1.

1 ABOUT THE INDUSTRY

The Indian retail industry is now beginning to evolve in the line with the transformation that
has swept other large economies. It witnesses tremendous growth with the changing
demographics and an improvement in the quality of life of urban people. The growing
affluence of Indias consuming class, the emergence of the new breed of entrepreneurs and a
flood of imported products in the food and grocery space, has driven the current retail boom
in the domestic market.
The concept retail which includes the shopkeeper to customer interaction, has taken many
forms and dimensions, from the traditional retail outlet and street local market shops to
upscale multi brand outlets, especially stores or departmental stores. Though at this moment,
it is still premature to say that the Indian retail market will replicate the success stories of
names such as Wal-Mart stores, Sainsbury and Tesco but at least the winds are blowing in the
direction of growth.
Hence, focusing on two aspects of retail marketing i.e. Store Retailing and Non-store
Retailing. Store Retailing as the departmental store, which is a store or multi brand outlet,
offering an array of products in various categories under one roof, trying to cater to not one or
two but many segments of the society and Nonstore Retailing as the direct selling, direct
marketing, automatic vending.
Therefore, this concept of retail marketing through departmental stores, which is coming up
in a big way in India was decided to be studied in detail, through an exploratory and
conclusive research.
The objective being to assess the various parameters that influences a buyer to visit or shop at
departmental store thereby contributing to its turnover (in terms of sales and profits) hence
leading to its overall success.
The extensive research brought me to conclude that departmental stores are soon emerging on
the top priority lists, amongst the shopping spree in Delhi, as they seem to derive immense
pleasure of convenience and exposure to variety under one roof, in their extremely busy lives,
when they dont have time for things.

Though some of the customers perceive departmental stores to be expensive and only high
income categorys cup of tea, the stores make constant efforts to induce them to at least visit
the store at once during the sale period, or discount offers.
Most of these stores believe in creating not just a marketing activity with its customers, but
rather favor relationship building with him so as to convert first time customers into a client.

The word retail means to sell or be sold directly to individuals. Retail is Indias largest
industry, and arguably the one with the most impact on the population. It is the countrys
largest source of employment after agriculture, has the deepest penetration to rural India, and
generates more than 10percent of Indias GDP. However, retailing in India has so far, been
mostly in the hand of small disorganized entrepreneurs. It is also Indias least evolved
industries. In fact, it is not even considered a real industry. The industry suffers from lack of
management talent, poor access to capital, unfavorable regulation and denial of access to best
practices. The Indian retail industry is only now beginning to evolve in line with the
transformation that has swept other large economies. Fifty years of restricting the consumer
goods industry, a national mindset which favored denial over indulgence, and a fractured
supply chain for agricultural products have all contributed to prevent the development of
modern tenants based on scale advancements and consumer preferences.
India has some 12 million retail outlets, but many of these act merely as subsistence providers
for their owners and survive on a cost structure where labor and land is assumed to be free
and taxes nil. Compare this with the global retail industry, which is one of the worlds largest
organized employers, is at the cutting edge of technology, and which leverages scale and
scope to offer value-added services to its customers.
However, only recently has there been an awakening in this sector, with more organized
retailers starting to make an impact. The liberalization of the consumer goods industry,
initiated in the mid-80s and accelerated through the 90s has begun to impact the structure and
conduct of the retail industry. Backed by changing consumer trends and metrics,
liberalization in mindsets driven by media, new opportunities and increasing wealth, retailing
in India, presents a vast opportunity for a variety of businesses - real estate, store design &

operations, visual merchandising logistics and communications, B2C service providers, and
FMCG companies who can add to their offers by partnering this revolution.
The Indian Retailing Industry stands poised to take off into the 21st century. It is one of the
fastest growing sectors in the nation that caters to the world's second largest consumer
market. Retail boom is unabating. India has five million retailers with a business volume of
$180 million growing at 5 to 7 per cent a year. The middle class drives retailing anywhere in
the world and this segment should have reasonable income. The next driver is availability of
variety of goods, products and brands. The third one is sense of awareness.
In other developing economies, this transformation has already begun. In many of these
countries, organized retail already has a 40 percent share of the market, compared to Indias
current levels of 2 percent. As India goes through this transformation, new businesses with
sales of 1billion 2 billion US $ will be created in grocery and of 250million - 500million
US $ in apparel. Smaller but still interesting opportunities will be created in other sectors like
books, electronics, and music. This transformation will also impact the supply chain in
agriculture, the tax collections from trade and the way people shop.
In the last 10 years, all Southeast Asian countries like Indonesia, Malaysia, Taiwan and Korea
have gone through similar phases. China, with a per capita income of $650-700 per annum, is
going through the same phase what India is also facing now. Europe went through this phase
of retail revolution about 40-50 years ago. It is believed that when a countrys per capita
income reaches the level of $1,200 per annum, organized retailing begins to takeover. Though
India has a per capital income of $ 400, on the basis of purchasing power parity (PPP) it has
already hit the $1200 level. This does strengthen the belief that probably, the right time for
organized retailing to click in India has come.
This report aims at providing an insight into the emerging trends in the industry and the
barriers to change and a perspective on what this industry could become, using the global
industry as the backdrop.

Retail: world largest industry

Retail, with total sales of $ 6.6 trillion, is the worlds largest private industry ahead of
financial industries $ 5.1 trillion. It is also home to a number of the worlds largest
enterprises. Over 50 of the Fortune 500 companies, and around 25 of the Asian top 500
companies, are retailers. The industry accounts for over 8 percent of the GDP in western
economies.
Retail: Largest private industry in the world economy
A Study by Mc Kinsey states that organized retail accounts for just around 2 percent (out of
which modern retail formats account for 7 percent of trade) presently is set to grow at
exponential exceeding 35 percent. Fitch estimates the current share of organized retail to
grow from 2percent presently to around 15 to 20 percent by 2010.
Table 1:

Retail Consumption areas

US $ billion

Existing Companies in the organized sector

Food Retailing

130

Food

Bazaar

(Pantaloon)

Food

Subhishka.

Clothing & Apparel

12

Pantaloon Westside, Shoppers Stop

Jewelry, Watches

Tanishq, Titan, Gold Bazaar (Pantaloon)

Home Furnishing

Home Store, Arcus (Pantaloon)

Foot wear

1.7

Bata, Woodland

Beauty Care

3.6

VLCC, Health & Glow

Source: economic times industry report

4

World

Traditionally, most retailers have had very localized operations. This localized nature of the
industry is changing as retailers face low rates of growth and threatened profitability at home.
New geographies will help them sustain top-line growth as well as permit global sourcing.
Profits in retail have steadily been rising and have generated 18 percent shareholder returns
between 1994 and 1999. Significantly, retail is also one of the worlds largest employers,
accounting for instance 16 percent of the US workforce, Poland 12 percent, China 8percent,
India 10 percent and Brazil 6percent. Factors such as scale in sourcing, merchandising,
operational effectiveness and ambience have driven the spread of organized retail.
Grocery, electronics are examples of categories that compete on the strength of better pricing,
which in turn is driven by superior sourcing and merchandising and cost-efficient operations.
Wal-Mart, Home Depot and Kingfisher are benchmark retailers in these fields.
In apparel, home furnishings and furniture, the advantage is driven by the marketers ability
to provide better products in a comfortable ambience at affordable prices. In these cases
sourcing capability has to be backed by strong design capability and store management.
IKEA and GAP are good examples of this model of retailing.
Over the last few decades, retail formats have changed radically. The basic department stores
and co-operatives of the early 20th Century have given way to mass merchandisers,
hypermarkets, warehouse clubs, category killers, discounters and convenience stores. Each of
these formats has been driven by marketers need to offer relevant, distinctive and economic
propositions to an evolving consumer base.
Global retailers have also reached a position of strength that enables their brand to be
leveraged across a wide range of services. Many of them have expanded their offering, over
the years to include fuel retail, car retail, convenience services and personal financial
services. This has put them in a position where they are not only beginning to capture growth
from geographical expansion, but are also entering large new areas of business.
The recent evolution of the Internet has helped further broaden the scope of operations of
large retailers. Further, a large number of retailers are pursuing innovative aggregation and
supply chain-streamlining initiatives using B2B technology.

Top 10 Retailers Worldwide

Rank

Retailer

No

of

stores Sales

owned

Millions

Wall-Mart Stores Inc. (USA)

4178

$180,787

Carrefour Group (France)

8130

$61,047

The Kroger Co. (USA)

3445

$49,000

The Home Depot, Inc. (USA)

1134

$45,738

Royal Ahold (Netherlands)

7150

$45,729

Metro AG (Germany)

2169

$44,189

Kmart Corporation (USA)

2105

$37,028

Sears, Roebuck and Co. (USA) 2231

$36,823

Albertson's, Inc. (USA)

2512

$36,726

10

Target Corporation (USA)

1307

$36,362

in

US$

1.2 ABOUT COMPANY PROFILE

ABOUT BIG BAZAAR

About Big Bazaar

Chain of Retail store in India

Out let

132 out lets

Located in India

Parent group

Future group

Owner

Kishore Biyani (CEO)

Founded

2001

Head quarter

Jogeswari , Mumbai

Industry

Retail

Website

www.bigbazar.com

Tag line

Is se sasta aur achha kahin nahi.

Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big
Bazaar scores over other stores is its value for money proposition for the Indian customers.
At Big Bazaar, you will definitely get the best products at the best prices - that's what we
guarantee. With the ever increasing array of private labels, it has opened the doors into the
world of fashion and general merchandise including home furnishings, utensils, crockery,
cutlery, sports goods and much more at prices that will surprise you. And this is just the
beginning. Big Bazaar plans to add much more to complete your shopping experience.
Big bazaar is the subsidiary of future group.
About The 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 are present
in consumer finance, capital, insurance, leisure and entertainment, brand development, retail
real estate development, retail media and logistics.
Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square
feet of retail space in over 71 cities and towns and 65 rural locations across India. The group
owns several leading formats including Pantaloons, Big Bazaar, Food Bazaar, Home Town,
eZone and Central. Pantaloon Retail was awarded the International Retailer of the Year 2007, by the US-based National Retail Federation, the largest retail trade association and the
Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona.
Future Group believes in developing strong insights on Indian consumers and building
businesses based on Indian ideas, as espoused in the group's core value of 'Indianness'. The
group's corporate credo is, 'Rewrite rules, Retain values'.

About FutureBazaar.com
FutureBazaar.com is the e-commerce arm of the Future Group. FutureBazaar provides an
integrated shopping site where consumers are able to buy products from our flagship stores
including eZone, Pantaloons and Big Bazaar online and get home delivery of products.
FutureBazaar delivers across more than 1500 cities and towns in India covering 16,000 pin
codes. FutureBazaar carries genuine products and offers manufacturer's warranty (as opposed
to Seller's warranty) which most other sites offer. FutureBazaar offers products where the
complete supply chain is managed by Future Group entities unlike other sites that are
marketplaces.
By the virtue of being a part of Future Group, FutureBazaar is able to offer a wide range of
genuine products at very competitive prices, confidence of buying from a trusted source and
the convenience of returning in our physical stores.

VISION OF BIG BAZAARTo deliver everything, everywhere, every time, to every Indian customer in the most
profitable manner
CUSTOMER SEGMENTATION

Big bazaar targets higher and upper middle class customer.

The large and young working population is a preferred customer segment.

Big bazaar specially targets working women.

10

MORE RETAIL STORE

ORIGIN OF THE ORGANISATION.

The year 2007, for organised retail has begun with a bang. Birlas, who were mulling over
their entry in multi format multi brand retail for quite some time, have finally arrived. The
Rs. 40,000 crore, Aditya Birla group, through unlisted Aditya Birla Retail, in a single stroke,
has acquired a bouquet of over 172 retail stores, operating in southern India, with
predominant presence in Andhra Pradesh, under popular brand names of Trinethra and
Fabmall. While most of the group stores operate under Trinethra brand, stores located in
Karnataka and Kerala operate under Fabmall brand, although, 50,000 sq. ft. big hypermarket
in Mysore is known as Fabcity.
Trinethra, prior to this acquisition, was aggressively pursuing its plan to set up new stores in
tier II cities such as Mysore, Coimbatore and Tirupur in southern region of the country.
Trinethra, which has adopted convenience and supermarket formats, is focused on selling
food and groceries in residential areas, although some of the stores also offer pharmaceutical
products. Trinethra also offers value-added services like forex remittances and bill payments.
A typical Trinethra store ad measures around 2,500 sq.ft. in retail space. The chain of stores
are serviced by an infrastructure of central warehouses in Andhra, Karnataka, Tamilnadu and
Kerala, with a space of about 50,000 sq ft each
Aditya Birla Retail Limited re-brands its Fabmall grocery supermarkets to more., a name
reflective of its commitment to offering consumers a more fulfilling retail experience. The rebranding follows the acquisition of the Trinethra Super Retail that includes the retail brands
Fabmall, Trinethra and FabCity by Aditya Birla Retail in January 2007.

The two decades old, Rs. 250 crore, 2,500 employees strong, Hyderabad based, Trinethra
group, originally was founded by Mr Anjaneyulu Kakkera.

11

Aditya Birla Retail Limited is the retail arm of Aditya Birla Group, a USD 28 billion
Corporation. The Company ventured into food and grocery retail sector in 2007 with the
acquisition of a south based supermarket chain. Subsequently Aditya Birla Retail Ltd.
expanded its presence across the country under the brand "more." with 2 formats
Supermarket & Hypermarket.
Supermarket
more. for you - Conveniently located in neighbourhoods, more. supermarkets cater to the
daily, weekly and monthly shopping needs of consumers. The product offerings include a
wide range of fresh fruits & vegetables, groceries, personal care, home care, general
merchandise & a basic range of apparels. Currently, there are over 600 more. supermarkets
across the country.
Hypermarket
More .MEGASTORE - is a one-stop shopping destination for the entire family. Besides a
large range of products across fruits & vegetables, groceries, FMCG products,
more.MEGASTORE also has a strong emphasis on general merchandise, apparels & CDIT.

Currently, two hypermarkets operate under the brand more.MEGASTORE in Mysore and
Vadodara.

Own label Food Brands

more., Feasters, Kitchen's Promise, and Best of India
Home & Personal care brands
more., Enriche, 110%, Pestex, Paradise, and Germex
With a vision is to be among the leading retail players in India, Aditya Birla Retail launched
its first supermarket, more. for you in May, 2007. Since its launch, the more. for you has an
aggressive roll out, reaching a total count of over 600 stores across India today.
more. for you is your neighborhood supermarket which takes care of your everyday
household needs and more. Spread across a wide range of products of food and non food
12

items, ranging from basic necessities such as, fruits and vegetables, staples, personal care,
home care, household care products, general merchandise, and dairy products, more. for you
provide a one stop solution for your grocery shopping needs. Also in store are essentials such
as, innerwear, kids essentials, and a pharmacy, bakery and a mobile store. With a range of
over 4,000 products, we are able to fulfill your daily shopping needs all under one roof, at a
convenient location close to you.

The more. for you promises a world class shopping experience, with a modern store layout,
easy to shop with friendly staff at hand to provide assistance, electronic billing facilities and a
colorful ambience. At more. for you we offer branded food and grocery products sourced
from the leading brands from all over India, along with private label brands from our own
portfolio - available in a broad selection for you, always giving you the best possible value for
your money.
MORE

At more. for you we are committed to deliver quality & value to our customers and have a
range of private label brands as well as commercially branded products, offering - 100%
satisfaction on the quality of the products & services offered.

more. for you hosts a range of private label brands across various categories that follow
stringent quality norms, and are available in attractive prices and packaging. Our premium
products give you the opportunity to enjoy the difference and quality that is equal to or better
than the market's leading brands, but at competitive prices.

Recently our private label brands received the coveted "The Most Admired Private Label"
Golden Spoon award at the Food Forum India. We offer a wide range of assortment of over
4000 products, ranging from fresh food to beverages, grocery to household care products. Our
range covers everything, from day-to-day essentials to traditional favorites, from delicious
treats, to healthy alternatives.
13

To ensure the freshest supply of fruits and vegetables for you, we have built direct linkage
with the farmers.
MORE provide some private labels also,
Own label Food Brands
o

more.,

Feasters.

Kitchen's Promise

and Best of India

Following is the range of products offered by MORE stores to its customers. There are various
products and services offered by MORE supermarket and hypermarket.

SUPERMARKET
Bakery *
Beauty Concepts *
Beverages
Basic Apparels
Cutlery & Cookware
Fruits & Vegetables
Frozen & Dairy Products
FMCG Products
14

Grocery
General Merchandise
Home Care Products
Home Needs & Home Upkeep
Home Decor Products
Mobile Store *
Personal Care & Cosmetics
Processed Food
Pharmacy *
Ready to Cook/Prepared Food
mall White Appliances *
Staples
Stationery
Women's Accessories

HYPERMARKET
Apparels - Men/ Women
Audio & Video (A & V)
Bakery

15

Beverages
Books and Audio & Video
Computer & Accessories
Do it yourself
Auto Accessories
Electronics
FMCG Products
Footwear
Frozen & Dairy Products
Fruits & Vegetables
Furniture
General Merchandise
Home Care Products
Home Decor Products
Home Needs & Home Upkeep
Infant & Children's Apparels
Information Technology Products
Large White Appliances
Luggage
Mobile Phone & Accessories

16

Personal Care & Cosmetics

Processed Food
Ready to Cook/Prepared Food
Small White Appliances
Sporting Goods
Staples
Stationery
Sun Glasses & Fine Jewellery
Two Wheelers
Toys
Services
For your additional benefit, Consumer Finance on electronics products such as: Audio &
Video and Large White Appliance are available at more.
MEGASTORE
Friendly Return & Exchange Policy.
Hassle free Return & Exchange policy at more MEGASTORE.
In case you change your mind, we at more. MEGASTORE would be pleased to exchange the
same for you - no questions asked, as long as it is in its original packaging and accompanied
by its invoice.
In case, an exchange is not required, you will be issued a gift card equal to the billed value,
which can be utilized within the store as per your convenience.

17

Pick the perfect gift with - more. MEGASTORE Gift Card smart, practical, and truly
appreciated. Our gift cards are always the perfect gift which can be used at the more
MEGASTORE by the recipient to purchase any gift of his/her choice any time.
Our Gift Cards easily available at the Customer Support Help Desk located at more.
MEGASTORE
Market Profile MORE
Birla group instead of setting up its own retail outlets apart from their own Madhura garment
outlets, are trying to enter into the retail business by acquiring already established retail
chains. The company is mainly concentrating to establish its foot in Southern India than
competing with others in most affluent metro and northern regions.
To start with Birla group acquired Trinethra Super Retail chain that mainly operated in Andhra
Pradesh with some presence in Kerala and Karnataka. Trinethra started retail business much
before anyone could imagine the growth of the sector as it is today. Trinethra started in way
back 1986 in the twin cities of Hyderabad-Secunderabad had revenues of Rs 250 crores from
its 172 stores which are mostly the size of Reliance Fresh groceries stores [2,500 sft - 3,000
sft]. Apart from its grocery retail chain, Trinethra has also brought online shopping portal
Fabmall to the fold of AV Birla group.
Birlas acquiring march does not stop here. The company is planning to acquire Piramid Retail
and Niligiris. The latter will give Birla Retail, pan south-India presence. They are also
planning to open 172 hypermarkets and supermarkets starting from Pune.
Apart from operating two hypermarket stores under the umbrella brand name of More.. for
you at Mysore and Vadodara, the retail arm of the group operates around 670 supermaket
format, neighbourhood food, grocery, and general merchandise, stores across the country.
These stores include the erstwhile stores of Trinethra retail chain, which after the acquisition
were also rechristened as More stores.
More, under the stewardship of its new CEO Thomas Varghese, an old Birla hand, who was
roped in after the Sumant Sinha, has taken several initiatives to revamp the operations of the
loss making chain. Some of the initiatives include: Close some of the non performing stores.
Take a re-look at the design, positioning and merchandise offered by the retail chain. Focus
18

more on large sized stores. The retailer will set up hypermarts of 30,000 to 40,000 sq. ft. spce
each. Aggressively expanding the retail network; add 200 Supermarket stores and 12
Hypermart stores in 2009-10.Renegotiation of property rentals for almost all leased properties
with their landlords. The rents in some cases have come down by 30 to 40 percent.
Introduction of private labels, mostly in fast moving consumer products category, to increase
share of private labels to 40 per cent in the next 4 to 5 years.
Look for earning rent from shop-in-shop opportunities. Recently, Dial for Health wellness
retail chain owned by Zydus group has inked an agreement to set up such outlets in Gujarat
and Maharashtra.
Look for a financial partner. We are not looking at a strategic partner. We will be happy to
have a financial partner. We have received lots of preliminary interest from investors. We
would be open to this idea, said Kumar Mangalam Birla. Some private equity firms like
Warburg Pincus are believed to have shown interest equity stake in the company.
Aditya Birla group, incidentally, also operates 340 apparel stores across the country of brands
like Louis Phillippe, Van Heusen, Allen Solly and Esprit in the lifestyle and value fashion
segments. These stores are operated by Madura Garments Lifestyle & Retail and Peter
England Fashions & Retail, which are part the groups flagship company Aditya Birla Nuvo.
The garments business, which clocked Q4 turnover of 273.3 crore (2012-13) and a nett loss of
Rs. 82.2 crore during the quarter, has also embarked on several measures to stem the rot,
including closure of 30 stores that will save around Rs 100 crore a year.

19

2.1 ABOUT THE TOPIC

Consumer perception theory is any attempt to understand how a consumers perception of a
product or service influences their behavior. Those who study consumer perception try to
understand why consumers make the decisions they do, and how to influence these decisions.
Usually, consumer perception theory is used by marketers when designing a campaign for a
product or brand. However, some people study consumer perception in order to understand
psychology in a much more general sense.
Perception is the process by which an individual selects, organizes and interprets
information inputs to create a meaningful picture of the world (Bernard Berelson & Gary
Steiner).One of the key elements of a successful marketing strategy is the development

of

product and promotional stimuli that consumers will perceive as relevant to their needs.
Costumer Perception is the selection, organisation and interpretation of marketing and
environmental stimuli into a coherent picture (Henry Assael). Perception depends not only
on physical stimuli, but also on the stimulis relation to the surrounding field and on
conditions within the individual. The key word is individual. Individuals can have different
perceptions of the same object because of three perceptual processes: selective attention,
selective distortion, and selective retention.
Selective attention - People are exposed to many daily stimuli such as ads; most of
these stimuli are screened outa process called selective attention. The end result is
that marketers have to work hard to attract consumers attention. Through research,
marketers have learned that:
People are more likely to notice stimuli that relate to a current need, which is why

car shoppers notice car ads but not appliance ads.

People are more likely to notice stimuli that they anticipatesuch as foods being

promoted on a food Web site.

People are more likely to notice stimuli whose deviations are large in relation to
the normal size of the stimuli such as a banner ad offering $100 (not just $5) off a

products list price.

Selective distortion - Even noticed stimuli do not always come across the way that
marketers intend. Selective distortion is the tendency to twist information into
personal meanings and interpret information in a way that fits our preconceptions.
Unfortunately, marketers can do little about selective distortion.

20

 Selective retention - People forget much that they learn but tend to retain information
that supports their attitudes and beliefs. Because of selective retention, we are likely to
remember good points mentioned about a product we like and forget good points
mentioned about competing products. Selective retention explains why marketers use
drama and repetition in messages to target audiences.
PERCEPTUAL PROCESS
The steps in the perceptual process are Selection, Organisation and Interpretation.
PERCEPTUAL SELECTION
The first component of perception, selection, requires consumers to be exposed to marketing
stimuli and to attend to these stimuli. Three processes define selection: Exposure, Attention
and Selective Perception.
EXPOSURE -Exposure occurs when consumers senses (sight, hearing, touch, smell)
are activated by a stimulus. Exposure to a stimulus either occurs or it does not.
Consumers interest in and involvement with the stimulus is reflected in the level of
attention they devote to it. Consumers will pick and choose marketing stimuli based
on their needs and attitudes. The car buyer will be more attentive to car ads; the
fashion-conscious consumer will be more attentive to ads for clothing.
ATTENTION -Attention is the momentary focusing of a consumers cognitive
capacity on a specific stimulus. When consumers notice a TV ad, new product on a
shelf or a car in a showroom, attention has taken place. An important principle of
attention is that the greater the consumers adaption level likely it is that attention will
take place.
SELECTIVE PERCEPTION -Consumers perceive marketing stimuli selectively
because each individual is unique in the combination of his or her needs, attitudes,
experiences and personal characteristics. Selective perception means that two
consumers may perceive the advertisement, package or product very differently.
Selective perception occurs at every stage in the perceptual process at every stage in
the perceptual process as illustrated in Figure 1. Selective exposure occurs because
peoples beliefs influence what they choose to listen or read. Selective Organisation
occurs because people organize information to be consistent with their beliefs.
Selective Interpretation occurs so that perceptions conform to prior beliefs and
attitudes.
21

EXPOSURE

SELECTION

ATTENTION

ORGANISATION

CATEGORISATION

INTERPRETATION
INFERENCE

Figure 1: The Perceptual Process

PERCEPTUAL ORGANISATION
Perceptual organisation means that consumers group information from various sources into
meaningful whole to comprehend it better and to act on it. The basic principle of organisation
is integration, which means that consumers perceive various stimuli as an organized whole.
Such an organisation simplifies information processing and provides an integrated meaning
for the stimuli. The most important principles of perceptual integration are those of Closure,
Grouping and Context.
CLOSURE - Closure refers to a perceivers tendency to fill in the missing elements
when a stimulus is incomplete. Consumers have a desire to form a complete picture
and derive a certain amount of satisfaction in completing a message on their own.
This principle operates when consumers develop their own conclusions from
moderately ambiguous advertisements.
22

 GROUPING - Consumers are more likely to perceive a variety of information as

chunks rather than as separate units. They integrate various bits and pieces of
information into organized wholes. Grouping information permits consumers to
evaluate one brand over another by using a variety of attributes. Principles of
grouping that have emerged from Gestalt psychology are proximity, similarity and
continuity. These principles are represented in Figure 2.

Proximity

Similarity

Continuity

Figure 2: Principles of Organisation

23

The tendency to group stimuli by proximity means that one object will be associated
with another because of its closeness to that object. Because of their vertical
proximity, the 12 dots in Figure 2 are seen as three columns of four dots rather than
four rows of three dots. Most advertising uses principles of proximity by associating
the product with positive symbols and imagery that are close to the product.
Consumers also group products by similarity. The eight squares and four circles in
Figure 2 are grouped in three sets because of their similarity - two sets of squares of
four squares and one set of four circles.
Consumers also group stimuli into uninterrupted forms, rather than into discontinuous
contours, to attain continuity. The dots in the third part of Figure 2 are more likely to
be seen as an arrow projecting to the right than as columns of dots. Applying
continuity to a retail store means that there should be no sharp breaks from one sales
station to the next by type of merchandise. The transition should be reasonably
continuous.
CONTEXT - Consumers tend to perceive an object by the context in which it is
shown. The most important principle of context is figure and ground.

Figure 3: Figure and Ground

Gestalt psychologists state that in organizing stimuli into wholes, individuals will
distinguish stimuli that are prominent (the figure that is generally in the foreground)
24

from stimuli that are less prominent (those in the ground or background). Figure 3
shows the principle of figure and ground. The picture can be seen as a goblet (figure)
with a dark background or as two profiles (figure) with a lighter background.
Advertisers seek to ensure that the product is the figure and the setting is the
background.
PERCEPTUAL INTERPRETATION
Once consumers select and organize stimuli, they interpret them. Two basic principles help
consumers interpret marketing information. The first principle involves a tendency to place
information into logical categories. Categorization helps consumers process known
information quickly and efficiently. Categorization also helps consumers classify new
information. Inference involves the development of an association between two stimuli. For
example, consumers might associate a high price with quality.
PERCEPTUAL CATEGORISATION - Marketers seek to facilitate the process of
perceptual categorization. They want to make sure consumers recognize a brand as
part of a product class, but do not want their brand to be a direct duplicate of other
brands. Product positioning attempts to establish both product categorization and
product uniqueness.
PERCEPTUAL INFERENCE - Consumers develop inferences about brands, prices,
stores, and companies. These inferences are beliefs consumers form about objects
from past associations. Consumers may associate a Levis Jeans with quality and
style. This inference is based on word-of-mouth communication from friends and on
advertising for the jeans.

Marketing Implications of Perceptual Inference

Consumers tend to form images of brands, stores and companies. An image is a total
perception of the object that consumers form by processing information from various sources
over time. Consumers from images in two ways:
a. They draw inferences about brands and products from environmental stimuli such as
ads or word-of- mouth communication with friends and neighbours.
b. They draw these inferences internally by developing fantasies that is thoughts that
are not based on reality.
25

PRICE PERCEPTION
One of the most important applications of consumer perceptions to marketing strategy is in
the area of price. Consumers price perceptions directly influence their perceptions of brand
quality and frequently determine their purchasing behavior. Consumers price perceptions
may appear to be a simple matter of determining a products price based on an ad or on
observation in a store. However, it is not that simple because (1) consumers have certain
expectations about what prices are or should be; (2) these expectations may or may not reflect
the actual price; and (3) consumers frequently associate price level with the products quality.
PRICE - QUALTY RELATIONSHIP
Generally, when consumers do not have sufficient information about product quality they use
price as an indication of quality. Since these consumers know little about the product, they
are less likely to be involved. Conversely, consumers with information about product
characteristics are less likely to make price - quality inferences. These consumers are more
likely to be involved with the product category.

2.2 LITERATURE REVIEW

26

Attributes affecting consumer evaluation of retail store formats has been a subject of wide
research and has been studied from various perspectives. Some of the related studies are:
Verma and Madan (2011) in a study conducted in Indian context highlighted that retailers
are offering newer service dimensions to create unique shopping experiences for the
customers. However, whether consumers are able to perceive newer service dimensions and
getting affected for store patronage in new store formats or not, remains to be found out.
They emphasized the fact that Indian retail environment is going through a sea change due to
the introduction of new formats and opening up of retail industry, it becomes important to
understand the store image perceptions of consumers here. The study attempted to find out
the key factors that are perceived as important to Indian consumer in evaluation of a retail
format.
Jayawardhena (2011) in a study conducted in Central India, tested a conceptual model of
the effects of customer and service orientation (SO) behaviours of individual retail employees
on individual customers perceptions of service encounter quality (SEQ), service quality
(SQ), value, satisfaction, and behavioural intentions (BI).The sample was customers of a
supermarket in central India, and they completed questionnaires following mall intercept. To
test the hypotheses, structural equation modelling was employed. They found that service and
customer orientation (CO) behaviours are positively related to SEQ and SQ; SEQ is
positively related to SQ and customer satisfaction; SQ is positively related to value
perceptions and customer satisfaction; and customer satisfaction is positively related to retail
customers BI. However the study found that value is not related to customer satisfaction.
Ghosh, Tripathi and Kumar (2010) in their study conducted in Indian context, attempted to
address issues related to store attributes and their relevance in the store format selection.
Eleven variables (store attributes) had been identified based on theory and judgment. Factor
analysis had yielded three factors: Convenience and Merchandise Mix, Store Atmospherics,
and Services. The factors identified and recommendations made would be of use to retailers
in designing their outlets with store attributes that would meet the expectations of shoppers
and thus motivate them towards store patronage decisions.
Ali, Kapoor and Janakiraman (2010) in a study conducted on households of Gomtinagar
area of Lucknow city analyzed a marketing strategy for a modern Food and Grocery market
based on consumer preferences and behaviour. The researchers personally surveyed a total of
101 households having sufficient purchasing power using structured questionnaire. The
27

results indicated that preferences of the consumers were their priority for cleanliness and
freshness of food products followed by price, quality, variety, packaging, and availability of
non-seasonal fruits and vegetables. It was found that the consumers' preferences of
marketplace largely depend on the convenience in purchasing at the marketplace along with
the availability of additional services, attraction for children, basic amenities, and
affordability. Results also suggested that most of the Food and Grocery items are purchased
in loose form from the nearby outlets, whereas fruits and vegetables are mostly purchased
daily or twice a week due to their perishable nature. However, grocery items are less
frequently purchased.
Hemalatha, Ravichandran and Lakshmi (2010) found that there is a dearth of tested
instruments which could measure customer-perceived service quality of a retail store in the
Indian context. In order to understand the driving factors of a typical Indian retail customer,
the key objective of their study was to empirically test the service quality dimensions. The
study also carried out the gap analysis and identified the areas for improvements in retail
service quality.
Chakraborty (2010) in a study conducted in Hyderabad, India identified the driving
shopping motives of Indian consumer for Discount store formats. Factor analysis extracted
three shopping motives, two of which related to hedonic shopping motive and one to
utilitarian. The factors were named as diversion, socialization and utilitarian. Other three
dimensions of the study were store attributes, shopping outcomes, and shopping perceived
cost. Under each dimension, factors related to Discount store were identified. The identified
factors could be the key for discount stores for understanding their shoppers.
Seock and Lin (2010) examined the cultural influences on young consumers loyalty
tendency and evaluations of the relative importance of apparel retail store attributes in Taiwan
and the USA. A structured questionnaire was developed to collect the data. Factor analysis
was employed to identify dimensions of apparel retail store image attributes. Multivariate
analysis of variance and hierarchical multiple regression analysis were used to examine the
hypotheses. Results of the study showed that American consumers have significantly greater
collectivistic characteristics than Taiwanese. The study also found that country of residence is
a significant and stronger indicator in predicting loyalty tendency than individualism and
collectivism dimensions. The results of the study showed that evaluation of the relative
importance of retail store attributes is influenced by culture. Among the five apparel retail
28

store attribute dimensions identified in the study, Taiwanese and US respondents evaluation
of the importance of convenience, product and information communication factors of
retail store image attributes differed significantly.
Paswan, Pineda and Ramirez (2010) in a study conducted in Mexico investigated whether
influx of large stores is inevitable, by focusing on consumers' motivation for selecting a retail
store, and the association between these motivation dimensions and the shopping patronage.
The results indicated that consumer's preference for small stores is positively motivated by
functional benefits and familiarity with small stores; and negatively associated with the
functional benefits offered by large stores. These motivational dimensions were also found to
be positively associated with the share of wallet spent at small stores. It was found that
gender exhibited mixed effect on preference for small stores and the share of wallet. The
study revealed that women feel that large stores provide better functional benefits and support
for the local economy.
Huddleston, Whipple, Mattick, and Lee (2009) in their study conducted on US
households, compared and contrasted customer perceptions related to satisfaction with
conventional grocery stores as compared to specialty grocery stores. Their study examined
store attributes of product assortment, price, quality and service in order to determine which
attributes had the greatest impact on store satisfaction for each store format. The results
showed that perception of satisfaction were higher among specialty grocery store customers
compared to conventional grocery store customers. For both store formats, the study found
that store price, product assortment, service and quality positively influenced satisfaction.
Stepwise regression indicated that each store attribute contributed differently to store
satisfaction for conventional and specialty store formats.
Mittal (2009) compared the consumer evaluation of store attributes for grocery and apparel
retail segment. The author emphasized that the retail format which represents the right mix of
various store dimensions, will eventually depend upon the interplay between various store
attributes. This study used a research instrument developed by the author in an earlier study
for the comparative analysis. A very significant pointer from this research was that while
there is some commonality of attributes between retail sectors, the precise importance and
mix is, arguably, determined more by the motivation of the customer behind each specific
shopping excursion. The grocery and apparel store attributes dimensions that had emerged

29

from this study proved that the factors were different in terms of their composition and
importance.
Martnez-Ruiz, Jimnez-Zarco, Barba-Snchez, and Izquierdo-Yusta (2009) in a study
on Spanish consumers, identified the factors whose perception had the greatest influence on
customer satisfaction. The authors analyzed a database of 422 Spanish consumers who
purchased from different types of self service grocery stores in a representative Spanish city.
The findings revealed that among consumers who exhibited a low propensity to buy store
brands, perceptions of the quality image, as well as perceptions of service and convenience,
had positive and significant influences on the maximum level of customer satisfaction.
However, for those consumers who were not prone to buying store brands, only the
perception of services and convenience influenced their maximum level of satisfaction. This
research found the features which could help retailers focus their strategies on appropriate
consumer targets and thus attain a sustainable competitive advantage through their
differentiation.
Theodoridis, and Chatzipanagiotou (2009) studied the functional relationship between
store image attributes and customer satisfaction in the market environment of Greece and
investigated the stability of the structural relationships between store image attributes and
customer satisfaction across different customer groups. They identified four specific types of
buyers, namely, the Typical, the Unstable, the Social, and the Occasional. While four of the
six considered store attributes appeared to be significant determinants of customer
satisfaction, when examined for the degree of invariance between the four groups only
pricing and products-related attributes were found to be equally significant in all four groups.
Kamath (2009) in a study conducted in context of Mangalore city of India, found that
consumer satisfaction and loyalty being closely related, the marketing strategies of retailers
must focus on customer retention. The authors emphasized that working out strategies in this
direction required a thorough understanding of the preferences of the consumers on the
attributes that are considered of much significance. They attempted to analyze the consumers
preferences of the specific attributes of retail store in Mangalore city. Factor analysis had
been used in identifying the main factors. These factors included shopping experience and
ease, entertainment and gaming facilities, promotion, discounts and low prices, add-on
facilities and services, variety of products, and other factors for shopping convenience.

30

Bhardwaj (2009) measured the links between attribute perceptions and consumer
satisfaction, and between consumer satisfaction and sales performance, in the food retail
sector of India. The study relied upon an extensive data set of consumer satisfaction and sales
information from approximately 180 consumers. Hypothesis constructed addressed the
inherent nonlinearities and asymmetries in these links. The author also provided an example
of how firms could use the estimated linkages to develop satisfaction policies that are
predicted to increase store revenues. First, the author examined nonlinearities and
asymmetries in the satisfaction-sales performance links based on an empirical study. Second,
the study advanced the measurement of behavioural links between consumer satisfaction and
performance in the food retail sector with firm-specific data. Third, the study showed how
firms can employ such results to develop appropriate consumer satisfaction policies. In the
case of the cooperating retail company in this study, the results suggested that managers
should focus on consumer service, quality and value to affect overall consumer satisfaction
and its ultimate impact on sales.
Chaubey (2009) in his study conducted in Garhwal Region of Uttrakhand state of India,
identified the consumer perception and their behaviour toward store image, store patronage
and store loyalty. The findings of research indicated that originality of the product is given
highest preference by the respondents and they believe that retail showroom offers original
product. It was followed by the availability of the product in large variety. The relationship
and services offered by the retailer had emerged as another important issue which was given
due consideration and scored better in consumers preference list. The importance of
recognition of consumers value system and the discount offered by the retailer were found to
be other important factors which respondent had considered in selecting the retail showroom.
Goyal and Aggarwal (2009) examined the relative importance of the various products
purchased at organized retail outlets and the choice of format the consumer had, when
purchasing a product. The results showed that not all items are equally important for retail
outlets and various products need specific retail formats.

31

3.1 RESEARCH OBJECTIVE OF THE STUDY

The purpose of research is to discover answers to the questions through the application of
scientific procedure. The main aim of research is to find out the truth which is hidden and
which has not been discovered as yet. Each research study has its own specific purpose, we
may think of research objectives as failing into a number of following broad grouping1.

To study the consumer perception towards Big Bazaar and More Megastore

2.

To know the consumers expectations from Big Bazaar and More Megastore.

3.3 RESEARCH METHODOLOGY OF THE STUDY

3.3.1 Research Design
A research design is the arrangement of condition for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
Research design is needed because it facilitates the smooth sailing of the various research
operations, thereby making research as efficient as possible yielding maximal information
with minimal expenditure of effort, time and money.
Types of Research design
There are three types of res design1. Exploratory
2. Descriptive
3. Experimental
Descriptive research has been used in this study. It includes surveys and facts findings
enquiries of different kinds. The major purpose of descriptive research is description of the
state of affairs as it exists at present.
3.3.2 Tools and technique for data collection
Primary data can be collected through observation, personal interview, telephone interview,
questionnaires and schedules.
Secondary data is collected through the newspaper, journal, existing our research.
32

3.3.3 Sample Design:

Research design Descriptive Research

Sampling design Convienence Sampling
Sample size 100
Primary data collection tool - Questionnaire
Secondary data collection tool Websites, News papers
Scaling Technique Likert Scale

Consumers get good quality products at which Retail Outlet?

33

more; 30%

Big bazaar; 70%

Interpretation-: from the above graph it is clear that 70% of the respondents got good
quality product at big bazaar whereas rest 30% at more.

Which retail outlet exchange the product without hassles.

34

MORE; 40%

BIG BAZAAR; 60%

INTERPRETATION-: 60% OF THE RESPONDENTS HAVE SATISFIED WITH BIG

BAZAAR WHEREAS REMAINING 40% ARE SATISFIED WITH MORE.

In which retail outlet sales person gives proper response for query?

35

MORE; 22%

BIG BAZAAR; 78%

INTERPRETATION-: 78% OF THE RESPONDENTS HAVE SATISFIED WITH BIG

BAZAAR WHEREAS REMAINING 22% ARE SATISFIED WITH MORE.

Which Retail Outlet provides value added services (credit cards) facility to consumers?

36

MORE; 40%

BIG BAZAAR; 60%

INTERPRETATION-: 60% OF THE RESPONDENTS HAVE SATISFIED WITH BIG

BAZAAR WHEREAS REMAINING 40% ARE SATISFIED WITH MORE.

Which retail outlet provides coupons or points on bulk purchasing?

37

MORE; 35%

BIG BAZAAR; 65%

INTERPRETATION-: 65% OF THE RESPONDENTS HAVE SATISFIED WITH BIG

BAZAAR WHEREAS REMAINING 35% ARE SATISFIED WITH MORE.

Which retail outlet provides credit facility to customers?

38

MORE; 53%

BIG BAZAAR; 47%

INTERPRETATION-: 47% OF THE RESPONDENTS HAVE SATISFIED WITH BIG

BAZAAR WHEREAS REMAINING 53% ARE SATISFIED WITH MORE.

Which retail outlet tries to take personal interest in each customer?

39

BIG BAZAAR; 44%

MORE; 56%

INTERPRETATION-: 44% OF THE RESPONDENTS HAVE SATISFIED WITH BIG

BAZAAR WHEREAS REMAINING 56% ARE SATISFIED WITH MORE.

Which retail outlet handles customers complaints properly?

40

MORE; 50%

BIG BAZAAR; 50%

INTERPRETATION-: 50% OF THE RESPONDENTS HAVE SATISFIED WITH BIG

BAZAAR WHEREAS REMAINING 50% ARE SATISFIED WITH MORE.

In which retail outlet the products offered are of good quality?

41

MORE; 33%

BIG BAZAAR; 67%

INTERPRETATION-: 67% OF THE RESPONDENTS HAVE SATISFIED WITH BIG

BAZAAR WHEREAS REMAINING 33% ARE SATISFIED WITH MORE.

Which retail outlet frequently asked for suggestions to customers and tries to improve the
service.

42

BIG BAZAAR; 30%

MORE; 70%

INTERPRETATION-: 30% OF THE RESPONDENTS HAVE SATISFIED WITH BIG

BAZAAR WHEREAS REMAINING 70% ARE SATISFIED WITH MORE.

Which retail outlet provides free home delivery?

43

BIG BAZAAR; 45%

MORE; 55%

INTERPRETATION-: 45% OF THE RESPONDENTS HAVE SATISFIED WITH BIG

BAZAAR WHEREAS REMAINING 55% ARE SATISFIED WITH MORE.

Which retail outlet has sufficient parking space?

44

MORE; 33%

BIG BAZAAR; 67%

INTERPRETATION-: 60% OF THE RESPONDENTS HAVE SATISFIED WITH BIG

BAZAAR WHEREAS REMAINING 40% ARE SATISFIED WITH MORE.

FINDINGS
45

Majority of the respondents feel that they get good quality product at Big Bazaar not

in More.
78% of the respondents feel that proper response to their query is given by Big

Bazaar.
60% of the respondents feel that they get value added service in Big Bazaar where as

40% go with More.

65% of the respondents get coupons or points on bulk purchasing on Big Bazaar.
Majority of the respondents get credit facility on More mega store than Big Bazaar.
67% respondents feel that they get good quality product at Big Bazaar.
Maximum number of respondents feels that More mega stores asked for suggestion

and tries to improve quality.

55% of the respondents feel that they get free home delivery from Big Bazaar whereas
45% feels that they get at More.

SUGGESTIONS AND RECOMMENDATIONS

46

1. Company need to spend a lot on advertising and promotion to create brand image of
its product.
2. Make frequent advertisements in both print and electronic media.

3. Making stalls in corporate melas like trade fair, maybe beneficial to create brand
image of its product.

4. Need to provide additional offers and discounts as per customer requirements.

5. Need to include varieties of similar item.

6. Provide more discounts on FMCG.

7. Provide better customer service.

8. Maintained proper display to create impulse. (It is assumed that near about 70% sales
comes from impulse marketing and if proper display is not maintained impulse cannot
be created).

9. Better if we provide filtered information about More Megastore.

BIBLIOGRAPHY
The data has been collected from the following sources.

47

Kothari, C.R., Research Methodology, Second Revised Edition, New age

International Publishers, 2004, New Delhi.

Malhotra, Naresh K., Marketing Research, Fifth Edition, Pearson Education, 2008,
New Delhi

WEB SITES

http://www.adityabirla.com/businesses/Profile/aditya-birla-retail-limited
http://freembaprojects.com/wp-content/uploads/2013/06/Marketing-Project-Report-

on-INDIAN-ORGANIZED-RETAIL-INDUSTRY-BIG-BAZAR.doc
http://www.slideshare.net/hemanthcrpatna/a-study-of-consumer-perception-on-bigbazaar?qid=de7585b5-ed77-47da-8750-f355bb05633a&v=qf1&b=&from_search=1

QUESTIONNARIRE
Q1- I GET GOOD QUALITY PRODUCT AT WHICH RETAIL OUTLET?
o BIG BAZAAR
o MORE
Q2- WHICH RETAIL OUTLET EXCHANGE THE PRODUCT WITHOUT
HASSLES.
o BIG BAZAAR
o MORE

48

Q-3 IN WHICH RETAIL OUTLET SALES PERSON GIVES

RESPONSE FOR QUERY?

PROPER

o BIG BAZAAR
o MORE
Q.4 THE RETAIL OUTLET PROVIDES VALUE ADDED SERVICES (CREDIT
CARDS) FACILITY TO CONSUMERS.
o BIG BAZAAR
o MORE
Q.5 THE RETAIL OUTLET PROVIDES COUPONS OR POINTS ON BULK
PURCHASING.
o BIG BAZAAR
o MORE
Q.6 THE RETAIL OUTLET PROVIDES CREDIT FACILITY TO CUSTOMERS.
o BIG BAZAAR
o MORE
Q.7 THE RETAIL OUTLET TRIES TO TAKE PERSONAL INTREST IN EACH
CUSTOMER.
o BIG BAZAAR
o MORE

Q.8 THE RETAIL OUTLET HANDLES CUSTOMERS COMPLAINTS

PROPERLY.
o BIG BAZAAR
o MORE
Q.9 THE PRODUCTS OFFERED IN THE RETAIL OUTLET ARE OF GOOD
QUALITY.
o BIG BAZAAR
o MORE
Q.10 THE RETAIL OUTLET FREQUENTLY ASKED FOR SUGGESTIONS TO
CUSTOMERS AND TRIES TO IMPROVE THE SERVICE.
o BIG BAZAAR
49

o MORE
Q.11 THE EMPLOYEE OF THE RETAIL OUTLET OFFERS ME
COFFEE/TEA/COLD DRINKS ETC, WHEN I PURCHASE.
o BIG BAZAAR
o MORE
Q.12 THE RETAIL OUTLET PROVIDES FREE HOME DELIVERY.
o BIG BAZAAR
o MORE
Q.13 THE RETAIL OUTLET HAS SUFFICIENT PARKING SPACE.
o BIG BAZAAR
o MORE

50