A Project Report

On
“The preference of customer towards
Retail stores”

Submitted To:
Punjab Technical University, Jalandhar.
In partial fullfilment of the degree in Master of Business Adminstration
MBA (Session 2009- 2011)

Submitted By: Project Guide:

PRADEEP KUMAR Ms.Ishpreet Kaur

ANINDYA KUMAR DAS Lect. (RM)
MBA 2nd SEM
Roll no- 94372236490
Roll no- 94372236423

CT Institute Of Management & IT, Jalandhar

 GUIDE CERTIFICATE

It is hereby certified that the project report on “The preference of customer towards

the retail stores”, being submitted by Pradeep Kumar and Anindya Kumar Das

students of the degree of Master of Business Administration (2nd sem) of CT Institute of

Management and Information Technology, Jalandhar which is affiliated to Punjab

Technical University, Jalandhar is an original work carried out successfully under my

guidance and supervision and that no part of this project has been submitted for any

other degree/ diploma. The sincerely efforts put in during the course of investigation is

hereby acknowledged.

Project guide

Ms. Ishpreet Kaur

Lect. (RM)
 DECLARATION

I hereby declare that the survey entitled, “The preference of customer towards the
retail stores”, that no part of research work has been submitted for any other degree. We
also undertake that our work is purely academic and no part has been copied or taken
from anywhere.

PRADEEP KUMAR
ANINDYA KUMAR DAS
MBA 2nd SEM
ROLL NO-94372236490
ROLL NO-94372236423
 ACKNOWLEDGEMENT

We take this opportunity to express our deep sense of gratitude to all my friends and
seniors who helped and guide me to complete this project successfully. I am also thankful
to the Residents of Jalandhar, Who helped me to fill up our questionnaires by giving their
precious time. I highly grateful and indebted to Ms.Ishpreet Kaur, Lect. (RM) for her
excellent and expert guidance in helping us in completion of project report.
 PREFACE

In the present context not only the theoretical knowledge is important, but the practical
exposure of that theoretical knowledge has an equal importance too. To tame or to
become an expert in a particular discipline a person needs practical doses of that
knowledge from time to time.

So keeping this thing into view and to get a practical exposure, we conducted a survey in
the city of Jalandhar. By doing this survey we came to know about lot of problems which
the students have to suffer while conducting the research works.
 INDEX

Chapter no Topic Page no

1 Introduction

-----About the topic. 7-11

2 Objective of the study. 11

Research Methodology 12-15

3 Data interpretation and analysis. 16-27

4 Findings. 28

recommendation 29

Limitations of the study. 30

Conclusion. 31

5 Bibliography. 32

Annexure. 33-35
INTRODUCTION

OF

TOPIC

RETAILING
INTRODUCTION:

Retailing consists of the sale of goods or merchandise from a very fixed location, such as
a department store, boutique or kiosk, or by mail, in small or individual lots for direct
consumption by the purchaser. Retailing may include subordinated services, such as
delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys
goods or products in large quantities from manufacturers or importers, either directly or
through a wholesaler, and then sells smaller quantities to the end-user. Retail
establishments are often called shops or stores.

Retailers are at the end of the supply chain. Manufacturing marketers see the process of
retailing as a necessary part of their overall distribution strategy. The term "retailer" is
also applied where a service provider services the needs of a large number of individuals,
such as a public utility, like power Shops may be on residential streets, shopping streets
with few or no houses or in a shopping mall. Shopping streets may be for pedestrians
only. Sometimes a shopping street has a partial or full roof to protect customers from
precipitation. Online retailing, a type of electronic commerce used for business-to-
consumer (B2C) transactions and mail order, are forms of non-shop retailing. Shopping
generally refers to the act of buying products.

Sometimes this is done to obtain necessities such as food and clothing; sometimes it is
done as a recreational activity. Recreational shopping often involves window shopping
(just looking, not buying) and browsing and does not always result in a purchase.

Retail shop (also called Retail Store) is the smallest unit of retail spectrum. Usually
owned by family - retail shops are run from residential or commercial streets or from
shopping centers. Such a retailer buys goods or products in moderate quantity from local
stockiest, manufacturers or importers, either directly or through a wholesaler, and then
sells individual items in small quantities to consumers who are general public or end user
customers. Retailers are at the end of the supply chain. Marketers see retailing as part of
their overall distribution strategy.

A retail shop buys in small quantity, but in regular intervals. Small exporters, new
entrants, small manufacturers find this sector very lucrative as they lack the ability to
supply in large quantity because of financial and logistical constraints. Though profit per
sale may be less compared to larger order but that gets compensated by higher percentage
of margin and lower risk. If you wish to supply to Indian retailers only - concentrate on
Indian section. If you wish to export - there is huge opportunity for supplying Indian
products to thousands of retail stores in North America, Europe, Middle East, Asia,
Oceania and Africa.
We have spent hundreds of man-hours in research - creating this database of thousands of
retailers from all over the world. Fresh information on retailers, new opportunities,
analysis, statistics, articles etc. is added regularly - making this portal extremely useful
source of useful information.

Reason for studying Retailing

Retailing is an important field to study because of its impact on the economy, its
functions in distributions, and its relationship with firms selling goods and services to
retailers for their resale or use. A fourth factor for students of retailing is the broad range
of carrier opportunities, as highlighted with a “Careers in Retailing”.

The impact of Retailing on the Economy

Retailing is a major part of U.S. and world commerce. Retail sales and employment are
vital economic contributors, and retail trends often mirror trends in a nation’s overall
economy. According to the department of commerce, annual U.S. retail store sales
exceed $3.5 trillion- representing 31% of the total economy. Telephone and mail-order
sales by non-store retailers, vending machines, direct selling, and the web generate
hundreds of billions of dollars in additional yearly revenues. And personal consumption
expenditures on financial, medical, legal, educational, and other services account for
another hundred billion dollars in annual retail revenues. Outside the United States, retail
sales are trillions of dollars per year.

Durable goods stores – including the auto group; furniture and appliance group; and
lumber, building materials, and hardware group – make up 42% of U.S. retail stores
sales. Nondurable goods and services stores – including the general merchandise group,
apparel group, gasoline services stations, eating and drinking places, food group, drug
and proprietary stores, and liquor stores – together account for 58% of U.S. retail store
sales.

The world’s 100 largest retailers generate $2 trillion in annual revenues. They represent
16 nations. Forty- three of the 100 are based in the United States, 11 Great Britain, 10 in
Japan, 9 in France, and 8 in Germany.
Retailing is a major source of jobs. In the United States alone, 23 million people – about
one-sixth of the total labour force – work for traditional retailers. Yet this figure
understates the true number of people who work in retailing because it does not include
the several million persons employed by service firms, seasonal employees, proprietors,
and unreported workers in family businesses or partnerships.

From a cost perspective, retailing is a significant field of study. In the United States, on
average, 31 cents of every dollar spent in department stores, 44 cents spent in furniture
and home furnishing stores, and 27 cent spent in grocery stores go the retailers to cover
operating costs, activities performed, and profits. Costs include rent, displays, wages, ads,
and maintenance. Only a small part of each dollar is profit. In 2001, the 10 largest U.S.
retailers’ after – tax profits averaged 2.6% of sales.

The Relationships among Retailers and Their Suppliers

Relationships among retailers and suppliers can be complex. Because retailers are part of
a distribution channel, manufacturers and wholesalers must be concerned about the
calibre of displays, customer services, store hours, and retailers’ reliability as business
partners. Retailers are also major customers of goods and services for resale, store
fixtures, computers, management consulting, and insurance.

Channel relation tend to be smoothest with exclusive distribution, whereby suppliers

make agreements with one or a few retailers that designate the latter as the ones in
specified geographic areas to carry certain brands or products. This stimulates both
parties to work together to maintain an image, assign shelf space, allot profits and costs,
and advertise. It also usually requires that retailers limit their brand selection in the
specified products lines; they might have to decline to handle other suppliers’ brands.
From the manufacturers’ perspective, exclusive distribution may limit their long- run
total sales.

Channel relations tend to be most volatile with intensive distribution, whereby suppliers
sell through as many retailers as possible. This often maximize suppliers’ sales and lets
retailers offer many brands and products versions. Competition among retailers selling
the same items is high; and retailers may use tactics not beneficial to individual suppliers,
as they are more concerned about their own results. Retailers may assign little shelf space
to specific brands, set very high prices on them, and not advertise them.
With selective distribution, suppliers sell through a moderate number of retailers. This
combines aspects of exclusive and intensive distribution. Suppliers have higher sales than
in exclusive distribution, and retailers carry some competing brands. It encourages
suppliers to provide some marketing support and retailers to give adequate shelf space.

The importance of Developing and Applying a Retail Strategy

A strategy is the overall plan guiding a retail firm. It influences the firm’s business
activities and its response to market forces, such as competition and the economy. Any
retailer, regardless of size or type, should utilize these six steps in strategic planning:

1. Define the type of business in terms of the goods or service category and the
company’s specific orientation (such as full service or “no frills”).

2. Set long-run and short-run objectives for sales and profit, market share, image,
and so on.

3. Determine the customer market to target on the basis of its characteristics (such as
gender and income level) and needs (such as product and brand preferences).

4. Device an overall, long-run plan that gives general direction to the firm and its
employees.

5. Implement an integrated strategy that combines such factors as store location,

product assortment, pricing, and advertising and displays to achieve objectives.

6. Regularly evaluate performance and correct weaknesses or problems when

observed.
 OBJECTIVES:

THE FOLLOWING OBJECTIVES HAVE BEEN FORMED SUCH AS:

 To Study the awareness regarding Retail Marketing among the

customer.

 To know the impact of organized marketing upon the unorganized

marketing.

 To study the problem faced by the retail marketing in the India.

 To study the market potential for retail marketing in India.

RESEARCH METHODOLOGY
A. DEFINING THE RESEARCH PROBLEM AND RESEARCH
OBJECTIVES

The definition of the problem includes the study of “Preference of customer

towards the Retail stores”.

B. DEVELOPING THE RESEARCH PLAN.

It has the following types:

1. DATA SOURCES

Two types of data were taken into consideration i.e., primary data and
secondary data. But major emphasis was given on gathering primary data. The
secondary data was used only to supplement the primary and make things clear.

a) Primary Data: The collection of data for this source includes personal
interviews of people by the filling of questionnaire.

b) Secondary Data: In this study the secondary data is collected from the
following.

Sources:

 Primary data

 Questionnaire

 Secondary data

 Web. Site
 Journals
 Magazines.
2. SAMPLING PLAN

Population:

The population interviewed in the research is General public (employees,

children’s) in the JALANDHAR city.

Sample Size:

The sample size covered during the research is of 100.

Sample Element:

The sample element of the research is public & other officials.

Sample Duration:

The sample duration is between March 2010 and April 2010.

Sample Extent:

The sampling procedure followed is convenience sampling.

Research Instrument:

In this study the research instrument is Questionnaire.

The questionnaire is structured with combinations of various close ended

questions. Close ended questions already have the possible answers.
Data Analysis
&
Interpretation
Data Analysis and Interpretation
Q1. Do you know about retail stores?

Option Total No Percentage

Yes 100 100 %
No 00 00 %

Graphical Representation

Percentage, 0%

Percentage, 100%

Interpretation: - In the above mentioned data and diagram which is clearly shown
with the help of pie diagram, which is clearly state that 100 % of customers know about
the retail stores.
Q2. Whether you regular visit to retail stores?

Option Total No Percentage

Yes 70 70
No 30 30

Graphical Representation

Interpretation: - In the above mentioned data and diagram, we interpret that 70%
customers are regular visitor in the retail stores. It means that many people are willing to
shopping from the retail stores.
Q3. Why you prefer retail stores?

Option Total No Percentage

Quality 26 26
Customer care 31 31
Discount scheme 34 34
Any other 9 9

Graphical Representation

Interpretation: - In the above mentioned data and diagram, we came to know that
many people prefer to the retail stores only for getting the product at the discount offer.
Q4. What benefit you get while purchasing / buying in the retail stores?

Option Total No Percentage

Choice to select desired 28 28
products
Different products 35 35
available
Different department 23 23
Better services 14 14

Graphical Representation

Interpretation: - In the above mentioned data and diagram it shows that many
customer get benefit in the sense of getting many desirable products at a place.
Q5. Do have you any misconceptions regarding the retail stores?

Option Total No Percentage

Behaviour of salesman 27 27
Fixed price 20 20
Extra service charges 25 25
Any other 28 28

Graphical Representation

Interpretation: - In the above mentioned data and diagram, it state that many
customers have misconception about the retail stores. It means that there is about 28%
maximum misconception regarding other factor, 27% about the behaviour of the
salesman, 25% about the extra service charges.
Q6. From which retail store do you shop more?

Option Total No Percentage

V mart 12 12
Spencer 8 8
Easy day 60 60
Reliance 20 20

Graphical Representation

Interpretation: - In the above mentioned data and diagram, it states that many people
prefer to do shopping from the Easy Day. There are about 60% maximum people who do
shopping from the Easy Day.
Q7. Do you think stores provide convient opening houses?

Option Total No Percentage

Yes 78 78
No 22 22

Graphical Representation

Interpretation: - In the above mentioned data and diagram, it shows that retail stores
are the convient place for shopping. About 78% customers want to do shopping from the
retail stores.
Q8. Do you think that you can gain individual attention from the staff?

Option Total No Percentage

Yes 44 44
No 56 56

Graphical Representation

Interpretation: - In the above mentioned data and diagram, it shows that 56%
customer don’t get individual attention from the staff. It means that there is no individual
attention from the staff.
Q9. Is the staff experience and knowledgeable to answer your questions?

Option Total No Percentage

Up to some extent 62 62
Able to answer 24 24
Not satisfaction 12 12
Satisfied 2 2

Graphical Representation

Interpretation: - In the above mentioned data and diagram which is clearly

represented with the help of pie diagram clearly state that 62% staff is able to give the
answer up to some extent and they are knowledgeable.
Q10. Would you recommend others to do shopping from the retail
stores?

Option Total No Percentage

May be 27 27
May not be 7 7
Sure 31 31
Up to some extent 35 35

Graphical Representation

Interpretation: - In the above mentioned data and diagram which is clearly

represented with the help of pie diagram clearly state that about 35% people advise to
others for shopping from the retail stores up to some extent. There are about 31% people
who advise to others for sure doing shopping from the retail stores.
Q11. Any suggestions for the growth of retail stores.

Option Total No Percentage

More branches should be 36 36
open
Should cover the urban as 27 27
well as rural area
Focus upon the needs of 26 26
the customer
Better personnel 11 11

Graphical Representation

Interpretation: - In the above mentioned data and diagram, it states that about 36%
people advise for the growth of the retail stores through the opening of many branches
across the world.
 FINDING
From above the study there are number of finding comes before us, there are
some problems which are faced by the customers & not having proper
information about what they want, which are given as follow:

 The big reason is that some time customers do not aware about the
benefits of retail stores.
 Many people prefer to do shopping from the retail stores only due to
more discount offer.
 It is observed that retail stores are the convient place for doing
shopping because many products are available at one roof.
 It is come to knew that customer don’t get behaviour from the salesman.
 It is observed that customer don’t get individual attention from the staff.
 It is come to knew that staffs are able to give the answer of the question
which is asked by the customer and they are knowledgeable about the products.
 It is come to knew that many customer advices others for doing
shopping from the retail stores.
 RECOMMENDATION

• Retail stores should to cover every type of the products of good quality.

• They should give more focus on the demand and choice of the products.

• There always should be properly telling them the facility provided by the
retail stores.

• If we provide the information to the customers about the products & the
facility given by retail stores then customer will prefer to the retail stores.

• These are the policies which may help to the company to sell their product &
make an image into the market.

• With these some points we can really change our strategy which helps us to
move ahead.
 LIMITATIONS

Following were the limitations which I faced during doing this Research:-

• The cost for doing the project was one of the limitations.

• There was also time constraint, as people were busy in their own work.

• Limited area is covered for doing this research work.

• Respondents were giving answer to the questions that were written on the
questionnaire, but efforts were made to get more and more information.

• The respondents were not paying proper attention while filling the questionnaires.

• Some of the respondents were not aware about the questions, so they were not to
present their views.
 Conclusion

Retail stores have a huge influence on society. It tells the consumers that only purchasing
products makes you happy and therefore people compare each other on their belongings.
Now a day many retail stores are opening across the world. It has one major benefit that almost
every type of products is available at a place and under a roof.

The retail stores have become such an important factor in the economy in many countries, that
it also changes the economy itself, society, culture. The stimulation for the demand of products
and services helps the economy grow stronger and stronger. If there are more people buying
these products the overall costs will drop and the product will become cheaper for the customer
which raises his willingness to buy even more.
 BIBLIOGRAPHY

1. BOOKS:
• Research methodology- methods and techniques-by CR Kothari,
New Age International Publishers.

2. WEB ADDRESS:

• www.indiaretailbiz.com

• www.spencersretail.com

• www.imagesretail.com

• www.sony.co.in/section/retailshops

• www.indiaretailbiz.com/

• www.fibre2fashion.com/news/general...retail-
chain.../India/

• www.infobanc.com/retail/
 ANNEXURE

The information collected from you will be kept confidential

and used for research purpose only.

TOPIC: “The preference of customer towards the Retail

stores”

General information

Name…………………………………Age………Gender…………………………
Address………………………………………………………………………………..
Education…………………............Occupation……………………………………
Contact no…………………………

Note:-please rank (1, 2, 3, 4) accordingly the box where necessary.

Questionnaire

Q1. Do you know about retail stores?

a) Yes ( ) b) No ( )

Q2. Whether you regular visit to retail stores?

a) Yes ( ) b) No ( )

Q3. Why you prefer retail stores?

a) quality ( ) b) customer care ( )

b) discount scheme ( ) d) any other ( )

Q4. What benefit you get while purchasing /buying in the retail store?
a) Choice to select desired products ( )

b) Different products available ( )

c) Different department ( )

d) Better service ( )

Q5. Do have you any misconceptions regarding the retail stores?

a) Behavior of salesman ( )

b) Fixed price ( )

c) Extra service charges ( )

d) Any other( )

Q6. From which retail store do you shop more?

a) V mart ( ) b) Spencer ( )
c) Easy say ( ) d) Reliance ( )

Q7. Do you think stores provide convient opening houses?

a) Yes ( ) b) No

Q8. Do you think that you can gain individual attention from the staff?
a) Yes ( ) b) No ( )

Q9. Is the staff experienced and knowledgeable to answer your questions?

a) Up to some extent ( )

b) Able to answer ( )

c) Not satisfaction ( )

d) Satisfied ( )

Q10. Would you recommend others to do shopping from the retail stores?
a) May be ( )
 b) May not be ( )

c) Sure ( )

d) Up to some extent ( )

Q11. Any suggestion for the growth of retail stores.

a) More branches should be open. ( )

b) Should cover the urban as well as rural area. ( )

c) Focus upon the needs of the consumer. ( )

d) Better personnel. ( )

Thanking you