consumer perception towards kajaria tiles

8/10/2019 Consumer Perception Towards Kajaria Tiles

1/33

KAJARIA CERAMICS LTD. SUMMER INTERNSHIP

PROJECT

MARKETING

MARKETING PATTERN

Kajaria has a manufacturing unit at Sikandrabad, Distt. Bulandshahar [U.P.] and Gailpur, Distt. Alwar(Raj.). It manufactures Floor Tile at Sikandrabad Plant & Wall Tiles at Gailpur Plant. It sell our goodsthrough dealers and also directly to Builders, Contractors and others. The prices are charged as per pricelists applicable for the particular area. On all the Clearances the Excise Duty is being paid under Section4A on M.R.P. less Abatement.

The goods are delivering at the Factory gate to the Buyer/ on behalf of the Buyer to the transporter. Thefreight at actual is paid by the Dealer/Buyer Directly to the transporter at destination. In few cases, thefreight at actual is paid by us which is show separately in the Invoice and realized from the buyer/dealer.

PRODUCTION AND OPERATION

Kajaria Ceramics is the largest manufacturer of ceramics / vitrified tiles in India. It has an annual capacityof 30.60 million sq. mtrs.

Distributed across three plants as follows:-

MSM(Million Square Metre) Plant Ceramic Tiles Vitrified Tiles TotalSikandrabad (UP) 3.20 5.00 8.20Gailpur (Rajasthan) 14.10 6.00 20.10

Morbi (Gujarat)* 2.30 0.00 2.30 19.60 11.00 30.60*

Kajaria acquired 51% stake in Morbi Ceramic private Limited.

INTRODUCTION ABOUT THE ORGANIZATION

The Company was incorporated on 20th December at Kanpur. It manufactures glazed and unglazed wall& floor tiles. The company obtained the certificate of commencement of business on 20th January 1986.It was promoted by Shri Ashok Kumar Kajaria, his associate and Kajaria Exports Ltd. The Companyentered into a technical collaboration agreement with Todagres S.A.Spain for the manufacture of ceramicglazed wall & floor tiles.

Kajaria Ceramics is the NOW largest manufacturers of ceramic/vitrified tiles in India. It has an annualcapacity of 30.60 mn. sq. meters, distributed across three plants-Sikandrabad in Uttar Pradesh, Gailpur inRajasthan and Morbi in Gujarat.


2/33

OBJECTIVES

GROWTHPROFITABILITYCUSTOMER FOCUSPEOPLEORIENTATIONIMAGETECHNOLOGY FINANCIAL PERFORMANCE

Financial analysis

Kajaria registered another year of improved performance where the profit growth was significantly largerthan business growth, strengthening shareholder value.

Profit Ability 2013-14

Moving towards producing value added / bigger size tile, generating Higher realization per square meterSeeded new verticals (wooden flooring solutions and bath ware) around a trading model that leveraged itsdistribution and brand for a pan-India presence and translated revenues into bottom line Grew revenue29%, profit after tax 69% and ROE (Return on equity) and ROCE(Return on capital employed) climbedfrom 20% and 19% in 2009-10 to 29% and 25% in 2010-11 respectively. The company has receivedthe ISO 9001 (for quality management), ISO 14001 (environment management), OHSAS 18001 (forsafety and health management) and SA-8000 (for commitment to society) certifications for itsSikandrabad & Gailpur plant. These plants also fulfill international norms.

Over the years, Kajaria has become synonymous with innovation. New techniques are diligently appliedto create tiles that stand apart and speak the language of your soul. Hence every year, we come up withexciting new concepts that voice new emotions and keep up with current trends.

ORGANIZATION STRUCUTURE

Mr. Ashok Kajaria (Chairman & Managing Director)Mr. Chetan Kajaria (Joint Managing Director)Mr. Rishi Kajaria (Joint Managing Director)Mr. R.P.Goyal (Independent Director)Mr. R.K.Bhargava (Independent Director)Mr. D.P.Bagchi (Independent Director)Mr. R.R.Bagri (Independent Director)Mr. B.K.Sinha (Director- Technical)Mr. R.C. Rawat Sr. VP (Accounts & Taxation)& Company Secretary

Mr. Sanjeev Agarwal VP (Finance & Corporate Strategy) Kajaria also take the help of the Electronicmedia for their marketing purpose. Apart from this dealership certificate to encourage them, displayhoardings, yearly gifts Are also plays very crucial role for the marketing & sales.


3/33

DEALERS AND SUB DEALERS SHOWROOMS

Kajaria ceramics has a strong distribution network of about 600 dealers and over 6000 sub dealers spreadall over India. These dealer showrooms showcase innovative products, panels combinations for

Customers to choose from. The display division of the marketing department has done a remarkable jobby upgrading 600 dealer and 6000 sub dealer showrooms across the country.

INTERNATIONAL MARKET

KAJARIA Ceramics exports to more than 20 countries round the Globe. The International Marketingoperations are organized by a specialist export division that manages a network of international agentsand distributors supported by Kajaria ceramics limited exclusive office/showroom in UAE. Now ininternational markets kajaria enjoy a similar brand Recall as that of Domestic.

RECOMMENDATION & SUGGESTION

The Tiles industry is huge and has huge potential for growth. The company should try and revamp itsoperations, they should lower the price. It can be done by increase production, achieve economies of scaleand then increase market penetration.

The product is doing reasonably well in most of the market. So they should promote the productaccordingly e.g. free sampling, discounts, prominent Hoardings & so more. This will help in increasingthe sales volume.Quality Improvement.Increase in frequency of visits of Marketing Executives.Reduction in Delivery Time.Prices needed to have a check.

Free Gifts should be provided by the companies.Availability of products should be improved.Incentives for distributors should be improved.

SWOT ANALYSIS

STRENGHTS

Low cost Producer of quality tiles. It has a Flexible manufacturing set-up for longer uniformity of productand comprising to international standards fully adaptation, absorption of technology.

WEAKNESS

The ceramic tiles industry is dependent on the growth in the construction and housing sector. In theBudget 02-03, tiles have been removed from the SSI category and accordingly all manufacturers of tilescome in the excise net.To some extent they have arrived at the competitive level to the organized sector. But due to their


4/33

negligible overheads, tax evasion and copies of designs of organized sector that retains the potential tounder cut the organized sector. There is a stiff competition within the organized sector which is puttingpressure on the price also.

OPPORTUNITIES

Company has a Strong distribution network across the country and overseas market with focus on Retailmarketing to build and establish exclusive showrooms across the country and overseas markets. Usinginnovative display and communicating to customers throughExhibitions and trade shows for consistent brand building efforts. Nurturing and cultivating highly skilledhuman work force by motivating and rewarding them.

THREATS

The Company is continuously on the path to over come any threats arising from imports competition

amongst the tile manufacturers by making the product more competitive in terms of price and quality,which has been possible by reducing the input costs and providing more value added items with dynamicrange of designs and colors


5/33

TO STUDY THE CONSUMER BUYING

BEHAVIOR TOWARDS ORGANISED FMCG

RETAIL OUTLETS

SUBMITTED BY


6/33

INTRODUCTION

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.


7/33

TYPES OF RETAILING

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 vary.

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).


8/33

Limited service retailers:

Retailers 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 restaurants.

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 storescarry a narrow product line with a deep assortment within that line. Examples

include; stores selling sporting goods, books, furniture, electronics, flowers or toys. Todayspecialty stores are flourishing due to the increasing use of market segmentation, market

targeting and product specialization.

A department storecarries a wide variety of product lines. Each line is operated as a separate

department managed by specialist buyers and merchandisers.

Super marketsare large, lowcost, lowmargin, highvolume, Selfservice 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 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.


9/33

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 super centers. Hyper marketscombine 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 volume.

The voluntary chainis a wholesaler - sponsored group of independent retailers that engage in

group buying and common merchandising.

The retailer cooperativeis a group of independent retailers that setup a jointly owned central

wholesale operation and conduct joint merchandising and promotion efforts.


10/33

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 conglomeratesare corporations that combine several different retailing forms

under central ownership and share some distribution and management functions. Examples

include: DaytonHudson and J.C Penney.

5) Types of store cluster:

More stores today cluster together to increase their customer pulling power and to giveconsumers 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.

NonStore Retailing

Although most goods and services are sold through stores, Nonstore 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, online computer shopping services, home and office

parties and direct retailing approaches.

Nonstore retailing includes; direct marketing, direct selling and automatic vending.

RESEARCH OBJECTIVES


11/33

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

delhi.

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.


12/33

INDIAN RETAIL INDUSTRY

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 Rs. 930,000 crores and is expected to grow at

5% p.a. The current size of the organized retail market is 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 Rs.

35,000 crores by 2010 and Rs. 100,000 crores by 2014, with its contribution to total retailing

sales likely to rise to 9% by decade end.

INDIAN RETAIL MARKET

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.


13/33

INTRODUCTION TO THE COMPANY

RELIANCE RETAIL PVT. LTD

RELIANCE SUPER

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 2015. 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 stores13 states at the end of

FY 20012-13. RRL launched its first Reliance Digital store in April 2007 and its Indias largest

hypermarket 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 serviceformat ( 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.


14/33

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.

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, 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. RRL will continue its focus on rapid expansion of the existing and the other newformats across India. Mukesh Ambani promoted Reliance Retail has launched its 1st

hypermarketReliance 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 2015.


15/33

VISHAL MEGA MART

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

12,82,000 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 28thmost pitiful person in the Indian retail industry.


16/33

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. 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 a cricket match. Parking is also

a pain too.

the outlets dont have a place for customers to stand especially on weekends. Customers wait

outside it some before it opens in the morning.delhi 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.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.they intend to better their gains by opening new stores regularly.


17/33

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. 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.

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 stfloor 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 1stfloor.


18/33

Number of staff is approximately 328, out of which 280 are service associates and the number of

shifts is 3.

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 Ground Floor Store No: G-6 The Metropolitan Mall

A-2, District Centre Saket 110017 New Delhi.

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.

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.


19/33

MAKING OF THE STUDY

PROJECT TITLE

To study the Consumer Attitude (Buying Behavior) towards the Organized FMCG Retail

Outlets.

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 locationis 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

Demographics

Psychographic

Situation

The main aim of this study is to find out The Attributes that customers keep in mind while

purchasing from Organized Retail Outlets.

Location

Ambience

Pricing

Quality

Variety

Customer Services


20/33

RESEARCH METHODOLOGY

In order to accomplish the objective of the study, The Research study was conducted in INDIA

RESEARCH DESIGN

The study is aimed at describing the existing phenomenon of Consumer Buying Behavior. For

that matter I will consult various internet sites.

PRIMARY DATA

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.

SECONDARY DATA

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.

SAMPLING DESIGN

Random Sampling Method was used.

Sample Size: 150 Customers.

STATISTICAL TOOLS USED

Specially Structured Questionnaire


21/33


22/33

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.

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 purchaseas they are the oldest in the market & have wider network.

These outlets have captured the customers psychology and have good reputation in

the market.

As per the survey,

47%

33%

13%7%

Once

2-3 times

3-4 times

More than 5 times


23/33

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.

Thus we can say conclude that since India has the largest youth population, so the

Browsing Behavioris 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 footfallof the Mega Marts.

If Big Bazaar comes up with the concept of food courtsinside 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

3) How frequently do you purchase?

As per the survey conducted,

0%

27%

6%67%

0%

PURCHASE

Daily Weekly Fortnightly Monthly More than a Month


24/33

People are purchasing their daily needs from Mom & Pop storesbecause 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 populationmoving slowly from local

Kirana Wala to Organized Retail Outletsfor purchasing their necessity goods

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.

48%

32%

20%

0%

Less than 3 K.M

3 K.M6 K.M

7 K.M10 K.M

More than 10 K.M


25/33

While in place like DELHI where Traffic is the biggest obstacle, nobody prefers

to travel more 5 kms to do purchasing.

Thus we can conclude that Locationis the most important criteria for organized retail

outlets, the more closer the outlet that better the footfall

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 purchase.

More than 32% of people purchase in bulk during special discounts & festive offers.

22%

21%

4%

21%

32%

First week of month

Mid of the month

End of the month

When required

During special

discounts


26/33

22% of population does the bulk purchasing during the 1stweek of the month, these are

service class people as their salary is credited on 1stweek 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 & schemesdrive 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?

This question was asked to the respondents to find out how much of their monthly budget

was spend on shopping from organized retail outlets.

27%

27%

37%

9%

Rs 5001500

Rs 1500 - 2500

Rs 25005000

Rs 5000 & above


27/33

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 uppermiddle class & middle classof the society form the main

target segmentin purchasing from these outlets.

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.

42%

27%

13%

11%

7%

Price

Quality

Variety

Customer service

Ambience of the store


28/33

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 combinationof affordable Price to good Qualityshould be maintained.

8.) Kindly rate below the parameters of an organized retail and unorganized retail based on your

preferences?

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5


29/33

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 Outlets.

India is slowly and steadily taking a shift towards adopting the modern organized retail formats

and Indian Consumers are experiencing a changein their buying habits, along with the Metros

most states are seen to have a paradigm shiftin their purchasing pattern from Local Kirana

Walas to Organized Retailers.

INTERPRETATION OF RESULTS

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

Location

Pricing & discounts

Quality

Variety

Customer service

It has been observed that in delhi city that there is no fix time of purchasing daily need

products but, whenever the need arises they immediately purchase it.


30/33

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

CONCLUSION

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 delhi 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.


31/33

Most of the people in delhi use to purchase their daily needs whenever they require.

Consumer Buying Behavior at Organized Retail Outlets

Name: _____________________________ Occupation: ____________________

Age: ___

Sex: Male Female

Questionnaire

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

Hypercity

Dmart

Big Bazar

Reliance Super

Vishal Megamart

Others___________

2) How many times do you visit the organized retail outlets in a month?

Once

2-3 times

3-4 times

More than 5 times

3) How frequently do you purchase?

Daily

Weekly

Fortnightly


32/33

Monthly

More than a Month

4) How far you have to travel to go for purchasing?

Less than 3 K.M

3 K.M6 K.M

3)7 K.M10 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 5001500

Rs 1500 - 2500

Rs 25005000

Rs 5000 & above

7) In buying products at organized retail outlets you are sensitive towards,

Price

Quality

Variety

Customer service

Ambience of the store


33/33

8.) Kindly rate below the parameters of an organized retail and unorganized retail based upon

your preferences?

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 1

2

3

4

5 1

2

3

4

5Relationship 12345 12345

Ambience 12345 12345

Home Delivery 12345 12345

Faster 12345 12345

9) Any Good or Bad experiences you would like to share while shopping at retail outlets.

consumer perception towards kajaria tiles

Documents