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Consumer Behavior At Organized FMCG Retail Outlets


ROLL NO: 020201036
BATCH 2010-2012

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Consumer Behavior At Organized FMCG Retail Outlets

Submitted in partial fulfillment of the requirements of




Roll No: 020201036
Unitedworld School of Business, Mumbai

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Consumer Behavior At Organized FMCG Retail Outlets


I hereby declare that this report, submitted in partial fulfillment of the requirement of the
requirement for the award for the PGPM Marketing Management, to UnitedWorld
School of Business is my original work and not used anywhere for award of any degree or

Place: Mumbai

Date: __________________ _______________________
Name: Tanveer Khan
Class: PGPM Marketing Management
Semister: VI
Roll No: 020201036

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Consumer Behavior At Organized FMCG Retail Outlets


This is to certify that the dissertation submitted in partial fulfillment for the award of
PGPM Marketing Management of UnitedWorld School of Business is a result of the
bonafide research work carried out by Mr. / Ms.Tanveer Khan 020201036 under my
supervision and guidance.
No part of this report has been submitted for award of any other degree or diploma.

Date: Place:
Faculty guide: __________________
Signature: ____________________
Core Faculty
UnitedWorld School of Business, Mumbai

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First of all I would thank almighty Allah for giving me immense courage & strength,
and keeping me blessed in successful completion of this project.
I would like to express my sincere gratitude to our Academic Dean Prof. Jayanta Sengupta
for giving me an opportunity to undertake this project.
I would like to personally thank Prof. Ramyani Dasgupta, my project guide for guiding me
towards the entire project & providing me with valuable inputs from time to time. She has
always been there to solve our problems in the best way as she can and understood the
reason well, if in case we failed to submit the draft on time.
UWSB staff for providing us with specific guidelines in preparing this project especially
MS. Jeanne, Mr. Pravin & Mr. Uttam. Thank you so much without your help & support
this project would not have been a success.
Once again thank you so much Prof. Ramyani Maam, for your support & motivation.
At the end I would like to thank each and every individual who has been a part of this
project, provided me with some inputs, suggestions & recommendations

Thank you One & All

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Sr.No TITLE Page. No.
1. Executive Summary (Preface) 7
2.1 Introduction 8
2.1.1 Research Objectives 14
2.1.2 Introduction to the Industry 16
2.1.3 Introduction to the Company 20
2.2 Review Of Literature 31
2.3 Making Of The Project Report 33
2.4 Research Methodology 34
Analysis and Finding 35
Interpretation Of Results 36
4.1 Conclusion 46
4.2 Limitation of the Report 47
4.3 Suggestions & Recommendation 48
B-1 Questionnaire 50
References/Bibliography 54

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Retailing is the final step in the distribution of merchandise- the last in the Supply Chain
connecting the bulk producers of commodities to the final consumers. Retailing covers
diverse products such as foot apparels, consumer goods, financial services and leisure. The
organized retail sector has grown to 6% by 2010 and touch a retail business of $ 17 billion
as against its current growth level of 3%, which at present is estimated to be $ 6 billion. As
India moves towards the service oriented economy, a rise in this percentage is expected.
The number of retail outlets is growing at about 8.5% annually in the urban areas and in
towns with population between 1 lakh to 1 million; the growth rate is about 4.5%.
Organized retailing is witnessing a wave of players entering the industry. These players
are experimenting with various retail formats. Yet, Indian retailing has still not been able
to come up with many successful formats that can be scaled up and applied across India.
Some of the notable exceptions like Big Bazaar, Reliance Retail & Vishal Mega Mart who
scaled their format across the country.
The research project is undertaken with a view to analyze the method trends in buying
behavior of consumers towards Organized FMCG Retail Outlets. The aim is to understand
the effect of increasing income levels of consumers on the organized retail industry. To
understand the consumer Psychology, Attitude and Browsing behavior. To study the
existing customers suggestions and to recommend valuable suggestions &

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Every business conducted for the purpose of selling or offering for sale; any good, wares
and merchandise, other than as a part of wholesale business to the final consumer can be
defined as retail business.
Retail is the second largest business in the United States both in number of establishments
and the number of employees. The US retail industry generates $ 3.8 trillion in retail sales
annually ($ 4.2 trillion if food service sales are included), approximately $11,993 per
capita. The retail sector is also one of the largest worldwide.
Wal-Mart is the worlds largest retailer and the worlds largest company with more than $
312 billion (USD) in sales annually. Wal-Mart employs 1.3 million associates in the
United States and more than 400,000 internationally. The second largest retailer in the
world is finances Carrefour.
What Is Retailing?
Retailing is all the activities involved in selling goods and services directly to final
consumers for their personal non business use.
The word retail is derived from the French word retailer, meaning to cut a piece off or to
break bulk. A retailer buys goods or products in large quantities from manufacturers or
importers, either directly or through a wholesaler, and then sells individual items or small
quantities to the general public or end user customers, usually in a shop, also called a
store. Retailers are at the end of the supply chain. Marketers see retailing as a part of their
overall distribution strategy.

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Retailing can be classified under two heads:
Store Retailing
Non- Store Retailing

Store Retailing
Retail stores come in a variety of shapes and sizes, and new retail types keep emerging.
They can be classified by one or more of several characteristics:
Amount of service
Product line
Relative prices
Control of outlets
Type of store cluster

1) Amount of service:
Different products require different amounts of services and customer service preferences
Self service retailers:
Customers are willing to perform their own Locate Compare - Select process to save
money. Today self service is the basis of all discount operations, and typically is used by
sellers of convenience goods (such as super markets) and nationally branded; fast moving
shopping goods (such as catalog showrooms).

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Limited service retailers:
Retailers such as Sears and J.C Penrey, provide more sales assistance because they carry
more shopping goods about which consumers need information. Their increased operating
costs result in higher prices.
Full service retailers:
Like specialty stores and first class department stores, have sales people to assist
customers in every phase of the shopping process. Full service stores usually carry more
specialty goods for which customers like to be waited on. They provide more liberal return
policies, various credit plans, free delivery, home servicing and extras such as lounges and

2) Product line:
Retailers can also be classified by the depth and breadth of their product assortments. The
depth of a product assortment refers to the number of different versions of each product
that are offered for sale. The breadth of the assortment refers to the number of different
products that the store carries.
Specialty stores carry a narrow product line with a deep assortment within that line.
Examples include; stores selling sporting goods, books, furniture, electronics, flowers or
toys. Today specialty stores are flourishing due to the increasing use of market
segmentation, market targeting and product specialization.
A department store carries a wide variety of product lines. Each line is operated as a
separate department managed by specialist buyers and merchandisers.
Super markets are large, low cost, low margin, high volume, Self service stores
that carry a wide variety of food, laundry and household products.
Convenience stores are small stores that carry a limited line of high turnover convenience
goods. These stores located near residential areas and remain open long hours, seven days
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a week. Convenience stores much charge high prices to make up for higher operating costs
and lower sales volume. But, they satisfy an important consumer need.
Super stores, combination stores and hyper markets are all larger than the conventional
super market. Many leading chains are moving towards super stores because their wider
assortment allows prices to be 5-6 % higher than conventional super markets.
Combination stores are combined food and drug stores. Examples are A & Ps family
marts and Wal Marts - super centers. Hyper markets combine discount, super market and
warehouse retailing, and operate like a warehouse.
3) Relative prices:
Retailers can also be classified by the prices they charge. Most retailers charge regular
prices and offer normal quality goods and services at a higher price. Retailers that feature
low prices include:
Discount stores sell standard merchandise at lower prices by accepting lower margins and
selling higher volume. Occasional discounts or specials do not make a store a discount
store. A true discount store regularly sells its merchandises at lower prices, offering mostly
national brands, not inferior goods.
4) Control of outlets:
About 80 % of all retail stores are independents accounting for 2/3 of retail sales. Other
forms of ownerships include the corporate chain, the voluntary chain and retailer
cooperative, the franchise organization, and the merchandising conglomerate.
The chain store is one of the most important retail developments of this century.
Corporate chains appear in all types of retailing, but they are strongest in department,
variety, food, drug, shoe, and womens clothing stores. The size of corporate chains allows
them to buy in large quantities at lower prices, and chains gain promotional economies
because their advertising costs are spread out over many stores and over a large sales
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The voluntary chain is a wholesaler - sponsored group of independent retailers that
engage in group buying and common merchandising.
The retailer cooperative is a group of independent retailers that set up a jointly owned
central wholesale operation and conduct joint merchandising and promotion efforts.
A franchise is a contractual association between a manufacturer, wholesaler, or service
organization (the franchiser) and independent business people (the franchisees) who buy
the right to own and operate one or more units in the franchise system.
Merchandising conglomerates are corporations that combine several different retailing
forms under central ownership and share some distribution and management functions.
Examples include: Dayton Hudson and J.C Penney.

5) Types of store cluster:
More stores today cluster together to increase their customer pulling power and to give
consumers the convenience of one stop shopping.
Central business districts: A central business district comprises of banks, departed stores,
specialty stores, and movie theatres.
A shopping center is a group of retail business planned, developed, owned and managed
as a unit.
Non Store Retailing
Although most goods and services are sold through stores, Non store retailing has been
growing much faster than store retailing.
Traditional store retailers are facing increasing sales competition from catalogs, direct
mail, telephone, home TV shopping shows, on line computer shopping services, home
and office parties and direct retailing approaches.
Non store retailing includes; direct marketing, direct selling and automatic vending.
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1. To study the Consumers Perceptions towards various aspects of Mega Marts.
2. To study the different demographic, psychographics and situational variables
which are affecting the selections of retail outlets.
3. To know the Products knowledge & promotional tools adapted by Organized
Retailers in Mumbai.
4. Understanding the needs of the customers.
5. To study various parameters taken into consideration by customers, while making
a buying decision.
6. To study the satisfaction level of consumers for Organized FMCG Retail outlets
like Hyper City, D-Mart, Big Bazaar, Reliance Super, Vishal Mega Mart.
7. To study about the changes those customers wants in these Organized FMCG
Retail Outlets.
8. To study about the quality, services, product range provided by these Organized
FMCG Retail Outlets.
9. To undertake a comparative analysis of Indian consumer buying habits at Local
Kirana Walas v/s Organized Retail Formats in the city.
10. To suggest improvements to these Organized FMCG Retail Outlets in the city.

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Retailing in India is one of the significant contributors to the Indian economy and accounts
for 35% of the GDP. However this sector is in a fragmented state with over 12 million
outlets operating in the country and only 4 % of them being larger than 500 sq. ft. in size.
This is in comparison to 0.9 million outlets in USA, catering to more than 13 times of the
total retail market size. Thus, India has the highest number of outlets per capita in the
world with a variety spread retail network but, with the lowest per capita retail space (@ 2
sq. ft. per person as compared to 16 sq. ft. per person for USA).
The Indian retailing industry is currently estimated $ 205 billion (Rs. 930,000 crores) and
is expected to grow at 5% p.a. The current size of the organized retail market is $ 6 billion
(Rs. 28,000 crores), thereby a mere 3% of the total retailing market with a projected
growth rate of 25-30 % p.a. and it became $ 8 billion (Rs. 35,000 crores) by 2005 and $ 24
billion (Rs. 100,000 crores) by 2010, with its contribution to total retailing sales likely to
rise to 9% by decade end.

The retail sector in India is highly fragmented and mostly owner-run Mom and Pop
outlets. The entire sector is dominated by small retailers consisting of local Kirana shops,
general stores, footwear and apparel shops, hand-cart hawkers and pavement vendors.
These together form the unorganized retail or traditional retail. According to the
Investment Commission of India (ICI) estimates, there are over 15 million such Mom and
Pop retail outlets in the country.

In terms of total sales, one can find a wide range of estimates and this definitely reflects
lack of sound official government data. ICI had estimated Indian retail sales figure at
US$262bn for 2010, although market estimates ranged from US$200bn to as high as
US$386bn for that year. Various agencies have made efforts to project the growth rate of
the total retail market till 2013 and the figures hover around 13-15.5 percent

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Emerging Trends in Indian Retail Industry
Tier II phenomenon
Small towns with a population of 0.5 to 1 million ( like Surat, Lucknow, Dehradun,
Vijayawada, Bhopal, Indore, Vadodara, Coimbatore, Nasik, Bhubaneswar, Varanasi and
Ludhiana etc.), are witnessing a defined increase in disposable income coupled with high
aspiration levels leading to enhanced spending on consumer goods along with lesser
aversion to credit. With consumption in metros with already being exploited (85% of retail
sales as of now), these Tier II areas are fresh targets and are expected to contribute 20-25
% of organized retailing sales.
Retailers are introducing contemporary retail formats such as Hyper markets and Super
markets in these new pockets of growth. Mall development activities in these small towns
is also picking up, creating quality space for retailers to fulfill their aggressive expansion
plans. Keeping in view the relatively smaller size of the market, the average size of a retail
mall in Tier II cities ranges between 1,00,000-120,000 sq. ft. in comparison with the larger
metros where a number of malls measure over 5,00,000 sq.ft.
Entry of International Players
The fight today is not between big Organized Retail Stores (3%) and unorganized Kirana
shops (97%), but its between global giants like; Wal-Mart, Tesco and shoppers stop,
pantaloons. Entry of these global players will impact the way Indian retailers operate, as
much as it will change the way Indian consumers live and do their shopping. They will no
longer be just dependent on their local Kirana shop for their everyday needs. They could
just shop once a week or once a month at comparatively cheaper rates and remain hassle
free. Indian retailer will also need to quickly come to terms with the market realities. On
one hand they will fight size factor and the other hand great efficiencies.
Emergence of New Retail Formats
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Currently the new sector in India is populated with the traditional mom & pop stores and
some 1,000 odd supermarkets under organized retail chains. A daring few ventured into
the organized hypermarkets with successful results and this format is being fast replicated
by other players. This experience indicates that the Indian Consumer has matured to the
next level of shopping experience. Given the Indian conditions and the vast diversity a
single format may not be possible for the national presence, but region specific formats
may evolve. An interesting fact is that of lack of presence of organized retail chains in the
rural/semi-urban centers as over 60% of Indian population is still in these parts. An ideal
no-frills model to start with would be ideal for the rural markets; this would help to take
them to the next level of the supermarket experience.
Specialty Malls
Keeping in mind the astonishing pace with which new supply is expected to enter the
market, many mall developers in a bid to offer a distinctive value proposition, are planning
to develop specialty malls. These niche developments shall emerge as one - stop
destinations in their chosen product categories. The Delhi - based Aerens Group has
developed Gold Souk, an exclusively jewellery mall that is already operational in Gurgaon
and has ambitious plans to replicate the concept across the country. Further a number of
analogous developments like a wedding mall by omaxe group, Automobile Mall, etc.
are also in the offering. In line with international trends, Home Malls offering the entire
range of building and interior decor solutions are also coming up in various parts of the
country including Pune (Ishanya promoted by Deepak fertilizers and petrochemicals
corporation Ltd.), Gurgaon & Kolkata.
Price Correction
Fallout of the surge in mall development activity shall be that developers will be forced to
offer retailers prime real estate spaces at costs lower than those prevailing today, as the
space required by retailers to fulfill their expansion plans is likely to be lesser than offered.
This correction could result in a more structured retail real estate market that would allow
retailers a higher margin on their real estate investments, thereby enabling them to expand
faster. Further, the relatively over served cities could witness higher activity, as real
estate space becomes more affordable, thereby, reducing the break even period for
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retailers. Moreover, under - served markets could provide enough margins to retailers to
compensate for loss of margins in some of the over served markets.
Transformations and Innovations of Supply Chain and Transportation Logistics
To counter the unbeatable advantages of convenience of a hop, skip and a jump access and
home delivery, organized retailers seem to have just one option offer attractive prices to
the consumer. A successful retailers winning edge will therefore come from sourcing
how best it can leverage its scale to drive merchandise costs down, increase stock turns
and get better credit terms from vendors. Efficient supply chains can achieve this objective
and fuel demand. The supply chain in India is full of inefficiencies a result of inadequate
infrastructure, too many middlemen, complicated laws and an indifferent attitude.
More Use of Technology
Retailing; as discussed before is at a nascent stage in India. The complicated information
systems and underlying technologies are in the process of being established. Most grocery
retailers like Food World have started tracking consumer purchases through CRM. The
lifestyle retailers through their affinity clubs and reward clubs are establishing their
processes. The traditional retailers will always continue to exist but organized retailers are
working towards revamping their business to obtain strategic advantages at various levels
market cost, knowledge and customer. With differentiating strategies value for money,
shopping experience, variety, quality, discounts, advanced technologies, change in the
equilibrium with manufacturers and a thorough understanding of the customer behavior,
the ground is alls et for the organized retailers.

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Community Involvement
Footfalls in most malls are observed to be significantly higher on weekends. To ensure
regular walk-ins on weekdays, mall developers have started to focus on involving the local
community. They have recognized that their centers need to be entertaining, and that
shoppers want their malls and town centers to blend with and reflect their own
communities. Their philosophy today is thus to create a center where people would want
to stay well beyond their shopping time to enact the rituals of urban life. Activities like
karate classes and painting competitions for children pull their salary earning parents to
visit the mall.
For example, South - dale Mall, USA contains a school, an auditorium, an ice skating
rink and even a zoo for the same reason. Dandia and Navratre parties at Ansal Plaza and
Festival Parties at other malls also have the same objective.
The present best example would be the Infinity & Inorbit Mall within our locality is trying
to offer the complete family solutions with the delicious food courts to advanced gaming

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Growth through Value Creation
With a vision to generate inclusive growth and prosperity for farmers, vendor partners,
small shopkeepers and consumers, Reliance Retail Limited, a subsidiary of RIL, was set
up to lead Reliance groups foray into organized retail. With a 27% share of world GDP,
retail is significant contributor to overall economic activity across the world. Of this,
organized retail contributes between 20% to 55% in various developing markets. The
Indian retail industry is pegged at $ 300 billion and growing at over 13% per year. Of this,
presently, organized retailing is about 5%. This is expected to grow to 10% by 2011. RRL
has embarked upon an implementation plan to build state-of-art retail infrastructure in
India, which includes a multi-format store strategy of opening neighborhood convenience
stores, hypermarkets, specialty and wholesale stores across India. RRL launched its first
store in November 2006 through its convenience store format Reliance Fresh. Since then
RRL has rapidly grown to operate 590 stores 13 states at the end of FY 2007-08. RRL
launched its first Reliance Digital store in April 2007 and its Indias largest hypermarket
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Reliance Digital. This year, RRL has also launched its first few specialty stores for
apparel (Reliance Trends), footwear (Reliance Footprints), jewellery (Reliance Jewels),
books, music and other lifestyle products (Reliance Timeout), auto accessories and service
format ( Reliance AutoZone) and also an initiative in the health and wellness business
through Reliance Wellness. In each of these store formats, RRL is offering unique set of
products and services at a value price point that has not been available so far to the Indian
consumer. Overall, RRL is well positioned to rapidly expand its existing network of 590
stores which operate in 57 cities.
During the year RRL also focused on building strong relationships in the agri-business
value chain and has commenced marketing fruits, vegetables and staples that the company
sources directly to wholesalers and institutional customers. RRL provides its customers
with high quality produce that has better shelf life and more consistent quality than was
available earlier. RRL has made significant progress in establishing state-of-the-art staples
processing centers and made them operational by may 2008.
Through the years, RRL has also expanded its supply chain infrastructure. The company is
fully geared to meet the requirements of its rapidly growing store network in an efficient
manner. Recognizing that strategic alliances are going to be a key driver to its retail
business, in FY 2007-08, RRL established key joint ventures with international partners in
apparel, optical and office products businesses. Further, RRL will continue to seek
synergistic opportunities with other international players as well. This year, RRL will
continue its focus on rapid expansion of the existing and the other new formats across
India. Mukesh Ambani promoted Reliance Retail has launched its 1
Reliance hypermarket in Ahmedabad that will sell from produce to general merchandise at
budget friendly prices even as the company mulls setting up 500 such superstores across
India by 2010.

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Indias biggest conglomerate.
First to start retail trend in India .
Market value US $ 35 billion
Turnover of US $ 27 billion in 2007.
Investing US $ 5 billion in pan-India retail including both small & super stores.
Generating 1 million jobs Reaching annual sales of US $ 25 billion by 2011
Free membership card to its customer.
Firsthand knowledge of retail business.
Small retailers are powerful lobby that made RIL to take on international giants.
Latest software and technology used like SAP, Retalix (used by wall mat except
reliance retail ltd.)
Lack of detailed region specific customer data.
Less data on spending pattern.
Lack of trained personnel at all level.
Insufficient ERP,SCM
Insufficient stock
No proper system to solve customer complaints regarding products.
India ranks 1
for top international destination for retail investment.
U.S $ 350 billion retail market
96% market share is held by 12 million family run shops.
largest economy in purchasing parity terms after US, China & Japan.
Retail sector will grow 35% in 2008
Virgin territory for organized retail investment
2-6% of total retail
Expected to increase to 15-18% by 2011
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Food retailing is expected to grow to US $ 1.6 billion
Apparel to increase by 9.5% by 2010
Wall Mart
Future group Big Bazaar, Pantaloons, brand factory, e- zone, central mall,
furniture bazaar etc.
Aditya Birla Group Peter England people store, more
Tata group Westside, Tanishq store, Titan store, Star India Bazaar, landmark,

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Vishal Mega Mart is the retail house in India. As of April 30, 2007 it operates 50 retail
stores, including two stores which are operated by their franchisees. The 50 stores are
spread over about 1,282,000 sq.ft and are located in 18 states across India. In its efforts to
strengthen their supply chain, it has set up seven regional distribution centres and an
apparel manufacturing plant.
It started as a retailer of ready-made apparels in Kolkata in 2001. At the time of
incorporation, the registered office of their Company was situated at 4, R.N. Mukherjee
Road, Kolkata 700 001. In 2003, it acquired the manufacturing facilities from Vishal
Fashions Private Ltd and M/s Vishal Apparels.
It follows the concept of value retail in India. In other words, their business approach is to
sell quality goods at reasonable prices by either manufacturing themselves or directly
procuring from manufacturers.
(Primarily from small and medium size vendors and manufacturers) it facilitates one-stop-
stop convenience for their customers and to cater the needs of the entire family. It believes
this concept has helped them grow to their current size within a short time frame of their
years. Mr. Ram Chandra Agarwal has been ranked the 28
most pitiful person in the
Indian retail industry.

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Big Bazaar
As the name sounds it is both big and bazaar. It is unlike, say, a Walmart or even a Food
world. Big Bazaar is almost an air-conditioned version of Indian bazaar. It is slightly
orderly version of, say Chickpet for Banglore guys or Dadar for Mumbaikars. There is
huge crowd which can move in almost ant direction. You can buy anything (pretty much
everything is available at Big Bazaar). It is not a place where you can browse through at
leisure and pick up a few things here and there. This is a place if you are serious about
shopping. The worst part is the checkout counter, where the line can stretch as much as a
line for a famous Ganpati Pandal or a cricket match. Parking is also a pain too.
But the place ticks, in both Hyderabad and Bangalore, the outlets dont have a place for
customers to stand especially on weekends. Customers wait outside it some before it opens
in the morning. Mumbai is slightly better. Big Bazaar offers good prices really very good
prices that tempt customers to buy. Apart from price chopping, there are deals ( 2 for the
price 1 or prices reduced on a combination etc.). The perception of Big bazaar is that it
facilitated some serious savings on grocery shopping. It works and makes no mistakes for
Big Bazaar , it attracts the well heeled as much as it attracts the Raju from across the
street. That has worked for Big Bazaar because it has been able to connect with the all
class customers in the right manner. They had filled a need gap which was there in the
market. Apart from that, their competence in providing at lowest prices and greater quality
in an ambience much better than what the customer were used to, has also contributed to
their success.
The focus is on continuing to provide value for money to customers by providing
exciting offers throughout the year. It will be facilitated by constantly working on its
buying and supply chain efficiencies. Having already achieved economics of scale and
size, they intend to better their gains by opening new stores regularly.
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One of the key philosophies of Mr. Kishore biyani is rewrite rules, retain values. In
essence. It means they dont take anything as fixed. They are constantly on the lookout for
finding new ways and means to improve the current state of affairs. Thus innovation is
very important aspect of their working strategy. The other very important philosophy is
that of being an Indian. All their concepts and formats as well as the way they go about
things are very Indian. The way Big Bazaar is designed and the way the whole concept has
developed reflects a sense of being an Indian.

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Hyper city Retail (India) Ltd.
Hyper city Retail (India) Ltd (Hyper CITY) was incorporated in May 2004, as an associate
company of Shoppers Stop which has a stake of 19% in Hyper CITY. Hyper CITY
opened its first store in Mumbai in 2006. It is operational in the format of
hypermarket/supermarket in India.

The company offers a wide range of product segments like food, home ware, home
entertainment, appliances, furniture, sports, toys and fashion. The company provides a
wide array of exclusive brands across all segments like Fresh basket, Hyper CITY,
Waitrose in food & grocery; Ebano and Avorio in home, dcor & furnishing; Vive, City
Sense, City Style, City Life, River Inc. in fashion segment; Technix in household
appliances and Raleigh & Maxit in sports segment. It also has in-store restaurants named
Desi Cafe and Brio.

Hyper Citys new format Gourmet CITY is a food store having juice bar, salad counter,
bakery, tea and coffee bars, hand-made chocolates, freshly baked breads and many more.
Hyper CITY has partnered with JHP of London for in-store design, JDA for technology
infrastructure, Johnson Diversey for cleaning and hygiene products & services.
Vision: - To be an integral part of customer lives, by offering them a high quality shopping
experience through great products at ever better prices.
To provide an international shopping experience.
To be committed to extending high standards of customer service.
To be one destination for customers for all kind of products.

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HyerCity format offers a true one-stop shopping destination with authoritative
assortments in every category.
HyperCity Outlets are for upper middle class income group.
HyperCity have multiple brands products along with their own brands of products
too which are available at not very high price.
Target Consumer:-
Upper & Upper middle income group
Families & not just individuals
They target the upper income consumer with a quality shopping experience.
And target the middle income group be giving them a one stop destination for all
shopping needs.

HyperCity ( Malad Store)
The Hyper city store is situated over 1.20,000 sq feet area. Its merchandise area 80,000 sp
feet & consists of 1, 16,000 Skus in the store.
The store is divided into two sections i.e. it has 2 floors. The 1
floor has all the grocery
and household items that includes fruits, vegetables, diary, poultry etc. the 2nd floor
consists of HAM ( Hi- Tech, Appliances, Multimedia), furniture, garments, sports
materials etc. It also has a pharmacy, Presto Dry Clean and a Vodafone gallery.
The store timings are from 10.00 am to 10.00 pm working from Monday to Sunday. There
are 30 billing counters in the store, 26 are at the ground floor & 4 are at the 1
Number of staff is approximately 328, out of which 280 are service associates and the
number of shifts is 3.

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D Mart
D Mart, the R K Damani- promoted retail chain, is Maharashtra and Gujarat which gives
an amazing shopping experience from the Upper Class to the Lower Middle Class of the
society. It is located at Palm Spring, Link Road, Malad west just ahead of Infinity Mall.
D Mart provides a truly shopping experience, where customers can shop in comfort in a
large, modern, exciting environment and stocks an astonishing array of products ranging
from groceries, food, house items, fresh food, garments to consumer durables and offers
consumers more variety and value for money, all under one roof.
D Mart is planning to to go national in the next couple of months, by opening stores in
key cities such as Bangalore, Delhi, and Hyderabad. The nine-year-old chain would add at
least 25 stores in the next one year to its existing 33 stores in Maharashtra & Gujarat. The
retailer recently opened a 25,000 sq ft store in Hyderabad.
R K Damani is one of the biggest stock market investor in the country. He will open the
stores whenever he finds the right opportunity. He will mostly focus on key cities. Though
D Mart was among the few retailers who owned properties rather than leasing them out, it
is also looking, at taking properties on rent to increase its footprint. D Marts expansion
plan coincides with the plans of other retail majors, such as Bharti Retail and reliance
Retail, who have already hit the expansion trial, following recovery in economy and
consumer spending.
D Mart says they want to be good at what ever they do, at the same time match up to the
competition, if they need to survive and grow. For instance D Mart does not retail its
private labels, as it does not have the scale to do so, while retailers such as Kishore
Biyanis Future Group, Aditya Birla Retail and Reliance Retail have invested in private
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D Marts slow expansion became a boon for its last years economic slowdown proved
painful for retailers, especially for the mid-size ones, as curbed spending to save cash.
While Chennai based Subiksha shut 1,600 stores after defaulting on loans, Delhi based
Vushal Mega Mart Retail is struggling with its corporate debt restructuring (CDR) cell.
While Mumbai based Foodlands Fresh and Delhi based Triveni Engineering shut al their
stores, Wadhawan group promoted Spinach has closed over 60 stores in the last 18
The mid-size retailers expanded too much, that is the reason they went down. If D Mart
can grow slowly, they can do well too in the coming days.

Browsing behavior is a significant form of consumer behavior which can occur
independently of specific purchase occasions.
The focus of the present study is upon a different aspect of non-purchase consumer
behavior-browsing. Most of us at one time or another has visited a retail store without a
particular purchase in mind. Such browsing may be done 'for the fun of it," to see new
developments in a product class, or perhaps just to fill time while waiting. Given the
pervasiveness of browsing behavior among consumers, it is surprising that this element of
consumer behavior has received so little research attention.
For purposes here, browsing is defined as the examination of a store's merchandise for
recreational or informational purposes without a current intent to buy. As defined,
browsing is both a form of leisure activity and a form of external search behavior.
Browsing can provide a consumer with a way to spend a rainy afternoon and in addition it
can add to the individual's store of information concerning new product developments,
brand differences, or sale prices. Furthermore, the search aspect of browsing may be
pleasurable in and of itself. The browser can satisfy his/her curiosity motives and add to
feelings of self-esteem through the acquisition of product-specific or marketplace
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Retail is Indias largest industry. It accounts for over 10 percent of the Indias GDP and
around eight percent of the employment. Retail sector is one of Indias fastest growing
sectors with a 5 percent compounded annual growth rate. Indias huge middle class base
and its untapped retail industry are key attractions for global retail giants planning to enter
newer markets. Driven by changing lifestyles, strong income growth and favorable
demographic patterns, Indian retail is expected to grow 25 percent annually. It is expected
that retail in India could be worth US $ 175-200 billion by 2016.
As the nature of the study is survey. Nature of the data is primary by Questionnaire to
customers. The same study particularly in Mumbai location and for the same retail outlet
is difficult to find. General information related to catchment analysis and retail stores are
available but are not appropriate to mention all those information here.
Theoretical concept is taken from the different books as mention in the references. The
other information is taken from the different sources as mentioned in references.
The Organized retail industry in India had not evolved till the early 1990s. Until then, the
industry was dominated by the Un- Organized sector. It was a sellers market, with a
limited number of brands, and little choice available to customers. Lack of trained
manpower, tax laws and government regulations all discouraged the growth of organized
retailing in India during that period. Lack of consumer awareness and restrictions over
entry of foreign players into the sector also contributed to the delay in the growth of
organized retailing.
Foundation for Organized retail in India was laid by Kishore Biyani of Pantaloon Retails
India Limited (PRIL). Following Pantaloons successful venture a host of Indian business
giants such as Reliance, Bharti, Birla and Others are now entering into retail sector.
A number of factors are driving Indias retail market. These include: increase in the young
working population, hefty pay-packets, nuclear families in urban areas, increasing working
women population, increase in disposable income and customer aspiration, increase in
expenditure for luxury items, and low share of organized retailing. Indias retail boom is
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manifested in sprawling shopping centers, multiplex- malls and huge complexes that offer
shopping entertainment and food all under one roof.
But there is a flip side to the boom in the retail sector. It si feared that the entry of global
business giants into organized retail would make redundant the neighbored Kirana stores
resulting in dislocation in traditional economic structure. Also, the growth path for
organized retail in India is not hurdle free. The taxation system still favors small retail
A perfect model for retail is still in evolutionary stage. Procurement is very vital cog in the
retail wheel. The retailer has to fight issues like fragmented sourcing, unpredictable
availability, unsorted food provisions and daily fluctuating prices as against consumer
expectations of round-the-year steady prices, sorted and cleaned food and fresh stock at all
Trained human resources for retail is another big challenge. The talent base is limited and
with the entry of big giants there is a cat fight among them to retain this talent. This has
resulted in big salary hikes at the level of upper and middle management and thereby
eroding the profit margin of the business.
But retail offers tremendous for the growth of Indian economy. If all the above challenges
are tackled prudently there is great potential that retail may offer employment
opportunities to millions living in small town and cities and in the process distributing the
benefits of economic and resulting in equitable growth.

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To study the Consumer Attitude (Buying Behavior) towards the Organized FMCG Retail
Consumer Attitude
Consumer attitude helps the organization to understand the purchasing pattern of
consumer. For example customer wants to buy from local Kirana store (Mom & Pop store)
because of location is convenience for them. If the retailer comes to know what exactly is
the reason of purchasing so the retailer can change his store accordingly, because the main
reason for the existence of retailer is customer and I have to change according to customer.
Consumer Attitude is very important in Retail consumer attitude means the behavior
which a consumer shows while purchasing. The consumer shows different consumer
attitude because of different names
The main aim of this project is to find out The Attributes that customers keep in mind
while purchasing from Organized Retail Outlets.
Customer Services

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In order to accomplish the objective of the study, it is essential to articulate in manner in
which it is to be conducted. The Research study was conducted in Mumbai, the area where
maximum research work was carried out is Malad, as all the outlets are present in the close
vicinity and it was the most feasible area for me.
The research is descriptive in nature. The study is aimed at describing the existing
phenomenon of Consumer Buying Behavior. For that matter I will consult various
magazines, newspapers, books, reference materials and internet.
Questionnaire Survey: A questionnaire survey was conducted for the purpose of the study.
The questionnaire was designed to find out the Consumers Buying Behavior at Organized
FMCG Retail Outlets. Collected information was analyzed under the light of the literature
and survey.
Secondary data is the data, which already exists. Secondary data was collected mainly
through the internet, company websites and some are taken from books and articles.

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Random Sampling Method was used.
Sampling Element: The basic elements were studied mainly through the Customers
visiting the selected retail outlets and the person in- charge of the Stores.
Sample Size: 150 Customers, Customers from each Mega Mart were personally
interviewed and were asked to fill up the questionnaire.

Specially Structured Questionnaire
Customers perceptions towards different aspects of Mega Marts were compared by using
Help of Likert scale, ranking based model and multiple choice based questions were also

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1) Out of these Organized Retail Outlets, which you have visited the most?

This Question was asked so as to find out the customers preference in visiting
organized retail outlets.

I tried to find out how many customers visited all the organized retail outlets and
the one frequently visited by them.

It was found that almost all the respondents had visited Big Bazaar & Dmart.

36% of people said they visit Big Bazaar the most because of its presence in most
of the places while 7% said they visit other outlets.

Thus we can conclude that customers are keener towards the proximity and reach of the

Big Bazar
Reliance Super
Vishal Megamart
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2) How many times do you visit the organized retail outlets in a month?

This question was asked to the customers to find out from which outlet they
generally purchase.
It was found that most of them purchased from Big Bazaar & D Mart, they are
habituated to purchase as they are the oldest in the market & have wider
These outlets have captured the customers psychology and have good
reputation in the market.

As per the survey,
47% of people visit the Mega marts only once in a month because of time,
convenience & monthly budget.
33% of people said they visit 2-3 times in a month especially to buy fruits &
vegetables, beverages etc.
7% of the sample size population visit more than 5 times especially during
weekends with friends just to browse & visit the food courts.

2-3 times
3-4 times
More than 5 times
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Thus we can say conclude that since India has the largest youth population, so the
Browsing Behavior is the most common behavior noticed among them, having a
food court, outlets such as Coffee Caf Day, Chat Centers, Ice-cream parlors etc,
can increase the footfall of the Mega Marts.
If Big Bazaar comes up with the concept of food courts inside their Mega marts
than it can give the same amazing experience like that given by HyperCity or any
other Mall and attract all class of people in the society.

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3) How frequently do you purchase?

As per the survey conducted,

People are purchasing their daily needs from Mom & Pop stores because
of convenience and location as these stores are situated near to them.
It has been observed that 67% of the population purchase on monthly basis
because that is the time when they have sufficient money to carry out the
purchase and store it for a month.
Whereas 6% of population purchases Fortnightly depending on the
requirements, family size, special occasions etc.

Thus we can say that it is this 67% of population moving slowly from
local Kirana Wala to Organized Retail Outlets for purchasing their
necessity goods.

Daily Weekly Fortnightly Monthly More than a Month
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4) How far you have to travel to go for purchasing?

It has been observed that people always prefer to buy their needful from the nearest
outlet or store possible.

As per the survey,

48% of populations dont like to travel long distance to do purchasing; they
prefer the outlets which are within the vicinity of 3 kms.

While in place like Mumbai where Traffic is the biggest obstacle, nobody
prefers to travel more 5 kms to do purchasing.

Thus we can conclude that Location is the most important criteria for organized
retail outlets, the more closer the outlet that better the footfall.

Less than 3 K.M
3 K.M 6 K.M
7 K.M 10 K.M
More than 10 K.M
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5) When do you purchase more (in bulk)?

The question was designed to find out the purchasing trend followed by the
customers. The core aspect was to find out when they carried out the bulk
More than 32% of people purchase in bulk during special discounts & festive

22% of population does the bulk purchasing during the 1
week of the month,
these are service class people as their salary is credited on 1
week of every month.

Some families dont like to spend much time in shopping as this disturbs their
monthly schedule.

While 4% of the population responded they do the bulk purchasing during End of
the month.
Thus we can say that special offers & schemes drive the customers to outlets and
at the same time help in increasing the sales.
6) What is your average one time purchase at organized retail outlets in Rupees?
First week of month
Mid of the month
End of the month
When required
During special
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This question was asked to the respondents to find out how much of their monthly
budget was spend on shopping from organized retail outlets.
It is found that around 37% of the population spends around Rs 2500- 5000 of their
monthly income on shopping from organized outlets.

9% of the respondents spend above Rs 5000 on shopping from these organized
outlets. This segment mainly comprises of the upper class of the society.

Thus we can say that upper middle class & middle class of the society form the
main target segment in purchasing from these outlets.

Rs 500 1500
Rs 1500 - 2500
Rs 2500 5000
Rs 5000 & above
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7) In buying products at organized retail outlets you are sensitive towards:

This question was asked to the customers to find out their perception about the
different attributes while purchasing from organized retail outlets.
As Indian customers are price sensitive, 42% of the population feels Price is the
most important attribute while purchasing from organized outlets.

27% of the respondents give major weight age to the quality of the product that are
being sold.

9% feel ambience is also very important for the survival of these organized outlets.
Thus we can conclude that Indian customers are Price sensitive but at the same time
Quality oriented. So a combination of affordable Price to good Quality should be

Customer service
Ambience of the store
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8.) Kindly rate below the parameters of an organized retail and unorganized retail based on
your preferences?

This question was asked to derive a comparative analysis on the attributes of Organized
and Unorganized Retail Outlets.
From the graph we can say that all the attributes of Organized Retail Outlets on an average
have a scale reading of score 4 and above, which states that almost all the parameters of
Organized Retail Outlets are ranked much higher as compared to Unorganized Retail
India is slowly and steadily taking a shift towards adopting the modern organized retail
formats and Indian Consumers are experiencing a change in their buying habits, along
with the Metros most states are seen to have a paradigm shift in their purchasing pattern
from Local Kirana Walas to Organized Retailers.

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Most of the people prefer to purchase their daily needs products from Mom & Pop
stores and street vendors because of convenience in location.
50% of people come to know about the organized outlets through print media,
public relations and good viral marketing so outlets should try to be focused on
these communication channels.
Consumers prefer to purchase from nearest organized retail outlets according to
Pricing & discounts
Customer service
It has been observed that in Mumbai city that there is no fix time of purchasing
daily need products but, whenever the need arises they immediately purchase it.
While conducting the survey the sample size responded accordingly
Prefer to buy:-
Fruits & Vegetables n daily basis as they are perishable
Grocery and staple items on monthly basis
Beverages & Snacks are preferred to buy on weekly basis.
Ready to eat foods like Maggie, Biscuits, Namkeens & Khakharas also form a part
of consumers weekly purchase.
Consumers dont prefer to eat frozen foods and readymade foods like frozen
vegetables and meat much.
The response for Big Bazaar, D Mart, HyperCity, Reliance Super etc from the
survey is quite good, about 80% of the sample size have visited at least one of the
above stores.
Most of the people like to visit nearest organized retail stores in their locality, to
save time & money.
The survey reveals customers are satisfied with the service provided at organized
retail outlets as compared to the unorganized one, but still feel that customer
service associates need to be trained for better results.
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Priyanka Joshi, a school teacher in western Mumbai, buys her monthly provisions from a
Big Bazaar outlet 2 km from her house, but gets bread, eggs and even rice from an old
grocery just outside her society.
There are usually great bargains for branded products in new retail formats. However,
for the day-to-day grocery items such as bread, biscuits, sugar or pulses, we depend on
neighborhood stores, where they understand specifications of our kind of rice and pulses.
Such stuff is not available in modern retail chains, says the mother of two children.
Most urban consumers in the country, like Priyanka, are crossover shoppers,
frequenting both modern retail and neighborhoods groceries for different needs, says a
new study by The Nielsen Company that strengthens the case for allowing multinationals
such as Wal-Mart and Carrefour enter the $410-billion retail market in India.
Coming in at a time when the government has revived the debate over allowing foreign
direct investment in multi-brand retail by seeking feedback from various stakeholders
that has ministries, opinion leaders and small and big businessmen lining up on either side,
the one-year-long study clearly suggests that modern retail and pop-and-mom shops can
With the shopper moving fluidly between modern and traditional trade, both sides of
the retail universe are well positioned to cultivate shopper loyalty and marketers have
multiple points of sale to influence the same shopper,
The study, conducted among 3,000 plus shoppers across 11 cities and Nielsens national
panel of retailers during the 12 months ended September last, suggests that the value
hunting Indian consumer visits modern trade formats such as HyperCity, Big Bazaar,
Spencers , DMart , More and Reliance Fresh for her monthly purchases, while
frequenting traditional groceries for her daily purchases.
I avoid going to the large formats to pick up a few daily essentials. I hate waiting in long
queues and getting bar codes checked, says Sarita Joshi, a homemaker living in Nerul, an
eastern suburb of Mumbai. It is equally tough returning products to big retailers or
getting the money back which my neighborhood kirana takes care of with just a phone
call, she adds.
Grocers are betting on their unique strengths such as customer relationships, home
delivery and credit facilities, besides expanding product portfolio, to hold their ground
against increasing competition from big retailers, which account for only 5% of the total
retail market but are growing 30% a year.
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Our services such as buying back sold goods, home delivery, monthly credit and
customized groceries are very difficult for modern trade to replicate, says Ramniklal
Jadavji Cheda, president of Retail Grain Dealers Cooperative Society, the biggest mom-
and-pop association in Mumbai with around 9,200 members.
Also, many grocers now place purchasing orders jointly to bargain better with suppliers
and sell products at competitive rates.
A Fair World
Allowing foreign direct investment in multi-brand retail has been a vexed issue for
many years now. It returned to the public domain when the commerce ministry came up
with a discussion paper in July, inviting views from all stakeholders.
Last month, worlds largest retailer Wal-Marts CEO, Mike Duke flew down to the
country, days before US President Barack Obamas visit, to hard sell the benefits of
international competition in multi-brand retailing to Indian consumers as well as small
While commerce and industry minister Anand Sharma and the Planning Commission have
supported FDI in retail, those opposing the idea include micro, small and medium
enterprises (MSME) ministry and communications & IT ministry, besides different
associations of small retailers.
The biggest fear is that the arrival of the likes of Wal-Mart, Carrefour and Tesco will
lead to a huge loss of jobs in traditional retail sector, which is considered the second-
largest employer in the country after agriculture with more than 20 million people across
some 12 million shops and accounting for more than 95% of total sales.

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The Indian shopper, it says, flits across formats to buy different items from each store
type. For instance, they visit neighborhood paan shops for salty snacks and chocolates,
chemists for deodorants and milk beverages, and modern trade outlets for branded
grocery and liquid toilet soap.
While modern trade is driving sales of premium household and food categories,
traditional trade has begun selling more personal grooming products such as hair
conditioners, fragrances, deodorants and hair dyes than ever before. Diapers, liquid soap,
washing products and squashes are selling equally big from both the channels.
Grocers Grow Smarter
Price is a big factor though, of all the shoppers who participated in the Nielsen study,
nearly 40% said they know the prices of most items in both modern and traditional
trade formats, while 45% said they notice a difference in prices between the two formats.

Big retailers have an edge here, thanks to their ability to check operational costs, bargain
hard with suppliers and launch private labels.
According to another Nielsen study, modern retail dropped prices by more, or increased
them by less, for more product categories than traditional retailers, or kiranas, between
the October-December 2009 quarter and the January-March 2010 quarter.
Small grocers too now offer decent discounts to consumers, thanks to joint purchases and
tie-ups with top consumer product companies such as Hindustan Unilever, Procter &
Gamble, Godrej Consumer Products, Dabur and Marico.
Bharatiya Udyog Vyapar Mandal, the biggest association of mom-and-pop stores in the
country with more than 5 million members, has formed city-centric associations to
negotiate directly with manufacturers and do away with any middlemen. This has helped
kiranas offer 5-20 % discounts on MRP of branded products like detergents, shampoos,
soaps, oil and atta.
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They are helped by FMCG players, which are facing increased competition from private
labels, or own-brands, of big retailers and are under constant pressure to increase
retailers margins. Programmes such as Hindustan Unilevers Perfect Store and
Daburs Parivar adopt kiranas and teach them category management and effective
merchandising to make them more engaging and presentable.
Stores are a reflection of the aspirations of any society, says Godrej Consumer
Products executive vice-president, marketing, Tarun Arora. Although modern trade is
roughly around 6% of total retail, traditional stores have learnt a lot from it and
consumer companies have become catalyst in the process, resulting in the emergence of
crossover shoppers, he adds.
All this has left consumer the winner. She gets never-before bargains from modern retail
and never-before service from small grocers. Attitude of kirana owners has changed a
lot, especially in areas where catchments of modern retailers and mom & pop stores are
the same, says Ashwin Merchant, a Mumbai-based independent marketing advisor.
The countrys largest retailer Future Groups director, food strategy, Damodar Mall
says that any format, whether traditional or modern, that meets consumer needs
effectively will do well. Modernization of all trade is in favour of the consumer, he

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From above survey we conclude that
The main factors that affect the retail business in location
Indians Consumers are price sensitive they seek value for money so price also
matter for Indian customers.
The purchasing pattern of the people in one location is totally different from other
location in Mumbai city.
Customers service is not so much important in grocery retail, Quality & Price
matter a lot
The reason for which people prefer to buy from organized retail store is variety of
product available under one roof and customer has not to move from one shop to
another shop for his/her daily needs.
Most of the people in Mumbai use to purchase their daily needs whenever they
After the whole project I can conclude my work as per the following points.
1. The main factor that affects the retail business is the Location.
2. Indians are price sensitive they seek value for money so price also matter for
Indian customers.
3. The purchasing pattern of the people in one location is totally different from other
location in Country.
4. Customer service is not so much important in grocery retail, quality & price matter
a lot.
5. The reason for which people prefer to buy from organized retail store is variety of
products available under one roof and customers has not to move from one shop to
another shop for his/her daily needs
6. Most of the people use to purchase their daily needs whenever they require.
7. Organized Retail is still a new concept in India and holds a lot of potential in
coming years.
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Time was the major constraint which prevented me to put in more effort
Some people left few questions unanswered.
Some of the respondents were not ready to fill the questionnaire
Not all the respondents were cooperative thus it was difficult to convince them
for filling up the questionnaire
Some of the respondents might have filled up the questionnaire just for the sake
of filling. This could have been biased or deviated my analysis.
I made an extra effort in conducting the research but might have lacked
somewhere because of lack of expertise in conducting such survey based

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4.3 Suggestions & Recommendations
Customer Suggestions
I have asked some of the customers to give suggestion to make it better place for
shopping. Some of the valuable suggestions are as follows:-
Pricing of products should be low inside the outlets as compared to outside stores.
Most of the customer suggested that the fruits and vegetables must be fresh in
stores otherwise its not worth.
Non- vegetarian & some of the vegetarian items should not be frozen for many
days because it loses its nutritious contents.
Credit facility must be provided to the customer just like local Mom & Pop (Kirana
wala) provides.
CSAs should be well trained to provide good customer service.
Big brands must improve service quality as its name is big (reputed) in the market.
There must be enough number of POS and all must be in working conditions
during peak hours because customer has to wait in queue.
All items must be in enough quantity some time customer finds some items out of
stock (butter milk, curd, butter etc.)
More discounts schemes should be available in the other stores as like Big Bazaar.
Home delivery service system should be started.

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As people prefer to buy from local kirana store because of location so the company
has to open its new stores at very main location in the city because the most
important thing in Retail is well structured Layout at right location.
As per the survey conducted most of the people came to know about organized
outlets because of good PR so company must put more emphasis on this channel of
communication and promotion means through print media.
As Indian customers are Price Sensitive and at the same time Quality oriented so a
good combined strategy should be used.
As customer prefer to buy fruits and vegetables on daily basis, grocery items on
monthly basis, beverages and snacks on weekly basis and ready to eat food
whenever they require so companies must have all the items on shelves
People dont prefer to buy frozen foods and mostly prefer to eat homemade foods,
outlets should try to avoid freezing the foods for many days in store to save
inventory cost.
Many customers recommended that the CSAs should be well trained about the
products and should approach the customer from front to increase the sale of the
As most of the customers are from middle & lower income group, so there should
be merchandises according to their needs.
Most of the crowd visit retail stores as a leisure time activity so retail stores should
use some strategy to generate some income from such people.
As women do maximum purchasing and visiting the store, store should carry items
which can increase the attention of the women.

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Consumer Buying Behavior at Organized Retail Outlets

Name: _____________________________ Occupation: ____________________
Age: ___ Location: ______________
Sex: Male Female No. of Members in House: ______
Monthly Expenditure ___________ Approx.

1) Out of these Organized Retail Outlets, which you have visited the most?
Big Bazar
Reliance Super
Vishal Megamart
2) How many times do you visit the organized retail outlets in a month?
2-3 times
3-4 times
More than 5 times
3) How frequently do you purchase?
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More than a Month
4) How far you have to travel to go for purchasing?
Less than 3 K.M
3 K.M 6 K.M
3)7 K.M 10 K.M
More than 10 K.M
5) When do you purchase more (in bulk)?
First week of month
Mid of the month
End of the month
When required
During special discounts
6) What is your average one time purchase at organized retail outlets in Rupees?
Rs 500 1500
Rs 1500 - 2500
Rs 2500 5000
Rs 5000 & above
7) In buying products at organized retail outlets you are sensitive towards,
Customer service
Ambience of the store
8.) Kindly rate below the parameters of an organized retail and unorganized retail based
upon your preferences?
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Parameter Organized Retail(rate)
(1-Poor, 5- Best)
Un-Organized Retail(rate)
(1-Poor, 5- Best)
Price 12345 12345
Quality 12345 12345
Variety 12345 12345
Location 12345 12345
Service 12345 12345
Everything at one Place 12345 12345
Offers 12345 12345
Relationship 12345 12345
Ambience 12345 12345
Home Delivery 12345 12345
Faster 12345 12345

9) What motivates you to buy at organized retail outlets rather than other stores?
Please comment----------------------------------------------
10) What changes would you like to see or recommend in the present format/layout of
these outlets..
ORGANIZED OUTLETS__________________________________________
UNORGANIZED OUTLETS________________________________________
11) Any Good or Bad experiences you would like to share while shopping at retail outlets.

Thanking you, for your precious time.
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Economic times retail news (December 4, 2010)
Article by Knight Frank Research
http://www.indiaretailbiz.com/blog/2008/04/17/wal-mart-backed- bharti-enters-retail-
with-debut-of-every-dat-chain-in -India-launches-3-convenience-stores in ludihana/

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Consumer Behavior At Organized FMCG Retail Outlets