A
COMPREHENSIVE PROJECT REPORTOnA Study on consumer preference
towards organized retailing jn Bareilly
IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF Master of Business
Administration Second Year
(MBA DEPARTMENT)
UNDER THE GUIDANCE OFMR. Anubhav Saxena
SUBMITTED BY Pradeep kumar-1301470025
DECLARATION
We, Pradeep kumar hereby declare that the report for
comprehensive project entitled A Study on consumer preference
towards organized retailing in Bareilly is a result of our own work
and our indebtedness to other work publications, references have
been duly acknowledged.
Place : - BareillyDate :-
Pradeep kumarRoll no.-(1301470025)
INSTITUTESCERTIFICATE
Certified that this comprehensive project titled A Study on
consumer preference towards organized retailing in Bareillyis the
bonafide work Pradeep kumar and who carried out the research under
my supervision, I also certify further, that to the best of my
knowledge the work reported herein does not form part of any other
project report or dissertation on the basis of which a degree or
award was conferred on an earlier occasion on this or any other
candidate.
Internal Guide:Mr. Anubhav SaxenaAsst. Prof., SRMS CET
Bareilly
Pradeep kumar(Roll no.-1391470025)
Shri Ram murti smarak college of EngineeringTechnology
Bareilly
(Management Department) U P T U Lucknow2013-2015
ACKNOLEDGEMENT
Only due to the blessings of GOD and OUR PARENTS, we have been
successful to handle this project. It is a pleasure to recognize
the many individuals who helped us in all phases of the project.
Without their help, we would not have finished this project, or
even started it. Achievement of a goal is not a one persons job. It
is obtained by guidance & co-operation of others.
Our sincere thanks to MR.Anant Shri vastava, HOD-MBA for his
moral support and constant encouragement without which it was not
possible for us to complete the project work successfully.We take
this opportunity to express our sincere gratitude to all thefaculty
members of Department of Management Shri Ram Murti Smarak College
of Engineering technology Bareilly whose advice and supervision had
helped in the completion of the project work. We are also very
thankful to MR.Anubhav Saxena (Internal Guide), Asst. Prof. at SRMS
CET Bareilly for guiding us in completing our project
successfully.
Place:BareillyDate:Pradeep kumar) Roll NO.-1301470025
TABLE OF CONTENTS
Sr. No.ParticularPAGE No.
Declaration
Certificate of Institute
Preface
Acknowledgements
Executive Summary
Part 1GENERAL INFORMATION
1. Overview of Indian Retail Industry
2. Major players of Retail Industry in India
3. Type of retail industry in India
4. Growth Indian retailing industry
PART 2PRIMARY STUDY
4.Introduction of Study
4.1 Literature Review
4.2 Background of the Study
4.3 Objectives of the Study
5.Research Methodology
5.1 Research Design
5.2 Sources of Data
5.3 Data Collection Method
5.4 Population
5.5 Sampling Method
5.6 Sampling Frame
5.7 Date Collection Instruments
Annexure
Questionnaire for
Bibliography& References
Remarks
LIST OF FIGURES
SR. NO.PARTICULARPAGE NO.
1. Different categories of organising retail sector
2.
3.
4.
5.
6.
7.
8.
9.
10.
LIST OF TABLES
SR. NO.PARTICULARPAGE NO.
1. Global retail scenario of all the world
2. Major players of retailing industry in India
3. Top 10 Retailers Worldwide
4. Summary of research methodology
5.
6.
7.
8.
9.
10.
11.
PART IGENERAL INFORMATION
Chapter 1:- OVERVIEW OF INDIAN RETAIL INDUSTRYThe word "Retail"
originates from a French-Italian word "retailer" meaning someone
who cuts off or shreds a small piece from something. Retailing
includes activities of marketing and selling products or services
to end consumers for their own household or personal use. Retailer
is a Person or Agent or Company or Organization who is instrumental
in reaching the Goods or Merchandise or Services to the End User or
Ultimate Consumer.
What is retailing?Retailing is a distribution channel function,
where one organisation buys products from supplying firms or
manufactures products themselves, and then sells these directly to
consumers.In majority of retail situations, the organisation, from
whom a consumer buys, is a reseller of products obtained from
others, and not the product manufacturer. However, some
manufacturers do operate their own retail outlets in a corporate
channel arrangement.Retailers offer many benefits to suppliers and
customers as resellers. Consumers, for instance, are able to
purchase small quantities of an assortment of products at a
reasonably affordable price. Similarly, suppliers get an
opportunity to reach their target market, build product demand
through retail promotions, and provide consumer feedback to the
product marketer.Most Indian shopping happens in open markets or
numerous small grocery and retail shops. Shoppers typically wait
outside the shop, ask for what they want, and cannot pick or
examine a product from the shelf.Access to the shelf or product
storage area is limited. Once the shopper requests the food staple
or household product they are looking for, the shopkeeper goes to
the container or shelf or to the back of the store, brings it out
and offers it for sale to the shopper. Often the shopkeeper may
substitute the product, claiming that it is similar or equivalent
to the product the consumer is asking for. The product typically
has no price label in these small retail shops; although some
products do have a manufactured suggested retail price (MSRP)
pre-printed on the packaging. The shopkeeper prices the food staple
and household products arbitrarily, and two consumers may pay
different prices for the same product on the same day. Price is
sometimes negotiated between the shopper and shopkeeper. The
shoppers do not have time to examine the product label, and do not
have a choice to make an informed decision between competitive
products.India's retail and logistics industry, organized and
unorganized in combination, employs about 40 million Indians (3.3%
of Indian population). The typical Indian retail shops are very
small. Over 14 million outlets operate in the country and only 4%
of them being larger than 500sq.ft. (46m2) in size. India has about
11 shop outlets for every 1000 people. Vast majority of the
unorganized retail shops in India employ family members, do not
have the scale to procure or transport products at high volume
wholesale level, have limited to no quality control or
fake-versus-authentic product screening technology and have no
training on safe and hygienic storage, packaging or logistics. The
unorganized retail shops source their products from a chain of
middlemen who mark up the product as it moves from farmer or
producer to the consumer. The unorganized retail shops typically
offer no after-sales support or service. Finally, most transactions
at unorganized retail shops are done with cash, with all sales
being final.Until the 1990s, regulations prevented innovation and
entrepreneurship in Indian retailing. Some retails faced complying
with over thirty regulations such as "signboard licenses" and
"anti-hoarding measures" before they could open doors. There are
taxes for moving goods to states, from states, and even within
states in some cases. Farmers and producers had to go through
middlemen monopolies. The logistics and infrastructure was very
poor, with losses exceeding 30 percent.Through the 1990s, India
introduced widespread free market reforms, including some related
to retail. In between 2000 to 2010, consumers in select Indian
cities have gradually begun to experience the quality, choice,
convenience and benefits of organized retail industry.
Major retail sector in India
There are many sectors in retail industry in India and there are
established in various company at specific sectors.
1. Food and grocery: Food Bazaar Aditya Birla Retail Ltd
Trinethra Super Market Ltd Reliance Retail2. Fashion and
accessories Pantaloons Shoppers Stop3. Koutons:4. Footwear Reebok
Bata5. Khadims:6. Home and office improvement Godrej Lifespace Home
Stop Home Town7. Electronics eZone: Viveks:8. Catering services
Yum! Restaurants: McDonalds Caf Coffee Day9. Telecom The Mobile
Store: MobileNXT:10. Pharmaceuticals Apollo Pharmacy MedPlus:
11. Beauty and wellness Reliance Wellness Himalaya Drugs12.
Jewellery Gitanjali: Tanishq: Reliance Jewels13. Timewear Citizen:
Titan Books, music and gifts14. Crossword15. Entertainment
How does the retail sector consumer think?
Trends in the Retail industry
Emergence of organized retail: Real estate development in the
country, for example, the construction of mega malls and shopping
malls, is augmenting the growth of the organized retail business
Spending capacity of youth of India:India has a large youth
population, which is a conducive environment to growth of this
sector. Raising incomes and purchasing power: The per capita income
in India has doubled between 2000- 01 and 2009-10 resulting in
improved purchasing power. Changing mind set of customers:The
customer mind set is gradually shifting from low price to better
convenience, high value and a better shopping experience Easy
customer credit: Emergence of concepts such as quick and easy
loans, EMIs, loan through credit cards, has made purchasing
possible for Indian consumers, for products such as consumer
durables Higher brand consciousness: There is high brand
consciousness among the youth; 60% of Indias population is below
the age of 30 leading to popularization of brands and products
Global Retail Scenario
Retailing has played a major role in the global economy. In
developed markets, retailing is one of the most prominent
industries. In 2008, the US retail sector contributed 31% to the
GDP at current market prices. In developed economies, organized
retail has a 75-80% share in total retail as compared with
developing economies, where un-organized retail has a dominant
share.(Table no. 1 = Global retail scenario of all the
world)[footnoteRef:2] [2: ]
Sr. No.Company nameCountryBanner sales 2007E (in us$ million)No.
of outlets,
1WALMARTUS3953057331
2CARREFOURFRANCE14222913419
3TESCOUK1035733750
4METRO GROUPGERMANY1029422541
5SEVEN & I(ii)JAPAN8437522590
6KROGERUS736333672
7AEON (i)JAPAN7341614803
8TARGETUS711251591
9SCHWARZGERMANY709698575
10COSTCOUS69704518
Global retail sales was estimated to be around US$ 12 trillion
in 20072; however, in 2008, the slowdown in the global economy,
especially in the US, and credit crunch, decreased consumer
spending. On a global level, the economy performed robustly till
2007, but the US crisis spread over to Europe in early 2008, and
its impact was felt in the Asia-Pacific region by mid-2008.
India has the highest number of retail outlets in the world at
over 13 million retail outlets, and the average size of one store
is 50-100 square feet. It also has the highest number of outlets
(11,903) per million inhabitants. The per capita retail space in
India is among the lowest in the world, though the per capita
retail store is the highest. Majority of these stores are located
in rural areas. Retail formats in India:
Hyper marts/supermarkets: large self-servicing outlets offering
products from a variety of categories. Mom-and-pop stores: they are
family owned business catering to small sections; they
areindividually handled retail outlets and have a personal touch.
Departmental stores: are general retail merchandisers offering
quality products and services. Convenience stores: are located in
residential areas with slightly higher prices goods due to
theconvenience offered. Shopping malls: the biggest form of retail
in India, malls offers customers a mix of all types ofproducts and
services including entertainment and food under a single roof.
E-trailers: are retailers providing online buying and selling of
products and services. Discount stores: these are factory outlets
that give discount on the MRP. Vending: it is a relatively new
entry, in the retail sector. Here beverages, snacks and other
smallitems can be bought via vending machine. Category killers:
small specialty stores that offer a variety of categories. They are
known as categorykillers as they focus on specific categories, such
as electronics and sporting goods. This is also knownas Multi Brand
Outlets or MBO's. Specialty stores: are retail chains dealing in
specific categories and provide deep assortment Mumbai's Crossword
Book Store and RPG's Music World are a couple of example.
Chapter: - 2Major players of retailing industry in
India[footnoteRef:3] [3: International Journal of Multidisciplinary
Research Vol.2 Issue 1, January 2012, ISSN 2231 5780 , Data has
been compiled from the website of different companies]
There are various major players in India retailing industry and
there are location at various cities in India OwnershipBrand
NameOutlet typeLocation
RPG Spencers SupermarketsAcross all major cities
Hypermarkets
DFL (Joint venture with DSP Merrill Lynch and Rahejas) Food
World SupermarketsChennai, Bangalore and Hyderabad
Pantaloon Food Bazaar SupermarketAcross all major cities
Big Bazaar Hypermarket
Nilgiris Franchisee Pvt. Ltd Nilgiris SupermarketsChennai,
Bangalore, Pondicherry and tier two towns in Tamil Nadu
The Trinethra Group Trinethra SupermarketsMajor cities in Andhra
Pradesh and Tamil Nadu
Fabmall India Pvt Ltd Fabmall SupermarketsBangalore and
Chennai
Franchisee ownership model regulated by cooperative Margin Free
Discount storesMajor cities in Kerala, Tamil Nadu and Karnataka
Food Express India Ltd Monday to Sunday, Jumbo Supermarkets
HypermarketsBangalore
Home Stores Pvt. Ltd. Sabka Bazaar Discount storesDelhi and
adjoining areas
Pyramid Retail Ltd. Trumart SupermarketsMaharashtra- Mumbai
Trent (Tata Group) Star India Bazaar HypermarketsAhmedabad,
Mumbai
Spar- India Ltd. Spar SupermarketsMumbai
Namdharis Group Namdharis Fresh SupermarketsBangalore, Delhi
Adani Group Adanis SupermarketsGujarat
Department of Food and Public Distribution (Govt. of India
Coop.) Super Bazaar SupermarketsDelhi
Department of Food and Public Distribution (Govt. of India
Coop.) Kendriya Bhandar SupermarketsDelhi
Vishal Mega Mart Food Mart Hyper MarketAcross all major
cities
Reliance India Ltd. Reliance Fresh Discount StoresAcross all
major cities
Rei Agro Ltd. 6Ten Discount StoresNorth India
Chapter: - 3Kind of Indianretail industry
The Indian retail industry is divided into organized and
unorganized sectors. The Indian retail sector is highly fragmented,
with a major share of its business is being run by unorganized
retailers like the traditional family run stores and corner stores.
The organized retail however is at a very nascent stage, though
attempts are being made to increase its proportion bringing in a
huge opportunity for prospective new players.There are two types of
Retailing: Organized Retailing Unorganized Retailing
Organized RetailingOrganized retailing refers to trading
activities undertaken by licensed retailers, that is, those who are
registered for sales tax, income tax, etc. These include the
corporate-backed hypermarkets and retail chains, and also the
privately owned large retail businesses. Unorganized
RetailingIndian retail is dominated by a large number of small
retailers consisting of the local kirana shops, owner-manned
general stores, chemists, footwear shops, apparel shops, paan and
beedi (local betel leaf and tobacco) shops, hand-cart hawkers,
pavement vendors, etc. which together make up the so-called
"unorganized retail" or traditional retail.
Difference between Organized Retailing &Unorganized
RetailingOrganized RetailingUnorganized Retailing
Organized retailing refers to trading activities undertaken by
licensed retailers, that is, those who are registered for sales
tax, income tax, etcUnorganized retailing, on the other hand,
refers to the traditional formats of low-cost retailing
There are include the corporate-backed hypermarkets and retail
chains, and also the privately owned large retail businesses.There
are include the local kirana shops, owner-manned general stores,
chemists, footwear shops, apparel shops, paan and beedi (local
betel leaf and tobacco) shops, hand-cart hawkers, pavement vendors,
etc
Multi storied malls and huge complexes that offer a large
variety of products in terms of quality, value for money and makes
shopping a memorable experience.Low cost retailing. These are
highly competitive outlets, with negligible rental costs
(unregistered kiosks or traditional property), cheap workers (work
is shared by members of family) and low taxes and overheads.
The ownership and management rest with two or more person.The
ownership and management rest with one person only
The organized stores are not having number of options to cut
their costsThe unorganized stores are having number of options to
cut their costs
The customersare want to change in many shopping malls.This is
one of the good reasons which the customer doesn't want to change
their old loyal kirana shop.
ORGANISED RETAILINGOrganized retailing comprises mainly of
modern retailing with busy shopping malls, multi storied malls and
huge complexes that offer a large variety of products in terms of
quality, value for money and makes shopping a memorable
experience.
Organized retailing refers to trading activities undertaken by
licensed retailers, that is, those who are registered for sales
tax, income tax, etc. These include the corporate-backed
hypermarkets and retail chains, and also the privately owned large
retail businesses.According to AT Kearney report for the year 2011,
organized retail accounts for 7 per cent of India's roughly US$ 435
billion retail market and is expected to reach 20 per cent by
2020.Food accounts for 70 per cent of under-penetrated by organized
retail. Organized retail has a 31 per cent share in clothing and
apparel and continues to see growth in this sector. The home
segment shows promise, growing 20 to 30 per cent per year. India's
more urban consumer mind-set means this sector is poised for
growth.Indian retail, but it remains.Organized retailing refers to
trading activities undertaken by licensed retailers, i.e. those who
are registered for sales tax, income tax, etc.These include the
corporate backed hypermarkets and retail chains and also the
privately owned large retail businesses.
(Table no. 2 = Top 10 Retailers Worldwide)[footnoteRef:4] [4:
]
RankRetailerHome country
1Wal-mart store ,inc.USA
2Carrefoer GroupFrance
3The Home Depot, Inc.USA
4The Kroger co.USA
5Royal AholdNetherlands
6Metro AGGermany
7Target corporationUSA
8Alertson`s, inc.USA
9Sear,roebuck and co.USA
10Kmart corporationUSA
Different categories of organizing retail sector [footnoteRef:5]
[5: ]
CHALLENGES TO RETAIL DEVELOPMENT IN INDIA
Organized retail in India is little over a decade old. It is
largely an urban phenomenon and the pace of growth is still slow.
Some of the reasons for this slow growth are: - The Kiranas
ContinueThe very first challenge facing the organized retail
industry in India is competition from the unorganized sector.
Traditionally retailing has established in India for centuries. It
is a low cost structure, mostly owner operated, has negligible real
estate and labor costs and little or no taxes to pay. Consumer
familiarity that runs from generation to generation is one big
advantage for the traditional retailing sector. On the other hand,
organized sector have big expenses to meet and yet have to keep
prices low enough to compete with the traditional sector. Retailnot
beingrecogning as an industry in IndiaLack of recognition as an
industry hampers the availability of finance to the existing and
new players. This affects growth and expansion plans. The High cost
of Real estateReal estate prices in some cities in India are
amongst the highest in the world. The lease or rent of property is
one of the major areas of expenditure; a high lease rental reduces
the profitability of a project. High Stamp dutiesIn addition to the
high cost of real estate the sector also faces very high stamp
duties on transfer of property, which varies from state to state
(12.5% in Gujarat and 8% in Delhi). The problem is compounded by
problems of clear titles to ownership, while at the same time land
use conversion is time consuming and complex as is the legal
process for settling of property disputes. Lack of adequate
infrastructurePoor roads and the lack of a cold chain
infrastructure hampers the development of food and grocery retail
in India. The existing supermarkets and foods retailers have to
invest a substantial amount of money and time in building a cold
chain network. Multiple and complex taxation system The sales tax
rates vary from state to state, while organized players have to
face a multiple point control and system there is considerable
sales tax evasion by small stores. In many locations, retailers
have to face a multi-point octroi with the introduction of value
Added Tax (VAT) in 2005, certain anomalies in the existing sales
tax system causing disruption in the supply chain are likely to get
corrected over a period of time. There is price war between
different retail organizations. Each and every one is saying to
provide goods at low cost and offers various promotional schemes.
In such a case it is difficult to keep ones customers with
oneself.
OPPORTUNITIES TO RETAIL DEVELOPMENT IN INDIA
Retail marketing gets various opportunities to grow up in the
Indian market. Not only retailing but Manufacturers as well as
suppliers, and buyers have various opportunities, some of which are
mentioned below What is in storeOrganized retail provides brands
much needed visibility and platform for customer interaction. It
also helps in launching of new product or product variant and in
market penetration. It has wider product range and more frequent,
speedier deliveries. UrbanizationIncreased urbanization has shifted
consumers to one place and thus a single retail can catch more
customers. Nuclear familyAs the time passed away joint families
came in a new form i.e. nuclear family. Again the income level of
these nuclear families increases because both members started
earning. This results into increased power of purchase and lack of
time. Now they want everything under one roof. This brought the
concept of organized retailing. Plastic revolutionIncreased use of
credit cards is in favour of retail marketing. It creates
requirement even when it is not necessary. Jo Dikata Hai Woh Bikta
HaiOrganized retail stores put stress on proper infrastructure like
well-maintained building, air conditioning, trained employees,
electronic machine, parking facilities and proper display of goods
category wise. Here customers feel comfort, joy and entertainment.
Purchasing becomes joy for him. Self-selection saves time and gives
more opportunities and satisfaction. Fix cost removes the threat of
misleading. They avail various discounts and promotional schemes
presented by the manufacturers. They also get product of different
varieties and of proper quality. EmploymentRetail marketing is one
of the largest employments generating industry. It provides
employment to skilled, semi-skilled as well as to unskilled
persons. Thus it helps in the socio- economic development of the
society. Price warIncrease in the no of retail outlets increases
competition among these retailers. To attract customers they give
various promotional schemes as various discounts, buy one get one
free, another product with any particular product, festival
special, etc. Contract farmingThe retail marketers directly
purchase from farmers and reducing middlemen, thus provide proper
cost to farmers and also set proper price for consumers. They also
make contract with farmers to get proper amount of crops and
vegetables. Reduces supply chain managementThe big players of
retail marketing and the manufacturing companies directly come in
contact thus reducing many intermediary chains. Manufacturers also
give many promotional schemes for their product that is beneficial
for consumers.
UNORGANISED RETAILING
Traditional or Unorganized retail outlets are normally street
markets, counter stores, kiosks and vendors, where the ownership
and management rest with one person only. This sector accounts for
two thirds of the market and requires low skilled labor. These are
highly competitive outlets, with negligible rental costs
(unregistered kiosks or traditional property), cheap workers (work
is shared by members of family) and low taxes and overheads.
Indian retail is dominated by a large number of small retailers
consisting of the local kirana shops, owner-manned general stores,
chemists, footwear shops, apparel shops, paan and beedi(local betel
leaf and tobacco) shops, hand-cart hawkers, pavement vendors, etc.
which together make up the so-called unorganized retail" or
traditional retail. The last few years have witnessed the entry of
a number of organized retailers opening stores in various modern
formats in metros and other important cities. Unorganized retailers
normally do not pay taxes and most of them are not even registered
for sales tax, VAT, or income tax.Unorganized retailing, on the
other hand, refers to the traditional formats of low-cost
retailing, for example, hand cart and pavement vendors, &
mobile vendors, the localkiranashops, owner manned general
stores,paan/beedishops, convenience stores, hardware shop at the
corner of your street selling everything from bathroom fittings to
paints and small construction tools; or the slightly more organized
medical store and a host of other small retail businesses in
apparel, electronics, food etc.
The reasons might be obtain by unorganised retailing:-
In smaller towns and urban areas, there are many families who
are traditionally using thesekiranashops/ mom and pop stores
offering a wide range of merchandise mix. Generally these kirana
shops are the family business of these small retailers which they
are running for more than one generation. These kirana shops are
having their own efficient management system and with this they are
efficiently fulfilling the needs of the customer. This is one of
the good reasons why the customer doesn't want to change their old
loyal kirana shop. A large number of working class in India is
working as daily wage basis, at the end of the day when they get
their wage, they come to this small retail shop to purchase wheat
flour, rice etc. for their supper. For them this the only place to
have those food items because purchase quantity is so small that no
big retail store would entertain this. Similarly there is another
consumer class who are the seasonal worker. During their
unemployment period they use to purchase from this kirana store in
credit and when they get their salary they clear their dues. Now
this type of credit facility is not available in corporate retail
store, so this kirana stores are the only place for them to fulfill
their needs. Another reason might be the proximity of the store. It
is the convenience store for the customer. In every corner the
street an unorganized retail shop can be found that is hardly a
walking distance from the customer's house. Many times customers
prefer to shop from the nearby kirana shop rather than to drive a
long distance organized retail stores. This unorganized stores are
having number of options to cut their costs. They incur little to
no real-estate costs because they generally operate from their
residences.
Chapter: - 4Growth of Indian Retail industry
An increasing number of people in India are turning to the
services sector for employment due to the relative low compensation
offered by the traditional agriculture and manufacturing sectors.
The organized retail market is growing at 3.5 percent annually
while growth of unorganized retail sector is pegged at 6 percent.
The Retail Business in India is currently at the point of
inflection. Rapid change with investments to the tune of US $ 25
billion is being planned by several Indian and multinational
companies in the next 5 years. It is a huge industry in terms of
size and according to management consulting firm Techno Park
Advisors Pvt. Ltd., it is valued at about US $ 350 billion.
Organized retail is expected to garner about 16-18 percent of the
total retail market (US $ 65-75 billion) in the next 5 years.
According to the tenth report of GRDI of AT Kearney, India is
having a very favourable retail environment and it is placed at 4th
spot in the GRDI. The main reasons behind that is the 9% real GDP
growth in 2010, forecasted yearly growth of 8.7% through 2016, high
saving and investment rate and increased consumer spending.
According to report, organized retail accounts for 7% of Indias
roughly $435 billion retail market and is expected to reach 20% by
2020. Food accounts for 70% of Indian retail, but it remains under
penetrated by organized retail. Organized retail has a 31% share in
clothing and apparel and continues to see growth in this sector. A
report by Boston Consulting Group has revealed that the countrys
organized retail is estimated at US $ 28 billion with around 7%
penetration. It is projected to become a US $ 260 billion business
over the net decade with around 21% penetration. The analysts
believe that the sector is likely to show significant growth of
over 9% over the next ten years and also see rapid development in
organized retail format with proportion likely to reach more
respectable 25%by 2018. The BMI India Report for the first quarter
of 2012 released forecasts that total retail sales with growth from
US $ 422.09 billion in 2011 to US $ 825.46 billion by 2015. The
report highlights strongly underlying economic growth, population
expansion, increasing disposable income and rapid emergence of
organized retail infrastructure as major factors behind the
forecast growth. According to department of Industry Policy and
Promotion Cumulative, FDI inflows in single brand retail trading
stood at US$ 44.45 million during April 2000 to September 2011.
Indian retail sector is wearing new clothes and with a three year
compounded annual growth rate of46-64%, retail is the fastest
growing sector in the Indian economy. The sector is the second
largest employer after agriculture, employing more than 35 million
people with wholesale trade generating an additional employment to
5.5 million crore.The enormous growth of retail industry has
created a huge demand for real estate. Property developers are
creating retail real estate at an aggressive pace. According to
report titled India Organized Retail Market 2010, published by
Knight Frank, during 2010- 12,around 55 million square feet of
retail space will be ready in Mumbai, NCR, Bangalore, Kolkata,
Chennai, Hyderabad and Pune. Besides between 2010 and 2012 the
organized retail real estate will be grown from existing 41 million
square feet to 95 million square feet. The total no. of shopping
mall is expected to expand at CAGR of 18.9% by 2015. Hypermarket,
currently accounting for 14% of mall space is expected to witness
high growth. Industry experts predict that the next phase of growth
in the retail sector will emerge from the rural market. By 2012,
the rural retail market is projected to have a total of more than
50% market share. India's retail market is expected to be worth
about US$ 410 billion, with 5 per cent ofsales through organised
retail, meaning that the opportunity in India remains immense.
Retail should continue to grow rapidlyup to US$ 535 billion in
2013, with 10 per cent coming from organised retail, reflecting a
fast-growing middle class, demanding higher quality shopping
environments and stronger brands, according to the report Expanding
Opportunities for Global
PART 2PRIMARY STDUY
Chapter 4:- INTRODUCTION OF THE STUDY
Literature Review Background of the Study Objectives of the
Study
4.1 :- Literature Reviews
According to Dholakia (1999),[endnoteRef:2] the rationale for
shopping is making physical visits to a shopping site. It is
considered as a household task as well as a form of recreation,
relaxation and entertainment. Shopping is also considered to have
the most positive attribute of being a leisure activity along with
work (Dholakia, 1999). [2: Dholakia, R. R. (1999). Going shopping:
key determinants of shopping behaviour and motivations.
InternationalJournal of Retail and Distribution Management
Bradford, 27, 154165.]
Sinha & Banerjee (2004)[endnoteRef:3] studied the drivers of
store choice in various product categories, in the context of
evolving retail industry in India and found that the distinct store
features as perceived by respondents with true motivations of
various consumers in patronizing various stores. Study suggests
that consumers of Indian unorganized retail market do not require
the service paraphernalia offered by many retailers. Store
environment plays a vital role for store patronage and repeat
purchases which includes convenience, value for money products,
etc. [3: Sinha, P. K. and Banerjee, A. (2004). Store choice
behaviour in an evolving market. International Journal of Retail
& Distribution Management, 32(10), 482- 494.]
Backstrom & Johansson (2006)[endnoteRef:4] studied factors
that influence consumers' in-store experiences. In-store
experiences are constituted by traditional values such as the
behavior of the personnel, a satisfactory selection of products,
price and a layout that facilitates the store visit. [4: Backstrom,
K & Johansson, U (2006). Creating and consuming experiences in
retail store environments: Comparing retailer and consumer
perspectives. Journal of Retailing and Consumer Services, 13,
417430.]
Terblanche & Boshoff (2006)[endnoteRef:5] suggested that
retailers will have to accept that it is not only what they are
marketing but also how it is done. The personal (face-to-face)
interaction between retail staff and shoppers is of critical
importance. [5: Terblanche, N. S. and Boshoff, C. (2006). The
relationship between a satisfactory in-store shopping experience
and retailer loyalty. South African Journal of Business Management,
37(2), 33-43.]
Kalhan (2007)[endnoteRef:6] studies the impact of organized
retail on unorganized retail shops. Major findings reveal that 70 %
of unorganized retailers reported falling sales. This fall in sales
is due to superior shopping environment, convenience, availability
of variety, ambience of shop, and availability of parking space and
perception of quality of products sold in organized retail setup.
[6: Kalhan, A. (2007). Impact of Malls on Small Shops and Hawkers.
Economic Political Weekly, 6, 2063-2066.]
Goswami (2008)[endnoteRef:7] studied the shopping experiences in
kirana stores and in modern stores. The major findings suggest
Kirana stores to improve or to enrich shopping experiences. Kiranas
also have to stay alert, try to upgrade and have to improve on
service quality while concentrating on innovation and efficiency.
[7: Goswami, P. (2008). Would Kiranas in Urban India Survive the
Modern Trade Onslaught? Insight from Efficiency Perspective.
Advances in ConsumerResearch, 8(3), 44-67.]
Das & Kumar (2009)[endnoteRef:8] studied the impact of sales
promotion on consumers shopping experiences. A major finding
reveals that keeping product satisfaction constant, sales can be
improved by enhancing shopping experience which includes
convenience of shopping, ease of locating products, easy check in
and checkouts, customer friendly sales people and customer friendly
policies. Secondly finding reveals that purchase decision for the
same product under same promotion at different stores may vary
because difference in shopping experiences provided by different
stores. Further this study shows that promotion plays a limited
role on consumers buying behavior where only small percentage of
people are attracted to such sales promotion and wait for it. Study
lastly emphasizes on the importance of shopping experience (ease of
shopping, parking space, convenience etc.) for positively impacting
consumer buying behavior. [8: Das, G. & Kumar, R. V. (2009).
Impact of Sales Promotion on Buyers Behaviour: An Empirical Study
of Indian Retail Customers. Global Marketing Journal, 3(1),
11-24.]
Goswami & Mishra (2009)[endnoteRef:9] seek to understand
whether Indian consumers are likely to move from traditional Kirana
stores to large organized retailers while shopping for groceries.
The research finding reveals that customer patronage to grocery
stores was found to be positively related to location, helpful,
trustworthy salespeople, and home shopping, cleanliness, and
offers, quality and negatively related to travel convenience.
Kiranas do well on location but poorly on cleanliness, offers,
quality, and helpful trustworthy salespeople. The converse is true
for organized retailers. Study also finds that Kiranas have major
disadvantages on all customer perception scores except location.
These scores being less important determinants of patronage
compared with location, in the short run kiranas may not be ousted
out of customers' flavor. However, in the long run if they do not
work on these other factors, they would face oblivion. Kiranas need
to upgrade their facilities to be able to compete with the
organized retailers to provide consumers better shopping
experiences, whereas organized retailers which are expected to
improve their location scores rapidly in the near future will grow
rapidly. [9: Goswami, P., Mridula, S. Mishra, (2009). Would Indian
consumers move from kirana stores to organized retailers when
shopping for groceries? Asia Pacific Journal of Marketing and
Logistics, 21(1), 127 143.]
Inside store (2009)[endnoteRef:10] studied the shopping
experiences at traditional Indian retail stores. Major findings
reveal that 70% of purchases are made at the point of purchase, so
store environment can impact the 70% of purchases which is one of
the important constituent of shopping experience in unorganized
retail setup. [10: Inside store (2009). Unplanned Buying at
Traditional Retail in India. A Research Report Insight in store,
Research report USA.]
Mittal and Parashar (2010)[endnoteRef:11] explained that
irrespective of area, people prefer grocery stores to be nearby,
product assortment is important for grocery. Ghosh & Srivastava
(2010) in his research found that service quality has become vital
for service firms to pay attention due to increased competition.
[11: Mittal, K. C., Arora, M. and Parashar, A. (2011). An Empirical
Study on factors affecting consumer preferences of shopping at
organized retail stores in Punjab. KAIM journal of management and
research, 3(2), 38-40.]
Sivaraman (2010)[endnoteRef:12]analyzed customer attitude toward
unorganized retailers on the attributes of store image, range of
products, brand choices, price, store ambience, credit
availability, shop proximity and complements. However there were no
perceived difference on product freshness and customer care. This
study clearly point out that the unorganized retailers are facing
stiff competition from the organized retailers. This has reduced
their sales, profit, and employment considerably. The operational
cost, consumer credit also increased due to the presence of
organized retailers. [12: Sivaraman. P. (2010). The future of
unorganized retailing in Kanyakumari district. Asian Journal of
Management Research, 2(1), 434 442.]
Kumar (2011)[endnoteRef:13]studied on the strategies of
unorganized retailers with reference to consumer durables and found
that a product strategy which means merchandise is the most
important factor followed by price, distribution and promotion.
[13: Kumar, K. S. (2011). A study on the strategies of unorganized
retailers with reference to consumer durables. International
Journal of Business and Management Tomorrow, 1(1), 1-13]
Kushwaha (2011)[endnoteRef:14] compared the perception of
consumers in organized and unorganized retail market and found that
factors like cleanliness, distance, price, quality, safety and
space for shopping are the determinant factors for unorganized
retail. [14: Kushwaha, S. and Gupta, M. K. (2011). Customer
perception in Indian retail industry: A comparative study of
organized and unorganized retail industry. Research Journal of
Economics and Business studies, 1(1), 61-73.]
Purohit and Kavita(2013) according to their studies that the
traditional retailers are not very much clear about the
consequences of the modern retailing the traditional retailers are
neutral or undecided, modern retailing will cut the profit margin
of the traditional retailers; the modern retailing will lead
healthy competition in the market, modern retailing will reduce the
sales volume of the traditional retailers and traditional retailers
should improve customer care services in the era of modern
retailing. Shaoni Shabnam (2013): It is important to highlight that
in organized retail, the status of employment is much better than
that in unorganized retail. Hence it is definitely desirable that
more and more labor gets absorbed in this sector of retail. In the
current context, the labor employed in unorganized retail stands
unfit for finding employment in organized retail. If appropriate
training and skills could be imparted to them, it is possibly
feasible to offer better forms of employment to them in the
organized retail sector. The status of employment is much better
than that in unorganized retail. Hence it is definitely desirable
that more and more labor gets absorbed in this sector of retail. In
the current context, the labor employed in unorganized retail
stands unfit for finding employment in organized retail. If
appropriate training and skills could be imparted to them, it is
possibly feasible to offer better forms of employment to them in
the organized retail sector. Meeta Punjabi (2013): According to
their study they suggest that the development efforts in this area
are based on three grounds: First, farmers associated with the
modern value chains earn higher returns than selling to the
traditional markets. Second, the modern supply chains have specific
quality requirements which are easier to meet by the large and
medium farmers and the small farmers tend to get left out of these
markets.Third, there are several successful examples of linking
small farmers to these modern value chains with effort from
government agencies, NGOs and development agencies. This knowledge
presents strong grounds for a closer look at the emerging sector in
India. Mathew Joseph (2013): Unorganized retailers in the vicinity
of organized retailers experienced a decline in their volume of
business and profit in the initial years after the entry of large
organized retailers. The adverse impact on sales and profit weakens
over time. There was no evidence of a decline in overall employment
in the unorganized sector as a result of the entry of organized
retailers. There is some decline in employment in the North and
West regions which, however, also weakens over time. The rate of
closure of unorganized retail shops in gross terms is found to be
4.2% per annum which is much lower than the international rate of
closure of small businesses. The rate of closure on account of
competition from organized retail is lower still at 1.7% per annum.
There is competitive response from traditional retailers through
improved business practices and technology up gradation. A majority
of unorganized retailers is keen to stay in the business and
compete, while also wanting the next generation to continue
likewise. Small retailers have been extending more credit to
attract and retain customers.
4.2 :- BACKGROUND OF THE STUDY
The Indian Retail Industry is the fifth largest in the world.
Comprising of organized and unorganized sectors, Indian retail
industry is one of the fastest growing industries in India,
especially over the last few years. Though initially the retail
industry in India was mostly unorganized, however with the change
of taste and preferences of consumers, the Industry is getting more
popular these days and getting organized as well. The Indian Retail
Industry is expected to grow from US$330 billion in 2007 to US$640
billion by 2015. According to the 10th Annual Global Retail
Development Index (GRDI) of A.T. Kearney,India is having a very
strong growth fundamental base thats why its the perfect time to
enter into Indian Retail Market. Indian Retail Market accounts for
22% of countrys GDP and it contributes to 8% of the total
employment. The total retail spending is estimated to double in the
next five years. Of this, organized retail currently growing at a
CAGR of 22%- is estimated to be 21% of total expenditure. The
unorganized retail sector is expected to grow at about 10% per
annum with sales expected to rise from $309 billion in 2006-07 to
$496 billion in 2011-12. This paper focused on changing face of
Retail Industry, organized or unorganized retail industry, major
players in retail industry and also highlights the challenges faced
by the industry in near future. Indian Retail IndustryIndias
Retailing Boom has acquired further momentum, dynamism and vibrancy
with international players experimenting in the Indian market and
the countrys existing giants taking bold innovative steps to woo
the consumer. At the same time, the early entrants are redefining
their strategies to stay competitive and suit the new market
landscape. The next few years are liking to witness rapid growth in
the organized retailing sector with several leading international
players establishing their presence in India by adjusting their
formats to suit local tastes and buying behaviour while regional
players have stepped up their defences and are striving to gain
edge over global players by using their knowledge of local markets.
Clearly the next wave of the retail boom is upon us. Retailing is
one of the pillars of the economy in India. Over the past few
years, the retail sale in India is hovering around 33-35% of GDP as
compare to 20% in the US. The Indian retail industry is the fifth
largest in the world. Comprising of organized and unorganized
sectors, Indian retail industry is one of the fastest growing
industries in India, especially over the last few years. Though
initially, the retail industry in India was mostly unorganized,
however with the tastes and preferences of the consumers, the
industry is getting more popular these days and getting organized
as well. Now with growing market demand, the industry is expected
to grow at pace of 25-30% annually. The Indian retail industry is
currently growing at a great pace and is expected to go up to US $
833 billion by the year 2013. In the last four years consumer
spending in India has climbed up to 75%. In India though, organized
retail accounts for app. 5-6% of total retail revenues, however,
with a young population, increasingdisposable income, changing life
styles and a robust economy India is set to emerge as one of the
fastest growing organized retail markets in the world.Retailing is
one of the biggest sectors and it is witnessing revolution in
India. The new entrant in retailing in India signifies the
beginning of retail revolution. India's retail market is expected
to grow tremendously in next few years. According to AT Kearney,
The Windows of Opportunity shows thatRetailing in India was at
opening stage in 1995 and now it is in peaking stage in 2006. The
origins of retailing in India can be traced back to the emergence
of Kirana stores and mom-and-pop stores. These stores used to cater
to the local people. Eventually the government supported the rural
retail and many indigenous franchise stores came up with the help
of Khadi & Village Industries Commission. The economy began to
open up in the 1980s resulting in the change of retailing. The
first few companies tocome up with retail chains were in textile
sector, for example, Bombay Dyeing, S Kumar's, Raymonds, etc. Later
Titan launched retail showrooms in the organized retail sector.
With the passage of time new entrants moved on from manufacturing
to pure retailing.Retail outlets such as Food world in FMCG, Planet
M and Music world in Music, Crossword in books entered the market
before 1995. Shopping malls emerged in the urban areas giving a
world-class experience to the customers. Eventually hypermarkets
and supermarkets emerged. The evolution of the sector includes the
continuous improvement in the supply chain management, distribution
channels, technology, back-end operations, etc. this would finally
lead to more of consolidation, mergers and acquisitions and huge
investments. India's retail market is expected to grow tremendously
in next few years. India shows US$330 billion retail market that is
expected to grow 10% a year, with modern retailing just beginning.
In India, the most of the retail sector is unorganized. The main
challenge facing the organized sector is the competition from
unorganized sector. Unorganized retailing has been there in India
for centuries. The main advantage in unorganized retailing is
consumer familiarity that runs from generation to generation. It is
a low cost structure; they are mostly operated by owners, have very
low real estate and labor costs and have low taxes to pay.
Organized retail business in India is very small but has tremendous
scope.
Customer Attribute affecting choice of format
Challenges Faced by the Retail Industry:
International Standards: Even though India has well over 5
million retail outlets of different sizes and styles, it still has
a long way to go before it can truly have a retail industry at par
withInternational standards. This is where Indian companies and
International brands have a huge role to play. Inefficient supply
chain management: Indian retailing is still dominated by the
unorganized sector and there is still a lack of efficient supply
chain management. India must concentrate on improving the supply
chain management, which in turn would bring down inventory cost,
which can then be passed on to the consumer in the form of low
pricing. Lack of Retail space:Most of the retail outlets in India
have outlets that are less than 500 square feet in area. This is
very small by International Standards. Cultural Diversity: India's
huge size and socio economic and cultural diversity means there is
no established model or consumption pattern throughout the country.
Manufacturers and retailers will have to devise strategies for
different sectors and segments which by itself would be
challenging. Real estate issues: The enormous growth of the retail
industry has created a huge demand for real estate. Property
developers are creating retail real estate at an aggressive pace.
With over 1,000 hypermarkets and 3,000 supermarkets projected to
come up by 2011, India will need additional retail space of
700,000,000 sq.ft. (65,000,000 m2) as compared to today. Human
resource problems: Trained manpower shortage is a challenge facing
the organized retail sector in India. The Indian retailers have
difficulty in finding trained person and also have to pay more in
order to retain them. This again brings down the Indian retailers
profit levels.
Frauds in Retail: It is one of the primary challenges the
companies would have to face. Frauds, including vendor frauds,
thefts, shoplifting and inaccuracy in supervision and
administration are the challenges that are difficult to handle.
This is so even after the use of security techniques, such as CCTVs
and POS systems. As the size of the sector would increase, this
would increase the number of thefts, frauds and discrepancies in
the system. Challenges with Infrastructure and Logistics: The lack
of proper infrastructure and distribution channels in the country
results in inefficient processes. This is a major hindrance for
retailers as a non-efficient distribution channel is very difficult
to handle and can result in huge losses. Infrastructure does not
have a strong base in India. Urbanization and globalization are
compelling companies to develop infrastructure facilities.
Transportation, including railway systems, has to be more
efficient. Highways have to meet global standards. Airport
capacities and power supply have to be enhanced. Warehouse
facilities and timely distribution are other areas of challenge. To
fully utilize India's potential in retail sector, these major
obstacles have to be removed.
SWOT Analysis of Retail Sector:1. Strengths: Major contribution
to GDP High Growth Rate: High Potential: High Employment Generator:
2. Weaknesses (limitation): Lack of Competitors Highly Unorganized
Low Productivity Shortage of Talented Professionals No Industry
status, 3. Opportunities (benefits): Healthy Competition will be
boosted and there will be a check on the prices (inflation). Create
transparency in the system. Intermediaries and mandi system will be
evicted, hence directly benefiting the farmers and producers.
Quality Control and Control over Leakage and Wastage. Heavy flow of
capital will help in building up the infrastructure for the growing
population. There will be sustainable development and many other
economic issues will be focused upon.4. Threats: Current
Independent Stores will be compelled to close Big players can
knock-out competition. India does not need foreign retailers.
Remember East India Company it entered India as trader and then
took over politically. The government hasnt able to build
consensus.
In view of the above analysis, if we try to balance
opportunities and prospects attached to the given economic reforms,
it will definitely cause good to Indian economy and consequently to
public at large, if once implemented. Thus the period for which we
delay these reforms will be loss for government only, since
majority of the public is in favour of reforms. All the above
mentioned drawbacks are mostly politically created. With the
implementation of this policy all stakeholders will benefit whether
it is consumer through quality products at low price, farmers
through more transparency in trading or Indian corporates with 49%
profit share remaining with Indian companies only.
4.3 :- OBJECTIVE OF THE STUDY
The following are the objectives of the Study:-
Indian retailers are providing creditworthiness to their
customers and also providing good relation to their customers while
the organized retailers are good space for visiting and parking. To
study the strategy using by Organized and Unorganized sector to
survive in this competitive market. To present the future
constraints of retail sector in Ahmedabad city. The aim of the
study is to identify the factors affecting consumer preference
related to shopping at organized retail store and unorganized
retail stores. To identify the reason for people select unorganized
retailing for shopping (local market). To know about the selling
technique through which the consumer are attracted towards the
organized retails (shopping malls) products & services. To know
about the situation for present retailing industry in Ahmedabad
city. To find out Does Festival seasons advertising has any impact
in the minds of consumers. To understand the nature of merchandise
budgeting and unit planning. To understand the concept of
relationship marketing and how does it apply to theOrganized retail
and unorganized retail sector. To find out, what attributes
consumers are looking for in retailing product,
Significance of Study
The following are the Significances of the Study:-
This study report will help to Retailing Companies in improving
their selling strategy The report contains the suggestions and
findings of the product of the company which will help them to
improve their quality of the product. The study work did on the
basis of the retailer viewpoints which will help the company to
understand the customer needs, requirement, perception and many
more things. The reports conclusion and suggestion will help the
companies to understand the coverage of the market with the use of
sales strategy and also provide the idea to the company in findings
the necessary field where the product is highly demanding. This
report will help to the society or in commercial sector who wants
to go for research work in future on Retailing industry.
Aspect that put consumers off
Chapter: - 5 Research methodology
Research design Sampling Procedure Sample location Sampling
Method Sample Size Data collection Data collection instrument
5.1 Research design Research design is a one kind of framework
or blueprint upon which whole process going on. In this we have to
clearly define that which method of the research we have to follow.
It may be based on the judgment or situational objectives. A
research design specifies that method and procedures for conducting
a particular study. The researcher should specify the approach be
intends to use with respect to the proposed study broadly speaking
research can be groped in to three categories. i. Exploratory
(ambiguous problem),ii. Descriptive (aware of problem), iii.
Explanatory (clearly defined problem).Exploratory Research Design
An exploratory research design focuses on the discovery of ideas
and is generally based on secondary data. Descriptive Research
Design A descriptive study is undertaken when the researcher want
to know the characteristics of certain group such as age, sex,
income, education level etc. Explanatory Research DesignA casual
researcher is under taken when the researcher is interested knowing
a cause and effect relationship between two or more variables.
5.2 Sampling ProcedureFor collecting the data from the
population I have used simple random sampling method to get the
sample from the population. This enables us to make the study easy
and create fewer disturbances, and study work can be completed in
the less time.
5.3 Sample locationI am choosing different areas of Ahmedabad
city for the research to be carried out.5.4 Sampling MethodAny
organization whether big or small, private or public need different
types of information are to know its popularity. I have gathered
secondary data and primary data and collected information from the
combination of these two data. Secondary data:-Secondary data
consist of information that already exists somewhere, having been
collected for another purpose. I have gathered secondary data from
website of different operators, different magazines, newspapers and
libraries. Primary data:-I have taken great care while collecting
primary data to answer that it is relevant, accurate, current and
unbiased. I have taken a sample of 200 people. I have visited them
personally to get data.
5.5 Sample Size:Sample size is to be taken to make the study
easy in a shorter Time, period in less and effective timing two
hundred questionnaires are to be taken for gathering the
Information from the population of the Ahmedabad. The sample size
taken in this study is 384 and the data are gathered through
questionnaire.
5.6 Data collectionData collection is one of the important tasks
in research on the basis of collected data analysis is done upon
which Take effective decision. For collecting the data various
types of Instruments are used like, questionnaire, telephone
interview, Mail interview, here in this study we are using
questionnaire. Types of data used in data collectionPrimary
dataPreparing a Questionnaire is collecting the primary source of
data & it was collected by interviewing the investors. These
are the data which are not collected before by any of the competent
person. This are the data collected by the researcher himself for
the study purposeSecondary dataThese are the data which already
exist. For having the detailed study about this topic, it is
necessary to have some of the secondary information, which is
collected from the following:- Books. Magazines & Journals.
Websites. Newspapers, Ebscohost, etc.In this study I have used
Questionnaire for the primary data collection and for secondary
data collection I have used internet, magazines, reference books
and articles which are necessary for my project completion
5.7 Data collection instrumentTo come at the particular result
we have to collect the data from the respondents through various
ways. In this report work I have used the questionnaire to collect
the data from the respondents.
Research TypeQuantitative Research
Research DesignDescriptive Single cross sectional Conclusive
Research
Primary data source:Primary Retailers in Ahmedabad city
Secondary Sources:Reference Material, Books & e-Books,
e-Magazine & Newspapers, Websites
Data Collection MethodSurvey Method, personal visit, E-
mail,
Population400
Sampling MethodConvenient non probability sampling
Sampling locationAhmedabad.
Sample size384
Data Collection InstrumentStructured Questionnaire
SUMMRY OF RESEARCH METHODOLOGYTable: - Table shows the summary
of Research Methodology
Objective behind the questionnaire: Indentify the factors that
affect the choice of format viz. organized/Unorganized Retail. The
perception and attitude towards both formats. The type of goods the
customers prefer to purchase from each format. Findings that help
unorganized and unorganized retail gain its key strength and
weakness.
Questionnaire
We are pursuing MBA at SRMS CET BAREILLY, affiliated with UTTAR
PRADESH TECHNICAL UNIVERSITY. As a part of our comprehensive
project Study, we have prepared a brief questionnaire. We
aresolicit your help for the same. We assure you that the
information provided by you will be used for academic purposes only
and will not be divulged to anybody.Thanking you for your valuable
time. : PRADEEP KUMAR
Title: A Questionnaire on Study on changing consumer preference
towards organized retailing from un-organized retailing to
Ahmedabad City1. Are you a localite (based out of Ahmedabad) or are
you from other place and working here? [ ]Based in Ahmedabad[ ]From
other place2. Do you prefer to Organized or Unorganized kirana
shops for your purchase?[ ]Organized Retail[ ]Unorganized Retail[
]Depends/Not Fixed3. How did you make your most recent purchase?[ ]
Online[ ] By phone[ ] By mail/catalogue[ ] In-person/in-store[
]Through a dealer[ ] Other (please specify).
4. How would you rate organized retailing in term
of?ExcellentVery goodAverageFairPoor
Courtesy and Service:
Store Cleanliness:
Selection and Variety:
Produce Quality/Freshness:
Meat Quality/Freshness:
Dairy Quality/Freshness:
Bakery Quality/Freshness:
Regular Prices:
5. If you organized Retail, Which shop do you prefer?[ ]D-Mart[
]Big Bazar[ ]Food Bazar[ ]Spinach[ ]Reliance Fresh[ ] Star Bazar[ ]
Apna Bazar[ ]Le Marche[ ] Subhiksha[ ]Sarkari Bhandar[ ] Shoprite[
] Foodland Garments[ ]Shoppers Stop[ ] Lifestyle[ ] Globus[ ]Hyper
city[ ] National Handloom[ ]other6. What do you shop, how often
from where?[Organized Retail: - o.r. Unorganized Retail: -
U.R.]DailyWeeklyBimonthlyMonthlyO.R.U.R.
Vegetables
Grocery(DalRice,Wheat)
FMCG(Biscuit,Detergent,soaps)
Oil
Garments/Clothes
Utensils
7. Why do you prefer to go for Organized Retail formats?[ ]
Price is less[ ] Near house[]Everything at one place [ ] Good
Service[ ]Good Quality[ ]Ambience [ ]Long Relationship [ ]Good
Offers[ ]Large Variety [ ] Aspiration [ ] Self Service [
]Faster(take less time) [ ]Overall experience8. Kindly rate the
below of an organized retail and unorganized retail based upon your
preference?(1-poor,5-best)Organized RetailUn Organized Retail
Parameter1234512345
Price
Quality
Variety
Location
Service
Everything at one place
Offers
Relationship
Ambience
Home Delivery
Faster
9. What is your gender? [ ]Male
[ ]Female
10. What is your age?[ ] 18 as under[ ] 19-35[ ] 36-50[ ] 50 or
more
11. What is your annual household income?[ ]Under 25000 pm.
[ ]25000-50000
[ ]50000-75000
[ ]75000-100000
[ ]100000 or More
12. Kindly tell any other experience or factors you feel makes
your Organized Retail to Un Organized Retail
13. Do you plan to continue to buy organized/unorganized
retail?[ ] Yes[ ] No
Websites: 1.
http://www.dnb.co.in/IndianRetailIndustry/issues.asp2.
http://digitalcommons.kennesaw.edu/cgi/viewcontent.cgi?article=1098&context=jekem3.
http://web.yonsei.ac.kr/dslab/Journal/Journal%20of%20International%20Consumer%20Marketing%20%202011.pdf4.
http://www.abesit.in/pdfs/a-study-of-diversity-in-retail-purchases-behaviour-in-food-prof-manish-kumar.pdf5.
http://www.iosrjournals.org/iosr-jbm/papers/Vol8-issue3/A0830105.pdf6.
http://indianresearchjournals.com/pdf/IJMFSMR/2013/June/7.pdf7.
http://www.abhinavjournal.com/images/Commerce_%26_Management/Aug12/7.pdfReferences:-
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