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PRESENTATION ON
"A Study of Expectations and Factors Influencing Buying
Behavior of Organized Retail Consumers of Food
Bazaar.”
Project Submitted to
ASPEE AGRIBUSINESS MANAGEMENT INSTITUTE
NAVSARI AGRICULTURAL UNIVERSITY
In partial fulfillment of the
requirement for the award of the
Degree of
Master of Business Administration
(Agri Business Management)
GUIDED BY :- PRESENTED BY :-
Dr. Swathi Sharma, Subhramanyam. P,
Assistant Professor, 04-1178-2012,
AABMI, MBA ABM.
NAU.
1
Flow of Presentation
Introduction
Company Profile
The Project
Objectives
Research Methodology
Data Interpretation & Analysis
Findings
Suggestions
Conclusion
Bibliography 2
Introduction
The word "Retail" had originates from a French-
Italian word
According to Kotler:“Retailing includes all the
activities involved in selling goods or services to the
final consumers for personal, non business use”
The market size in 2012 was estimated at US$ 0.5
trillion (Source: IBEF) which is expected to reach
US$ 1.3 trillion by 2020 with 12.7% compound
annual growth rate.
India's retail industry employs to the 40 million
Indians which is 3.3% of total population of India.
Being as the second largest employer after
agriculture.
3
Retail Industry In India
India is a nation of shopkeepers
We can see more than 15 million mom n poop stores in
India, and India has highest density of retail outlets in
the world
Fig. No. 1 - Organized Retail
Penetration (2012)
Types of Retailing:
8%
Un organized Organized Retail
Organized Unorganized
Retail
92%
4
Types of Organized Retail Formats
MALL
Hyper Market
Super Market
Departmental stores
Discount Store
Speciality Stores
5
COMPANY PROFILE
6
Group Vision:
"Future Group shall deliver Everything, Everywhere, Every time for
Every Indian Consumer in the most profitable manner"
Our mission:
We share the vision and belief that our customers and
stakeholders shall be served only by creating and executing
future scenarios in the consumption space leading to
economic development.
We will be the trendsetters in evolving delivery formats,
creating retail realty, making consumption affordable for all
customer segments – for classes and for masses.
We shall infuse Indian brands with confidence and renewed
ambition.
We shall be efficient, cost- conscious and committed to
quality in whatever we do.
7
Our values:
Indianness: Confidence in ourselves.
Leadership: To be a leader, both in thought and business.
Respect & Humility: To respect every individual and be humble in our
conduct.
Introspection: Leading to purposeful thinking.
Openness: To be open and receptive to new ideas, knowledge and information.
Valuing and Nurturing Relationships: To build long term relationships.
Simplicity & Positivity: Simplicity and positivity in our thought, business and
action.
Adaptability: To be flexible and adaptable, to meet challenges.
Flow: To respect and understand the universal laws of nature.
8
Fig. No. 2 – Future Group Retail Formats
Big
Bazaar
ALL Central
Fashion
Food
at Big
Bazaar
Bazaar
Home
eZone
Town
Brand Pantalo
factory on
Planet
Sports
9
The hypermarket chain was introduced in
India in 2001 by Pantaloon Retail(India)
Limited
The first store was established in Kolkata.
Store was launched to meet the aspirations
of middle class.
Within a span of 2yrs store added food
bazaar and gold bazaar in its range of
offering.
10
Organization Structure : Big
Bazaar
Fig. No. 3
11
About Big Bazaar at Tarnaka,
Hyderabad
Catchment Areas :-
Secunderabad, Mettuguda, tarnaka, Hubsiguda, Chilkal guda, Osmania
University, Uppal, Sita phalmandi, etc.,
Store Layout:
Level - 0 : Parking, Ware house and logistics section.
Level - 1 : Food Bazaar
Level - 2 : Fashion at Big Bazaar for men, Customer Service Desk, T 24
Desk.
Level - 3 : Ladies fashion, Kids Fashion, Depot
Level - 4 : Foot Wear, Furniture, Crockery, Luggage and plastics
section
Level - 5 : eZone, Star Sitara, And Chowpatty (Food Court)
12
The Project
13
Title of the project:
15
Cont..
Sample Unit:-
Organized retail consumers.
Sample Size:-
300 Organized retail consumers.
Research Instrument:-
Semi-structured Questionnaires was used for the
collection of primary data. Both open ended
question and multiple choice questions were
asked in questionnaire.
Sampling Method:-
Non Probability-Convenience sampling method.
16
Cont..
Sample Design:-
Retail 300
Total 300
No. of Respondents
Percentage = -----------------------------×100
Total Respondents
17
Limitations of the study:-
The research was conducted at Big Bazaar family centre,
Tarnaka only, so analysis and recommendations may not be
applicable to other cities.
19
Objective - 1
20
Fig. No. 4 - Gender of Target Consumer
32% n=300
Male
Female
68%
21
Fig. No. 5 - Age Group of Target Consumers (In Years)
n=300
2%
5% 20-25
9% 24%
26-30
14% 31-35
36-40
41-45
26%
20%
46-50
Above50<
22
Fig. No. 6 - Educational Qualification of Target
Consumers
n=300
3%
22% U.G
24%
Graduate
P.G.
Others
51%
23
Fig. No. 7 - Occupation of the Consumers
n=300
2%
8% 11% Buisness
Empolye
32% Profesional
35%
Housewife
Student
12%
Other
24
Fig. No. 8 - Monthly Household Income Levels of the
Respondents
2% n=300
8%
12%
32%
10K>
10-20k
20%
20-30k
30-40k
26% 40-50k
Above50k<
25
Fig. No. 9 - Consumers Visiting Frequency to
Big Bazaar
n=300
weekly
11% 18%
10% monthly
quarterly
15%
un planned
42%
preff.day of the week
4% during offers
26
Fig. No. 10 - Amount Spend on Grocery Per Month By
the Respondents
n=300
15% 6%
14%
500-1000
18%
1000-2000
24% 2000-3000
3000-4000
23%
4000-5000
Above 5000<
27
OBJECTIVE - 2
28
Fig. No. 11 - Parameters Considered in Selecting a
Convenient Organized Retail Store
n = 300
Overall excellent shopping experience 1159
Cumulative
Score
In-shop sales promotion 1166
30
Fig. No. 12 - Consumers Preference to Shops
Groceries, Fruits & Vegetables and FMCG food
items n=300
% of the Respondents
56 %
38 %
34 %
32 %
27 %
14 %
31
Fig. No. 13 - Factors considers By Consumers for
Purchasing Groceries (Staples, Pulses) n=300
Ambience 1160
Affordable 1417
Cumulative Score
24%
Ambience 1156
Affordable 1427
36
Fig. No. 18 - Consumers preference to shop from
Organized retail stores in addition to the
neighbourhood stores N= 300
20%
30% Big Bazaar
More
Reliance Fresh
21% Spencers
29%
37
T. No. 1 - Overall Performance Evaluation of The Different Retail Stores
PARAMETERE Big Bazaar More Reliance fresh Spencer's
A good selection of products 2.86 2.85 2.44 1.85
always available
32.24
30.57
25
22.04
841 809
698 652
41
Cont..
In the study area among the 300 respondents all most all were educated people.
75% of respondents were well qualified in those 51% were graduates and 24%
were post graduates. 22% were under graduates and 3% were having other
education qualification. Most of the respondents who are visiting Big Bazzar were
educated and well qualified people.
In the study area among 300 respondents majority of the people are employees
about 35% and 32% were house wives followed by 12% were professionals, 11%
were having business as their occupation. Among 204(100%) women respondents
only 96(47%) are house wives.
As we know in this area graduate and service holder people were maximum and
this shows that the monthly household income as 32% belongs to 10,000-20,00
followed by 26% of 20,000-30,000, 20% of 30,00-40,000, 12% of 40,000-50,000
and 8% people have more than 50,000. Most of the respondents about 78% who
were visiting big bazaar were having their household income in between 10,000-
40,000.
42
Cont..
So it concludes that Big Bazaar is the hub of shopping for middle level income
group people because of its reasonable price on its each product category. The
higher level income group people don’t prefer to do shopping in Big Bazaar as it
doesn’t deal with more branded products.
Among the 300 respondents most of the people around 42% visit once a month
while 18% people visit once a week. So that an analysis shows majority of
consumers visit once a month and once a week to Big Bazaar.
Most of the customers purchase goods in bulk which leads them to spend a lot.
Volume sales were high in big bazaar. About 44% of the customers were
spending at Big Bazzar in between INR 1000-3000. Customers tend to purchase
more goods from Big Bazaar as it provides goods at a discounted rate. Probably
those persons who spend more in a visit to big bazaar were purchasing on
monthly basis. Those customers who were spending very less money that is
below Rs 500 were mostly coming in just to move around Big Bazaar and spend
time.
People mostly come to organized retail as they get quality products on reasonable
prices at more discounts/ offer under one roof at a place which is wide always
free leading to move with good ambience and also with courteous and well
trained employees.
43
Cont..
For purchasing of the grocery, fruits and vegetables customers were
mostly preferring the kirana store. Besides kirana stores most of the
customers were preferring the More retail store followed by the
Bigbazaar. For the large volume purchasing customers were preferring
organized retail stores and for the small quantities kirana stores.
Consumers preferred to visit Big Bazaar for purchasing groceries
(Staples, pulses, Oil & Ghee) to get quality products on affordable
prices at more discounts/ offers with availability of more range of
products.
Only 42% consumers were aware of Big Bazaar own private brands and
remaining 58% consumers were unaware. In groceries brands majority
of consumers usually preferring ekta and premium harvest brands at
food bazaar.
Consumers preferred to visit Big Bazaar for purchasing fruits &
Vegetables to get quality products on affordable prices at more
discounts/ offers with the more availability and freshness of Fruits &
Vegetables.
44
Cont...
Consumers preferred to visit Big Bazaar for purchasing FMCG food
products to get quality products on affordable prices at more
discounts/ offers with the more availability and good packaging of
the products.
Overall performance of Big Bazaar is best followed by More,
Reliance Fresh and Spencer's. . The main competitors of Big Bazaar
were More, Reliance Fresh and D Mart.
More is giving strong competition to Big Bazaar. In overall
performance evaluation in every parameter Big bazaar and More
got equal appraisal from the customers.
Big Bazaar is lacking in providing fine quality of products, good
customer service with the courteous and well trained employees and
Fast check out to the customers while comparing with the More.
45
Suggestions..
Store should offer competitive price with good quality of products because
most of the customers visit to Big Bazaar for better price and quality of
products.
The company should come with best Quality and wide range of products in
categories like staples and FMCGs as there the most selling goods in store.
The company should come up with more promotions activities for its
private labels.
Keep high quality and fresh fruits and vegetables with good packaging
material in the stores.
Keep the store always clean and take precautions to reduce the odour which
comes from the fruits & vegetables section.
46
Cont..
Employees must be courteous and friendly as most of the customers
complaint regarding this.
Billing should be fast because customers don’t want to stay for long in the
store after purchasing the products.
It should make different cash counters for different customers. Cash counter
and credit card payment counter should be placed differently in order to
reduce the rush and save the customer’s time. This will be a kind of
motivator for the customers of Big Bazaar.
People generally search for the product on offer so the high margin product
should be up fronted that mean those item should be in the eye height so
that it easily catches the customers’ attention and generates impulse
purchase.
47
Cont..
Big bazaar should include more of branded products its product
category so as to attract the brand choosy people to come in to Big
Bazaar.
Most of the customers believe that stock is not updated and no offer
schemes are provided by Big Bazaar on the old stock. Same price is
charged for both the fresh stock and old stock. Respondents feel offers
should be provided on the old stock, as is done in other retail stores.
Store layout should be redesigned to move freely, so that a customer
can have easy access to the products.
Some of the people find in-store environment dull, so try to maintain
nice store image which attracts the customers and it works in word of
mouth marketing for attracting more customers.
48
Conclusion
Undoubtedly, the retail sector was one of the key sectors in the Indian
economy. However, the spread of organized retailing among various
countries varies depending upon the socio-economic factors related to
the country. With the changing demographic features and improvement
in quality of life of urban India, the Indian retail sector is witnessing a
tremendous growth.
This study was mainly focused on the factors which generally influence
the consumer in selecting Convenient organized retail store. Apparently,
the retail consumer attitudinal dimension forces them to have diversified
patterns at various buying spots.
49
Bibliography
Literature Review :-
Biyani Kishore, (2005). “Who Will Execute The Great Indian Retail Dream?”
Image Retail, Vol. 1, pp. 14 – 22.
Kamal and Ashish Kumar, (2014). "Retail Sector: Growth and challenges
perspective in India", International Journal on Emerging Technologies, 5 (1), pp.
69 - 73.
Kuberudu Burlakanti & Romala Vijaya srinivas, (2013). “The Most
Influential Factors Of Consumers Buying pattern At Organized And
Unorganized Retail Stores With Special Reference to Kakinada City, Andhra
Pradesh” Indian Journal of Marketing, Vol. 62, Number 10, pp. 14 – 23.
50
Cont..
Smita V.G., (2012). “Factor influencing the Buying Behaviour of Organized Retail
Consumers: A study on Food and General Stores in Visakhapatnam.” Indian Journal of
Marketing, Vol. 49, Number11, pp. 23 - 33.
Vijay R Kulkarni, (2011). "Customer Expectation Management in Convenience Stores
Format in Organized Retail in India", The IUP Journal of Marketing Management, Vol. X.
No. 4, 2011, pp. 31 - 44.
51
THANK YOU
52
Parameters Considered in Selecting a Convenient Organized Retail Store
Extremely Some what Some What Not at all
Neutral Cumulative Score
Parameter Important Important Unimportant Important
Offers several brands to
choose from in a 825(165) 120(480) 15(45) 0(0) 0(0) 1320
category
High quality products 1270(254) 184(46) 0(0) 0(0) 0(0) 1454
Wide selection of store
70(14) 168(42) 144(48) 176(88) 108(108) 666
private labels
Consistent availability 600(120) 672(168) 36(12) 0(0) 0(0) 1308
of range and variety
Reasonable prices 1185(237) 212(53) 30(10) 0(0) 0(0) 1427
Discount Schemes and
1050(210) 288(72) 48(16) 0(0) 2(2) 1388
Offers
Fast checkout 865(173) 192(48) 237(79) 0(0) 0(0) 1294
Courteous, friendly and 1025(205) 220(55) 99(33) 14(7) 0(0) 1358
trained employees
Availability of
990(198) 408(102) 0(0) 0(0) 0(0) 1398
Products and Services
Packaging of
880(176) 344(86) 114(38) 0(0) 0(0) 1338
products
Quality of the
1215(243) 228(57) 0(0) 0(0) 0(0) 1443
products available
Choice of brands 265(53) 232(58) 324(108) 102(51) 30(30) 953
Range of products
625(125) 340(84) 162(54) 72(36) 0(0) 1199
available
Affordable 1185(237) 172(43) 60(20) 0(0) 0(0) 1417
Display and Clarity 435(87) 412(103) 192(64) 52(26) 20(20) 1111
Ambience 465(93) 408(102) 246(82) 36(18) 5(5) 1160
The layout of the
595(119) 376(94) 135(45) 64(32) 10(10) 1180
store
Discount and
Incentives on the 1010(202) 268(67) 51(17) 28(14) 0(0) 1357
products
Well displayed &
865(173) 396(99) 84(28) 0(0) 0(0) 1345
easy to understand
More 114 38
Reliance Fresh 97 32
Spencer's 80 27
Others 42 14
55
Factors considers By Consumers for Purchasing Fruits and Vegetables N=300
Cumulative
Factors Always Mostly Often Rarely Never Score
Availability of
Products(100% F&V 780(156) 488(122) 42(14) 16(8) 0(0) 1326
baskets)
Cumulative
Factors Always Mostly Often Rarely Never Score
Availability of
Products and 830(166) 448(112) 24(8) 28(14) 0(0) 1330
Services
Packaging of
1050(210) 240(60) 90(30) 0(0) 0(0) 1380
products
Quality of the 1230(246) 200(50) 12(4) 0(0) 0(0) 1442
products available