cargills

INTERDOUCTION

1. CARGILLS CEYLON

Cargills (Ceylon) PLC is a Sri Lankan corporate established in 1844 and built on a strong foundation of values and ethics. Guided by trusted leadership it spearheads the sustainable development of the food industry in Sri Lanka.

Cargills Food City has been recognized for its innovation in taking super marketing to the masses. in Sri Lanka. Today Cargills Food City is the fastest growing retail network in Sri Lanka spread across 17 districts, topping 190 branches.

Being the only retail network with its own out-grower network Cargills Food City is proud of its ability to give the highest possible price to suppliers even as it provides nutritious high quality goods to the consumer at the lowest possible price.

Values for CARGILLS

Customer focused - Focused on customer delight Accountable - An accountable and responsible corporate citizen Respect -Respecting our culture, our country and the law Green - Bringing our business in line with 'Green' concepts of

Reduce, Reuse and Recycle Innovative - Consistently innovative to ensure our core principles

resonate in our business Love - Spreading and winning Love through food Lead - Leading Corporate thinking and strategy Serve the nation - Ultimately serving Sri Lanka true to our promise of

being the "Pride of the Nation"

2. External influences in CARGILS food city’s consumer behavior

The number of supermarkets has been rapidly growing in Sri Lanka during the recent past. According the statement Cargills food City is also fastest growing innovation in taking super marketing.

In this assignment about understand the external factors which are influencing in consumer behavior and buying decision making.

Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It attempts to understand the buyer decision processes/buyer decision making process. so we have to understand about how does external factors influence consumer behavior through consumer buying decision.

A. What a consumer made purchase on cargills food city, learned and influenced by the culture they live in, their family, childhood and social environment. All of these are external factors that affect purchases.

Here is a list of the external influences that affect consumer

I. Cultural and sub-cultural influences on consumer behavior

Culture comprises the common meanings and socially constructed values accepted by the majority of members of a society or social group. It includes such things as shared values, beliefs, norms, and attitudes, as well as affective reactions, cognitive beliefs, and patterns of behavior.

In Srilanka, we have four cultures. Which denotes tamil, Sinhala, Christian, and musilim..In cargills food city according to these culture

Halal foods for muslims Vegetables are arranged separately. Meet would not be sell in poya days according to Sinhala and

Tamil beiefs. The food city environment decorate in order to festivals

celebrations, arranged some special food items, wearing traditional wears, special offers, arrange competition among customers, gifts for children.

Appreciation of cargills food city shopping as a social event. It seems certain that food shopping is a dual purpose activity, fulfilling a social function as well as an economic .one, serving not only as a means of meeting the food needs of shoppers but also providing some social intercourse

II. Social status

Social class is a somewhat nebulous subject that involves stratifying people into groups with various amounts of prestige, power, and privilege.

In cargills food city consumers who are weekly doing purchase in high quantity packet food are classify under the high status.

Who are purchasing by day by day with lower quantities as bulk loose foods items are lower status.

III. Occupation

Based on consumers occupy they have a different types of behavior.

Home makers usually go in mornings in order to cooking- their day to day needs.

Doctors purchase pocketed items they expect quality. Working people have to purchase after finish their work.in

this time also they could purchase in food city with a fresh meals and flexible way.

Income level and their finance facilities: Who are using credit card facilities they could

purchase in cargills food city. Higher income people purchase bulk

IV. Habit

Many people will simply do what they have done before, because it is easy and requires little thought. Consumption habits can even span generations; individuals may prefer a certain brand because it's what their parents used. This phenomenon is often called "brand loyalty”.

Consumers could believe they can have their all brands in one cargills food city.

if they have not get brand they may bush to turn to purchase another product.

V. Competition

The availability of competing products has an effect on consumer choices. If a consumer requires an object, and there is only one available, there is a very high probability that that consumer will purchase that object. . This equation is further complicated by the inclusion of varying factors such as quality, style, price and trendiness of an object. All of these factors interact to create vast arrays of choices from which consumers must select the one most appropriate for themselves.

For food city there are small competition in Batticaloa.Amoung these factors they consider where we could purchase in high Quality with reasonable price with their purchasing style.

VI. Purchasing time frequency

The frequency with which customers shop in food retail outlets for different type of products was estimated by the respondent consumers.Genrally the frequency of shopping for dry grocery goods was about once a week; for dairy goods and fresh fruit and vegetables twice or three times a week; for meat once a week; finally for cleansers it was generally once every two weeks.

While the availability of fresh produce increases the purchase frequency.

The other important factor in the low buying frequency of meat is the quality consideration of meat and meat products, a far more important determinant of retail outlet choice for meat than for any other product. Consumers are more willing to travel for meat so it tends to be less frequently bought.

Income base

- Low-income food shoppers shop very frequently (two or three times a week) for most foods and buy very small amounts in each shopping trip .Shoppers of dry grocery goods, fruit and vegetables and meat products 'in the less frequently purchased by low income consumers.

-The low-income shoppers mainly shop at public markets once a week. These people have limited cash reserves in their pocket and they can not afford to buy expensive types of food frequently.

-The high income food shoppers less frequently for large amount of dry grocery items.

VII. Transport

Transportation is a key requirement to participate in the life of the community and to access important goods and services.

Transportation issues range from being housebound due to lack of accessible transportation, to needing unavailable specialized transportation, to extra costs arising from regular use of taxis because of inadequate public transportation.

- Nearness of the stores, credit facilities offered, low price of dry groceries, honesty of weights and measures, familiarity of the store and its personnel, and attitude of the store personnel towards customers.

-So transportation cost also influencing in consumers purchasing decision.Cargills food city located in bus stand.so its easy to reach any of the area peoples.All the shopers can do easy and carryout.

VIII. Family influences

Families have a particularly significant influence on consumer behavior. consumption behavior often changes substantially as family status changes over time.

-Young unmarried adults, who are often focused on individual self-definition, tend to purchase products that enhance or define their self-concepts.

Eg: Interdouced new brand body and face care lotion

-In contrast, couples with children may be more interested in purchasing items or experiences that can be shared by all family members and, as a result, may spend less on individually oriented products.

Eg: Searching new materials to make food, Variety of spices and convenience food.

B. External influences can also include situational influences, sensory items in an environment that may change buying patterns

.

Cargills food city environment red color layout cleanly store in separate rock, freshness looking, parking facilities , location in bus stand Self shopping Air-conditioning Way of arranging products in attractive manner;

Chocolates are eye level arrangement in in-front of bill payment its attract the kids.

Bottom level arrangements items are classified under essential goods. its for better to reduce the searching time.

Top level arrangements are introduce new brand things.

These are way of attractive one when consumers look at. Its bush to go for purchased

C. Before making a purchase, consumers will go through an external information search. They will go through this search in order to evaluate the alternatives and narrow down their list of choices.

i. Friends/reference group consumers ask friends, family and coworkers about their experiences with the product. And also magazine.

ii. Cargills food city Advertising and promotions.

In festival season (New Year & Christmas) they provide many discounts for most of the brands unlike small grocery shops. This time Cargill food city had most consumers. Here consumers have been turned purchase (rather than normal customers) in food city to get save them money via get discounts.

At the same time they provide some electronically

& grand instant prices also impress the many customers. Consumer are try to utilize this opportunities they had been decide to purchase on food city. evaluation and that the post purchase evaluation is key due to its influences on future purchase patterns.

Media advertisement

Sunday 14/02/2010

Bigger and better shopping at rejuvenated Cargills Food City, Staple Street

Cargills Food City, Staple Street – the supermarket chain’s very first outlet, re-opened its doors on Tuesday after refurbishment. Opened in 1983, the Staple Street Food City has grown to be one of the main outlets of the 140-strong chain. The renovation of the Staple Street outlet includes an expanded refrigeration area, which means fresher, healthier and a wider range of dairy and deli produce.

“The Staple Street Food City is one of our main outlets and it was imperative that we made the necessary modifications to suit customer requirements and modern trends. The new Staple Street outlet is bigger and offers a wider range of products as well,” said Sandeetha Jayasinghe, General Manager, Cargills Food City.

Cargills is rated the fourth most Valuable Brand in Sri Lanka and the Most Valued Retail Brand in the island according to research conducted by Brand Finance Lanka in 2009. Cargills Food City was also shortlisted along with Tesco, Marks and Spencer, Woolworths and Migros for Most Responsible Retailer of the Year award at the World Retail Awards 2009 held in Barcelona, Spain.

General analysis about consumer behavior in Cargills Ceylon………

Which item is being sold at large quantity? Beverage items Consumer goods

Which item is being sold at less quantity? Stationary items

What are the fast moving goods? Anchor Coco- cola New dale yogurt

Reasons for fast moving? Good quality Tasty Good mixtures in food items Attractive packaging style. Get foreign items like chocolates, cream bottles.

What are the advertising tools used by cargills Ceylon? Banners Television advertisement Giving offers Giving hand books Brochures

What is the percentage of regular customers? 70%

What is the rush time period? From 5pm to 8pm. Ladies coming on mornings.

Very good customer care service

Cargills done some social responsibility service. Transporting service for children’s home.

Some opinions from the customers on cargills food city in town branch from 10am to 11am.

Why you select this cargills food city?

From S.Pathmagini, Teacher, Batticaloa.

Self service is easy to buy. All categories of products can buy here, not

need to anywhere. Some items are less cost than other shops. Putting price tags is easy to purchase. Can get discounts and offers.

From P.A.Chellaththurai, Caritas project officer, Batticaloa.

Good guality, especially milk products. Some items are less cost than other shops. Fresh items. Attractive for children.

From T.Akhilan, field officer, Batticaloa.

Selecting items is very comfortable. Can get fixed price items trustfully. Good customer care service. Can get religious vise items.

References

Get details from cargills food city, town branch manager, Batticaloa.

Directly speak to three customers.

S.Pathmagini T.Akhilan P.A.Chellaththurai.

Assignment 1

CONSUMER BEHAVIOURMKT 3033

Assignment 1How external factors influence on consumer behavior and buying decisions in Cargills Ceylon

Group membersL. Mariarishani MS/41A.Vasuki MS/46D.Rishaana MS/57

FACULTY OF COMMERCE AND MANAGEMENT

EASTERN UNIVERSITY OF SRILANKA