Distance Education Wing

SIKKIM MANIPAL UNIVERSITY

OF HEALTH, MEDICAL & TECHONOGICAL SCIENCES

(5th Mile, Tadong, Gamgot-737 102 Code No. – 1502)

A Project on
Consumer Behavior

Presented to

INDIABULLS MART

Submitted by

Vikas Sharma

A project report submitted in partial fulfillment of the requirements

for

Master of Business Administration

Of Sikkim Manipal university, INDIA

1
 I here by declare that the project report entitled

A Project on
Consumer Behavior

Submitted in partial fulfillment of the requirements for the degree

of
Master of business Administration

To Sikkim-Manipal University, India, is my original work and not submitted

for the award of any other degree, diploma, fellowship, or any other similar
title or prizes

Place:- Indore Name of student

Date:- 1/11/2010 Vikas Sharma

2
Vikas Sharma

A Project on Consumer Behavior

is approved and is acceptable in quality and form

Internal Examiner
External Examiner

3
 This is to certify that the project report entitled

Project on consumer behavior

Submitted in partial fulfillment of the requirements for the

degree of

Master of Business Administration of

Sikkim-Manipal University of Health, Medical and

Technological sciences

Vikas Sharma
has worked under my supervision and guidance and that no part of this report has
been submitted for the award of any other degree, Diploma, fellowship or other
similar titles or prizes and that the work has not been published in any journal or
Magazine.

(Reg. No.) Certified

( 510927600) CENTRE CODE: 1502 (MBA)

4
 ACKNOWLEDGEMENT

Any successful project consumes dedication, cooperation, coordination

and several resources like knowledge, study, energy and time. Patience,
determination and perseverance coupled with help and encouragement
from several quarters has paved the path to the success of this project.

We would like to thank Sikkim Manipal University, INDIA for

providing this of opportunity to prepare this valuable project.

No work can be accomplished without the guidance and help of the staff
of India Bulls Mart. We are extremely grateful to Mr. Vikash kashyap for
their constant support and benevolent help.

We express our special thanks to the respondents for their untiring

support to our project, to the dealer and their staff for their help, Co-
operation to get us maximum knowledge, their valuable time and make
available all the required material.

We owe a great deal of gratitude of our teachers & friends who provided
us their experiences, suggestion and insight knowledge at various stages
in this project.

The experience gained by us during the period of project has been in

value and certainly a memorable experience of our life.

Students 44
Services 82
Housewives 45
Businessmen 38

5
 Executive Summary

I am the student of CHIMC Indore, undertook the research project at

India Bulls mart , Indore during our MBA Program . The following project
start with an idea regarding the study of booming trends in organized retail
in Indore. Through or with the help of questionnaire and this project also
helped IndiaBulls mart to know the consumer opinion and interest towards
IndiaBulls mart and its growth in the local market.

The data collection method was primary Data Collection. The survey was
conducted by designing a schedule as the research instrument. Schedule
was use to meet the exploratory as well as the descriptive nature of the
research. The sample people include the people of the city of Indore,
Sample size being 200. The sample was segmented on the basis of
occupation, the segments were:

6
 Table of Content

• Acknowledgement
• Executive Summary

Chapter Name Page No.

Indian Retail Scenario 9-13

About IndiaBulls Mart 14-16

Consumer Behavior 17-19

Research Methodology 20-24

a) Research Objective

b) Research Design

c) Research Process

Graphical Analysis 25-42

SWOT Analysis 43-47

Findings and Suggestions 48-50

Annexure 51-55

a) Questionnaire

b) Bibliography

7
8
 RETAIL SCENARIO IN INDIA
India tops the AT Kearney's annual Global Retail Development Index (GRDI) for the
third consecutive year, maintaining its position as the most attractive market for retail
investment.

The Indian retail market, which is the fifth largest retail destination globally, according
to industry estimates is estimated to grow from the US$ 330 billion in 2007 to US$ 427
billion by 2010 and US$ 637 billion by 2015. Simultaneously, modern retail is likely to
increase its share in the total retail market to 22 per cent by 2010.

Continuing the robust growth of the organized retail in India, according to the Credit
Rating and Information Services of India, the industry raked in US$ 25.44 billion
turnover in 2007-08 as against US$ 16.99 billion in 2006-07, a whopping growth rate
of 49.73 per cent.

India has one of the largest numbers of retail outlets in the world. Of the 12 million
retail outlets present in the country, nearly 5 million sell food and related products.
Thought the market has been dominated by unorganized players, the entry of
domestic and international organized players is set to change the scenario.

Organized retail segment has been growing at a blistering pace, exceeding all
previous estimates. According to a study by Deloitte Haskins and Sells, organized
retail has increased its share from 5 per cent of total retail sales in 2006 to 8 per cent
in 2007. The fastest growing segments have been the wholesale cash and carry
stores (150 per cent) followed by supermarkets (100 per cent) and hypermarkets (75-
80 per cent). Further, it estimates the organized segment to account for 25 per cent of
the total sales by 2011.

Retail space
Driven by changing lifestyles, strong income growth and favorable demographic
patterns, Indian retail is expanding at a rapid pace. Mall space, from a meager one
million square feet in 2002, is expected to touch 40 million square feet by end-2007
and an estimated 60 million square feet by end-2008, says Jones Lang LaSalle's third
annual Retailer Sentiment Survey-Asia.

Alongside, Indian cities are witnessing a paradigm shift from traditional forms of
retailing into a modern organized sector. A report by Images Retail estimates the
number of operational malls to more than double to over 412 with 205 million square
feet by 2010 and further 715 malls by 2015, on the back of major retail developments
even in tier II and tier III cities in India.

9
Luxury retail
With consumers for luxury goods more in numbers than adult population of several
countries, the Indian luxury retail market is estimated to leap-frog from around US$ 3.5
billion to US$ 30 billion by 2015, according to a survey done by AT Kearney. India's
luxury market, estimated to be the 12th largest in the world, has been growing at the
rate of 25 per cent per annum.

Already Indians splurge US$ 2.9 billion on luxury assets, spend another US$ 953
million on luxury services and top it by buying luxury goods worth US$ 377 million.
And with a rapidly expanding population of high net worth individuals, India could
emerge as the next hub for luxury goods consumption.

Consequently, a number of foreign brands including French Connection, Sanrio of

Hello Kitty fame, Jimmy Coho, La Pearla and Calvin Klein among others have already
lined up for permission to infuse foreign direct investment through the single-brand
retail window.

Kids' retail
When it comes to Indian children, retailers are busy bonding -- and branding:

• Mona Lisa, the Versace of kids, is coming to India.

• International brand Zapp tied up with Raymond to foray into kids' apparel.
• Disney launched exclusive chains which stock character-based stationery.
• Pantaloon's joint venture with Gini & Jony will set up a retail chain to market
kids' apparel.
• Swiss kids wear brand Milou is collaborating with Tirupur-based Sreeja
Hosieries.
• French furniture brand Gautier is all set to hit the Indian retail market by the end
of the year with a comprehensive range of furniture for children and infants.
• The UK based retail chain, Marks & Spencer, is launching its kids' wear
categories in India.

Leading the kids' retail revolution is the apparel business, which accounts for almost
80 per cent of the revenue, with kids' clothing in India following international fashion
trends. According to research firm KSA Technopak, the branded segment comprises
US$ 701.7 million of the total kids' apparel market-size of over US$ 3 billion. Industry
experts say kids' retailing will touch annual growth of 30-35 per cent.

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Discount Malls
Even as the organized retail market is starting to take off, there has been a
concomitant surge in branded discount outlets in India. Top realtors and local retail
chains are developing malls in regional boroughs, specifically to sell premium branded
goods. At least 50 such malls are to come up in the next two years across the country
positioned in the middle-to-the-premium end of the market.

For example, Royal Palms are developing Orchard Road Mall in the western suburbs
of Mumbai. Similarly, Akruti Nirman, which is planning to brand its discount malls in
Kanjurmag, Ghatkopar, Mumbai and Thane as 'City world', has decided to develop
similar malls in Tier II and Tier III cities. Some of the other prominent discount retailers
include Pantaloon Retail (India) Ltd's Brand Factory, Arvind Mills Ltd's Mega mart and
Provogue (India) Ltd's Promart among others.

E-tailing
The increase in the PC and internet penetration along with the growing preference of
Indian consumers to shop online has given a tremendous boost to e-tailing-the online
version of retail shopping. An estimated 10 per cent of the total e-commerce market is
accounted by e-tailing.

With todays, net-savvy Indians making online purchases like never before, both the
number and variety of products sold online have grown exponentially. According to the
Indian Marketing Research Bureau (IMRB) and Internet and Mobile Association of
India (IAMAI), the e-tail market is estimated to grow by 30 per cent to US$ 273.02
million in 2007-08, from US$ 210.01 million in 2006-07.

In fact, there has been a continuous rise in the number of people accessing the
internet. According to online research and advisory firm JuxtConsult's 'India Online
2008', there are over 49 million internet users in India. Significantly, internet
penetration (as a percentage of population) has grown to 12 per cent, up 3 per cent
from last year's 9 per cent.

11
Retail Franchising
Along with e-tailing another perceptible trend in the growth of organized retail market
has been the concept of retail franchising. According to industry estimates, retail
franchising has been growing at the rate of 60 per cent in the last three years and is
set to grow two-fold in the next five years.

A number of companies have been taking this route driven mainly by the need to meet
the increasing consumer expectations of quality, ambience and brand experience. In
addition, this route also helps the big retailer players to rapidly foray into the tier II and
III towns and rural areas.

In fact, according to Mr. Rod Young, Executive Director, DC Strategy, franchised

outlets of leading brands in India are estimated to sell 20 per cent more than the
company-owned ones. And with immense potential seen in this segment, the US$ 4
billion franchising industry is likely to see almost two-fold rise in the number of
franchisees (from 0.2 million) by 2010.

Rural retail
Led by the rising purchasing power, changing consumption patterns, increased access
to information and communication technology and improving infrastructure, rural retail
market is estimated to cross US$ 45.32 billion mark by 2010 and US$ 60.43 billion by
2015, says a study by CII and YES BANK.

Consequently, Corporate India is already firming up concrete plans to tap the rural
retail market, which is growing at double the rate of urban markets, with innovative
schemes and human resource policies. And with 87 per cent of rural markets not
having access to any sort of organized marketing and distribution, this segment has
tremendous potential for growth.

12
International Retailers
With international brands like Tommy Hilfiger, Esprit and Puma (that have entered the
country) growing well over 100 per cent, many others are also planning to foray into
the Indian retail market. India's vast middle class with its expanding purchasing power
and its almost untapped retail industry are key attractions for global retail giants
wanting to enter newer markets.

 The world's largest retailer, Wal-Mart, has tied-up with Sunil Mittal's Bharti
Enterprises to enter Indian retail market.
 Microsoft's first shop-in-shop pilot has been launched with the Tata Group
subsidiary Infiniti Retail's multi-brand consumer durables retail format, Croma.
 The Walt Disney Company, consumer product retailing arm of global animation
giant, will soon add 135 new stores to its existing 15 stores.
 World's leading coffee chain, Starbucks' enters India through a tie-up with the
country's leading multiplex operator PVR Limited.
 Apple Inc has entered into an exclusive marketing and distribution deal with
Reliance Retail through "iStore by Reliance Digital".
 The UK-based international coffee chain, Costa Coffee, plans to double the
number of retail outlets by the end of 2008.
 British retailer Marks & Spencer's has tied with Reliance Retail and plans to
open at least 50 new stores in India over the next five years, with an initial
investment of up to US$ 58 million.

Some of the international players that have already entered India include McDonald's,
Pizza Hut, Dominos, Levis, Lee, Nike, Adidas, TGIF, Benetton, Swarovski, Sony,
Sharp, Kodak, Medicine Shoppe among others.

13
14
 INDIABULLS MART

IndiaBulls Group is one of the top 15 business houses in country with business
interests in Real Estate, Infrastructure, Financial Services, Retail, Multiplex and Power
sector. IndiaBulls Group companies are listed in Indian and overseas markets and
have a market capitalization of over USD 7 billion. The Net worth of the Group
exceeds USD 2 billion. IndiaBulls Group companies enjoy highest ratings from
CRISIL, a subsidiary of Standard and Poor’s. IndiaBulls has been conferred the status
of a “Business Super brand” by The Brand Council, Super brands India.
IndiaBulls Financial Services Limited, the parent company from which IndiaBulls Real
Estate and IndiaBulls Securities were emerged, is India’s leading Non-Banking
Finance Companies (NBFC) which is primarily into extending retail and commercial
loans and distribution of third party products. IBFSL is amongst 68 companies
constituting MSCI - Morgan Stanley India Index. IBFSL is also part of CLSA’s model
portfolio of 30 Best Companies in Asia. The lending business of IBFSL is rapidly
growing with loan assets of Rs. 104,410 million as of 31 March, 2008.

IndiaBulls Real Estate Limited is India’s third largest property company with
development projects spread across residential projects, commercial offices, hotels,
malls, and Special Economic Zones (SEZ) infrastructure development. IBREL
partnered with Farallon Capital Management LLC of USA to bring the first FDI into real
estate. IBREL is also developing over 50000 residential apartments pan India & has
over 10000 acres of land bank.

IndiaBulls Securities Limited is India’s leading capital markets company with over
250 branches in more than 110 cities. ISL possesses state of the art trading platform,
best broking practices and is the pioneer in trading product innovations. CRISIL has
assigned the highest rating CRISIL BQ – 1 to ISL. This is an opinion on the quality of
operations and service offered by ISL. The grading is expressed on a five point scale
BQ-1 to BQ-5, with BQ-1 being the highest.

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IndiaBulls Retail
IndiaBulls Retail is one of the fastest growing retailers having broad national brand
presence with 47 stores located in 7 cities. Founded in 2007, IndiaBulls Retail
operates 9 Lifestyle stores under IndiaBulls Mega store, 36 super mart stores under
IndiaBulls Mart and upcoming cash & carries stores under IndiaBulls Wholesale.
IndiaBulls Retail is committed to provide customers with Best quality products at
lowest possible price, Par Excellence customer service and shopping convenience
never seen before.
By FY09, IndiaBulls Retail plans to increase Mega stores to 35, Marts to 100 and
Wholesale stores to 25 across India.

IndiaBulls Mega stores are one-stop lifestyle shopping destinations offering

extensive assortment across apparels, accessories, fragrances, cosmetics, footwear,
home furnishing and décor products. With a covered area of around 530,000 square
feet they are mostly located in malls in Pune, New Delhi, Jaipur, Ahmedabad,
Ludhiana and Nagpur.

IndiaBulls Marts are neighborhood stores selling groceries and other daily need
products in Mumbai, Pune, Nagpur, Ahmedabad, Jaipur and Indore. Currently, 35
such stores are operational covering an area of 130,000 sqft.

IndiaBulls Wholesale offers over 18,000 articles at the best wholesale prices for
Hotels, Restaurants, Caterers, Food and Non-food Traders, Institutional buyers and
professionals

16
Consumer behavior

17
DEFINITION

Psychology + Marketing = Consumer behavior

According to the “American Marketing Association”, Consumer Behavior is defined as

“the dynamic interaction of affect and cognition, and environmental events by which
human beings conduct the exchange aspects of their lives.” In a more general way,
Consumer Behavior is the psychology behind marketing and the behavior consumers
in the Marketing environment.

Two major psychological disciplines come into play when observing and trying to
explain Consumer Behavior.

The first is cognitive psychology. Cognitive psychology is the study of all knowledge
related (mental) behaviors. The Attention, Perception, Memory\Comprehension and
Decision making are the various aspects of cognitive psychology that play an
important role in Consumer Behavior.

The second psychological discipline that has theories to explain certain phenomenon
of Consumer Behavior is Social Psychology is “the study of the manner in which the
personality, attitudes, motivations, and behaviors of the individual influence and are
influence by social groups.” The affect and social influences by reference groups are
two important topics studied in social psychology that has an important impact on
Consumer Behavior.

Categories that Affect the Consumer Buying Decision Process

A consumer, making a purchase decision will be affected by the following three

factors:

1. Personal

2. Cultural

3. Social

18
The marketer must be aware of these factors in orders to develop an appropriate MM
for its target market.

PERSONAL

Particular person has her\her uniqueness in demographic factors Sex, Race, Age etc.
For example young people purchase things for different reasons than older people.

CULTURAL

Culture refers to the set of values, ideas, and attitudes that are accepted by a
homogenous group of people and transmitted to the next generation. Culture also
determines

SOCIAL

Consumer refers to the set of values, ideas and attitudes that are accepted by opinion
leaders, person’s family, reference groups, social, class and culture.

19
20
 Research Methodology
Research methodology is a way to systematically solve the research problem. The
logic behind the method used, in context of research, is explained; so that research
results are capable of being evaluated either by the researcher himself or by others.
People undertake research in order to find things in a systematic way, thereby
increasing their knowledge. The research project involves an explanation of the
methods used to collect information, argue why the results are meaningful and explain
any limitations that are associated with them.

Research Objective

 The questionnaire in this project was design which fulfilled our objective getting
the information about the preferences of the customers.

 The objective of the study is to find the behavior of consumer towards their
preference to purchase the item/product on the basis of following factors:

• Company
• Advertisement.
• What attracts them to decide to purchase?
• Service levels
• Product range and availability.
• Number of times they have visited.

To identify the factors that influences the buyers to buy & non-buyers
to buy from local players.
 To understand the most motivating factor for the people when they adopt
a particular store
 To understand different marketing strategy adopted by the
unorganized Retailer to fight with Organized Retailer.

21
 Research process

Research process consists of a series of action or actions or steps necessary to

effectively carry out research and the desired sequencing of these steps. The various
steps can be summarized as follows-

 Formulating the research problem

 Developing the hypothesis

 Preparing the research design

 Determining the sample design

 Collecting the data

 Analysis of the data

 Hypothesis testing

 Generations and interpretations

 Preparations of the report or presentation of the result i.e. formal write-up of

conclusion reached.

Research Design
Research Design for India Bulls Mart is planned structure and strategy of investigation
conceived so as to obtain answers to research, questions or objectives and also to
control variances. The research design can be understood as mentioned under-

 The data used in this project was primary data.

 The data was collected by the means of questionnaire.
 Fieldwork has been has been done in getting questionnaire filled by the
respondents.
 The project is form of descriptive research.
 Statistics is being used for the analysis.
 Percentage analysis is used for statistical presentation of the primary data
collection.

22
 Sampling Design

Definition of Population

The Sampled population is the existing and prospective customer of local

players within the geographical boundary of city of Indore of Madhya Pradesh.

Sampling Unit

The sampling unit has been taken as individual as well as group activities. This
is because shopping ones personal belonging and generally people done it in group
.and mostly decision has been taken on individual basis in apparels category, and
group decision for home products. Mostly decision is taken by getting influence
through our peer group or by celebrities.

Sampling Plan

The sampling procedure used during the survey was stratified random
sampling, which is a probability sampling, done from different strata decided.

Sample Size

This survey has been conducted among 200 peoples .They has been
categorized as under:-

Students 44
Services 82
Housewives 45
Businessmen 38

23
 Sample Segmentation

Sample

Customers who are Customers who are Customers who are Customers who are
students Working class Housewives Businessman

Customer
who goes to
buy from Customer
organized who don’t go
Subcategories retail to buy from
Organized
Retail

24
25
 Graphical Analysis
Q.1.How often do you shop. (Tick)

Total response Expected no.

a) Once a week 103 66.67
b) Fortnightly (15 59 66.67
days)
c) Monthly 38 66.67

Frequency of shopping
CHI square 33
Degree of freedom 2
Asymp.sig .ooo
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 66.67

Total response

a) Once aweek
19%

b) Fortnightly (15
51% days)
30% c) Monthly

Interpretation:-

 According to graph Out of 200 respondents 51% i.e 103 of customers visit once a week
to store.

26
Q2.From where you prefer to shop:

Total response Expected no.

(a) Organized retail 135 100
store(shopping mall)
(b) Unorganized retail 65 100
store(traditional
market)

Preference of shopping
CHI square 24.5
Degree of freedom 1
Asymp.sig .ooo
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 100

Total response

(a) organized retail

store(shopping
33% mall)

(b) unorganized
67% retail
store(traditional
market)

Interpretation:-

27
  According to graph Out of 200 respondents 67% i.e 135 people prefer to shop
from organized retail store.

Q3. If you buy from organized retail from where do you buy:

Total response Expected no.

(a) Reliance Fresh 72 50
(B) IndiaBulls Mart 66 50
(C) Aapurti 10 50
(D) Others 52 50

Place of shopping
CHI square 46.08
Degree of freedom 3
Asymp.sig .ooo
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 50

Total response

26% (a) Reliance Fresh

36%
(B) Indiabulls Mart
5% (C) Aapurti
33% (D) Others

28
Interpretation:-

 According to graph Out of 200 respondent 36% i.e. 72 people like to shop from
Reliance fresh followed by IndiaBulls Mart i.e 66 .

Q.5.With whom you generally prefer to purchase (Tick)-

Total response Expected no.

1. Friends 33 50
2. Family 85 50
3. Alone 44 50
4. Husband/wife 38 50

Company while shopping

CHI square 33.88
Degree of freedom 3
Asymp.sig .ooo
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 50

Total response

19% 17%
1. Friends
2. Family
22% 3. Alone
4. Husband/wife
42%

Interpretation:-

29
  According to graph, Out of 200 respondents 42% i.e 85 people shop along with
their family member.

Q6. Are you happy with the change in retail trend, i.e., from
vendors to organized retail;

Total response Expected no.

(a) Agree 141 66.67
(b) Disagree 18 66.67
(c) Neither agrees 41 66.67
nor disagrees

Attitude towards change

CHI square 128.8
Degree of freedom 2
Asymp.sig .ooo
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 66.67

Total res pons e

(a) A gree

21%
(b) D is agree

9%
70%
(c ) N either
agrees nor
dis agrees

30
Interpretation:-

 According to graph, 70% i.e 141people are happy with the change in retail.

Q.7 Services/benefits given by the organized retail are:

Total response Expected no.

(a) Excellent 21 17.5
(b) Good 36 17.5
(c) Average 12 17.5
(d) Bad 1 17.5

Benefits of organized retail

CHI square 37.52
Degree of freedom 3
Asymp.sig .ooo
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 17.5

Total response

6% 15% (a) Excellent

31% (b) Good
(c) Average
48% (d) Bad

31
Interpretation:-

 According to graph Out of 70 respondents 48%i.e 36 IndiaBulls customer

considers its service as “GOOD”

Q.8 Do you think shopping from organized retail store is status

symbol:

Total response Expected no.

(a) Agree 100 66.67
(b) Disagree 51 66.67
(c) Neither 49 66.67
agrees nor
disagrees

Status symbol
CHI square 25.01
Degree of freedom 2
Asymp.sig .ooo
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 66.67

Total response

(a) Agree

25%
(b) Disagree
49%
26% (c) Neither
agrees nor
disagrees

32
Interpretation:-

 According to graph, 49% i.e.98 people think that shopping from organized retail
is a sign of status symbol.

Q.9 Are you loyal to your store?

Total response Expected no.

(a) Agree 50 23.33
(b) Disagree 6 23.33
(c) Neither agrees 16 23.33
nor disagrees

Loyalty towards store

CHI square 45.63
Degree of freedom 2
Asymp.sig .ooo
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 23.33

Total response

22%
(a) Agree

(b) Disagree
8%
(c) Neither agrees
70% nor disagrees

33
Interpretation:-

 According to graph, 70% i.e 50 IndiaBulls customer are loyal to the store.

Q.10 on which type of product you prefer home delivery

Total response Expected no.

a) Grocery 52 17.5
(b) Fruit and 17 17.5
vegetable
(c) Persona care 1 17.5
(d) Home care 0 17.5

Preference on home delivery

CHI square 93.41
Degree of freedom 3
Asymp.sig .ooo
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 17.5

34
 Total response

a) Grocery
1%
24% 0% (b) Fruit and
vegetable
(c) Persona care
75%
(d) Home care

Interpretation:-

 According to graph, 75% i.e 52 IndiaBulls customer prefer grocery to be home

delivered.

Q.11 Does home delivery service affect your purchase

decision?

Total response Expected no.

(a) Agree 30 23.33
(b) Disagree 22 23.33
(c) Neither 18 23.33
agrees nor
disagrees

Effect of home delivery

CHI square 10.495
Degree of freedom 2
Asymp.sig .ooo
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 23.33

35
 Total response

(a) Agree

26%
43% (b) Disagree

31% (c) Neither

agrees nor
disagrees

Interpretation:-

 According to graph, 43% i.e 30 IndiaBulls customers thinks that home delivery
service affects their purchase decision.

Q.12 what difficulty you find in home delivery?

Total response Expected no.

(a) Time 32 17.5
(b) Quality 13 17.5
(c) Quantity 10 17.5
(d) Damage 15 17.5

Drawbacks
CHI square 16.72
Degree of freedom 3
Asymp.sig .ooo

36
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 17.5

Total response

21%
(a) Time
46% (b) Quality
(c) Quantity
14%
(d) Damage
19%

Interpretation:-

 According to graph, 46% i.e 32 Indiabulls customers think that time is the
biggest drawback of Indiabulls home delivery service.

Q.13 Have you ever availed home delivery service of the store?

Total response Expected no.

(a) Agree 51 35
(b) Disagree 19 35

Availed home delivery

CHI square 14.62
Degree of freedom 1
Asymp.sig .ooo

37
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 35

Total response

27%
(a) Agree
(b) Disagree
73%

Interpretation:-

 According to Graph Out of 70 respondents 73% i.e 51 Indiabulls customers

avails the Home Delivery Services

Q.14 The merchandise available at the store is sufficient to fulfill

your needs?

Total response Expected no.

(a) Agree 56 35
(b) Disagree 14 35

Product range and availability

CHI square 19.91
Degree of freedom 1
Asymp.sig .ooo
0 cell (.0%) have expected frequencies less than 5

38
.with the minimum expected cell frequency 35

Total response

26%
(a) Agree
(b) Disagree
74%

Interpretation:-

 According to graph, 74% i.e 56 Indiabulls customers think that merchandise

available at the store is sufficient to fulfill their needs

Q15. Rate the following variables on the basis of how you prefer
to shop.
(1 is the least important and 5 is the most important)

I II III IV V
Near to home 2 1 36 38 101
4
One stop shop 1 2 41 56 72
0 1
Price 7 8 25 66 94

39
 Variety 4 1 30 58 96
2
Home delivery 3 1 55 49 36
2 8
Display 2 3 58 49 38
4 1
Credit Facility 1 1 45 64 56
9 6
Return\Exchang 1 1 40 56 74
e 6 4
Parking Facility 2 2 25 59 70
0 6
In store Help 1 2 45 61 55
4 5
Behavior of staff 1 1 40 66 73
0 1
Quality of 5 3 23 66 103
product
Offers available 1 1 35 65 66
at store 8 6

Factors Affecting Purchasing Decision

120

100

80 I
II
60
III
40 IV
V
20

0
Return\Exchange

Behavior of staff
Parking Facility
Home delievery

Offers available
Credit Facility

In store Help
Near to home

Quality of
Display
Variety
Price
One stop shop

product

at store

40
Interpretation:-

I - First
II - Second
III - Third
IV - Fourth
V - Fifth

According to the Graph for big number of People Quality of affect their purchase
decision followed by the Near to Home store, Variety and price affect their decision
most while Home delivery ,Display and Credit facilities have lesser affect on their
purchasing decision.

Q.16 Read the following statements and indicate your response on

the scale mentioned
1 2 3 4 5
Strongly Agree Neutral Disagree Strongly
Agree Disagree

41
 I II III IV V
I prefer to shop from the nearby 53 75 24 30 18
outlet
I feel proud of buying what my 25 53 63 37 22
parents having been buying
I explore several stores before I 25 48 65 30 32
shop
Traditional markets offer best 39 32 58 32 39
price deals.
I always make a shopping list 38 76 39 25 22
before I shop
I make my budget then buy. 45 55 36 38 26

I generally want someone to 34 62 41 42 21

suggest what to buy
Big stores have good offers 24 65 39 33 39
I don’t mind traveling to shop. 32 58 30 54 26
Big stores generally charge high 13 30 68 27 62
prices

42
 I

V
II

IV
III
10
20
30
40
50
60
70
80

-
-
-
-
-
I prefer to shop from the nearby
outlet

I feel proud of buying what my

parents having been buying

Interpretation:-

First

Fifth
Third
I explore several stores before I

Fourth
Second
shop

Traditional markets offer best price

deals.

I always make a shopping list

before I shop

I make my budget then buy.

I generally want someone to

43
suggest what to buy

Big stores have good offers

I don’t mind traveling to shop.

Big stores generally charge high

prices
I
II
III

V
IV

before Purchasing. While a most of the people don’t mind to go far for Shopping.
According to the Graph large nuber of people agrees with the statement that they
prefer to buy from nearby store and people agree with that they make shopping list
44
STRENGHTS

1. Good financial base

2. A new innovative products and services
3. Doesn’t believe in providing so much discounts but believes in
giving better services
4. Home delivery services
5. Good customer loyalty programmes.
6. Increasing market share leading to a virtuous and profitability
7. Good Market Goodwill
8. Diverse branch network provide sample opportunities to penetrate
deep into the existing and untapped market.

45
WEAKNESS

1. Weak brand promotional activities.

2. No Godown facility in the stores.
3. Limited customer representatives.
4. Limited no. of stores
5. Product Gapping
6. Poor inventory control management
7. Lack of big brand names in products.
8. Lack of security to prevent theft and pilferage.
9. Lack of technology at POS.
10. Lack of brand awareness of store.
11. Lack of proper refrigeration facilities leading to spoilage of
perishable goods.
12. No entertainment facilities like music.

46
OPPORTUNITIES

1. An unfulfilled customer need.

2. High Growth in the Market.
3. Mergers, joint ventures or strategic alliances with the local product
dealers.
4. Arrival of new technology.
5. Change in buying pattern of buyers.
6. Change in market trend from traditional retailing to organized
retailing.
7. Increasing purchasing power parity.
8. Increase in customer knowledge level.

THREATS

47
1. Price war with competitors.
2. Emergence of Super kirana stores.
3. Competitors have superior access to channel of distribution.
4. Competitors have new innovative products and services.
5. Threat from international biggies.
6. High threats from mom and pop stores.

48
49
 FINDINGS
 Customers/consumer mostly prefers to buy on the weekly basis due to its
convenience.

 Customer / consumer mostly prefer to shop with family and they give second
preference shopping alone.

 It is considered that the services provided by the organized retailer are good
and they are happy with it.

 Now a days people prefer purchase from Organised Retail rather than
Unorganised retail market due to availability of many factility to them under a
single roof.

 Today costumer like to puchase from the near by outlet they don’t like to go far .

 Today consumer are more Quality conscious rather than pice and offers
available at the stores.

 People consider the home delivery is good when needed and provided they are
not dependent on home delivery of products.

 Generally people make a list of shopping item which they want to shop from the
market with predefined Budget amount

 Most of the customer from where they buy is loyal towards their store.

 Mostly customers prefer to avail home delivery for grocery items.

 Through our survey we find that 49% customers are agree that their buying
decision affect by home delivery.

 Mostly customers find time related difficulties in home delivery.

 Through our survey we found 75% customers have availed home delivery at
once or twice or generally take.

 74% customers are agree that the merchandise available at the store is
sufficient.

 36% customers prefer to buy from reliance fresh due to its services and
convenience

 Most of the people consider that change in Retail format is GOOD.

50
 RECOMMENDATIONS

 IndiaBulls Mart Should starts the bundle marketing to attract the more
percentage of customers.

 IndiaBulls Mart should work on credit policy to consumer.

 IndiaBulls Mart should emphasis on advertising on both electronic and print

media.

 IndiaBulls Mart should have their own recreation and refreshment facility like
popcorn shop.

 IndiaBulls Mart Should increase the number of customer service

representatives.

 IndiaBulls Mart Should makes Inventory Management system more effective.

 IndiaBulls Mart should make the Branch self-Informative.

 IndiaBulls Mart Should open more Stores to approach to large no. of

population.

 IndiaBulls Mart should provide training and development programmes for all
employees.

 IndiaBulls Mart Should increases market penetration strategies.

 IndiaBulls Mart Should Make security more effective.

51
52
 Questionnaire

Dear respondent,
The project aims to study the retail trends of the city and
comparison between various retail (FHPC format) stores.

Kindly cooperate and oblige.

Gender: M/F
Age: ____
Occupation: ________________________________________________
Area of stay: _______________________________________________
Family members (No.):______

Q.1.How often do you shop. (Tick)

a) Once a week ____
b) Fortnightly (15 days) ____
c) Monthly ____

Q2.From where you prefer to shop:

(a) Organized retail store (shopping mall)
(b) Unorganized retail store (traditional market)

Q3. If you buy from organized retail from where do you buy:
(a) Reliance Fresh
(B) IndiaBulls Mart
(C) Apart
(D) Others
Q.4.What is the approximate monthly expenditure (Amount –
Rs.) on following-
a. Food and Grocery _______
b. Personal care/Fitness _______
c. Entertainment _______
d. Consumer durables _______
e. stationery_______
Q.5.With whom you generally prefer to purchase (Tick)-
1. Friends ____
2. Family ____
3. Alone ____
4. Husband/wife ____

53
Q6. Are you happy with the change in retail trend, i.e., from
vendors to organized retail;
(a) Agree
(b) Disagree
(c) Neither agrees nor disagrees

Q.7 Services/benefits given by the organized retail are:

(a) Excellent
(b) Good
(c) Average
(d) Bad

Q.8 Do you think shopping from organized retail store is status

symbol:
(a) Agree
(b) Disagree
(c) Neither agrees nor disagrees

Q.9 Are you loyal to your store?

(a) Agree
(b) Disagree
(c) Neither agrees nor disagrees

Q.10 on which type of product you prefer home delivery

(a) Grocery
(b) Fruit and vegetable
(c) Persona care
(d) Home care

Q.11 Does home delivery service affect your purchase

decision?

(a) Agree
(b) Disagree
(c) Neither agrees nor disagrees

Q.12 what difficulty you find in home delivery?

(a) Time
(b) Quality
(c) Quantity

54
(d) Damage

Q.13 Have you ever availed home delivery service of the store?

(a) Agree
(b) Disagree
If agree,
Satisfactory
Dissatisfactory
Average

If you have never take home delivery service then, why?

Q.14 the merchandise available at the store is sufficient to fulfill

your needs?
(a) Agree
(b) Disagree

Q15. Rate the following variables on the basis of how you prefer
to shop.
(1 is the least important and 5 is the most important)

Near to home 1 2 3 4 5
One stop shop 1 2 3 4 5
Price 1 2 3 4 5
Variety 1 2 3 4 5
Home delivery 1 2 3 4 5
Display 1 2 3 4 5
Credit facility 1 2 3 4 5
Return/Exchange 1 2 3 4 5
Parking facility 1 2 3 4 5
In store help 1 2 3 4 5
Behavior of staff 1 2 3 4 5
Quality of product 1 2 3 4 5
Offers available 1 23 4 5

55
 Q16 Read the following statements and indicate your response
on the scale mentioned
1 2 3 4
5
Strongly Agree Neutral Disagree Strongly
Agree Disagree

1. I prefer to shop from the nearby outlet 1 2

3 4 5
2. I feel proud of buying what my parents
Having been buying. 1 2 3
4 5
3. I explore several stores before I shop 1 2 3
4 5
4. Traditional markets offer best price deals. 1 2 3
4 5
5. I always make a shopping list before I shop. 1 2
3 4 5
6. I make my budget then buy. 1 2 3
4 5
7. I generally want someone to suggest what
to buy 1 2 3 4
5
8. Big stores have good offers. 1 2 3
4 5
9. I don’t mind traveling to shop. 1 2 3
4 5

56
 10 Big stores generally charge high prices 1 2
3 4 5

57
References

• KeyNote Research Ltd.-Consumer Behaviour, Fourteenth edition 1998

• Ernst & Young- The Great Indian Retail Story, 2006

• Arif Sheikh & Kaneez- Retail Management , 2008

• Rai Management Journal, vol.6th

• Retailbiz, Magazine edition (Jan 09-april-10)

• www.indianretailforum.com

• www.thehindu.com

58
• www.keynoteresearch.com

• www.ey.com

• www.tradingeconomics.com

• www.authorstream.com

59