DISSERTATION REPORT
On CONSUMER PERCEPTION OF RETAIL OUTLETS IN NCR WITH SPECIAL REFERENCE TO: SHOPPERS STOP, LIFESTYLE AND PANTALOONS By ANIRUDH SINGH A0101908125 MBA Class of 2010
Under the Supervision of
Mr. JITENDRA KUMAR Sr. LECTURER (Department of Decision Science)
In Partial Fulfillment of Award of Master of Business Administration
AMITY BUSINESS SCHOOL AMITY UNIVERSITY UTTAR PRADESH SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA 2010 1
DECLARATION
I, Anirudh Singh a student of Masters of Business Administration from Amity Business School, Amity University Uttar Pradesh hereby declare that I have completed my dissertation on “CONSUMER PERCEPTION OF RETAIL OUTLETS IN NCR WITH SPECIAL REFERENCE TO: SHOPPERS STOP, LIFESTYLE AND PANTALOONS ” as part of the course requirement.
I further declare that the information presented in this project is true and original to the best of my knowledge.
Date: 17/03/2009
Name: Anirudh Singh
Place: Noida
Enroll. No: A0101908125 Program: MBA (General) 2008-
2010
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CERTIFICATE
I, Mr. Jitendra Kumar, hereby certify that Anirudh Singh, student of Masters of Business Administration at Amity Business School, Amity University Uttar Pradesh has completed dissertation on “CONSUMER PERCEPTION OF RETAIL OUTLETS IN NCR WITH SPECIAL
REFERENCE
TO:
SHOPPERS
STOP,
LIFESTYLE
AND
PANTALOONS”, under my guidance.
Mr. JITENDRA KUMAR Sr.Lecturer Department of Decision Science
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ACKNOWLEDGMENT
I woul would d like like to expres expresss my grati gratitu tude de to our our Addit Additio ional nal Direc Director tor Gener General al Dr. Sanjay Sanjay Srivastava, who is the strength behind every student.
I am greatly indebted to acknowledge the heartiest gratitude to Mr. Jitendra Kumar, Faculty Guide, for giving me her time and valuable guidance that boosted my project.
My sincere thanks to all those people who gave me their valuable time and input for filling my questionnaires.
I am thankful to my faculty members and friends for their support.
Last but not the least; report was completed successfully because of the grace of the God.
Name: Anirudh Singh Enroll. No: A0101908125 Program: MBA (General) 2008-2010
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EXECUTIVE SUMMARY
Indian retail sector is one of the most thriving sectors in India and accounts for 35% of GDP. As per a study conducted by the Indian Council for Research on International Economic Relations Relations (ICRIER), the retail sector is expected to contribute contribute to 40 per cent of India's GDP by 2010 end. The retail industry is divided into organized and unorganized sectors. Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other other hand, hand, refer referss to the tradi traditi tiona onall forma formats ts of low-c low-cost ost retai retailin ling, g, for exam exampl ple, e, the local kiranashops, kiranashops, owner manned general stores, paan/beedi paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. Indian consumer has undergone a remarkable alteration. Just a decade or two ago, they saved most of their incomes, purchased the only necessities. But today, equipped with higher income, credit credit cards, exposure to new shopping culture of west, desire to show status and to improve standard of living, the Indian consumer is spending a lot. His new mentality, in turn is fueling the growth of organized retail in India. This research paper is a study of changing consumer perception perception towards this growing sector. For studying this topic three retail stores have been chosen: Shoppers Stop, Lifestyle and Pantaloons. It studies consumer response of what all factors effect the buying behavior of consumer in choosi choosing ng a retai retaill outle outlet. t. Does Does adver adverti tisin sing g plays plays a key key role, role, if yes yes then then what what form form of advertising is most effective. It studies consumer spending behavior and there frequency of visit to retail outlets. This research paper brings about all the major attributes that consumer demand in retail outlets and what all factors adversely effect there buying decision. During the study it was found that people visiting these big retail outlets hardly consider price factor. Consumer visiting these stores is usually brand and quality conscious.
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After completion of this report I learnt that retailers need to continually come up with new ideas to retain there consumers as offerings are almost same at all the stores. Apart from that I also found out that retailer needs to work hard on customer satisfaction criteria. The project on the whole helped me understand retail consumer’s behavior, retail industry and the effect of advertising.
CONTENTS
Declaration Certificate from Faculty Guide Acknowledgement Abstract S. No.
Chapter Name
Page No.
1.
Introduction
2.
Company profile
17
3.
Literature Review
24
4.
Purpose & Objectives
28
5.
Research Methodology
31
6.
Analysis & Interpretations
35
7.
Findings & Recommendations
53
7
Bibliography
56
Annexure
57
6
7
CHAPTER 1 INTRODUCTION
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INTRODUCTION
The word retail derived from the French word “retailler”, meaning to cut the bulk. In other word, it implies a first hand transaction with the customer. Retailing can be defined as the buying and selling of goods and services. It can also be defined as the timely delivery of goods and services demanded by consumers at price that are competitive and affordable. Retailing is the transaction between the seller and consumer for personal consumption .It does not include transaction between the manufacturer, corporate purchase, government purchase and other wholesale purchase. A retailer stocks the goods from the manufacturer and then sells the same to the end user for a margina marginall profit. profit. In the supply supply chain chain that also consists of manufacturing and distribution, retailing is the last link before the product reaches the consumer.
Different forms of retailing •
Hypermarts
•
Large supermarkets, typically (3,500 - 5,000 sq. ft)
•
Mini supermarkets, typically (1,000 - 2,000 sq. ft)
•
Convenience store, typically (7,50 - 1,000 sq. ft)
Discount/shopping list grocer Traditional retailers trying to reinvent by introducing self-service formats as well as valueadded services such as credit, free home delivery etc. •
The Indian retail sector can be broadly classified into – •
food retailers
•
health and beauty products
•
clothing and footwear
•
home furnishing and household goods
•
durable good 9
•
leisure and personal goods
Retailing in India Retailing is one of the pillars of the economy in India and accounts for 35% of GDP.The Indian retail market, which is the fifth largest retail destination globally, has been ranked as the most attractive emerging market for investment in the retail sector by AT Kearney's eighth annual Global Retail Development Development Index (GRDI), (GRDI), in 2009. As per a study conducted by the Indian Council for Research on International Economic Relations (ICRIER), the retail sector is expected to contribute to 40 per cent of India's GDP by 2010 end. Indian consumer market is likely to grow four times by 2025. Commercial real estate services company, CB Richard Ellis' findings state that India's retail market has moved up to the 39th most preferred retail destination in the world in 2009, up from 44 last year. Banks, capital goods, engineering, fast moving consumer goods (FMCG), software services, oil, marketing, power, two-wheelers and telecom companies are leading the sales and profit growth of India Inc in the fourth quarter of 2008-09. India continues to be among the most attract attractive ive countri countries es for global global retaile retailers. rs. Foreign Foreign direct direct investm investment ent (FDI) (FDI) inflows inflows as on September 2009, in single-brand retail trading, stood at approximately US$ 47.43 million, according to the Department of Industrial Policy and Promotion (DIPP). The retail industry is divided into organised and unorganised sectors. Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size. Organised Organised retailing retailing refers to trading activities undertaken by licensed retailers, retailers, that is, those who who are are regi regist ster ered ed for for sale saless tax, tax, inco income me tax, tax, etc. etc. Th Thes esee incl includ udee the the corp corpor orat atee backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorgani Unorganised sed retailin retailing, g, on the other hand, hand, refers refers to the traditi traditional onal formats formats of low-co low-cost st retailing, for example, the local kiranashops, kiranashops, owner manned general stores, paan stores, paan/beedi /beedi shops, convenience stores, hand cart and pavement vendors, etc. Most Indian shopping takes place in open markets and millions of independent grocery shops called kirana. Regulations prevent most foreign investment in retailing. Moreover, over thirty regulat regulations ions such as "signboa "signboard rd licence licences" s" and "anti-h "anti-hoard oarding ing measure measures" s" may have to be complied before a store can open doors. There are taxes for moving goods to states, from states, and even within states. As a democratic democratic country with high growth rates, consumer spending has risen sharply as the youth population (more than 33 percent of the country is below the age of 15) has seen a significant increase in its disposable income. Consumer spending rose an impressive 75 per
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cent in the past four years alone. Also, organised retail, retail, which is pegged at around US$ 8.14 billion, is expected to grow at a CAGR of 40 per cent to touch US$ 107 billion by 2013. The organised retail sector, which currently accounts for around 8 per cent of the Indian retail market, is all set to witness maximum maximum number of large format malls and branded retail stores in South India, followed by North, West and the East in the next two years. Tier II cities like Noida, Amritsar, Kochi and Gurgaon, Gurgaon, are emerging emerging as the favored destinations for the retail sector with their huge growth potential. Further, this sector is expected to invest around US$ 503.2 million in retail technology technology service solutions in the current financial year. This could go further up to US$ 1.26 billion in the next four to five years. India has emerged the third most attractive market destination for apparel retailers, according to a study by global management consulting firm AT Kearney. The Northbridge Capital report states that apparel is the "largest organised organised retail category", accounting accounting for 39 per cent of the organised market. It is growing at the rate of 12 to 15 per cent annually. Organised apparel retail is projected to touch US$ 200 million by 2010 from the current worth of US$ 120 million, the report noted. Experts agree that apparel, along with food and grocery, is leading the growth of organised retailing in India. The results of the past quarter support these findings. Luxury Goods Retail, which currently sells its products in India under a franchise agreement, has been been allo allowe wed d to direc directl tly y retai retaill Gucci Gucci produ products cts in the the count country ry.. Gucci Gucci Group Group NV, NV, Netherlands is investing US$ 225,867 to pick up 51 per cent stake in the venture. Australia's Retail Food Group is planning to enter the Indian market in 2010. It has ambitious investment plans which aim to clock revenue of US$ 87 million from the country within five years years from start of operati operations. ons. In 20 years, years, they expect expect the Indian operations operations to be bigger bigger than their Australian business. •
Lifestyle International, part of the Dubai-based US$ 1.5 billion Landmark Group, plans to have over 50 stores across India by 2012–13. These will include 35 Lifestyle stores for retailing apparel, cosmetics and footwear, besides 15 Home Centres that sell home furnishing goods.
•
Watch maker, Timex India, is looking at increasing its presence in the country by adding another 52 stores by March 2011 at an investment of US$ 1.3 million taking its total store count to 120. The company has recorded revenue of US$ 15.9 million and a net profit of US$ 1.2 million, during the first six months of the current fiscal, ending September 30, 2009.
•
Wills Lifestyle plans to expand its operations by opening 100 new stores in the next three years. It also plans to concentrate on online buyers.
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•
Pantaloon Retail India (PRIL) is planning to invest US$ 77.88 million this fiscal to add up to 2.4 million sq ft retail space at its existing operations. Pantaloon Retail is also looking to hive off its value retail chain, Big Bazaar, into a separate subsidiary, which may eventually go for an initial public offer (IPO). PRIL proposes to open 155 Big Bazaar stores by 2014, increasing its total network to 275 stores.
•
Aditya Birla Retail which operates the More chain of supermarkets and hypermarkets is scaling up its private labels business as an independent strategic business unit (SBU) and profit centre. This may be spun off as a separate entity as private labels bus busin ines esss acco accoun untt for for over over 19-2 19-20 0 per per cent cent sale saless of Mo More re supe superm rmar arke kets ts and and hypermarkets.
Policy Initiatives •
100 per cent cent FDI FDI is allow allowed ed in cashcash-an and-c d-carr arry y whole wholesal salee forma formats. ts. Franc Franchis hisee ee arrangements are also permitted in retail trade.
•
51 per cent FDI is allowed in single-brand retailing.
Road Ahead Industry experts predict that the next phase of growth in the retail sector will emerge from the rural markets. By 2012 the rural retail market is projected to have a total of more than 50 per cent market share. The total number of shopping malls is expected to expand at a compound annual growth rate of over 18.9 per cent by 2015. According to market research report by RNCOS the Indian organized retail market is estimated to reach US$ 50 billion by 2011. •
According to industry experts, the next phase of growth is expected to come from rural markets.
•
Number of shopping malls is expected to increase at a CAGR of more than 18.9 per cent from 2009 to 2017.
•
Rural market is projected to dominate the retail industry landscape in India by 2012 with total market share of above 50 per cent.
•
Organised retailing of mobile handset and accessories is expected to reach close to US$ 990 million by 2010 end.
•
Driven by the expanding retail market, the third party logistics market is forecasted to reach US$ 20 billion by 2011.
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As the the conte contemp mpora orary ry retai retaill secto sectorr in India India is refle reflect cted ed in spra sprawl wling ing shopp shoppin ing g cent centers ers,, multiplex- malls and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. This has also contributed to large scale investments in the real estate sector with sector with major national and global players investing in developing the infrastructure and construction of the retailing business. The trends that are driving the growth of the retail sector in India are •
Low share of organized retailing
•
Falling real estate prices
•
Increase in disposable income and customer aspiration
Increase in expenditure for luxury items Another credible factor in the prospects of theretail sector in India is the increase in the young working population. In India, hefty pay-packets, nuclear families in urban areas, along with with increas increasing ing workingworking-wom women en populati population on and emergi emerging ng opportun opportuniti ities es in the services services sector. These key factors have been the growth drivers of the organized retail sector in Indiawhich Indiawhich now boast of retailing retailing almost all the preferences of life - Apparel & Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many more. With this the retail sector in India is witnessing a rejuvenation as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. •
India is being seen as a potential goldmine for retail investors investors from over the world and latest research has rated India as the top destination for retailers for an attractive emerging retail market. India’s vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. Even though India has well over 5 million million retail outlets, the country sorely lacks anything that can resemble resemble a retailing retailing industry in the modern sense of the term. This presents international retailing retailing specialists with a great opportunity. The organized retail sector is expected to grow stronger than GDP growth in the next five years driven by changing lifestyles, burgeoning income and favorable demographic outline. Another cap to the retailing industry in India is allowing 51% FDI in single brand outlet. The government is now set to initiate a second wave of reforms in the segment by liberalizing investment norms further. This will not only favor the retail sector develop in terms of design concept, construction quality and providing modern amenities but will also help in creating a consumer-friendly consumer-friendly environment. environment. Retail industry in India is at the crossroads crossroads but the future of the consumer consumer market marketss is promisin promising g as the market is growing growing,, governme government nt policie policiess are becoming more favorable and emerging technologies are facilitating operations in India. And this upsurge in the retail industry has made India a promising promising destination for retail investors and at the same time has impelled investments in the real estate sector. As foreign investors cautiously test the Indian Markets for investments for investments in the retail sector, local companies and
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joint ventures are expected to be more advantageously positioned than the purely foreign ones in the evolving India's organized retailing industry.
Key Players in Indian Retail Sector Indian Indian appar apparel el reta retail ilers ers are are incre increasi asing ng their their brand brand presen presence ce overse overseas as,, parti particu cular larly ly in developed markets. While most have identified a gap in countries in West Asia and Africa, Africa, some majors are also looking at the US and Europe. Europe. Arvind Brands, Madura Garments, Spykar Lifestyle and Royal Classic Polo are busy chalking out foreign expansion plans through the distribution route and standalone stores as well. Another denim wear brand, Spykar, which is now moving towards becoming a casualwear casualwear lifestyle brand, has launched its store in Melbourne recently. It plans to open three stores in London by 2008-end. The low-intensity entry of the diversified Mahindra Group into retail is unique because it plans to focus on lifestyle products. The Mahindra Group is the fourth large Indian business group to enter the business of retail after Reliance after Reliance Industries Ltd, the Aditya Birla Group, and Bharti Enterprises Ltd. The other three groups are focusing either on perishables and groceries, or a range of products, or both. •
Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre, Viveks Safe Deposit Lockers
•
PGC Retail -T-Mart India[1] India[1],, Switcher , Respect India , Grand India Bazaar ,etc.,
•
REI AGRO LTD Retail-Formats:6TEN Hyper & 6TEN Super
•
RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper, Spencer’s Super, Daily & Fresh
•
Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion Station, Brand Factory, Depot, aLL, E-Zone etc.
•
The Tata Tata Group-F Group-Form ormats: ats: Westsid Westside, e, Star Star India India Bazaar Bazaar,, Steelj Steeljunct unction, ion, Landma Landmark, rk, Titan Industries with World of Titans showrooms, Tanishq outlets, Chroma.
•
K Raheja Corp Group-Formats: Shoppers Stop, Crossword, Hyper City, Inorbit
•
Lifest Lifestyle yle Internat Internationa ional-Li l-Lifest festyle yle,, Home Home Centre, Centre, Max, Fun City City and Internat Internationa ionall Franchise brand stores.
• •
Pyramid Retail-Formats: Pyramid Megastore, TruMart Nilgiri’s-Formats: Nilgiris’ supermarket chain
•
Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain.
•
Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain
•
Vishal Retail Group-Formats: Vishal Mega Mart
•
Reliance Retail-Formats: Reliance Fresh
•
Reliance ADAG Retail-Format: Reliance World 14
•
German Metro Cash & Carry
•
Shoprite Holdings-Formats: Shoprite Hyper
•
Paritala stores bazar: honey shine stores
•
Aditya Birla Group - more Outlets
Retail and recession
The global economic slump has had its impact on the India retail sector. One of the earliest players in the Indian retail scenario Subhiksha's operations came to a near standstill and required liquidity injection. Vishal Retail secured corporate debt restructuring (CDR) plan from its lenders while other players like the Reliance Retail run by Mukesh Ambani and Pantaloon led Kishore Biyani by went slow on expansion plans and even scaled down operations. However, during the last quarter a bit of confidence was restored as the economy showed signs of growth.
Rural Retailing India' India'ss huge huge rural rural marke markett has also also attr attract acted ed reta retail il inves investm tment entss and is seen seen as a viabl viablee opportun opportunity ity for growth growth by corporat corporatee India.I India.ITC TC launched launched the countri countries es first first rural rural mall mall "Chaupal Sagar" with diverse products being offered ranging from FMCG to electronics appliance to automobiles, with a view to provide farmers a one stop center for all their consumption requirements. Many more new trends could possibly be tried in rural markets to unearth the huge potential.
Challenges Faced By The Industry Even though India has well over 5 million retail outlets of different sizes and styles, it still has a long way to go before it can truly have a retail industry at par with International standards. This is where Indian companies and International brands have a huge role to play. •
Indian retailing is still dominated by the unorganized sector and there is still a lack of efficient supply chain management. India must concentrate on improving the supply chain management, which in turn would bring down inventory cost, which can then be passed on to the consumer in the form of low pricing.
•
Most of the retail outlets in India have outlets that are less than 500 square feet in area. This is very small by International Standards.
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•
India India's 's hug hugee size size and socio socio econom economic ic and cult cultura urall diver diversit sity y means means there there is no established established model or consumption pattern throughout the country. country. Manufacturers and retailers will have to devise strategies for different sectors and segments which by itself would be challenging.
•
Automatic approval is not allowed for foreign investment in retail.
•
Regulations restricting real estate purchases, and cumbersome local laws.
•
Taxation, which favours small retail businesses.
•
Absence of developed supply chain and integrated IT management.
•
Lack of trained work force.
•
Low skill level for retailing management.
•
Lack of Retailing Courses and study options
•
Intrinsic complexity of retailing – rapid price changes, constant threat of product obsolescence and low margins.
The drawbacks provide a huge opportunity for the retail industry. The entry of foreign majors like Benetton, Dairy Farm and Levis underline the opportunity for the industry in India. To overcome some of the challenges faced by modern retail, the country is developing a support infrastructure in form of specialised retail schools. One such skill development initiative initiative has been taken by TKWs Group. Its TKWs Retail School has already training training over a thousand students and retail professionals for different retail skills..
Entry of MNCs The worl The world's d's large largest st reta retaile ilerr by sales, sales, Wal-Mart Stor Stores es Inc Inc and and Suni Sunill Mitt Mittal al's 's Bhar Bharti ti Enterprises have entered into a joint a joint venture agreement and they are planning to open 10 to 15 cash-and-carry facilities over seven years. The first of the stores, which will sell groceries, consumer appliances and fruits and vegetables to retailers and small businesses, is slated to open in north India by the end of 2008. Carrefour , the world’s second largest retailer by sales, is planning to setup two business entities in the country one for its cash-and-carry business and the other a master franchisee which will lend its banner, technical services and know how to an Indian company for directto-consumer retail. The world’s fifth largest retailer by sales, Costco Wholesale Corp (Costco) known for its warehouse club model is also interested in coming to India and waiting for the right opportunity.
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Opposition to the retailers' plans have argued that livelihoods of small scale and rural vendors would be threatened. However, studies have found that only a limited number of small vendors will be affected and that the benefits of market expansion far outweigh the impact of the new stores. Tesco Plc. plans to set up shop in India with a wholesale cash-and-carry business and will help Indian conglomerate Tata group to grow its hypermarket business.
Indian Consumers Let us have a look on the characteristics of Indian consumers which are favourable for growth of Indian retail market. Indian consumer has undergone a remarkable remarkable alteration. Just a decade or two ago, they saved most of their incomes, purchased the only necessities. But today, equipped with higher income, credit cards, exposure to new shopping culture of west, desire to show status and to improve standard of living, the Indian consumer is spending a lot. His new mentality, in turn is fueling the growth of organized retail in India. Young shoppers Most of the consumers have grown up with television, the internet, and have been exposed to the better standard of living and consumer culture abroad. This generation generation is also making money at a younger stage in life due to call centre jobs and other avenues of employment openings. As a result most of them are considering these shopping malls as the place for their entertainment. Higher income/MNCs With the entry of MNCs in India, the people are getting better job opportunities, and the income levels are also becoming better with different allowances. This sets the stage for a very exciting and promising retail market in the future. Plastic Money The finance section has already seen a huge expansion. Nowadays credit cards, debit cards, short time loans have become easily accessible and have contributed to the emergence of a consumer culture in India. Credit card reward schemes, flexible financing options, EMI facility, loyalty cards are tempting the Indian consumer to shop. Urbanization Growing urbanization and different facilities of cities converted the local population from net saver to net spender. Awareness level
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The urban population is well aware of the different shopping malls and through different media they are well known about the offers and schemes. Aspiration Aspirations for better standard of living make the urban consumer spending more. While consumer demand is driving retail growth, it is in turn being driven by the following factors – •
Economic growth
•
Improved standard of living
•
More affluence
•
Mass awareness
•
Demographics
•
Credit availability
•
Promotional offers
Status symbol These positive macro trends are resulting in changing preferences in demand for lifestyle goods. Mind sets are shifting towards an organized retailing experience. •
CHAPTER 2 COMPANY PROFILE 18
COMPANY PROFILE
Shoppers Stop (Raheja group)
Shopp Shopper erss Stop Stop is an India Indian n depar departm tmen entt store storess promo promote ted d by the the K Rahej Rahejaa Corp Corp Group Group (Chandru L Raheja Group), started in the year 1991 with its first store in Andheri, Andheri, Mumbai. Shoppers Stop Ltd has been awarded "the Hall of Fame" and won "the Emerging Market Retailer of the Year Award", by World Retail Congress at Barcelona, Barcelona, on April 10, 2008. Shoppers Stop is listed on the BSE. BSE. With the launch of the Navi Mumbai departmental departmental store, Shoppers Stop has 27 stores in 12 cities in India. India. Shoppers Stop has also begun operating a number of speciality stores, namelyCrossword namelyCrossword Bookstores, Mothercare, Brio, Desi Café, Arcelia. Shoppers Stop retails a range of branded apparel and private label under the following categories of apparel, footwear, fashion jewellery, leather products, accessories and home
19
products. These are complemented by cafe, food, entertainment, personal care and various beauty related services. Shoppers Stop launched its e-store with delivery across major cities in India in 2008. The websi website te retai retails ls all all the the produc products ts avail availabl ablee at Shopp Shoppers ers Stop Stop store stores, s, includ including ing appare apparel, l, cosmetics and accessories. Marketing In April 2008, Shoppers Stop changed its logo and adopted the mantra "Start Something New" repositioned repositioned to bridge bridge to luxury segment and introduced introduced international international brands like CK Jeans, Tommy Hilfiger, Hilfiger, FCUK, Mustang, Dior across the stores. The focus of the reposition was on the service, ambience upgradation and customer connect. Connect with Youth Shoppers Stop connects with the youth audience through adopting the communication communication routes relevant to youth, up the fashion quotient through merchandising, and create ambience that connects with the mindset. The brand campaign addresses environment-related issues in a youth youthful ful,, tongu tongue-i e-in-c n-che heek ek manne manner. r. Shopp Shopper erss Stop Stop as a brand brand activ activee on socia sociall medi mediaa marketing platforms with Facebook and Twitter to connect with this audience. Merchandising Merchandising opportunities like the launched Zoozoo merchandise and film merchandise with Om Shanti Om and Love Aaj Kal. Kal.
Sensorial experience Creating Creating an environment conducive to relax in-between shopping introduced Shoppers Stop Radio that plays youthful music and Cafe Coffee Day was given the management of the Desi Cafe and Brio cafes. Loyalty program Shoppers Stop’s has a loyalty program called First Citizen. They also offer a co-branded credit card with Citibank for their members. Shoppers Stop's sister stores are•
Crossword Bookstores
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HomeStop
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Brio
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Desi Cafe
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HyperCity 20
•
M.A.C.
•
Arcelia
•
MotherCare
•
Nuance Group
•
HyperCity-Argos
•
Timezone
Brands available at Shoppers Stop Shoppers Stop retails products of domestic and international brands such as Louis Philippe, Pepe, Arrow, Arrow, BIBA, Gini & Jony, Carbon, Corelle, Magppie, Nike, Nike, Reebok , LEGO, and Mattel. Shoppers Stop retails merchandise under its own labels, such as STOP, Kashish, LIFE and Vettorio Fratini, Elliza Donatein, Acropolis etc. The company also licensees for Austin Reed (London), an international brand, who’s men's and women's outerwear are retailed in India exclusively through the chain. In October 2009, Shoppers Stop has bought the license for merchandising Zoozoo the brand mascot for Vodafone India.
Lifestyle (The landmark group)
The Landmark Group, founded in 1973 with a single store in Bahrain, has grown into one of the largest retail conglomerates in the Middle East and is expanding rapidly in India. The Group currently operates over 900 stores encompassing a retail presence of over 13.4 million square feet across 15 countries and employs around 31,000 employees world over. In addit addition ion to retai retaill sector sector,, the Group Group has also also divers diversifi ified ed into into leis leisure ure,, food, food, hotel hotelss and electronics and has created a comprehensive infrastructure including its own logistics and distribution division, to support its retail operations and other businesses. In 1999, Landmark Group entered India, to revolutionize retailing in the country with the introduction of Lifestyle Stores. Currently in its 10 years of retailing in India, Landmark Group has launched several of its core retail concepts in the country including Lifestyle, Home Home Centr Centre, e, Spla Splash, sh, Bossi Bossini, ni, Max Max and hospi hospita talit lity y conce concepts pts,, Spar Spar super superma marke rkets ts and and hypermarkets, Fun City, Citymax and Gloria Jean’s Coffees. There Brands•
Landmark Retail
•
Landmark Hospitality
•
Affiliates
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The Landmark Group has affiliate retail entities in India. Stores in India include Lifestyle, Landmark International, Home Centre, Max Retail, Splash, SPAR Hypermarkets, Fun City and Foodmark. Lifestyle International (P) Ltd is part of the Landmark Group, a Dubai – based retail chain. With over 30 years’ experience in retailing, the Group has become one of the foremost retailers in the Gulf.Positioned as a trendy, youthful and vibrant brand that offers customers a wide variety variety of merchan merchandise dise at an excepti exceptional onal value value for money, money, Lifestyle Lifestyle India India began began operations in 1999 with its first store in Chennai. Curre Currentl ntly y there there are 15 Life Lifesty style le store storess and 8 Home Home Centr Centree store storess acros acrosss Ahme Ahmedab dabad, ad, Bangalore, Chennai, Hyderabad, Jaipur, Mumbai, Pune, New Delhi, Noida and Gurgaon. Today Lifestyle offers a truly international shopping experience, a fact borne by numerous accolades. •
Business World – IMRB Most Respected Company Awards survey rated Lifestyle as the ‘Most Respected Company in the Retail Sector’ in 2003 and 2004
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‘ICICI – KSA Technopak Award for Retail Excellence’ in 2005
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Reid & Taylor ‘Retailer of the Year’ award in 2006
•
Lycra Images Fashion Award for the ‘Most Admired Large Format Retailer of the Year’ in 2006
•
Images Retail ‘Most Admired Retailer of the Year – Department Store’ in 2008.
Different Brands available at Lifestyle storeTommy Hilfiger, Forca, Nike, Reebok, Adidas, Gypsy, Baggit, French connection, Espirit, Ray Ban, Police, Idee, Red Tape, Polaroid, Bossini, ID, Hidesign, Da Milano, Ck, Puma, Ferrari, Enamor, Pepe Jeans, Levi’s, UCB, Wrangler, Giordiano, Keneth Cole etc.
Pantaloons (Future Group)
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries subsidiaries are present in consumer finance, capital, capital, insurance, insurance, leisure and entertainment, entertainment, brand development, development, retail real estate development, retail media and logistics. 22
Led by its flagship enterprise, Pantaloon Retail, the group operates over 16 million square feet of retail space in 73 cities and towns and 65 rural locations across India. Headquartered Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail. The group’s speciality retail formats include supermarket chain – Food Bazaar, sportswear retailer - Planet Sports, electronics retailer - eZone, home improvement improvement chain - Home Town and rural retail chain, Aadhaar, among others. It also operates popular shopping portal -www.futurebazaar.com www.futurebazaar.com.. Future Capital Holdings, the group’s financial arm provides investment advisory to assets worth over $1 Billion that are being invested in consumer consumer brands and companies, companies, real estate, hotels and logistics. logistics. Other group companies include, Future Generali, the group’s insurance venture in partnership with Italy’s Generali Group, Future Brands, a brand development and IPR company company,, Future Future Logisti Logistics, cs, providi providing ng logistic logisticss and distribu distribution tion solution solutionss to group group companies and business partners and Future Media, a retail media initiative.
The group’s presence in Leisure & Entertainment segment is led through, Mumbai-based listed company Galaxy Entertainment Limited. Through Blue Foods the group operates around around 100 restaura restaurants nts and food courts through through brands brands like Bombay Blues, Spaghetti Spaghetti Kitchen, Kitchen, Noodle Bar, The Spoon, Copper Chimney Chimney and Gelato.Future Gelato.Future Group’s joint venture partner partnerss include, include, US-base US-based d statione stationery ry product productss retaile retailer, r, Staple Stapless and Middle Middle East-ba East-based sed Axiom Communications. Pantaloon Retail (India) Limited, is a large Indian retailer, which is part of the Future Group, and operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai, Mumbai, the company has over 1,000 stores across 71 cities in India and employs over 30,000 people, and as of 2010, it was the country's largest listed retailer by market capitalization and revenue. With effect Jan. 1, the company separated its discount store business, which includes the Big Bazaar hypermarket and the Food Bazaar supermarket businesses, into Future Value Retail Ltd., its wholly-owned subsidiary, so that the company may be listed independently.
•
The company is present across several lines of business which have various formats (stores) lywood, The Dollar Store (JV)
23
•
Fashion Fashion - Pantaloons Pantaloons,, Cent Central ral,, aLL, aLL, Brand Brand Facto Factory ry,, Blue Blue Sky, Sky, To Top p 10, Fashi Fashion on Station, Big Bazaar, Lee Cooper (JV)
•
General General Merchan Merchandise dise - Big Bazaar, Bazaar, Shoe Shoe Factory Factory,, Navras, Navras, Electr Electronic onicss Bazaar, Bazaar, Furniture Bazaar, KB'S FAIR PRICE
•
Electronics - eZone, Electronic Bazzaar, STAPLES (JV)
•
Home Improvement - Home Town
•
Furniture - Collection i, Furniture Bazaar, Home Bazaar
•
E-tailing (Online Shopping) - www.futurebazaar.com
•
Books & Music - Depot
•
Leisure & Entertainment - Bowling Co. F123
•
Wellness - Star & Sitara, Tulsi
•
Telecom & IT - Gen M, M Bazaar, M-Port, ConvergeM, Future Axiom
•
Consumer Durables - Koryo, Sensei, IPAQ
•
Service - E Care, H Care , Design & Service
•
Malls - Central (Bangalore, (Bangalore, Hyderabad, Pune, Mumbai, Vadodara, Gurgaon, Indore, Ahmedabad)
Investment & Savings - Insurance: ULIP, Pension, Endowment etc. Company Timeline •
•
1987 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, India’s first formal trouser brand.
•
1992 Initial public offer (IPO) was made in the month of May.
•
1997 Pantaloons – India’s family store launched in Kolkata.
•
2002 Food Bazaar, the supermarket chain is launched.
•
2007 Future Group crosses $1 billion turnover mark.
Brands available at pantaloons storeConverse, Nike, Reebok, Adidas, Puma, Speedo, Titan, Tommy Hilfiger, Ck, Bevalgiri, Spalding, Biba, Cross, Umbro, Prince, Wilson, Polaroid, Ray Ban, Idee etc.
24
25
CHAPTER 3 LITERATURE REVIEW
LITERATURE REVIEW Most of the consumers who visit retail outlets regularly are the youth. The rest of the population who visit the retail outlets under study can be listed in the following descending order of distribution – the working age group, the older age group, the middle age group, and senior citizens. It is not surprising that the youth most frequent malls and retail stores. What is unexpected, however, is the fact that more people who fall into the older age group visit the retail stores than those who fall in the middle age group. Then again, this deduction cannot be applied to the entire population of Bangalore. The disparity can be attributed to the small size of the sample under study. More More wome women n visit visit retai retaill outlet outletss than than men. men. Two, Two, more more wome women n are will willin ing g to fill fill out questionnaires and take a survey than men. 26
A large number of consumers visit retail outlets for clothes/dresses/ap clothes/dresses/apparel. parel. Accoutrement Accoutrement is the hottest selling item that any retail outlet can provide. One-third of the respondents indicated that the visit retail outlets to purchase groceries. Clothing is the fastest moving consumer good. Retail outlets that provide apparel can see a higher rate of turnover and sales volume.Custome volume.Customers rs give value to a great many number of factors when deciding which store to shop at. It would be prudent on the part of the company to identify their strong and weak areas, which attract or drive away customers to/from their stores. When choosing to shop at a particular store, or when favouring one store over the others, it is seen that most consumers make this decision based on the quality of the products on offer. Majority of the respondents feel that television advertising is the most effective means of advertising. This is indicative in spite of large number of commercials that the public is bombarded with. Good number of target consumers is satisfied with the stores at large. However, there are those who are unsatisfied or who have never visited the store at all. Such consumers form the potential market that the companies must strive to attract. –
“The “The Study Study of consu consumer mer perce perceptio ption n of three three retail retail chains chains in Banga Bangalore lore.” .”
The consumer’s preferences are changing rapidity and becoming highly diversified. It is difficult for the retail stores to satisfy all the needs of the customers. The most of the consumer’s want to get some attractive prices, good schemes and offers on every purchases and a shopping comfort as well. Those who are able to purchase their needs and want for a month in a bulk prefer to go to the retail chains. Because of competitions in the market the branded formals formals are also became cheaper so the younger generation generation prefers to purchase from the retail outlets of the brand the city. Only the big retail chains are able to satisfy all these needs of the new age consumers whereas whereas there is still some consumers consumers mostly of the old age are willing to purchase from the local kirana store. Some of them have perception that these big stores are too costly to afford and some of them are not able to make purchases in a bulk so they do not want to waste their time to go especially to the big store for 2-3 items purchase. In the case of other items like wristwatches, branded jewelry, mobiles, gift items and other, they prefer to take it from where they are getting cheap prices, good after sales services and the goodwill of the store. After studying the customer survey questionnaire statistically and theoretically as well and after observing the consumer’s mood and their preferences I can say that Big Retail is here to stay. Assuming that improvements in infrastructure and lower real estate costs become a reality, reality, Big Retail still has a long way to go before satisfying the highly diverse needs of the
27
Indian population. As a result, there will be a steady state where Big Retail will co-exist with Small Retail. –
“Grow “Growth th of Retai Retaill sect sector or in India India””
From this research, there are majority no. of customers who buys more than 3 times in a month as compare to other customers. So these customers are loyal customer. No of other customers who buy more than 2 times, 1 time in a month are also there. There were higher p per erce cent ntag agee of cust custom omer erss who who like like to buy buy from from Shop Shoppe pers rs stop stop as comp compar aree to othe other r competitors.( competitors.( pyramid, pyramid, Pantaloons Pantaloons etc.) means majority majority of customers customers are like to shop from Shoppers stop. So by organizing some events or with good product range & discounts, these remaining customers get diverted. As per the data collected through this survey, we can say higher no. of customers customers are youngsters. youngsters. Along with professionals, professionals, businessmen etc. between the age group 25-35. Majority of females customers are there, as compare to male customers. As per income range is conc oncern ern, majorit rity of cust custo omers are high class custom stomeer’s r’s means ans income ome (30000+/month).who loves to shop in Lifestyle. They are really brand conscious. There is higher no. of customers who spend more than 3000 for their 1 time shopping, more more than 3000 also. Some customers are there who even shop more than 10000 also. –
“Ret “Retai aill sect sector or in Indi India” a”
In the past few years the whole concept of shopping has been altered in terms of format and consum consumer er buyi buying ng behavi behavior. or. With With the the incre increasi asing ng urban urbaniz izat ation ion,, the the India Indian n consum consumer er is emerging as more trend-conscious. There has also been a shift from price considerations to designs and quality as there is a greater focus on looking and feeling good (apparel as well as fitness). At the same time, the Indian consumer is not beguiled by retail products which are high on price but commensurately low on value or functionality. However, it can be said that the Indian consumer is a paradox, where the discount shopper loyalty takes a backseat over price discounts. Indians have grown richer and thus spending more on vehicles, phones and eating out in restaurants. The spending is focused more outside the homes, unlike in other Asian countries where where consum consumer erss have have tende tended d to spend spend more more on perso personal nal item itemss as they they grow grow riche richer. r. Spending on luxury goods have increased twice as fast with 2/3 of India's population is under 35, consumer demand is clearly growing. The mall mania has bought in a whole new breed of modern retail formats across the country catering to every need of the value-seeking Indian consumer. An average Indian would see a mall as a perfect weekend getaway with family offering them entertainment, leisure, food, shopping all under one roof.
28
–
An analy analysi siss of of Indi Indian an Retai Retaill sec sector tor
CHAPTER 4 PURPOSE AND OBJECTIVES 29
SCOPE OF STUDY Scope and Uses
1. It will will extend extend to the the actual actual field field study study of 3 outle outlets ts in NCR. NCR. 2. It will will give give informa information tion to to prospect prospective ive custom customers. ers. 3. Help Help us gain independen independentt knowledge knowledge about about the consumer consumer percepti perception on of the outlets outlets identified. 4. It facilitat facilitates es evaluation evaluation of brand brand name name and and customer customer satisfaction. satisfaction.
OBJECTIVE OF STUDY
1. To study the retail retail industry industry in India through through sample sample of three three outlets outlets in NCR. 2. To analyze analyze customer satisfaction satisfaction towards towards products and services services offered. offered. 3. To understand understand the influence influence of advertising advertising and promotion promotion in in buying buying behaviour. behaviour. 4. To ascerta ascertain in brand brand awarenes awarenesss of the outlet outletss identifie identified. d.
PROBLEM DEFINATION •
To understand the basis of what services does a consumer makes his choice in selecting a retail outlet. 30
•
Ascertaining consumers present level of satisfaction towards these outlets.
RATIONALE OF STUDY •
Being a project for my partial fulfillment of my MBA degree I was motivated to finish this project to the best of my ability.
•
My interest in the field of retail was a motivation factor towards this research.
•
Stability in operations of Retail sector irrespective of changing financial conditions was a factor that brought me interest in knowing more about the internal workings of the industry.
31
CHAPTER 5 RESEARCH METHODOLOGY
TYPE OF RESEARCH My research is DESCRIPTIVE RESEARCH as it includes a questionnaire survey and it is a fact finding enquiry through questionnaire. And I am focusing on consumers viewpoint towards RETAIL stores and problems associated. My Project is descriptive research due to the following factor: •
•
It describes the characteristics of consumers towards lifestyle store in NCR. It is carried out to estimate the approximate percentage of units in a specified population exhibiting certain behavior.
•
It helps in determining the perception of outlet characteristics. 32
•
It helps in making certain predictions related to consumer behavior towards retail industry.
SAMPLE DESIGN Regardless of the method or the design of the research that is used to obtain the primary data, the decision for this very research activity in the field of retail and about surveying the entire population of consumers or only a representative portion of the population of the market had to be made. For this research activity the latter was adopted due to the resource constrains which was also the limitati on of this research report. With the limited amount resource in the hand, the only feasible way was to survey a representative portion of the population than the entire population as such. The difficulty in forms of time and resources caused the researcher to resort to the sampling approach than census approach as the size of the entire population was huge which could not be catered because of limited resource and time.
SAMPLE UNIT
As the project was being done in Noida the sample unit taken was consumers of NCR. SAMPLE SIZE
The sample size selected was 100 respondents. This was due to the time and resource constraint faced by the researcher during the project. SAMPLE SELECTION
Respondents were selected on the random bases from Great India Palace Noida and students of Amity as Great India Palace has got all three stores covered under this report and maximum portion of population visiting are Amitians.
DATA COLLECTION TOOLS
PRIMARY DATA
33
Primary data was collected through questionnaire method . The Questionnaire is attached to the annexure of this report. It contained 12 questions and covered the necessary areas needed to complete the research.
SECONDARY DATA
Secondary Data was collected from magazines’, newspapers and websites.
VARIABLES INVOLVED •
Type of consumers.
•
Services of retailers offered.
•
Consumer’s perception on retail buying.
•
Consumers expectations from retailers.
SCALING TECHNIQUES USED IN QUESTIONNAIRE 1.
QUESTION 1 –
Nominal Sc Scale
2.
QUESTION 2 –
Nominal Sc Scale
3.
QUESTION 3 –
Nominal Sc Scale
4.
QUESTION 4 –
Nominal Sc Scale
5.
QUES QUESTI TION ON 5 –
Nomi Nomina nall Sca Scale le(O (Ope pen n Ende Ended) d)
6.
QUESTION 6 –
Nominal Sc Scale
34
7.
QUESTION 7 –
Nominal Sc Scale
8.
QUESTION 8 –
Nominal Sc Scale
9.
QUESTION 9 –
Nominal Sc Scale
QUESTI TION ON 10 – 10. QUES
Nomi Nomina nall Scal Scalee
QUESTI TION ON 11 – 11. QUES
Nomi Nomina nall Scal Scalee
QUESTI TION ON 12. QUES
Nomin Nominal al Sca Scale le (Op (Open en End Ended ed))
12 12 –
CHAPTER 6 35
ANALYSIS AND INTERPRETATION INTERPRETATION
ANALYSIS AND INTERPRETATION
Age of Respondents
36
Age 18-28 28-38 38-48
12
15
73
Age
• • •
18-28
73
28-38
15
38-48
12
Most of the respondents are falling in 18-28 years. Maximum number of youth visits malls. Samp Sample le was was selec selecte ted d in a way way that that there there were were no respo responde ndents nts in above above 48y 48yrs rs category.
Gender
37
Gender Male Female
37
63
Gender Male
63 Female
• • •
Major portion of respondents are males. There were only 37 female respondents out of 100. So, results will be guided by this factor.
1) What What is your your month monthly ly shopp shopping ing budge budget? t?
38
80
60
40 t C o n u
75
20
11
8 4
1
0 0-2
2-5
What is your monthly shopping budget? (Thousands) 0-2
5-10
10-20
20-50
1
Above 50
75
2-5
11
5-10
8
10-20
4
20-50
1
Above 50
1
Case Processing Summary Cases Valid N Age * What is your monthly shopping budget?
Missing Percent
100
N
100.0%
Percent 0
39
Total
.0 %
N
Percent 100
100.0%
Age * What is your monthly shopping budget? Crosstabulation Count What is your monthly shopping budget? 0-2 Age
Total
•
• •
•
•
•
•
18-28
73
2-5 0
5-10 0
10-20 0
20-50 0
Above 50 0
Total
28-38
2
11
2
0
0
0
15
38-48
0
0
6
4
1
1
12
75
11
8
4
1
1
100
73
Before formulating and strategies its important for outlets to know shopping budget of there consumers, that’s why this question is part of questionnaire. 1/3rd of the respondents spend 0-2000 rupees as part of there monthly budget. This is due to the factor that maximum number of respondents were students who have there defined budgets based on pocket money. There are just 2 respondents who spend more then 20 thousand on shopping in a month. People falling in 18-28 age category have there shopping budget from 0 to 2000 rupees. In 28-38 28-38 cate categor gory, y, majo majorr number number of respon responden dents ts spent spent 2000 to 500 5000 0 on there there shopping. There is only one respondent falling in age of 38-48 who spend above 50 thousand as his monthly shopping budget.
40
1) How How oft often en do you you shop shop??
50
40
30
t C o n u
48
20 32
10
20
0 Ones a week
How often do you shop? Ones a week
•
• • •
Fortnightly
Ones a month
48
Fortnightly
32
Ones a month
20
This question is being added to know the frequency frequency of consumers going to shop, in a month’s time. Almost 50% of respondents go out for shopping ones a week atleast. Personnel interaction with respondents stated that it is usually on weekends. 32% go ones in 15 days and 20% ones in a month.
41
1) Which Which of the the follow following ing stores stores do you you shop shop at?
Which of the following stores do you shop at? Shoppers Sto Lifestyle Pantaloons Others
28 32
16 24
Which of the following stores do you shop at? Shoppers Stop
•
• • •
32
Lifestyle
24
Pantaloons
16
Others
28
This question is a designed to know that out of the three stores mentioned which stores they shop the most at and if others then who are the major competitors. Shoppers stop have maximum number of visitors with 32%. Least number of people visits pantaloons out of 10 respondents. In others category lifestyle store, responses were ✔ Westside(TATA TRENT) ✔ MAX 42
✔ ✔
Globus Even few responded Big bazaar which is more of full functional departmental store.
✔
1) What What do you mostl mostly y shop at at the menti mentioned oned stores stores??
60
50
40
30 t C o n u 52
20
28
10 12 8
0 Clothing
What do you mostly shop for at the mentioned store? Clothing Footwear Accessories Others
•
• • •
Footwear
Accessories
Others
52 28 12 8
This questions relevance is in a way that it tells about what consumers usually shop for at Lifestyle stores. More then 50% of consumers go to buy clothing from lifestyle stores across NCR. 28% people go for buying footwear’s 12 out of 100 respondents prefer buying accessories from these stores like shades, perfumes, belts, caps, Jewellery etc. 43
1) Why do do you shop at the the above above mentio mentioned ned stores stores??
This question was part of questionnaire to basically understand what is a generalize view of customers customers when they go to buy in these stores. There are lot of different responses that came as response to this open ended question. But few major ones are-
• • • • • • • • • • • • •
All brands available below one roof. Shopping environment is good inside these stores. Lot of combination offers provided by stores. Trust for the brand. Quality of service is high. These stores create customer satisfaction. Various kinds of buying needs are satisfied in Lifestyle store. My family enjoys shopping inside these stores. I find brands which are not available otherwise. I believe in product quality which I can only get inside these stores. I always find stock here. Lot of choice offered. Good facility of changing rooms.
44
6) What What effects effects your shoppin shopping g decision decision in these these retail retail stores? stores?
30
25
20
15
t C o n u
28 24
10 16
16
Stor e Layout
One stop shopping
12
5
4
0 Proximity
What effects your shopping decision in these retail stores? Proximity
•
•
Qualit y
Br an and
Price
12
Quality
28
Brand
24
Price
4
Store Layout
16
One stop shopping
16
This questions talks about different different attributes attributes which consumers consumers consider in selection of lifestyle shopping store. Most of the consumers consumers go to these stores because they believe in quality provided by these stores on from of products and services. 45
•
• •
Brand also plays a key role in selection of retail outlet for buying clothes and footwear’s. Price is not a matter for those who go to these branded stores. One stop shopping and store layout has equal importance for consumers in making a choice of store.
6) Does advertising advertising and and promotion promotion effects your shopping decision?
Does advertising and promotion influence your shopping decisions? Yes No
28
72
Does advertising and promotion influence your shopping decisions? Yes No
•
•
72 28
This quest This question ion trie triess to und unders ersta tand nd the the relev relevanc ancee of advert advertisi ising ng for for attra attracti cting ng consumers. 72 out of 100 respondents believe that advertising effects there shopping decision.
46
•
There were 28% respondents who believe that advertising does not effect there shopping decision and they take there decision according to there own needs and wants but not created needs and wants.
6) Which Which form of of promoti promotion on do you think think is most most effecti effective? ve?
70
60
50
40 t C o n u
68
30
20
24
10 8
0 Print
TV
Which form of promotion do you think is most effective? Print
24
TV
68
Radio
•
Radio
8
After knowing that advertising is effective, it’s important to understand what kind of promotion attracts maximum number of people into retail stores. 47
•
• •
Consumers believe that visual TV advertisement effect there decision making the most in selection of service or product. Out of 100, 24 believes that print media attracts them the most out of three. Ther Th eree were were only only 8 resp respon onde dent ntss who who beli believ eved ed that that Radi Radio o is a good good sour source ce of advertising for companies.
6) Which Which of these outlet outletss advertisem advertisement ent you have have seen or heard? heard?
Which of these outlets advertisement you have seen or heard? Shoppers Stop Lifestyle Pantaloons 8
16
76
Which of these outlets advertisement you have seen or heard? Shoppers Stop
76
Lifestyle
16
Pantaloons
8
48
• •
• •
This question is added to know the reach of advertising of these three outlets. Shoppers stop has been most effective with its advertising with 76% respondents. ✔ This is mainly due to the factor that when Shoppers stop change their logos there were lots of TV advertisement during shows to share this information. There were 16 respondents who had seen or heard Lifestyle advertisement. Only 8% people have seen Pantaloons advertisement advertisement whether in print or audio visual format.
6) Indicate your your satisfaction satisfaction level level based on the following following parameters parameters for for the following following stores?
1) Shop Shoppe pers rs Stop Stop
60
50
40
30 t C o n u
60
20
28
10 12
0 Unsatisfied
Satisfied
Highle Satisfied
Indicate your satisfaction level based on the following Indicate your satisfaction level based on the following parameters for the following stores Unsatisfied
12
49
•
• • •
•
Satisfied
28
Highly Satisfied
60
This question is part of questionnaire to understand the overall satisfaction level of consumers towards particular store out of these three. Shoppers stop customers are highly satisfied with its services and products. There are only 12 respondents who are unsatisfied in this case. All the respondents responded to this question that clarifies that all of them have visited this store. 88% of respondents fall under category of above satisfaction level.
1) Lifesty style
50
40
30
t C o n u 44
20 36
10 16
4
0 Unsatisfied
Satisfied
Highle Satisfied
Not Visited
Indicate your satisfaction level based on the following
Indicate your satisfaction level based on the following parameters for the following stores Unsatisfied
50
16
Satisfied
44
Highle Satisfied
36
Not Visited
•
• •
4
With lifestyle also satisfaction level is high with 80% people falling in category of above satisfaction level. Just 16% falls under category of unsatisfied lot. Only 4 out of 100 respondents had not visited Lifestyle store.
1) Panta ntaloons oons
40
30
20 t C o n u 36
28 24
10
12
0 Unsatisfied
Satisfied
Highle Satisfied
Not Visited
Indicate your satisfaction level based on the following
51
Indicate your satisfaction level based on the following parameters for the following stores Unsatisfied
•
• • •
36
Satisfied
28
Highle Satisfied
12
Not Visited
24
Majo Majorr numb number erss of resp respon onde dent ntss are are usua usuall lly y left left unsa unsati tisf sfie ied d with with serv servic ices es of Pantaloons. There are 24 consumers out of 100 who have never visited the store. Only 12 percent respondent indicated there answer as highly satisfied. The main reason behind such response is that in clothing section they don’t have many many brand brand to offer offer and Pant Pantalo aloons ons usual usually ly promo promote te there there own own brand brand in this this category.
6) How much much time time do you you spend in in the retail retail chain chain on every every visit? visit?
70
60
50
40 t C o n u
68
30
20
10 16 8
8
1-2 hrs
2-3 hrs
0 0-30
30-60
How much time do you spend in the retail chain on every
How much time do you spend in the retail chain on every visit? 52
• •
•
0-30
68
30-60
16
1-2 hrs
8
2-3 hrs
8
This is to understand how much time usually a consumer spends in an outlet. Major number of consumers spent less then an hour in a retail shop because of there presence in malls. Consumers who spent above 2 hours are those who are there for multiple category shopping and there pockets can take the load.
6) What suggestions suggestions you you would like like to give for for improvement improvement of services services in in these stores? stores? Its an open ended question to know there overall experience after shopping in these outlets. Maximum number of consumers responded in one word like they were satisfied or they are happy with the service. Only 40% of respondents gave proper response against all three columns. ✔
Shoppers Stop • • • •
✔
Sales must be organized on regular bases. Better discount facility should be offered. First citizen card must provide more value to the consumers. Existing discount schemes are usually on very high priced products.
Lifestyle •
•
Benefits offered by loyalty card are absolutely useless as they carry very long period benefits and those benefits are not that value adding. There is huge old stock pilled inside in case of Sales period, which in turn affects overall quality of store. 53
•
•
✔
There are too many brands, and the customer who has come for a particular brand, has to look deep for his preferred brand. Sales men are not available on many spots to provide assistance.
Pantaloons • • • • • •
• • •
Baggage counter is always crowded, need to give more space. They must provide more choice in form of brand in clothing. They should have shoes section apart from there regular sports section. Quality of there own brand available inside must be improved. On many spots staff is not available for assistance. There own brand should be priced at lower price, right now its competing with high value brands in price but not in quality. More choice should be offered in watch section. They should work on there accessories category. Regular discount sales should be offered to consumers to attract them.
CHAPTER 7 FINDINGS AND RECOMMANDATIONS RECOMMANDATIONS
54
FINDINGS These are the findings of dissertation project- Consumer perception of retail industry in India with special reference to Lifestyle Lifestyle stores-Shoppers Stop, Lifestyle and Pantaloons. Pantaloons. Maximum number of youth visits retail Lifestyle stores. •
•
•
•
• •
•
• •
• •
1/3rd of the consumers spend upto 2000 rupees as part of there monthly budget. This is due to the factor that maximum number of respondents were students who have there defined budgets based on pocket money. Almost 50% of respondents go out for shopping ones a week at least. Personnel interaction with respondents stated that it is usually on weekends. Shoppers stop have maximum number of visitors with 32%.Least number of people visits pantaloons out of 10 respondents. More then 50% of consumers go to buy clothing from lifestyle stores across NCR and around 28% people go for buying footwear’s, 12 out of 100 respondents prefer buying accessories from these stores like shades, perfumes, belts, caps, Jewellery etc. Convenience is a major factor behind visiting these stores. Most of the consumers consumers go to these stores because they believe in quality provided by these stores on from of products and services. Brand also plays a key role in selection of retail outlet for buying clothes and footwear’s. Price is not a matter for those who go to these branded stores. One stop shopping and store layout has equal importance for consumers in making a choice of store. More then 70% respondents believe that advertising effects there shopping decision. Consumers believe that visual TV advertisement effect there decision making the most in selection of service or product.
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Shoppers stop has been most effective with its advertising with. This is mainly due to the the facto factorr that that when when Shopp Shopper erss stop stop change change thei theirr logos logos there there were were lots lots of TV advertisement during shows to share this information. Shoppers stop customers are most highly satisfied with its services and products. With lifestyle also satisfaction level is high with 80% people falling in category of above satisfaction level. Majo Majorr numb number erss of resp respon onde dent ntss are are usua usuall lly y left left unsa unsati tisf sfie ied d with with serv servic ices es of Pantaloons. The main reason behind such response is that in clothing section they don’t have many brand to offer and Pantaloons usually promote there own brand in this category. Major number of consumers spent less then an hour in a retail shop because of there presence in malls.
RECOMMANDATIONS •
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•
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Retail Retail consume consumer’s r’s decision decision is affecte affected d by advertis advertiseme ements nts and these these stores stores must must emphasize on audio visual advertising techniques. Maximum number of Indian consumers is youth and retailers must focus on attracting youth through promotional means. Maximum shopping takes place on weekend so its important to have focus strategy for weekends. Clothing category is most shopped by consumers so all three retailers must have competitive pricing to stop them from going to other stores. Consumers coming to these outlets are usually brand conscious and there ego must be satisfied by providing them whatever they are looking for in separate sections.
Consumer Specific other recommendationsShoppers Stop • • •
Discount Sales must be organized on regular bases. Better discount facility should be offered. First citizen card must provide more value to the consumers.
Lifestyle • •
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Benefits offered by loyalty cards must be revisited by company. There is huge old stock pilled inside in case of Sales period, which in turn affects overall quality of store, so it must be cleared. There are too many brands, and the customer who has come for a particular brand, has to look deep for his preferred preferred brand, it should be accessible accessible with ease to him. 56
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Sales men should be available on key spots to provide assistance.
Pantaloons • • • • •
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Baggage counter is always crowded, need to give more space. They must provide more choice in form of brand in clothing. They should have shoes section apart from there regular sports section. Quality of there own brand available inside must be improved. There own brand should be priced at lower price then other existing players, right now its competing with high value brands in price but not in quality. More choice should be offered in watch section. They should work on there accessories category. Regular discount sales should be offered to consumers to attract them.
BIBLIOGRAPHY
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Naresh K. Malhotra , “Marketing Research – An Applied Orientation” 5th edition published by Prentice-Hall of India
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Ian Brace , “Questionnaire Design: How to Plan, Structure, and Write Survey Material for Effective Market Research” Published by Kogan Page Publishers, 2004
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www.ibef.org
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www.indianrealtynews.com
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www.fibre2fashion.com/industry...retail-industry.. www.fibre2fashion.com/industry...retail-industry
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www.indiaretailing.com
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www.bcgindia.com
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www.wikipedia.org
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indiaretailbiz.wordpress.com 57
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www.indianground.com/retail/retail-sector-in-india
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www.articlesbase.com
QUESTIONNAIRE Dear Customer, I, the student of AMITY University, is conducting a study on the consumers perception towards Lifestyle stores in NCR, viz., Shopper's Stop, Lifestyle and Pantaloons. Please fill in the following questionnaire to help me in my survey.
NAME:
AGE:
18-28
GENDER:
28-38 28-38
Male
OCCUPATION:
38-48
48-58
58-65
Female
1) What is your monthly shopping budget? 0-2K
2-5K
5-10K
10-20K
2) How often do you shop?
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20-50K
above 50K
Once a week
Fortnightly
Once a month
3) Which of the following stores do you shop at? Shoppers Stop Lifestyle Pantaloons ____________________________________
Others (specify)
4) What do you mostly shop for at the mentioned stores? Clothing
Footwear
Accessories
Others (specify) ___________________________________ ___________________________________
5) Why do you shop at the above-mentioned store? 6) What effects your shopping decision in these retail stores: Proximity
Quality
Brand
Price
Store Layout
One-stop shopping
7) Does advertising and promotion influence your shopping decisions? Yes
No
8) Which form of promotion do you think is most effective? Print
TV
Radio
9) Which of these outlets advertisement you have seen or heard? Shoppers Stop
Lifestyle
Pantaloons
10) Indicate your satisfaction level based on the following parameters for the following stores: Retail Outlet
Unsatisfied
Satisfied
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Highly Satisfied
Not Visited
Shoppers stop Lifestyle Pantaloons 11) How much time do you spend in the retail chain on every visit? 0-30 Min Minutes 30-60 Minu inutes tes 1-2 Hour 2-3 Hours 3-4 Hours
4-5 Hours
<5 Hours
12) What suggestions you would like to give for improvement of services in these stores? Shoppers Stop Lifestyle Pantaloons Thank you!
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