the all category of the customer. Friends and peer groups also influence the all category of the customers except the rural high income group. Close colleagues also influence the all category. Rural high and low income group mostly influence by the community leaders. <br />Ques11.How you classify yourself as a consumer?<br />The study shows the classification of the consumer on the basis of the certain class. There are 29% early majority customer 25% early adopter 21% innovator 14% late majority and only 11% laggards. This is the most important to position the new product in the specific class. <br />Recommendation and suggestion<br />There is one major finding on the basis of the buying style of the rural customer. The rural low income group preferred to purchase single item from different stores and the urban low income groups preferred the retail buying from same store. The rural high income group mostly goes through the bulk buying from the same store comparison to rural low income group. The urban high income group purchases the bulk from the same store. The overall view shows the high income group go through bulk purchase than the low income group so company need to focus on the high income groups because after doing the one time effort they can generate the more revenue for the company. <br />The rural high and low income group are basically engaged with the Agri products and the urban high and low income group focus on the FMCG and specialty goods. There is need to cater the customer needs according to there buying habit and advertiser the products accordingly.<br />The most of the customer prefer the quality rather than the quantity so company should focus on the quality than the quantity or cheap price. The rural low income group customer prefers the low price product because of the low income but they don’t want to leave the quality product.<br />There is one major finding that shows the customer liking of the place from where they are purchasing the products. The customer liking is gradually changing towards the retail stores and specialty store than the open market. This is the tremendous opportunity for the retail organization in the semi rural market. <br />The rural customer are having the interest to purchase the product from retail store but they have fear the product will be more costly than the open market so need to make it sure to customer the products are not costly than the open market and the quality is better than the open market. <br />There is need to create awareness about the product quality and the usage of the new technical product. <br />The rural customers have the desire to purchase the product but due to lack of proper guidance they are not able to do this so this is also opportunity to educates customers and make them potential customer.<br />The finding shows the most of the rural customer have the interest to purchase the products from hariyali kisaan bazaar because it cater the need of the farmers very perfectly and customer have the faith on the HKB products and services.<br />The rural customer have less interest in the brand than the urban customer so there is need to focus on the quality than the branding for the products.<br />The buying behavior of the customer influenced by the family groups, friends, peer groups close colleagues community leaders and somebody who has already bought and the rural customer’s buying behavior mostly influenced by the family group and the community leaders so there should be educate the family members and the community leader by the seminars, exhibition and by other promotional offers.<br />There is the percentage of the innovator customer in the rural market is also high in the high income group so there is no constraints of the adoptability.<br />The rural customer have the ability to purchase the new products but they are waiting for the others purchasing so if we understand their need and make them loyal for the company then they can purchase the products regularly from the same store.<br />The company has needed to focus on their customer relationship management because the customers are not satisfied by the service of the HKB. <br />They will have to focus on the CRM of the company and manage the database of the customer to cater the needs accordingly and provide the all relevant information to customer related to the farming and the market.<br />The company must improve the quality and the availability of the products in the store at the reasonable rate.<br />There is need to promotional activities and other loyalty programs to make the huge customer base for the Hariyali Kisaan Bazaar. <br />Bibliography<br />Websites:<br />www.retailindustry.com<br />www.dscl.org.com<br />www.mapsofindia.com<br />www.moneycontrol.com<br />www.hariyali.cm<br />www.googlebooks.com<br />Books: <br />Research methodology – C.R. kothari<br />Consumer behavior <br />Marketing management – kotler<br />QUESTIONNAIRE<br />This questionnaire is for research study only and to be filled by the respondents. The confidentiality of the information would be kept secured. The purpose of the questionnaire responses are for academic needs only.<br />Name of respondent: ……………………..Gen………………………………………….<br />Contact no: ………………………………. Age………………………………………….<br />Profession: ………………………………………………………………………………...<br />Locality: …………………………………………………………………………………...<br />Ques1. Please choose your most preferred buying style?<br />Single item buying from different stores<br />Bulk buying from same store<br />Retail buying from same store<br />Do not have any fixed style<br />Ques2. What do you normally buy?<br />FMCG products<br />Shopping goods (cloths, shoes, electrical appliances)<br />Specialty goods (high priced goods, luxury goods)<br />Agri products <br />Ques3. What is the most important thing about a product when you decide to buy it? (Rank, 1- most important, 2- important, 3- less important, 4- not important at all)<br />Price <br />Quality <br />Brand value <br />Easy availability <br />Ques4. From where you like to buy? (Rank you preferences as 1- most often, 2-generaly, 3- average, 4- rarely, 5- not at all)<br />Open market<br />Mom & Pop stores<br />Retail stores<br />Company outlets<br />Ques5. I f you prefer to buy from retail store please rank in order of preference of liking.<br />(rate 1to 5, 1-most liked , 5- least liked )<br />Hariyali Kisaan bazaar <br />Vishal mega mart <br />Big bazaar <br />Any other …………………<br />Ques6. What are the reasons which are responsible for your visit to Hariyali Kisaan bazaar?(please rate 1 to 5 )<br />Assurance of quality<br />Price <br />Availability of various products at one place <br />Customer service <br />Any other reason …………..<br />Ques7. What are the reasons which are responsible for your not visiting to Hariyali Kisaan bazaar?<br />Frequently not availability of the products <br />Distance and transport facility <br />Price <br />Lack awareness<br />Any other suggestion ……………….<br />Ques8. What makes you loyal to a particular brand?<br />Image of the brand in the market<br />Quality associated to it<br />Social status attached to it<br />Money value delivered from it<br />Ques9. How much branding of product is important for you?<br />Very important<br />Important<br />Less important<br />Very less important<br />Not important at all<br />Ques10. Your buying is mostly influenced by?<br />Family members<br />Friends<br />Peer group <br />Close colleagues<br />Community leaders<br />Somebody who has already bought the product<br />Ques11. How you classify yourself as a consumer?<br />Innovator<br />Early adopter<br />Early majority<br />Late majority<br />Laggards<br />