Summer Internship Project Report.docx

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Summer Internship Project ReportOnCONSUMERS PERCEPTION TOWARDS TATA CROMA AT PACIFIC MALLByManu KathuriaA0101912277MBA General Class of 2014

Under the Supervision ofDr. H.K. GujralDepartment of HRIn Partial Fulfillment of the Requirements for the Degree ofMaster of Business Administration

AMITY BUSINESS SCHOOLAMITY UNIVERSITY UTTAR PRADESHSECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA2013

DECLARATION

Title of Project Report Consumers perception towards Tata Croma at Pacific Mall.

I declare

(a)That the work presented for assessment in this Summer Internship Report is my own, that it has not previously been presented for another assessment and that my debts (for words, data, arguments and ideas) have been appropriately acknowledged

(b)That the work conforms to the guidelines for presentation and style set out in the relevant documentation.

Date: Manu KathuriaMBA Class of 2014

ACKNOWLEDGEMENT

Perseverance, inspiration and motivation have played a great role in the success of any venture. It would be incomplete to submit this report without acknowledging the people behind this endeavor and without whose support I wouldnt have able to achieve this. It gives me immense pleasure to express my gratitude to everyone who shared with me their precious time and effort during the project.First ofall,Ithank Infinity Retail Private Limited(TATA CROMA) for granting me the permission to work with the esteem organization. I am also thankful to:Mr. Vikram Singh (Assistant Marketing Manager) my industry guide,for his patience and guidance, encouragement and for sharinghis expertise in writing this feasibility study.Thento Dr. H.K. Gujral my faculty guide for giving her valuable time and precious knowledge for guidance of this project.I thank to all my market developers of the Tata Croma. They guided and helped me inall possible ways they could, at every stage of the report. I would also like to thank all the staff membersofTata Croma at pacific mall.Who provided me all the relevantinformation and their kind support on the basis of which this report and my summer intern ship has been prepared.Finally I thank my college Amity Business School, NOIDA forhaving given me this opportunity to put to practice, the theoretical knowledge that Iimparted fromthe program.

Manu KathuriaAmity Business School Noida UP

CERTIFICATE

I Dr. H.K. Gujral hereby certify that Manu Kathuria student of Masters of Business Administration at Amity Business School, Amity University Uttar Pradesh has completed the Project Report on Consumers perception towards Tata Croma at Pacific Mall.

Dr. H.K. GujralDepartment of HR

TABLE OF CONTENTS page noChapter 1: Introduction 11.1 Indian Retail Industry 21.2 Evolution of the FDI policy in multi-brand retail trade 61.2 Consumer electronic market in World 101.3 Consumer electronic market in India 111.4 Company Profile 131.5 SWOT analysis 15

Chapter 2: Review of the Literature 172.1. Consumer Decision Process 182.2. Store Choice 192.3. Format Choice 20

Chapter 3: Research Methods and Procedures 213.1 Purpose of the Study 223.2 Research Design 223.3 Data Collection 223.4 Instruments used 233.5 Procedures 243.6 Limitations 24 Chapter 4: Data Analysis 25 Detailed analysis 26-40

Chapter 5: Findings and recommendations 415.1 Findings 425.2 Recommendations 43References 45 Bibliography 47Annexure 47List of images page no.

Figure 1.1: Consumption spending pattern.4Figure 1.2: Share of organized retail stores in India 5Figure 1.3: Retail stores distribution and growth graph. 5Figure 1.4: Timeline for evolution of Indian FDI policy in Multi-brand retail 6Figure 1.5: Statistics of Consumer electronic market in India 12Figure 1.6 Product mix of Tata Croma 13Figure 4.1: How did you come to know about Tata Croma? 26 Figure 4.2: Is this your first visit to Tata Croma? 27Figure 4.3: Purchase during the last visit. 28Figure 4.4: Consumers satisfied from the products they bought during their last visit.29Figure 4.5: Pie chart of convenience of Location 30 Figure 4.6: Pie chart of Pricing of the products.31Figure 4.7: Pie chart of offers and discounts.33Figure 4.8: Pie chart of Behavior of support staff. 34Figure 4.9: Pie chart of helpfulness of the support staff. 36Figure 4.10: Pie chart of Ambiences Rating. 37 Figure 4.11: Pie chart for rating of Billing Process. 38 Figure 4.12: Bar chart to represent recommendation to your friends and family 39 Figure 4.13: Overall rating of Tata Croma at Pacific mall, Ghaziabad 40

List of tables page no.Table 4.1 Frequencies of Convenience of Location 30 Table 4.2: Frequency table for Pricing of the products. 31Table 4.3: Frequency table of offers and discounts 32Table 4.4: Frequency table for behavior of support staff. 34Table 4.5: Frequency table of helpfulness of support staff.35Table 4.6: Frequency table of Rating of Ambience. 36Table 4.7: Frequency table for rating of Billing Process.37

CHAPTER 1INTRODUCTION

1.1 Indian Retail Industry

Retail industry has always occupied a pre-eminent position in all economies. The pace of change in retailing in India has been constant but the pace of development has been drastically fast during these past few years. The Indian retail market, which is the fifth largest retail destination globally, has been ranked the second most attractive emerging market for investment after Vietnam in the retail sector by AT Kearney's seventh annual Global Retail Development Index (GRDI). A McKinsey report 'The rise of Indian Consumer Market', estimates that the Indian consumer market is likely to grow four times by 2025. The announcement on notifying 100 per cent FDI in single brand retail, and opening up multi-brand retail to FDI is a welcome move, and sparks hopes of restoring investor confidence and attracting more funds from overseas. It is worth reiterating the benefits expected from this move. India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion Knowing your customers is equally important as knowing your competitors and your products. Now those days are gone when customers had to visit a number of places to fulfill their shopping list. Some small shops and niche shops have made it inconvenient and expensive. But now all the small needs cn be satisfied through big departmental stores, which make the shopping convenient for customers by providing consumer durable and perishable stuff less than one roof. The Indian Retail Industry has moved from unorganized retail to Organized Retail. Organized Retail includes big departmental stores. Hypermarkets, discount stores, and so on, where all the shopping needs can be fulfilled in one place like that of home needs, apparels, beauty products, toys, food, electronics, etc. Organized Retail not only contributes to convenient shopping but also to national growth. India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. In India, retail industry is expanding in itself very aggressively which also states the great demand for real estate which is being created. In Delhi itself many retail chains have opened up their outlets in various other malls so as to show their capacity of increasing outlets in the city and also other regions.Changing lifestyles, strong and heavy incomes and favorable demands of demographic patterns, Indian retail is expanding at rapid pace. A rapid expansion by the number of operational malls to more number of malls expected, for example, according to Images Retail estimation, with 645 malls in 2013 to further 915 malls by 2017, on the back of the major retail developments even in Tier II and III cities in India.TRADITIONAL VIEW: Having the most unorganized market in retail industry in India, retail business are run in front of the houses, basically making India a nation of shopkeepers. Those outlets were however were barely in some numbers but now these numbers have increased to more than 15 million. Considering the space part which was barely 500 sq. ft. per shop has now increased to more than 20000 sq. ft. The manufacturers use the C&F agents to distribute goods to distributors & wholesalers. Retailers on the other end are the last stage in supply chain, the merchandise price used to get inflated to a great extent till it reaches from manufacturer to end user. Purchase of merchandise is done as per the tests of the products and also the pricing is done on the basis of ad hoc basis or by seeing the customer. ORGANIZED RETAIL SECTOR: Indian consumer wants more bigger and better and also in less time. This demand has led the change in the retail market from normal kirana stores to big retail formats i.e. shopping malls, departmental stores, super bazaars, etc. With this changing times, gone are the days when shopping was a tiring experience with lists of shopping stuff in there hands and trying to search their specific needs in the market. In fact, now it has become an enjoyable experience to shop all the things with different offers and discounts under one roof. The Indian retail market, over the last decade, has shown greater acceptance for organized retailing formats. Domestic retailing is emerging from a multitude of unorganized family-owned businesses to organized modern retailing. Rapid urbanization, changes in shopping pattern, demographic dividend and pro-active measures by the Government are abetting the growth of the retail sector in India.

Big Format stores are classified into: Retail malls Specialty malls Departmental malls Hypermarkets Hybrid stores Super bazaars

These are only a few numbers but the success stories of these retail format have the real picture of what exactly a retail industry has the potential of in India. Big Bazaar( Biyanis), Reliance (Ambanis), Spencers (RPG), Spar (Landmark Group), etc. The Indian retailing sector has entered at an inflexion point where the growth in the consumption by the Indian population is going to take a higher growth trajectory. By witnessing a significant change in the demographics, these are going to be the key growth drivers of the organized retail sector in India. According the survey, the market size of Indian retail industry is about US $350 Billion. The US-based global management consulting firm, A T Kearney, in its Global Retail Development Index (GRDI) 2011, has ranked India as the fourth most attractive nation for retail investment, among 30 emerging markets.

Source: www.economictimes.comFIGURE 1.1: Consumption spending pattern.

Retail market statistics in India

The Indian retail industry has experienced growth of 10.6% between 2010 and 2012 and is expected to increase to USD 750-850 billion by 2015. Food and Grocery is the largest category within the retail sector with 60 per cent share followed by Apparel and Mobile segment.Within the organized retail sector, Apparel is the largest segment. Food and Grocery and Mobile and telecom are the other major contributors to this segment.

Figure 1.2: Share of organized retail stores in India.

Figure1.3: Retail stores distribution and growth graph. 1.2EVOLUTION OF THE FDI POLICY IN MULTI-BRAND RETAIL TRADE (MBRT)The Government of India had been considering opening up the MBRT sector to FDI for some time. They had released a discussion paper in 2010 on the topic and had extensively gathered public, academic and industry views on the issue. In November 2011, the Government came out with its proposal for the new FDI policy. However, unable to achieve political consensus on the issue, they had to shelve their plans for the enactment of the policy. Finally the Government decided to pass the new FDI policy & MBRT in September 2012.The FEMA notification issued by the Reserve Bank of India permitting FDI in the retail sector was laid before the Houses of Parliament and the same have been cleared without any modification.

Figure 1.4: Timeline for evolution of Indian FDI policy in Multi-brand retail

The new policy contained a few key changes to the November 2011 policy draft released by the Government

Implication of FDI policy on different sub-sectors of retailThe FDI policy conditions will have a different impact on the various sub-segments of the retail industry in India. A policy condition might have a low impact in one segment but could be a major stumbling block for another segment. In this section we have delved on the implications of each FDI policy condition in Mass Grocery, Apparel and specialty stores such as Beauty & Wellness and Consumer Electronics.

Minimum FDI of USD 100 millionMinimum FDI of USD 100 million and a constraint of maximum 51 per cent stake of the foreign entity imply that the minimum investment required by both, the foreign and the Indian partner together, is more than INR 1000cr. Mass Grocery and Apparel are two of the fastest growing organized retail segments. In both these segments there are large domestic retailers who could be potential joint venture partners for foreign retailers.

50 per cent of FDI in backend infrastructure in three yearsMinimum investment of INR 250-220cr is to be invested in backend infrastructure in the first three years. However, different retail segments have dynamic requirements of backend infrastructure.

FINANCE AND ASSISTANCEThe Indian retail industry has experienced high growth over the last decade with a noticeable shift towards organised retailing formats. The industry is moving towards a modern concept of retailing. The size of India's retail market was estimated at US$ 435 billion in 2010. Of this, US$ 414 billion (95% of the market) was traditional retail and US$ 21 billion (5% of the market) was organized retail. India's retail market is expected to grow at 7% over the next 10 years, reaching a size of US$ 850 billion by 2020. Cumulative foreign direct investment (FDI) inflows in single-brand retail trading, during April 2000 to June 2011, stood at US$ 69.26 million. Till now FDI up to 100 per cent was allowed for cash and carry wholesale trading and export trading under the automatic route, and FDI up to 51 per cent was allowed in single-brand products, with prior government approvals. However, the Government recently passed a cabinet note and permitted FDI upto 51% in multi-brand retailing with prior Government approval and 100% in single brand retailing thus further liberalizing the sector. This policy initiative is expected to provide further fillip to the growth of the sector.Indian retail sector accounts for 22% of the countrys GDP and contributes to 8% of total employment. Hypermarkets, currently accounting for 14% of mall space are expected to witness high growth Demographic dividend with over 50% of country populace under 25 years of age is a prime driving factor for modern retail sector

CHALLENGES

1) Shortage of skilled manpower - Front-end/retail assistant profiles in stores form a major proportion of the employment in the retail sector while store operations account for 75-80% of the total manpower employed in the organized retail sector. Unfortunately, there are very few courses specific to the retail sector and graduates/post graduates from other streams are recruited. Further, retail training opportunities such as niche courses for areas like merchandising, supply chain and so on are limited. The condition is more alarming in the unorganized sector where the manpower is not equipped with even the basic level of retail specific and customer service skills, which adds to their incompetence vis--vis the organized sector. A cohesive effort to develop skills within the sector can have a significant potential impact on productivity and competitiveness, both within the sector and on the wider economy.

2) Lack of industry status - Due to the absence of industry status, organized retail in India faces difficulties in procurement of organized financing and fiscal incentives. The Government should grant the much needed industry status to the sector so that the sops that come with it help promote both big & small retailers.

3) Policy induced barriers Organized retail in India is managed by both the Ministries of Commerce & Consumer Affairs. While the Ministry of Commerce takes care of the retail policy, the Ministry of Consumer Affairs regulates retailing in terms of licenses and legislations. There is a need to govern retail operations through a single apex body. A single agency can take care of retail operations more effectively, especially with regard to addressing the grievances of retailers. The development of the retail sector can take place at a faster pace if a comprehensive legislation is enacted.

4) Real estate - Lack of sophisticated retail planning is another major challenge the sector faces. Available space is easily interchangeable between commercial and retail use. In most cities, it is difficult to find suitable properties in central locations for retail, primarily due to fragmented private holdings, infrequent auctioning of large government owned vacant lands and litigation disputes between owners.FUTURE

Organized retail is a new phenomenon in India and despite the downturns, the market is growing exponentially, as economic growth brings more of Indias people into the consuming classes and organized retail lures more and more existing shoppers into its open doors. By 2015, more than 300 million shoppers are likely to patronize organized retail chains. The growing middle class is an important factor contributing to the growth of retail in India. By 2030, it is estimated that 91 million households will be middle class, up from 21 million today. Also by 2030, 570 million people are expected to live in cities, nearly twice the population of the United States today. Consumer markets in emerging market economies like India are growing rapidly owing to robust economic growth. India's modern consumption level is set to double within five years to US$ 1.5 trillion from the present level of US$ 750 billion. Thus, with tremendous potential and huge population, India is set for high growth in consumer expenditure. With India's large young population and high domestic consumption, the macro trends for the sector look favorable.Online retail business is another format which has high potential for growth in the near future. The online retail segment in India is growing at an annual rate of 35 per cent, which would take its value from Rs 2,000 crores (US$ 429.5 million) in 2011 to Rs 7,000 crore (US$ 1.5 billion) by 2015. For instance the Tata Group firm Infiniti Retail, that operates its consumer durables and electronics chain of stores under the 'Croma' brand, is in the process of tapping net savvy consumers. Similarly, the Future Group, that operates a dedicated portal Futurebazaar.com for online sales, has revealed that it is targeting at least 10 per cent of the company's total retail sales through the digital medium.India continues to be among the most attractive investment propositions for global retailers.

1.3 CONSUMER ELECTRONICS MARKET IN WORLD

Over the past few years, the consumer electronics industry has witnessed a phenomenal growth that can be attributed to the increasing effect of state of the art electronic devices on the market. The consumer electronics industry is ushering in the dawn of Convergence. It is the confluence and merging of hitherto separated markets of digital-based audio, video and information technology, removing entry barriers across the market and industry boundaries. This convergence of technologies has resulted in a greater demand for consumer devices, be they portable, in-home (smart phones, digital camera, tablets, plasma led) or in-car (CD/DVD players), offering multiple functions. The revolution brought about by Digital technology has enabled the consumer electronics sector to profit from the growing interaction of digital applications such as: camcorders, DVD player/recorder, still camera, computer monitor, LCD TV etc. It has also witnessed the emergence of mobile telecommunications technology, incorporating both digital visual and digital MP3 capabilities. The computer industry has also benefited by being able to make its way into consumer's living rooms. HDTV's with VGA connections and SD/MMC card slots, personal media players, and Microsoft-based Media Center PCs have pushed the two industries even closer together than before. The Asia Pacific region is the market leader wielding the biggest chunk of the market, closely followed by Europe. The European market share is expected to take a drubbing due to the growing demand for consumer durables in the Asia Pacific consumer electronic market. Japanese companies have captured the consumer electronics market. World famous brands such as Sony, Panasonic and Matsushita are all owned by these Japanese manufacturers. Korean companies such as Samsung and LG are all trying to join the Japanese bandwagon. Samsung can claim to be the world's fastest growing electronic company.1.4 CONSUMER ELECTRONICS MARKET IN INDIA

India has an increasingly affluent middle class population that, on the back of rapid economic growth, has made the countrys consumer electronics Industry highly dynamic. The industry has been witnessing significant growth in recent years due to several factors, such as retail boom, growing disposable income and availability of easy finance schemes. But still, the consumer electronics goods, like refrigerators, microwave and washing machines have low penetration in the country, representing vast room for future growth.With technological advancements and introduction of digital revolution in the country, the Indian consumer electronics industry has made rapid strides. The consumer electronics industry has seen the introduction of various innovative products and entry of many new players in the market over the past few years. With an increase in household income levels, rising awareness among consumers, thirst for acquiring latest technologies and localization of manufacturing, the Indian consumer electronics market is expected to grow at a CAGR of more than 17% during 2012-2015, according to our latest report Indian Consumer Electronics Market Outlook 2015.As per study, Flat panel television, Tablet and Smartphone are expected to be the top performing segments in the market. These segments are witnessing a huge demand and seeing rapid innovations as part of the strategy by the manufacturers to capitalize on the huge consumer base. Tablet is expected to be the fastest growing segment during 2012-2015, surging at a CAGR of around 65%. Factors like demand by education sector, government and healthcare sector coupled with increasing affordability and desirability have helped in mass proliferation of tablets in India.The report published by market outlook also covers product-level analysis. The volume wise market forecasts till 2015 for various product segments (Television, Refrigerator, Air Conditioner, Mobile Handset, Washing Machine, Microwave Oven) and their types are also provided. Moreover, the major players of each product type have also been identified. In addition to this, the report provides regional analysis for the product segments to create a clearer picture of the demand pattern across the country.The report finds that since the penetration of several products like TVs and refrigerators are reaching saturation in the urban areas, the markets for these products are shifting to the semi-urban and rural areas. This analytical research evaluates the Indian consumer electronics industry .It briefly discusses about the current and emerging trends in the industry ,underlining the future potential areas and key issues crucial for the industry development. It provides an insight into the emerging and potential future trend in all the categories and highlights the key strategies that need to be worked upon to get success in the highly competitive industry. The report thoroughly analyzes the historic performance and future prospects, offering 4-year industry forecast, of following consumer electronics products:- Washing Machines (Semi-automatic & Fully Automatic)- Television- Set-top Box- Refrigerator (Frost-free & Direct Cool)- Air Conditioner- Microwave Oven- MP3 Players- Digital Camera & Camcorder- Mobile Handsets- PCs (Desktop & Notebook).

Figure 1.5: Statistics of Consumer electronic market in India1.5 COMPANY PROFILE

TATA Croma, nation's first large format specialist retail chain for consumers electronics and durables with successful expansion into Croma Zip stores, Croma Kiosks and latest online vertical came into existence on 9 October, 2006.Croma provides the products like

Figure 1.6 Product mix of Tata Croma

It has been launched by Infiniti Retail Limited, a 100% subsidiary of Tata Sons. It efficiently and successfully runs Croma's retail operations in India and it is one of the world's leading retailers.It offers to the customers over 6000 products across eight categories in a world-class ambience and its offerings are growing each day. These categories include Overview Phones, Camera,Computers, Entertainment, Home Appliance, Kitchen Appliance, Gaming and Accessories. Great products from some of the best brands ensure customers an exciting shopping experience.It also has its own label name Croma that is well recognized for offering innovative and unique products which are hard to find. A diverse range of merchandise in various categories like kitchen appliances, storage devices, MP4 players, air conditioners and lot more ensures customers only the best. From wide range of Croma branded products, one is bound to find something great that will match up to his budget as well as personal requirements.Croma Service Centre They fulfill every electronic requirement by helping customers choose the best product, as per their needs. Croma's efficient, well-trained and knowledgeable store advisors are completely equipped to offer sound and personalized advice for helping a customer receive the best value for money. Making shopping experience delightful, post purchase is the foundation for investing in a robust customer service support at Croma. Any individual can get in touch with them any time 24x7 with call centre support at 1800-258-3636. Its Authorized Croma Care Centre provides after sales support for all Croma branded productsEcommerce is their latest venture to achieve yet another important goal to bring customers the best shopping experience on the go and reach every door step in the nation. With the site www.cromaretail.com, one can now explore, browse as well as purchase from the finest and the most varied range of electronic products in the comfort of home. The site has well-structured products information and of great deals. Swift home delivery service is its priority for customer's satisfying shopping experienceBrand Philosophy of Croma Cromas philosophy is if service is not important, if technology is not complex, if variety not confusing -they would have no reason to be in business. Croma is there to help all consumers to buy electronics.

1.7 SWOT ANALYSIS

Strengths:-1. First of its kind, Tata Croma came up with the concept of consumer electronic retail in India.2. It is a trusted brand as it is wholly owned subsidiary of Tata Group and Tata possesses trustworthy image in the mindset of Indians.3. It offers trusted services to its customers.4. Croma provides attractive offers for its customers5. It provides one of the best customer support services in its class.6. Tata Croma always tries to provide latest technology to its customers.7. It has also established new website for its online buyers.8. To target maximum customers to buy products from Croma, it provides EMI and Financing facilities to its customers.9. Special discounts are offered to their regular customers.10. It regularly updates the prices of the products of the different brands.11. Tata cromas experienced staff helps its customers to buy the best suitable product according to their requirements.Weaknesses1. It still hasnt been able to reach across all the major cities which might be a potential market. 2. Despite having a strong presence in India, it faces market share competition from international as well as unorganized market.Opportunities1. It has the opportunity to enter into other services like hypermarket2. It should target small cities to expand its market share.3. More advertising to increase brand visibility.4. It can also expand its operations globally.

Threats1. International as well as domestic players are entering the market continuously. 2. Due to continuous improvement in technology, it is difficult to manage inventory.3. It has to face competition from both online retailers and offline retailers.4. Most of the Indians still prefer to buy from unorganized retailers.

CHAPTER 2LITERATURE REVIEW

LITERATURE REVIEW

2.1. Consumer Decision ProcessA rational approach to consumer decision-making refers to the careful weighing and evaluation of utilization or functional product attributes to arrive at a satisfactory decision (Solomon, 1996; Engel et al, 1995). Rational goals are based on economic or objective criteria such as price, size and/or capacity (Schiffman & Kanuk, 2000). Howard developed the first consumer decision-model in 1963 (Du Plessis, Rousseau, & Blem, 1991). Others include the Nicosia model (1966), Howard and Sheth model (1969), Engel, Kollat and Blackwell models (1968). A concern was that consumer behavior research did not grow from a pure theoretical basis and it is within this context that several theoretical models of consumer decision-making were developed (Du Plessis et al, 1991). These models, labeled the grand models of consumer decision-making (Kassarjian, 1982), tend to portray the process of proceeding through a major purchase decision as a logical problem solving approach (Cherian & Harris, 1990). Furthermore, consumer decision-making is depicted as multi-staged and complex with several factors triggering problem recognition before initiating a sequence of actions to reach an outcome of satisfaction or dissatisfaction (Harrel, 1990). Most of the consumer behavior textbooks used as sources of consumer behavior models for study and research purposes, refer to the elements (Harrel, 1990) of the CDP in terms of the traditional five step classification, i.e. the cognitive decision sequence of problem recognition / pre-search stage, information search, alternative evaluation, choice, outcome evaluation (Schiffman & Kanuk, 1994; Solomon, 1996; Du Plessis et al, 1991). Some prefer to add one or more additional stages to place importance on certain phenomena/activities such as the inclusion of blocking mechanisms, the disposal of the unconsumed product or its remains (Du Plessis & Rousseau, 1999; Engel et al, 1995; Du Plessis et al, 1991). The classification in terms of various stages of consumer decision-making is typical of the rational approach to consumer decision-making (Punj & Srinivasan, 1992).

2.2. Store ChoiceStore choice has been a subject of wide research and has been studied from various perspectives. The store choice behavior of shoppers has been found to be quite similar to the brand choice behavior of the consumers, with a difference being the incorporation of the spatial dimension in store choice (Sinha & Banerjee, 2004). Therefore, while brand choice is independent of the location aspect, and is not affected by it, the store choice is very much influenced by location (Fotheringham, 1988). One view, in the store choice literature gives primacy to the store location and believes that the consumers are influenced by the travel costs of shopping (Brown, 1989; Craig, Ghosh & McLafferty 1984) and store location therefore plays an important role in the store choice. A number of studies, have considered, and pointed out the primacy of store location (Arnold, Oum & Tigert, 1983; Freymann, 2002) in store choice. Another view in store choice literature focuses on the store attributes. Price is one of the easily noticeable attributes and considerable work exists (Bell, Ho & Tang, 2001; Freymann, 2002; Arnold, Oum & Tigert, 1983), on how, the price of store offerings, affects the store choice. The role of store atmospherics, store ambience and store environment has also been studied as a part of store attributes. A number of studies (Kotler, 1973; Baker, Grewal & Levy, 1992) have studied these and found important relation with consumer store choice. Then there are studies which look at how store environment cues influence consumers' store choice decision criteria, such as perceived merchandise value and shopping experience (Baker, Parasuraman, Grewal, & Voss, 2002). Store choice, has also been studied, taking the store image (Martineau, 1958) into account and has been found to affect store choice. Yet another view of store choice, gives more importance to the consumer side, and has looked at the consumer attributes, as well as the situational and tasks associated with shopping. So the store choice has been seen in the context of the risk reduction strategies of the shoppers (Mitchell & Harris, 2005). It has also been found to be dependent on the timing of shopping trips, with consumers visiting smaller local store for short fill-in trips and larger store for regular shopping trips (Kahn & Schmittlein, 1989). It has also been shown by Bell and Lattin (1998) that there exists a logical relationship between a household's shopping behavior and store preference.

2.3 Format ChoiceThe literature on format choice is limited in nature and is of more recent origin. The recent interest in store formats is mainly attributed to innovations in the mix that the retailers are coming up with, owing to the competition. A store format has been defined as the mix of variables that retailers use to develop their business strategies and constitute the mix as assortment, price, and transactional convenience and experience (Messinger & Narsimhan, 1997). It has also been defined as a type of retail mix used by a set of retailers (Levy & Weitz, 2002). Different store formats are derived from various combinations of price and service output (Solgaard & Hansen, 2003). Studies have also been conducted on shopper behavior and format choice. In a study of store choice behavior among audio equipment shoppers (Dash et al., 1976) found shoppers having higher levels of pre-purchase information shopped at specialty store, while those with low prepurchase information purchased at departmental stores. In another study, Bell and Lattin (1998) demonstrated that large basket shoppers preferred EDLP formats, while, small basket shoppers, preferred HiLo stores, similar results were arrived at by Bell, Ho and Tang (2001).

CHAPTER 3

RESEARCH METHODOS AND PROCEDURES

3.1: Purpose of the ResearchThis project was undertaken to know the consumers perception towards Tata Croma situated at Pacific Mall. It aims to understand the level of awareness of Croma products and quality of services. The main objective behind the project was to revive the sales of Tata Croma situated at Pacific Mall, Ghaziabad. The Project was for two months i.e. from May 2013 to June 2013.It consists of brief history of Croma, The Electronic Mega store, class room exercise and market research of consumer perception towards Croma. The project comprises of field studies and collection of primary data from the customers of Croma.Sales at Tata Croma at Pacific Malls were unable to meet its predefined targets. So the main aim of the research was to know the reasons behind fall in sales. To understand the reason behind low sales it was important to understand the Consumers perception towards Tata Croma at Pacific Mall.

RESEARCH OBJECTIVES:1. Togainaninsightaboutthe perception of the customers towards Tata Croma at pacific mall.2. To find out various reasons behind nonperformance of Tata Croma at Pacific Mall3. To provide recommendations to improve sales at Tata Croma, Pacific Mall

3.2 Type of research: Exploratory and descriptive Research

The research design adopted is the single cross-sectional design, there was only one sample of 150 respondents and information was obtained from this sample only once. Pilot survey (Exploratory Research) was also conducted before complete survey to test effectiveness of the survey. Pilot survey was conducted on first 20 respondents to know the rectifications required in the questionnaire.

3.3Method of data collection:

Primary data as well as secondary data was collected.Primary data:This data is original in nature and is generated from results of personal interviews with the customers visiting Tata Croma, pacific mall.General observation method: General observation method was used to know the problems faced by consumers. Some problems were observed which cannot be known through questionnaire. Survey:- Survey was conducted to know the consumers perception. Total respondents for the research were 150.

2. Secondary Data:Some data was acquired from existing sources of information which were accessed due to availability of various other forms of information and data. These data served as the secondary data to me. Sources for these data are the companys websites, journals, publications and articles from industry experts/professionals, previous market reports.

3.4 Data collection

This research involved a study, which was descriptive in nature. Data was collected mainly through both primary and secondary source. Primary data was collected through questionnaire filled by customers visiting Tata Croma at Pacific Mall.

Sample design

Sampling unit: - Customers visiting Tata Croma at Pacific Mall.

Sample Size: The sample size taken was of 150 respondents for this study.

Sampling technique: Normal Convenience and judgmental sampling technique was followed.

Sampling method: Data was collected from the questionnaires filled by customers.

3.6 Procedures:-The following procedure was followed for the purpose of research:1) Research title was decided and parameters to be measure were set.(idea generation)2) The basic frame work for the activities to be done was made.(planning)3) Objectives were laid out. 4) Questionnaire was made to know the consumers perception towards Tata Croma 5) Then data was collected from the customers visiting the store of Tata Croma, Pacific Mall. (data collection)6) The data which was collected was recorded in the excel sheet on the daily basis. ( Data feeding)7) Data analysis was done through statistical tools in Microsoft Excel and Spss178) Results were drawn and on the basis of them interpretations were made.

3.7 Limitations:-

This study was taken up to accomplish the objectives still there were certain factors which created obstacles in accomplishing the work.These factors are:-

1. It was very difficult to take time of customers for filling the questionnaire.

2. The research was depending on the information provided by the respondents. It may be unsatisfactory as most of the customers were reluctant to fill the questionnaire. 3. The time period was only 2 months.

4. Study was only confined to customers visiting the store i.e. Tata Croma, Pacific Mall.

CHAPTER 4 DATA ANALYSIS AND FINDINGS

4.1 DETAILED ANALYSIS:

Data was collected through survey. Total no of 150 respondents filled the questionnaire. Analysis of the data would be done question wise. Data analysis will be done through graphical representation of data through different tools of Microsoft Excel and SPSS v.17Question1.How did you to come to know about Tata Croma

Figure 4.1: How did you come to know about Tata CromaThrough this question we came to know that majority of Customers came to know about Tata Croma at Pacific mall through reference from friends and family. Word of mouth and internet plays the same role to aware the customer about Tata Croma at Pacific Mall. Adverts in Newspapers and Hoarding were the least source through which customers came to know about Tata Croma at Pacific Mall. So, through this we came to know that, publicity works more than advertisements in case of Tata Croma. Tata Croma should increase their visibility through hoardings and advertisements in newspapers. Is this your First Visit at Tata Croma?This question was asked to know that how many new customers visit Tata Croma at Pacific Mall.

Figure 4.2: Is this your first visit to Tata CromaWe came to know that 20% respondents out of 150 respondents surveyed were new customers. 80% of the customers were old customers of Tata Croma. This data show that Tata Croma successfully retains their customers and also tries to bring in new customers to their store. Low number of new customers is due to fewer advertisements done by Tata Croma. Many new customers just come for window shopping without any intention of buying any product. The main problem faced in Tata Croma at pacific mall was that, there was excessive foot fall but potential customers were very few. People visited Tata Croma just to check out new products. Of these 150 customers only around 65 bought a product. Some customers came there and checked the product, but did not buy the product. That was mainly due influence of online shopping. Many customers just visit the store to physically feel the product.

Question3. If no, did you purchase anything from this Tata Croma during your Last Visit?

Figure 4.3: Purchase during the last visit.Inferences:Of 120 regular visitors to Tata Croma 24 customers did not buy anything during their last visit to Tata Croma due to non-availability of the particular product or due to high prices offered by Tata Croma. And other customers purchased something or the other during their last visit to Tata Croma. All the customers who bought the products during their last visit were satisfied with the products they bought as shown in Figure 4.4 : Consumers satisfied from the products they bought during their last visit. From the above data we can infer that Tata Croma takes care of the consumer satisfaction. Not even the single consumer faced any problem in the products they bought. 24 customers who did not buy anything during their last visit were again back to Tata Croma due to its brand image. Thus, Tata Croma deals in quality products. Question4. Were you satisfied with the product?100% customers, who bought their product from Croma during their last visit were satisfied with Products

Figure 4.4 : Consumers satisfied from the products they bought during their last visit.Inference: This shows that Products offered at Tata Croma are of High Quality Products. Every customer was satisfied with the products they bought from Tata Croma at Pacific Mall

Question5.Rate the following factors1. Convenience of Location2. Pricing of the products3. Offers and discounts4. Behavior of the support staff5. Helpfulness of the support staff6. Ambience7. Billing Process Data analysis of different factors will be done individually. 1. Convenience of location

Convenience of location

FrequencyPercentValid PercentCumulative Percent

Validpoor2416.016.016.0

average5033.333.349.3

good5134.034.083.3

very good2516.716.7100.0

Total150100.0100.0

MissingSystem00

Total150100.0

Table 4.1 Frequencies of Convenience of Location

Figure 4.5: Pie chart of convenience of Location

Inferences:Majority of the customers i.e. around 67% are satisfied with the Convenience of location. Not even a single customer rated it as very poor. So, we can infer that the problem does not reside with the location of the store as majority of the respondents feels that location is more convenient. It is located at Pacific Mall, Ghaziabad which is one of the famous mall in the area. Store observes large number of foot fall due to its prime location.

2. Pricing of the products

Pricing


Validpoor2516.716.716.7

average7852.052.068.7

good4731.331.3100.0

Total150100.0100.0

MissingSystem00

Total150100.0

Table 4.2: Frequency table of Pricing of the products.

Figure 4.6: Pie chart of Pricing of the products.Inferences from Table 4.2: Frequency table for Pricing of the products: The main problem area which came out in this search is Pricing of the products done at Tata Croma, Pacific Mall. Out of 150 respondents 52% feel that pricing of the Products is average i.e. they are not much satisfied with the pricing policy of the Tata Croma. 16% respondents rated it as poor. In todays business environment consumer is fully informed about the pricing of the products. Prices of the products can be checked online on their smartphones. So majority of the consumers compare the prices of Tata Croma online before making their purchase. Tata Croma follows very flexible policy in case of Pricing. If their customer is getting a product on lesser price from their competitor, they offer the product to their customers in price offered by the competitors. Employs daily check newspapers and internet to update the prices daily.

3. Offers and discounts.

Offers and discounts


Validvery poor74.74.74.7

poor2718.018.022.7

average8556.756.779.3

good2013.313.392.7

very good117.37.3100.0

Total150100.0100.0

MissingSystem00

Total150100.0

Table 4.3: Frequency table of offers and discounts.

Figure 4.7: Pie chart of offers and discounts.

Inferences from Table 4.3: Frequency table of offers and discounts:

From the above table we can clearly see that majority of the people were not satisfied with offers and discounts offered at Tata Croma. Tata Croma at Pacific Mall faces a very tough competition from nearby stores like Vijay Sales and Spencers. Spencers provide very luring offers and discounts to their customers. Thus, Tata Croma, Pacific Mall faces stiff competition from Spencers in Small Appliances section. Tata Croma also faces competition from online electronic retailers like flipkart.com and ebay.com. Majority of consumers compare the prices of products on these websites before buying the product. So, Tata Croma has to come up with more discounts and luring offers. In electronics offers and discounts plays a very important role in conversion of sale. 4. Behavior of support staff.

Behavior of support staff



poor74.74.712.7

average4731.331.344.0

good5939.339.383.3

very good2516.716.7100.0

Total150100.0100.0

MissingSystem00

Total150100.0

Table 4.4: Frequency table for behavior of support staff.

Figure 4.8: Pie chart of Behavior of support staff .

Inferences from Table 4.4: Frequency table for behavior of support staff.Tata Croma puts a lot of emphasis on proper behavior of its employees. Organization is very rigid about the appropriate behavior of their employees. Majority of the respondents rated it above average i.e. good or very good. Thus, behavior of the support staff received a positive response from the customers.

5. Helpfulness of support staff

5.Helpfulness of the support staff



poor2013.313.321.3

average5335.335.356.7

good3926.026.082.7

very good2617.317.3100.0

Total150100.0100.0

MissingSystem00

Total150100.0

Table 4.5 : Frequency table of helpfulness of support staff.

Inference from Table 4.5 : Frequency table of helpfulness of support staff:Tata Cromas main aim is to make decision making process an ease for their customers. According to the company helpfulness of their support staff for the customers to buy the right product is the USP of Tata Croma. Tata Croma fully trains their employees to help consumers in buying the products meeting their requirements. It can be inferred from the table that majority of customers are satisfied with the helpfulness of the support staff at Tata Croma.

Figure 4.9: Pie chart of helpfulness of the support staff.

6. Ambience

Ambience



poor128.08.012.0

average3624.024.036.0

good6644.044.080.0

very good3020.020.0100.0

Total150100.0100.0

MissingSystem00

Total150100.0

Table 4.6: Frequency table of Rating of Ambience.Inferences: Majority of customers were satisfied with the ambience at Tata Croma.

Figure 4.10: Pie chart of Ambiences Rating.

7. Billing process

Billing process



poor138.78.712.7

average5335.335.348.0

good5939.339.387.3

very good1912.712.7100.0

Total150100.0100.0

MissingSystem00

Total150100.0

Table 4.7: Frequency table for rating of Billing Process.

Figure 4.11: Pie chart for rating of Billing Process.

Inference:From the above data it can be inferred that billing process was rated average or good by majority of the respondents. There are two billing counters at Tata Croma, Pacific Mall which are sufficient to tackle the rush at Tata Croma at peak period. As observed average waiting time of a customer is less than 5 minutes in the queue for billing. Thus, Tata Croma is ensuring fine billing experience for its customers.

Question 6.Would you recommend Tata Croma to your friends and family.?

Figure 4.12: Bar chart to represent would you recommend Tata Croma to your friends and family.

Inference:Only 2% people gave NO as an answer. Rest 98% respondents agree that they will recommend Tata Croma to their friends and family. From this we can infer that people are satisfied with the products and services offered by Tata Croma.

Question7.How would you rate tata croma at pacific mall?1. Excellent 2. Good3. Poor4. Pathetic

Figure 4.13: Overall rating of Tata Croma at Pacific mall, Ghaziabad.

Inferences:Out of 150 respondents 100 rated Tata Croma, Pacific Mall, Ghaziabad as Good. And only 28 respondents rated it as excellent. Still around 23 customers rated it as poor or pathetic. Those respondents who rated it as poor or pathetic were due to lack of variety or very high prices. One or two customers were not satisfied with the installation or delivery charges charged by Tata Croma so they rated it as poor or pathetic.

CHAPTER 5RECOMMENDATIONS AND FINDINGS

5.1 Findings:

The first finding from the questionnaire was that advertisement done by Tata Croma at Pacific Mall is not up to mark. 40% of the customers came to know about Tata Croma at Pacific Mall through their friends and family. Advertisement hardly played any role to aware the people in Ghaziabad or nearby areas about the Tata Croma at Pacific Mall . It was noticed that 20% respondents were new customers and 80% customers were old customers. All of the old customers were fully satisfied with the products they bought from Tata croma during their last visit. So it can be concluded that Tata Croma offers it customers the best available consumer electronics in the market. Location of the store was convenient to majority of the respondents but still there were 20 % of the customers found location of the store non convenient. Offers and discount received negative response from the respondents. Majority of the respondents thought it to be average. According to the data offers and discounts offered by tata croma are not up to the mark. Behavior and helpfulness of the support staff received very positive response from the customers , majority of them appraised support staff. Support staff, thus really help customers to buy a perfect product suitable as per their requirements. Ambience at the store also received positive response from majority of the respondents. Billing Process also got positive response. 98% customers will recommend Tata Croma to their friends and family Maximum of the customers rated Tata Croma as Good. While only 10% and 4% customers rated it as poor and pathetic respectively.5.2 Recommendations

After conducting the study, it was found that Tata croma has a good reputation in the market; at the same time it is maintain a good brand image. Most of the customers are satisfied with the products of Croma. Following are the suggestions: There is still a scope to improve the overall quality of products. By overall quality I mean the product offerings, ambience, product display etc. The display of the new products werent visible to the customers. Like in case of HTC ONE cell phone customer had to ask for its availability. It was very difficult to locate new mobile phones in hoard of old mobile phones. There should be new counter for new mobile phones released at the stores. This goes for many other products. Every section should have a sub section containing new releases. Croma should improve on its after sales support. Concerned person should go to the customers residence on the given time. This problem came to my notice through observation. There are very few schemes and promotion activities at TATA CROMA compared to its competitors. The store should seek a constant feedback from the customers so as to understand the customers feelings regarding the product and services and also to incorporate changes if any. The store should have a data base of customers birthdays and anniversaries, etc. and apart from sending cards in the festive season; they should also send cards on these special occasions. This will give personal touch and will develop better relationships with its customers. It should also give special discounts on birthdays of regular customers. More emphasis should be given towards the advertisements. As still there are many people un aware of Tata Croma at Pacific Mall. There should be a hoarding at ground Floor of the Mall as Croma is situated in the basement. Hoarding should consist of promotional schemes to induce customers to visit the store. Some areas require cleanliness. Some of the dummies in the communication section are not charged. These matters should be taken care of.

References

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Bibliography www.cromaretail .comwww.economictimes.com Indian retail report 2013

Annexure

Questionnaire:

Feedback

CONSUMERS PERCEPTION TOWARDS TATA CROMA AT PACIFIC MALL(The information provided by you will be kept confidential and used for academic purpose only)How did you come to know about Tata Croma at Pacific Mall?

1. Word of mouth ii.) Internet iii.)Hoarding iv.)Newspaper v.)Friends & Family vi.)Other1. Is this your first visit to Tata Croma at Pacific Mall?Yes / No

1. If no, did you purchase anything from this Tata Croma during your last visit?Yes / No1. What did you purchase from Tata Croma during your last visit?

1. Were you satisfied with the product? Yes / No

1. If No, what was the problem?

1. Rate the following factors on the scale of 5.VerypoorpooraveragegoodVery good

1. Convenience of Location

1. Pricing of the products

1. Offers and discounts

1. Behaviour of the support staff

1. Helpfulness of the support staff

1. Ambience

1. Billing process

Would you recommend Tata Croma to your friends and family? Yes / no Overall rating to this Tata Croma:1. Excellent ii. Good iii. Poor iv. Pathetic If not Tata Croma, where will you buy your electronics from? NAME: Thank you.

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