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Project Report on Lifestyle

Apr 05, 2018

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    Consumer Behaviour

    Project Report On

    Lifestyle International

    (P) Ltd

    Submitted To: Dr. Sanjeev Kumar K.M.

    Lifestyle is a well-defined retail concept that imbibes

    the essence of a woman. It offers a wide range of

    exclusive products that celebrate the free spirit of

    todays woman.

    Arshita

    4/30/2010

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    INTRODUCTION

    Lifestyle is a well-defined retail concept that imbibes the essence of a woman. It offers a

    wide range of exclusive products that celebrate the free spirit of todays woman. From an

    exquisite variety of home dcor, home furnishing & bath decor to home fragrance, make-up,

    perfumes, fashion accessories, fashion bags, spa products and teen gifts, the Lifestylewoman is spoilt for choice. So when a woman visits Lifestyle, she is sure to indulge herself

    in a world which truly reflects her femininity and understands exactly "What a woman

    wants"

    One will be lured by Adore, a promising brand of Lifestyle offering a beautiful mix of

    products for todays woman and her home. Everything she wants, from pretty lamps to

    fashion accessories, curtains to cushions, mirrors to reflect her true self and much more are

    lined up to walk her through a world of dreams.

    MISSION STATEMENT

    Carefully listen. Constantly adapt. Always deliver.

    VISION STATEMENT

    To become the leading retail group in the Middle East and India, maintaining our constant

    growth through our core, value and international brand business.

    Brands available in Lifestyle:

    A host of exciting national and international brands are available such as:

    Formals : Allen Solly, Wills , Van Heusen, Blackberry, Color Plus, Ethnic : Biba, W, Ritu Kumar Casuals : Bossini, United Colours of Benetton, Levis, Provogue, Sports : Adidas, Kappa, Nike

    Private labels of Lifestyle:

    At LifeStyle, one can find a healthy mix of popular brands and private labels. Private labels in Lifestyle currently contribute to 10 per cent of the total business and

    now it is looking at expanding its range of private labels so that they can contribute 20

    per cent in the long run.

    Formals : Code Ethnic : Melange, Moiree Casuals : Zync, Ginger, Forca, Delure Sport : Ginger- sport

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    HISTORY

    Lifestyle is a retail concept established in 1998 by Landmark group. It has 79 stores across

    the Middle East and Egypt. It has an average store size of 3,000 sq. Ft15,000 sq. ft and a

    total retail space of 534,158 sq. Ft. It consists of retails mix of in-house labels such as Adore,

    and international brands including Apsley, Woodwick and Happy House

    Lifestyle International (P) Ltd is part of the Landmark Group, a Dubaibased retail chain.

    With over 30 years experience in retailing, the Group has become one of the foremost

    retailers in the Gulf.

    About Landmark Group

    The Landmark Group, founded in 1973 with a single store in Bahrain has grown into one of

    the largest retail conglomerates in the Middle East and is expanding rapidly in India. The

    Group currently operates over 900 stores encompassing a retail presence of over 13.4 million

    square feet across 15 countries and employs around 31,000 employees world over.

    In addition to its retail sector, the Group has also diversified into leisure, food, hotels and

    electronics and has created a comprehensive infrastructure including its own logistics and

    distribution division, to support its retail operations and other businesses.

    Key Facts

    Turnover in excess of USD 3.2 billion

    Presence in 15 countries with over 900 stores

    Over 13.4 million square feet of retail spaceTeam of over 31,000 employees

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    LIFESTYLE INDIA

    Lifestyle International (P) Ltd is part of the Landmark Group, a Dubaibased retail chain.

    With over 30 yearsexperience in retailing. Positioned as a trendy, youthful and vibrant brand

    that offers customers a wide variety of merchandise at an exceptional value for money,

    Lifestyle India began operations in 1999 with its first store in Chennai.

    Currently there are 15 Lifestyle stores and 8 Home Centre stores across Ahmedabad,

    Bangalore, Chennai, Hyderabad, Jaipur, Mumbai, Pune, New Delhi, Noida and Gurgaon.

    Currently in its 10 years of retailing in India, Landmark Group has launched several of its

    core retail concepts in the country including Lifestyle, Home Centre, Splash, Bossini, Max

    and hospitality concepts, Spar supermarkets and hypermarkets, Fun City,Citymax and Gloria

    Jeans Coffees.

    Recently lifestyle celebrated its 10th

    anniversary in India i.e. on September 23, 2009. It

    unveiled a special 10th Anniversary logoand announced host of attractive discounts,

    consumer offers and bumper prizes including foreign holidays, gift vouchers worth Rs.1lacs

    and much more. Its Anniversary promotions lasted for 99 days, longest in the history of

    Lifestyle

    Supermodel Candice Pinto, Mr. Shankar Suryanarayan, CMO, Landmark Group, Kabir

    Lumba, Executive Director, Lifestyle International Pvt Ltd, and model Indranidas Gupta at

    Lifestyles 10th Anniversary Logo unveiling ceremony

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    CURRENT SCENARIO

    Today Lifestyle offers a truly international shopping experience, a fact borne by numerous

    accolades.

    Business WorldIMRB Most Respected Company Awards survey rated Lifestyle asthe Most Respected Company in the Retail Sector in 2003 and 2004

    ICICI KSA Technopak Award for Retail Excellence in 2005 Reid & Taylor Retailer of the Year award in 2006 Lycra Images Fashion Award for the Most Admired Large Format Retailer of the

    Year in 2006

    Images Retail Most Admired Retailer of the YearDepartment Store in 2008.Lifestyle also announced a slew ofattractive offers and customer rewards on the occasion.

    Customers who shop at Lifestyle for merchandise worth Rs. 7,000, will receive Gift

    Vouchers(GV) worth Rs. 750 and upto 25% discounts at Home Centre in form of GVs on the

    purchase of furniture worth Rs. 20,000 and above. In addition, special offers will be available

    across select national and international brands like 40% discount on Hugo Boss merchandise,

    shop for Rs. 30,000 worth of Nirvana jewellery and get a diamond pendent free and so on.

    Rewarding the loyal customer base of over 1.1 million The Inner Circle (TIC) members, the

    group has announced the Merry Miles Fest. This will allow members to accumulate points

    over a period of 99 days, leading to exciting prizes such as holidays in Singapore and

    Malaysia and Cygnus Jewellery GVs. Top shopper from each of the North, South and West

    zone will get assured Lifestyle GVs worth Rs. 1 Lakh. In addition, TIC members who willshop over Rs. 7,000 will stand to gain 10 times the reward points.

    Commenting on the occasion, Mr. Kabir Lumba, Executive Director, Lifestyle

    International (P) Ltd.said, Its a proud moment for the Lifestyle team. We brought

    international shopping concepts & experience to India and our consumers have time & again

    reaffirmed their faith in us. With over 1.1 million Inner Circle members, we have one of the

    largest loyalty bases for a retail chain in India. Lifestyle stores are in a league of their own

    and we will continue with our robust expansion plans to ink a wider footprint.

    Added Mr. Shankar Suryanarayan, Chief Marketing Officer, Lifestyle stores are

    characterized by innovative offerings, a premium shopping experience and an exceptional

    product portfolio. Our 10th Anniversary is a milestone juncture to celebrate our relationship

    with our customers to whom we own our success. Therefore, we are offering a flurry ofincentives and discounts, inviting our patrons to join us in celebrating this special occasion

    Offering a consistent international shopping experience, the Lifestyle store brings together

    five departments under one roofApparel, Cosmetics & Fashion Accessories, Footwear &

    Luggage, Kidswear & Toys, Home furnishings. It is currently present across leading Indian

    cities including Ahmedabad, Bangalore, Chennai, Delhi NCR, Hyderabad, Jaipur, Mumbai

    and Pune.

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    SWOT Analysisof Lifestyle brands

    Strength:

    Eclectic mix between national, international and in house brands. Broader price range(mid- super premium) International ambience, fixturing and overall look and feel of the store. Fashionable yet affordable. Part of a bigger concept which includes Homecentre, Baby shop, Shoemart which

    gives it a competitive edge over other MBOs like Shoppers Stop.

    High quality and very fashion forward.Weakness:

    Ethnic wear section needs improvement in terms of fabrics and brands available. Less visibility and recall of the store as compared to other MBOs due to number of

    stores being limited in Bangalore.

    Marketing in terms of billboards , magazines, newspapers can be further takenadvantage of which it is not doing now.

    Opportunities:

    Plus size category for Western Formal Wear has a growing demand in India. It shouldbe capitalized by Lifestyle.

    Increase the number of in house private labels in order to increase profitability andbrand/store recall.

    More visible marketing in terms of billboards /promotions etc.

    Increase brand image building for in house private labels through separate campaignsoutside the store to increase awareness amongst customers.

    Threats:

    More and more international brand entering the market. Malls and EBOs stand as the biggest competitors. Extremely competitive pricing in the market such as Shoppers Stop , Pantaloons with

    their multiple discount offers.

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    SEGMENTATION

    SEGMENTING VARIABLES

    Market segmentation is defined as the division of a particular market into different segments

    or sub markets according to different factors. The segmentation of market dpends on various

    factors :-

    Geographic factors Demographic factors Psychographic factors Behavioural factors

    MARKET SEGMENTATION OF LIFESTYLE

    GEOGRAPHIC

    Country India

    DEMOGRAPHIC:

    Age 2545

    Gender Male & femaleIncome Rs. 2 lakh and above annual income

    Occupation College going youth and working

    population

    PSYCHOGRAPHIC:

    Social class Middle class, Upper middle class, Higher

    Lifestyle Achievers and striversPersonality Ambitious and authoritarian

    BEHAVIORAL:

    Occasions Regular and special

    Benefits Convenient, economical and status

    oriented

    Readiness stage Aware, interested, intending to buy

    Attitude towards product Enthusiastic

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    TARGETING

    TARGETING refers to a set of buyer sharing common needs or characteristics that the

    company decides to serve.Target market is chosen after the segmentation of the markets.

    Most companies realize that they cannot effectively serve all the segments in a market, and

    must instead target their marketing efforts.

    TARGET MARKET OF LIFESTYLE

    Lifestyle targets Young, Urban, Contemporary, Chic The target market is the huge upper middle class and higher class population.

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    POSITIONINGPositioning refers to the way the product is defined by consumers on important attribute-

    the place the product occupies in consumers mindrelated to competing products.

    POSITIONING OF LIFESTYLE

    LIFESTYLE is positioned as a contemporary, youthful, chic urban brand.with tag line as

    Your Style, Your Store

    The line aims to

    Build Affinity &

    Establish a strong connect with the Target Group.

    Envisioned Future

    To be among the top 100 retailers worldwide, with a top 20 ranking in profitability by 2015

    The Statement of PurposeCreating exceptional value for all those whose lives we touch

    To be recognized as an international, diversified retail conglomerate that encouragesentrepreneurship and which consistently delivers exceptional value to their customers

    and business partners. They believe in delivering unmatched valuestangible and

    intangiblefor all those whose lives they touch.

    CORE VALUES:

    Passion for excellence. Integrity in everything we do. Empowering people to strive and deliver. Adapting to changing market and customer needs.

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    GROUP PHILOSPHY

    Complete customer satisfaction To aspire to be the no.1 in each field of operations International standards Research and development Manpower development and training Total quality approach Cost control Speed and simplicity Transparency

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    Research Methodology

    Title:

    To study consumer behaviour of a well known retail concept Lifestyle.

    Objectives:

    To study preferences ofLifestyles customer towards its product, prices, colors,styles.

    To analyze the brand with respect to its competitors (perpetual mapping). To know consumers preference for certain attribute like Brand image, quality of

    merchandise etc.

    To study the consumers perception about the private labels of Lifestyle.Type of research:

    Descriptive research was carried out in the form of questionnaire survey.

    Data was collected from the sample belonging to upper middle and upper class of the society.

    The data was collected from Oasis and Forum mall in Kormangala.

    Data collection:

    Sample size: the sample size is 50.

    Primary research: it is carried out through closed ended and open ended Questionnaire.

    Secondary research:Internet, Magazines, Companys website and talking to people from

    the company.

    Sampling techniques:the method of sampling used was non-probability andconvenience sampling.

    Data collection and tabulation: through graphs and statistics. Coding sheet willbe prepared.

    Limitations of the study:

    The consumer survey was restricted to Bangalore. The sample size covered for the consumer survey was very small due to constraints on

    manpower and time.

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    Recent Development

    Lifestyle International Pvt. Limited launched its 3rd Lifestyle and

    Home Centre stores in Bangalore.

    Situated at the Mantri Square, Malleshwaram, in the city, the new stores are spread across

    three floors, encompassing 80,000 sq. ft. of space. Present in the occasion was Ramnathan

    Hariharan, Director, Landmark Group, who spoke about the groups association with the city

    so far. Bangalore is home to many of our local customers. We are truly delighted to launch

    our third Lifestyle store and exclusive Home Centre stores at Mantri Square, making ourofferings even more accessible to the residents of Malleshwaram and nearby areas. Home

    Centre by Lifestyle is a one-stop destination for furniture, home ware and home furnishings.

    With over three decades of experience in retailing, the Group has become one of the foremost

    retailers in the Gulf. Lifestyle is a part of the Dubai-based Landmark Group, which began its

    Indian operations in 1999, with Chennai being the first city to have its store. Speaking aboutBangalore, Kabir Lumba, Managing Director, Lifestyle International Pvt. Limited, said,

    Lifestyle and Home Centre by Lifestyle have been the most preferred shopping destinations

    of Bangalore. The new stores have been launched with the aim of getting a step closer to our

    customers in old Bangalore. He added, By the virtue of the value and experience offered,

    we are confident that the new stores will become a preferred shopping destination for the

    customers in this area.

    Spread across 50,000 square feet, the new Lifestyle store is believed to redefine the concept

    of shopping by its classy consumer friendly interiors. The store will offer consumers, the

    choice of 250 national and international brands across a number of categories, which includes

    Apparel, Cosmetics, Footwear, Toys & Children wear. Speaking about the new store, Mr.Lumba said, Its a momentous occasion for all of us to have come out with our third store in

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    the city. Bangalore has been a great place for us, and show great pride on that. He added,

    We expect a growth rate of 40 to 45 per cent in the next two to three financial year, and so

    far, we have met all our expectations except a few delays. We have had a delightful journey

    in the last ten years, and we certainly are looking forward to the coming years too.

    Adding to this, Ramnathan Hariharan, Director (Landmark Group) said, India is close to our

    heart, and our major growth has been from Lifestyle stores. Its the flagship brand in the

    country, and is in a leadership position now. We dont want to put in a lot of stores, but

    help in creating a niche. Speaking about the future plans, he said, We will soon open our

    stores in Coimbatore, Mangalore, Mysore and Pune. The whole of South has been very good

    with us in terms of business, and we have got a huge number of loyal customers from this

    region. Speaking about the Indian venture of the Group, Vipen Sethi, CEO, Landmark

    Group, said, I would like to thank the Indian team for the work they have done in all these

    years. The kinds of growth we have seen in this country have just increased our expectationslevel, and we have been investing a lot of money here. Bangalore is one of the citys that

    has a lot of potential in the country, and we have had a great experience so far.

    The Landmark Group, founded in 1973 with a single store in Bahrain, has grown into one of

    the largest retail conglomerates in the Middle East and is expanding rapidly in India. The

    Group currently operates over 900 stores encompassing a retail presence of over 13.4 million

    square feet across 15 countries. In addition to retail sector, the Group has diversified into

    leisure, food, hotels and electronics. The Group has been in India since 1999, and has

    currently 17 lifestyle, 11 exclusive Home Centre by Lifestyle and 4 Splash stores across the

    country.

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    Perceptual Mapping

    Perceptual mapping has been used as a strategic management tool for about thirty years. It

    offers a unique ability to communicate the complex relationships between marketplace

    competitors and the criteria used by buyers in making purchase decisions and

    recommendations. Its powerful graphic simplicity appeals to senior management and canstimulate discussion and strategic thinking at all levels of all types of organizations.

    Perceptual mapping can be used to plot the interrelationships of consumer products,

    industrial goods, institutions, as well as populations. Virtually any subjects that can be

    rated on a range of attributes can be mapped to show their relative positions in relation both

    to other subjects as well as to the evaluative attributes. Perceptual maps may be used for

    market segmentation, concept development and evaluation, and tracking changes in

    marketplace perceptions among other uses.

    Perceptual mapping involves two steps: (1) data collection and (2) data analysis and

    presentation.

    Data Collection

    Among the various mathematical and statistical methods used to produce perceptual maps,

    POPULUS has foundand published research to this effectthat multiple discriminant

    analysis provides the most reliable methodology. Among the reasons for this are:

    1. Discriminant analysis has a close linkage between product points and attribute locations.

    2. Discriminant analysis maps do not change if attributes are added that are linearcombinations of those already present in the perceptual space.

    3. Discriminant analysis is alone in paying attention to between product information, after

    scaling it so that within product differences are equal for each dimension and uncorrelated.

    That means that DA uses a yardstick to give every dimension common metric (in terms of

    equal unexplained variance).

    4. Discriminant analysis is the most efficient method in terms of cramming into a space of

    low dimensionality the most information about how products differ.

    5. Unlike mapping based on distances or similarities, DA make use of attribute ratings,which are easy and natural for respondents, and useful for their content even if mapping is

    not done with them.

    6. POPULUS research [Fiedler, 1996] has shown that DA was more successful that

    Correspondence Analysis at reproducing a known map when the data were distorted in

    various ways.

    Employing this methodology, respondents are never asked about similarities among products

    or subjects; they are asked to rate products on attributes, and similarities are inferred from

    differences in respondents ratings.

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    The data required for perceptual mapping thus comes from rating scales where the subjects of

    the map, from products to populations, are described on the basis of selected attributes. The

    validity of the map depends on both the overall set of attributes and the subjects of the study

    as well as the subset of attributes and subjects evaluated by each respondent.

    Most studies suffer from too many attributes. Manufacturers and service providers see

    hundreds of ways in which their products and services differor might differfrom

    those of their competitors. Often the research analyst is unable to impose the discipline

    necessary to develop a reasonably short list of attributes. In most studies, it is usually

    desirable (or necessary) to select a subset of attributes for respondents to rate. This can be

    accomplished by using one of two approaches:

    1. Select a subset of most important attributes. Each respondent rates all attributes

    on importance. The questionnaire is programmed to select a subset of the

    important attributes for rating. This may assure more meaningful questionnaires for

    respondents.

    2. Randomly select a subset of attributes. The questionnaire randomly selects a subset

    of attributes for each respondent. This has the advantage that there will be roughly

    equal sample sizes for each of the evaluative criteria. The obvious disadvantage is

    that the respondent task may be less interesting.

    Research by POPULUS has shown that the first alternative provides for a greater

    correlation between discrimination and importance.

    Data Analysis and Presentation

    Multiple discriminant analysis uses the F ratio to determine attribute and product orsubjectlocation in the perceptual space. The F ratio is a ratio of the variance between ratings of

    different products/subjects to the variance of ratings within products/subjects. In an attribute

    study, these variations among ratings are generally oftwo types:

    1. The differences between products/subjects, revealed in the difference between

    average ratings for different products.

    2. The differences within products, revealed in the differences among respondents

    ratings of the same product.

    An attribute would have a higher F ratio either if its product averages were more different

    from one another, or if there were more agreement among respondents rating the same

    product.

    Multiple discriminant analysis finds the optimal weighted combination of all the attributes

    which would produce the highest F ratio of between-product to within product variation. That

    weighted combination of attributes becomes the first dimension of the perceptual map.

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    Perceptual Mapping