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A Project Report On
“STUDY OF CONSUMER BEHAVIOR, BRAND
MANAGEMENT AND CORPORATE TIE-Ups”
Carried out at
Future Group-Indus League
Submitted By
Progga promiti DasRoll no. 9267
MBA++(Marketing Retail)
Under the Guidance of
Dr. Rajesh Prahurkar
In Partial fulfillment of the requirement for the award of the degree of
Master of Business Administration (MBA++)
Department of Management Sciences
University of Pune
(PUMBA) 2009-2011
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UNIVERSITY OF PUNEBONAFIDE CERTIFICATE
Certified that this project report “STUDY OF CONSUMER BEHAVIOR,
BRAND MANAGEMENT AND CORPORATE TIE-Ups” is the bonafide work
of “Progga Promiti Das” who carried out the project work under my supervision.
Internal guideExternal Examiner Dr.Rajesh Prahurkar
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ACKNOWLEDGEMENT
I would like to take this opportunity to express my sincere gratitude
to all those who have guided me in right direction to complete this project
successfully.
I express my sincere gratitude towards Dr.Rajesh Prahurkar , Professor
of Department of Management Science, University of Pune for encouraging me
throughout my project and for blessing me with this opportunity. I would like to
thank my college’s internal guide for giving me the permission to commence this
project in the first instance, to do the necessary research work and to use
department data.
I also express my sincere thank towards Mr. Raj Sartape, the Area
Sales Manager(ASM) of Indus League(Future Group apparels) for guiding us in
understanding every aspect of retail business and I also owe thank to Future group
for providing such a huge platform .
I am deeply indebted to my faculty Guide who gave me stimulating
suggestions and encouraged me at all times during my project work.
Last but not the least, I would like to thank my respondents for sparing
their precious time to answer my questionnaire and giving me an access to such a
valuable information. Finally my sincere thanks to my parent’s and to all my
friends for their support and motivation throughout the project.
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Abstract- Retailing is one of the fastest growing industries in India. It also provides
largest employment in India. In India majority of retail sector is unorganised while
very few retailers are organised and work in more than one city.
Indus League clothing ltd. is a future group holding, a company owned by
future group and it heads the brands like John Miller, Urbana, Indigo Nation,
Jealous21, Scullers and Daniel Hechter. The project is titled “STUDY OF
CONSUMER BEHAVIOR, BRAND MANAGEMENT AND CORPORATE TIE-
UPs”. The main objectives of the project was to study and understand the
consumer buying behavior, Understanding the brand management process by
conducting a marketing research and making tie-ups with MNC's by B2B
marketing in various service organisations such as IT companies, Hotels, Colleges
for their employees and students. It also aims to determine how to position various
in-house brands of Indus League and Future group apparels.
Satisfying our customers is an essential element to stay in business in this
modern world of global competition. We must satisfy and even delight our
customers with the value of our products and services to gain their loyalty and
repeat business.
Recommendations given includes suggestions like emphasising on
promotional activities such as corporate discounts and other promotional schemes,
regularity in supplying of apparel orders and proper inventory management, providing
high end customisation to clients in terms of patterns, colors, fittings and providing
with post purchase services in terms of alteration help for increasing the loyalty and
inviting repeat purchase. This project revealed that Indus League Clothing Ltd. should
position itself as high quality low price apparel manufacturing company.
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TABLE OF CONTENT
Sr. No CHAPTER Page.No
ABSTRACT 4
TABLE OF CONTENT 5
LIST OF FIGURES 6
LIST OF TABLES 7
1 INTRODUCTION 8
1.1 Overview of the Retail Industry 11
1.2 Organisational Profile 14
1.3 Future Group awards 23
1.4 Need for the study 27
2 CUSTOMER BUYING BEHAVIOR 29
2.1 Customer Behavior 30
2.2 Decision Making 33
3 RESEARCH DESIGN AND METHODOLOGY. 36
3.1 Research Design 37
3.2 Data Interpretation and Analysis 39
4 B2B MARKETING AND INSTITUTIONAL TIE-Ups 56
5 FINDINGS AND SUGGESTIONS 63
APPENDICES 68
REFERENCES 72LIST OF FIGURES
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Sr.No Fig.No Title Page.No1 INTRODUCTION
1.1 The retail marketing mix 91.2 The retail communication mix 101.3 Evolution of Indian retail 121.4 Major players in Indian retail 131.5 Spread of future group 26
2 CUSTOMER BUYING BEHAVIOR2.1 Power pricing by Jealous21 332.2 Influences on the decision making process 352.3 Black box model 39
3 RESEARCH DESIGN AND METHODOLOGY3.1 People visiting for the first time 393.2 Frequency of visit 403.3 Frequency age group wise 413.4 Frequency gender wise 423.5 Promotions stimulating people 433.6 Influences of the promotional activities 443.7 Influence of the promotions occupation wise 453.8 Number of people exposed to communication of IndusLeague 463.9 Exposure of the communication age group wise 473.10 People exposed to in store communication 483.11 People liking the communication 493.12 Ratings for IndusLeague 503.13 People’s opinion on the offer 513.14 Opinions of the people on offers, age-group wise. 523.15 Shopping experiences 533.16 Shopping experiences, age-group wise 543.17 Shopping experiences, gender wise 55
4 B2B MARKETING AND INSTITUTIONAL TIE-Ups4.1 Demand categories 594.2 Buying decision making process 60
APPENDICES 68List of organizations 71
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LIST OF TABLES
Sr.No Table.No Title Page.No
3 RESEARCH DESIGN AND METHODOLOGY
3.1 People visiting for the first time 39
3.2 Frequency of visit 40
3.3 Frequency age group wise 41
3.4 Frequency gender wise 42
3.5 Promotions stimulating people 43
3.6 Influences of the promotional activities 44
3.7 Influence of the promotions occupation wise 45
3.8 Number of people exposed to communication of IndusLeague 46
3.9 Exposure of the communication age group wise 47
3.10 People exposed to instore communication 48
3.11 People liking the communication 49
3.12 Ratings for IndusLeague 50
3.13 People’s opinion on the offer 51
3.14 Opinions of the people on offers, age-group wise. 52
3.15 Shopping experiences 53
3.16 Shopping experiences, age-group wise 54
3.17 Shopping experiences, gender wise 55
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CHAPTER-1
INTRODUCTION
Marketing :
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Philip Kotler defines marketing as a societal process by which individuals and groups obtain
what they need and want through creating, offering and freely exchanging products and services
of value with others.
Retailing :Retailing includes all the activities in selling goods or services directly to final consumers for
personal, non business use.
Retail Marketing Mix :Retail marketing focuses on the segmentation, targeting, positioning and branding of a retail
store and methods of communicating this to consumer.
The basic function of retail is to provide the right goods to the consumer, at the right place and
time. Retail marketing mix is the marketing tool that a retail organisation uses to pursue its
marketing objectives, such as to inform the customers about the products that he has on offer, to
make the customer to visit and shop from his store and to achieve the sales target.
Figure 1.1: The Retail Marketing Mix
The Retail Communication Mix :
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Communication is an integral part of the retailer’s marketing strategy. Communication is used to
inform the customers about the retailer, the merchandise and the services. It also serves as a tool
for building store image. Every brand contact delivers an impression that can strengthen or
weaken the customers’ view of the company.
A communication program can be designed to achieve a variety of objectives for the retailer,
such as building a brand image of the retailer in the customer's mind, increasing sales and store
traffic, providing information about the retailer's location and offering, and announcing special
activities.
Retailers communicate with customers through advertising, sales promotions, Web sites, store
atmosphere, publicity, personal selling, e-mail, and word of mouth. These elements in the
communication mix must be coordinated so customers have a clear, distinct image of the retailer
and not be confused by conflicting information.
Figure 1.2 : The Retail Communication Mix
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1.1-Overview of the Industry:Retailing is the world’s largest private industry. In India, retailing is one of the largest industries
and one of the largest employments also. The retailing industry is quite old in the country.
Growth of retail companies in India exhibits the growth in the retail industry in India over the
years.
Evolution of Retail in India:
In India, during eighties, retailing or retailers meant peddlers, vegetable vendors, small grocery
stores, cloth stores and consumer durable shops. These retailers are operated in highly
unstructured and fragmented market. Very few retailers operated in more than one city. During
nineties, organised retailing was led by few manufacturers who had retail outlets in more than
one city, especially textile retailers like Vimal Textile, Bombay Dyeing, Raymonds. But Indian
retail scenario started changing after 1995. Liberalisation, Privatisation and Globalisation (LPG)
strategy led to dilution of the stringent restrictions. This paved the way for MNCs in the Indian
market. Increasing salaries of IT and Greenfield employees sector gave rise to completely new
group of buyers with higher purchasing power. Moreover the entry of MNC brands generated
considerable enthusiasm and interest among domestic retailers. This encouraged setting up of
retail chains by domestic retailers like Viveks and Nilgiries in Chennai, Nirulas in New Delhi
etc.
Competition in retailing is fierce. Everyday retailers come with new ideas, a proven successful
idea open hundreds of new stores. Leading retailers are opening new retail stores, at the same
time new investors like Bharti Group and global giant like Wal-Mart are also going to start the
retail stores in the Indian retail market.
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Figure 1.3: Evolution of Indian Retail
Growth of Retail Companies in India :
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Growth of Retail Companies in India is still not yet in a matured stage with great potentials
within this sector still to be explored. Most of the retail companies are sections of other
industries that have stepped in the retail sector for a better business. The Growth of Retail
Companies in India is most pronounced in the metro cities of India; however the smaller towns
are also not lagging behind in this. The retail companies are not only targeting the metros in
India but also is considering the second graded upcoming cities like Baroda, Chandigarh,
Coimbatore, Cochin, Ludhiana, Trivandrum, Simla, Gurgaon, and others. The South Indian zone
have adopted the process of shopping in the supermarkets for their daily requirements and this
has also been influencing other cities as well where many hypermarkets are coming up day to
day.
Reasons for the fast Growth of Retail Companies in India :
The retail companies are found to be rising in India at a remarkable speed with the years and this
has brought a revolutionary change in the shopping attitude of the Indian customers. The Growth
of Retail Companies in India is facilitated by certain factors like –
Existing Indian middle classes with an increased purchasing power
Rise of upcoming business sectors like the IT and engineering firms
Change in the taste and attitude of the Indians
Effect of globalization
Heavy influx of FDI in the retail sectors in India
Major players in Indian retail industry :
Pantaloon Retail India Ltd RPG Group Subhiksha
K Raheja Group Landmark Group Bharti-Walmart
Tata group Piramal Group Reliance
Figure1.4: Major players in retail
1.2-Organisation Profile:Pantaloon Retail India Ltd.
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Pantaloon Retail India Limited is India’s leading retailer that operates multiple retail formats
through retail chains such as Pantaloon, Big Bazaar, Food Bazaar, E-Zone, Fashion Station, &
Depot, which serves in both the value and lifestyle segment of the Indian consumer market. The
company operates over 12 million square feet of retail space, has over 1000 stores across 71
cities in India and employs over 30,000 people.
Pantaloon retail India Ltd., expects its business to grow manifold in next few years, both in terms
of new formats as well as new locations. To further reach out to its customers, and to provide
them a convenient shopping experience, Pantaloon Retail took the initiative of Web marketing
and sales through its newly launched Web site of Futurebazaar. The portal enjoys the benefit of
buying in bulk from the entire group and keeping its margins low, which allows it to offer low
prices to its customers.
Future Group :Future Group is led by its flagship enterprise Pantaloon Retail. Future Group, led by its founder
and Group CEO, Mr. Kishore Biyani, is one of India’s leading business houses with multiple
businesses spanning across the consumption space.
Future Group’s joint venture partners include, US-based stationery products retailer, Staples and
Middle East-based Axiom Communications. The group’s flagship company, Pantaloon Retail
was awarded the International Retailer of the Year 2007, by the US-based National Retail
Federation, the largest retail trade association and the Emerging Market Retailer of the Year
2007 at the World Retail Congress in Barcelona.
Future Group believes in developing strong insights on Indian consumers and building
businesses based on Indian ideas, as espoused in the group’s core value of ‘Indianness.’ The
group’s corporate credo is, ‘Rewrite rules, Retain values.’
Retail forms the core business activity of Future Group while group subsidiaries are present in
consumer finance, capital, insurance, leisure and entertainment, brand development, retail real
estate development, retail media and logistics.
Subsidiaries of Pantaloon Retail :
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Future Bazaar
Future Group
Future Capital Holdings
Future Generali
Future Learning & Development
Future Media
Future Knowledge Service
Home Solutions
Future Axiom Telecom
Future Brands
Central :
Central, a lifestyle shopping mall is a branch of Pantaloon Retail India Ltd. First Central was
launched at Bangaluru in 2004. Central is a showcase, seamless mall and the first of its kind in
India. The thought behind this pioneering concept was to give customers an unobstructed and a
pure shopping experience and to ensure the best brands in the Indian market are made available
to the discerning Indian customer.
Central is presently serving its customers through 11 stores located in 7cities across the India. It
is planning to have 20 stores by the year 2010 in various cities. Central houses over 300 brands
across categories, such as apparel, footwear and accessories for women, men, children and
infants, apart from a whole range of Music, Books, Coffee Shops, Food Courts, Super Markets
(Food Bazaar), Fine Dining Restaurants, Pubs and Discotheques.
Central also serves its customers through various value added services. These value added
services provided by Central are :
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Gift Central : Complimentary gift wrapping
Beauty Central : Complimentary make over
Flower Central : Flower service for your dear ones
Radio Central : Radio while you ‘Shop, Eat & Celebrate’
Wi-Fi Central : Complimentary broadband usage
DJ Central : Live entertainment on weekends
Indus League :Indus-League Clothing Ltd. was incorporated in Nov, 1998 and started commercial operations .
from April 1999 by six first generation entrepreneurs, to build lifestyle branded garments, at
time. when consumers were not aware of readymade garment brands. The Company is engaged
in the design and manufacture of ready-made garments.
The Company is led by Ms. Rachna Aggarwal, Director & CEO a first generation entrepreneur
with more than 15 Yrs of experience in this industry. She is supported by senior management
team with considerable years of experience in the industry.
The Board of Directors of the Company include several professional and independent directors,
being industry leaders in Management, Retailing, Manufacturing, Advertisement and Marketing.
The majority of the shareholding of the Company is held by Future group there are other
strategic investors include Benett Coleman & Co. Ltd. and others.
Some of the brands of Indus League includes;
1.Daniel Hechter
2.Urbana
3.Indigo Nation
4.John Miller
5.Jealous 216.Urban Yoga
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DANIEL HECHTER
Leading french pret-a-porter brand, Daniel Hechter launched its first showroom in South Extension Part- II, Delhi. Exclusive stores have also been launched in Mumbai, Bangalore and Gurgoan.
Daniel Hechter, an International label focusing on Menswear in India ensures creative fashion that includes the classic range of products with visible value addition, combined with sporty elegance in the sophisticated leisure range. The range offers premium classic shirts, trousers in slim silhouettes, double mercerized T-shirts and pima jerseys.
The French company which was recently launched in India by Indus league on an agreement, that Daniel Hechter would provide expertise in European design and styling to bring the latest collection to India, while Indus League would rely on its manufacturing ability as well as its retail prowess to market the brand across the country. Indus League will look to grow Daniel Hechter to a Rs. 50 crore brand by the end of 3 years. With this agreement the French Pret brand will offer its range of menswear to the Indian consumer.
Speaking on the brand, Rachna Aggarwal, CEO, Indus League Clothing Ltd. said, “We bring to Delhi international styles and designs from Paris through an exclusive Daniel Hechter Store. Delhi is a very stylish market and through this store we intend to ensure that the customer gets the finest quality and best of styling”.
“We have been eying Delhi as a fast developing market for luxury brands in India. We are glad to be associating ourselves with the city with our first store in South Extension. We hope Daniel Hechter is an absolute delight to Delhi with a fine blend of European designs and elegenat personalities of the people” said Tanguy Mulliez, International License Director, Daniel Hechter
The Daniel Hechter brand has its origin in Paris, the fashion capital. Fashion from Daniel Hechter blends French savoir-faire with sporty elegance. It garbs wearers in the certainty of always being well dressed. Fashion from Daniel Hechter conveys a lifestyle feeling, rendering the brand both authentic and appealing.
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URBANA
Indus League, which retails brands such as Indigo Nation and Scullers, is betting big on its recently launched premium menswear brand Urbana.
The Urbana range, comprising shirts, trousers, jackets, belts and ties, is targeted at the upmarket male in the 35-45 age group. It is positioned as a brand that "combines technology with fashion and functionality."
"The premium men's formalwear business is estimated at Rs 1,200 crore -1,500 crore. Hence, there is huge potential. We expect Urbana to emerge as a Rs 100-crore brand in three years," said Mr K.K. Pant, CEO and MD, Indus League.
Urbana products are claimed to be incorporated with technologies for sweat-, wrinkle- and stain-resistance, apart from having the `Durawhite' property for "sparkling whiteness even after several washes" and an anti-ageing formula.
The shirts and trousers are priced between Rs 1,299 and Rs 2,299 and the jackets at Rs 3,499-4,999.
Urbana is currently available at Central malls and Pantaloon stores. It will soon be available in shop-in-shops at premium menswear retail outlets and in standalone stores.
"Over the next three years, the company will aim to establish 150-200 such points across the country. Marketing spends are expected to be around Rs 15 crore; store investment would be Rs 50 lakh per store," said Mr Pant.
The company is looking at "selective and direct marketing communication" to promote Urbana given its niche premium positioning.
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INDIGO NATION
Indigo Nation, the stunning range of fashionable formal wear designed exclusively for the young, edgy and maverick man, continues to style the Royal Challengers Bangalore in the ongoing Indian Premier League.
After a hugely successful season last year, Indigo Nation is proud to style the debonair and stylish Royal Challengers Team of Bangalore for the second year in a row.The collection specially designed for the Royal
Challengers includes an exciting range with ‘Reversibles’ clothes that can be worn inside out and a stylish assemble of checkered shirts that go best with denims. They include a wide variety of shirts in varied hues of creams, blues and beiges. This special collection created by Indigo Nation for the Royal Challengers is not just a toast to the team but also to their admirers across the nation. The royal challengers spell the attitude of Indigo Nation – they are young and dynamic. Indigo Nation, the brand has possibly benchmarked the young corporate’ dress ethos in formals and changed men's fashion in India from sober and monotonous to bold and radical. They intend to expect the same boldness and style from the Royal Challengers Bangalore, who are not just raring to go on the field but off it as well.Indigo Nation is a young and edgy formal wear brand from the house of Indus-League Clothing Ltd, which is a unique brand lifestyle marketing firm headquartered in Bangalore. Indigo Nation’s Contra Formals has set a new trend in dressing for the young and dynamic – like they say – “Young Like That”!! Indigo Nation has possibly benchmarked the young corporates’ dress ethos in formals and changed men's fashion in India from sober and monotonous to bold and radical.
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JOHN MILLER Van Winkel Confectiebedrijven was set up in Budel in 1949. The founder Sjef van Winkel developed machines and accessories himself in order to constantly improve his shirt production.This shirt manufacturer rapidly grew into the Van Winkel Fashion Group, a respected family firm with a total of 55 staff in the Benelux countries and its own production company in Macedonia with 165 staff. The third generation of the van Winkel family is now closely involved with the organisation.The Van Winkel Fashion Group produces and sells its shirts to various men’s fashion firms under 2 brands: Ledûb established in 1963 with shirts for the higher middle segment and John Miller established in 1989 with shirts for the higher segment.
The John Miller brand was created from the Cotonissimo brand which guaranteed luxury shirts made of 100% pure cotton fabric from a European supplier. In 1989 the name John Miller was introduced with the addition of “Original Cotonissimo.” From spring 1995 the addition was dropped and the brand name became John Miller. The John Miller brand still stands for luxury shirts of exceptionally good quality. The high-quality materials from European suppliers, the beautiful workmanship and the comfortable fit ensure that the products are a great pleasure to wear and as comfortable as possible. John Miller also stands out thanks to its strong service orientation.
JOHN MILLER BRAND PROMISE :
John Miller luxury shirts have been developed from a rich Dutch tradition of shirtmaking and its own innovative vision. Besides stylish wear, John Miller offers fashionable shirts in which a lot of attention has been paid to detailed workmanship.Very high-quality fabrics and materials are used for the shirts. Nothing but the best will do for the fit and for optimum comfort in wear.Besides the criterion of quality in the widest sense of the word, John Miller explicitly focuses on the “service” element in its market approach. A service-orientated approach ensures long-term relationships with suppliers, customers and consumers.John Miller shirts guarantee optimum wearing comfort. That is because they are made exclusively of high-quality natural materials such as cotton, linen and silk. John Miller also has a line of shirts featuring a unique two-ply fabric quality. Made of 100% cotton fibres, the fine threads of this fabric make it exceptionally supple, resulting in a high level of wearing comfort and little to no wrinkling.
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JEALOUS 21
The new look Jealous 21, a ‘forever young’ ‘complete wardrobe’ store that gives a young girl (17-24 years) everything she needs to define her distinctive style and personality, opened in the city at Orchid City Centre , Mumbai Central. This novel retailing concept has been conceived by Indus-League Clothing Ltd. (where Future Group through Pantaloon Retail (India) Limited has a strategic stake), which had acquired the popular women’s denim brand Jealous in April 2005. On the occasion of the launch event, the young Jealous 21 models catwalked across the store displaying the ‘attitude’ of the Indian girl of today and the woman of tomorrow.
The ‘always in fashion’ Jealous 21 store is for the young girl, who is experimenting, innovating, going to work, starting to party and discovering her own unique style. Positioned as the trendsetter in denim wear, Jealous 21 aspires to give her everything she needs Fit, fashion, budget, familiarity and identity. The Jealous 21 merchandise offers great fits, great washes and great value for money. Always in fashion, it is great place to be seen at!
Bina Mirchandani , Head Category Pantaloon Retail ( India ) Limited said, “The store is smart , stylish, designed for the perfect young woman, who knows and understands the joys of being a girl and a woman. The Jealous 21 girl is sizzling, stylish, casual, sexy and professional. Always evolving and positive, the dependable Jealous 21 gives her affordable and chic fashion all year round.”
K.K. Pant, Managing Director Indus-League Clothing Ltd said, “Jealous 21 is a fresh and new concept store. This store has been designed keeping in mind the young girl’s shopping desires. We at Indus-League have always sought innovation and launched new concept stores, thereby giving a new shopping destination to the people of the city where we are present.”
The Jealous 21 range comprises casual, club and denim wear. It seeks inspiration from its glorious lineage — the Jealous denim wear brand. The denim brand, known for its fit, was launched in the early 90’s and was positioned as a brand for the young urban woman . Now the brand is being reinvented to infuse new energy into it. The company plans to expand its retail network for a nationwide presence.
Jealous 21 was launched in India in November 2006, with its first outlet in Orchid City Centre in Mumbai. The new look Jealous 21 a ‘forever young’ ‘complete wardrobe’ store gives a young girl (17-24 years) everything she needs to define her distinctive style and personality. The Jealous 21 range comprises: casual, club and denim wear. It seeks inspiration from its glorious lineage — the Jealous denim wear brand. The denim brand, known for its fit, was launched in the early ’90’s and was positioned as a brand for the young urban woman. Now the brand is being reinvented to infuse new energy into it.
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URBAN YOGA
Urban Yoga, the first line of clothing for yoga in India, has opened their first exclusive concept
store in the plush and luxurious Palladium Mall in Mumbai.
The brand takes it inspiration from the art of performing yoga. Similarly the 300 sq feet store at
the Palladium is built around the philosophy of Yoga and transcends the brand ethos to enhance
one’s shopping experience. The store conveys a serene ambiance and celebrates yoga and its
holistic pursuits right from its impressive use of ‘padmasana’ logos and the natural wooden feel
of the store interiors.
Rachna Aggarwal, CEO, Indus League said, “The store gives consumers a complete brand
experience and conveys the values and lifestyle imagery of the brand. We have tried to re-create
the entire yoga experience at the store. The collection at the store is focused on providing utmost
comfort and flexibility while performing yoga. The fabric and style benefits of the range help
you keep your mind on yoga and not on your clothes.” The collection is available for men,
women and kids. The specific fabric and styles benefits allow for stretch and better movement
while practising yoga or just exercising. The specific style benefits include shifted shoulder
seams in tops and ribbed fabric at the back and sides of the garment to facilitate better stretch.
Also available for women are seamless kimono cuts for better movement of arms while
exercising and broad roll up waist bands that helps to keep the garment in place, while retaining
a stylish look. The fabric used has five per cent lycra and is bio-washed for a soft body feel. Also
available this season is a range of “Sandesh” tees. The Sandesh tees, with their humour and play
on words, encompass the attitude of Yoga.
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1.3-Future Group Awards
CNBC Awaaz Consumer Awards 2009
Most Preferred Multi Product Chain - Big Bazaar
Most Preferred Multi Brand Food & Beverage Chain - Big Bazaar
Images Fashion Forum 2009
Most Admired Fashion Group Of The Year - Future Group
Most Admired Private Label - Pantaloons, the lifestyle format
Critic’s Choice For Pioneering Effort In Retail Concept
Creation - Central
Coca-Cola Golden Spoon Awards 2009
Most Admired Food & Grocery Retailer Of The Year
Most Admired Food Court
Most Admired Food Professional
Indian Retail Forum Awards 2008
Most Admired Retail Company of the year - Future Group
Retail Face of the Year - Kishore Biyani
Best Retailer Of The Year ( Hypermarket) - Big Bazaar
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Future Group was awarded the Most Admired Retail Company of the year by the Indian Retail
Forum at a glittering ceremony organized in Mumbai. Mr Kishore Biyani also won Retail Face
of the Year.
India Retail Forum (IRF) is a platform for intellectual insights and information exchange for the
retail business in the Indian subcontinent. The forum presents the business of retail in the region
to a global audience, with the express aim of facilitating understanding about and encouraging
investment in this massive marketplace.
Big Bazaar, the value format of Future Group bagged the Best Retailer of the Year
(Hypermarket).
The INDIASTAR Award 2008
Food Bazaar: Best Packaging Innovation
Food Bazaar bagged the INDIASTAR Award for Best Packaging Innovation in India, for its
private label brand Fresh and Pure Chakki Atta.
INDIASTAR Award is a biennial event which aims to promote and encourage excellence in
packaging design, innovation and technology. The contest was established in 1972 and is
considered as the most popular and premier event for India’s packaging fraternity. This year
there were around 357 entries and the participants had to submit a sample of their designs for
selection.
Retail Asia Pacific Top 500 Awards 2008
Gold Winner - Top Retailer 2008 Asia Pacific
Retail Asia Publishing Pte, the institutor of these awards, aims to set a platform that appraise
raises and recognizes the development and growth of retailing throughout the Asia Pacific
region.
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Coca-Cola Golden Spoon Awards 2008
Most Admired Food & Grocery Retail Visionary of the Year: Kishore Biyani.
Most Admired Food & Grocery Retailer of the Year – Supermarkets: Food Bazaar.
Most Admired Food & Grocery Retailer of the Year - Hypermarkets: Big Bazaar.
Most Admired Retailer of the Year - Dynamic Growth in Network Expansion across
Food, Beverages & Grocery: Future Group.
Most Admired Food & Grocery Retailer of the Year - Consumer's Choice: Big Bazaar.
The Coca-Cola Golden Spoon Awards 2008, were given away for the first time as a culmination
of the ‘Food Forum India 2008’ - a two day convention which saw the participation of leading
brands, retailers & retail support organizations from across the globe. The awards were presented
to honour enterprise, innovation and achievement in the food retailing business as a benchmark
of excellence.
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Figure1.5: Spread of Future Group
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1.4-Need for the study :
Retailing is a low-margin, high-volume, commodity business where profitability gets strained as
competition intensifies. It is very necessary to communicate and advertise with the people to
create the awareness among them. It therefore becomes very crucial to understand the customer
buying behavior. Promotion plays a very important role in the retailing as a medium for
communication. Major retail players spend large amount of funds for the communication and
advertisement of their brand. It is therefore important to study the impact of these promotional
activities on the customers and to what extent these advertisements and communication are able
to influence the consumer from which these retail players get their revenue. For increasing the
sale and thus revenue, it becomes important to gain and retain the market share and identify new
opportunities. Corporate Institutional tie-ups becomes a strategic decision for gaining higher
market share.
Problem statement :
Indus League is one of those successful brands which serves the lifestyle needs of the consumers.
In Pune, Indus League is always been challenged in its position to remain on the top due to new
entrants and increasing competition. Indus League spends heavily on promotion, so it is
necessary to check the effectiveness of this promotion.
‘Is the expenditure on various promotional activities done by Pune Central successful in
attracting the customer? ’
Without understanding the consumers need, it becomes difficult to serve them. It is important to
know whether the consumers are satisfied and whether their expectations are been meet upon.
‘Is the brand successful in understanding the consumer expectations and is it delighting the
consumers? ‘
Objectives :
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The objective of the study can be exhaustively divided as the study and understanding of three
different topics. The overall study focuses on the fulfilment of following objectives :
To study and understand the customer buying behavior.
To study and understand the process of brand management as well as the effectiveness of
the promotional activities of Indus League.
To understand and design B2B marketing activities as well as the terms and norms for
institutional tie-ups.
Scope of the study :
The study was conducted in the two stores of Central located in Pune city. The study was carried
out to to understand the entire brand management process as well as the effectiveness of the
promotional activities in creating an impact of Indus League as a brand in the minds of its
customers.
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CHAPTER-2
CUSTOMER BUYING BEHAVIOR
2.1-Customer Behavior:
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Consumer behavior is the study of when, why, how, and where people do or do not
buy products. It attempts to understand the buyer’s decision making process, both individually
and in groups. It studies characteristics of individual consumers such as demographics and
behavioral variables in an attempt to understand people's wants. Customer behavior study is
based on consumer buying behavior, with the customer playing three distinct roles of user,
payer and buyer. A greater importance is also placed on consumer retention, customer
relationship management, personalisation, customisation and one-to-one marketing. Social
functions can be categorized into social choice and welfare functions.
Customer Behavior Study:Observation of consumers is often a powerful tool. Looking at how customer select products
may yield insights into how they make decisions and what they look for.
E.g: Indus League found out that the reason for the low sales of its newly launched brand Daniel
Hechter was its lower brand awareness amongst the Indian customers. The customers would
rather look for well established brands like Allen Solly and Van Heusen.
Observation may help us determine how much time customer spends comparing prices. A
question arises as to whether this type of “spying” inappropriately invades the privacy of
customers. Although there may be cause for some concern in that the particular individuals have
not consented to be part of this research, it should be noted that there is no particular interest in
what the individual customer being watched does. The question is what customers either as an
entire group or as segments do. Customer benefits, for example, from stores that are designed
effectively to promote efficient shopping. If it is found that women are more uncomfortable than
men about others standing too close, the areas of the store heavily trafficked by women can be
designed accordingly. What is being reported here, then, are averages and tendencies in
response. The intent is not to find specific observations specific to one customer only. By
understanding the phenomena such as the tendency towards a right turn, the location of
merchandise can be observed. It is also possible to identify problem areas where customers may
have close encounter with each others.
Consumer Behavior-The Psychological thinking:
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o The psychology of how consumers think, feel, reason, and select between different
alternatives (e.g., brands, products, and retailers).
o The psychology of how the consumer is influenced by his or her environment (e.g.,
culture, family, signs, media);
o The behavior of consumers while shopping or making other marketing decisions.
o Limitations in consumer knowledge or information processing abilities influence
decisions and marketing outcome.
o How consumer motivation and decision strategies differ between products that differ in
their level of importance or interest that they entail for the consumer; and
o How marketers can adapt and improve their marketing campaigns and marketing
strategies to more effectively reach the consumer.
Applications of Customer Behavior study:
There are four main applications of customer behavior:
a) The most obvious is for marketing strategy—i.e., for making better marketing
campaigns. For example, by understanding that consumers are more receptive to cloth
when new fashions & traditions come. By understanding that new products are usually
initially adopted by a few consumers and only spread later, and then only gradually, to
the rest of the population.
- Companies that introduce new products must be well financed so that they can
stay afloat until their products become a commercial success and
- It is important to please initial customers, since they will in turn influence many
subsequent customers’ brand choices.
b) A second application is public policy-
E.g: IndusLeague brought Daniel Hechter, a Paris brand in a conception that it
will do well. But, this brand is not doing that well as per the expectations due to lower
awareness.
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c) Social marketing involves getting ideas across to consumers rather than selling
something. In social marketing JEALOUS21 (INDUSLEAGUE) has its own tabloids
where all the information regarding the brand are available.
d) As a final benefit, studying consumer behavior should make us better consumers.
Common sense suggests, for example, that if you buy 2 jeans or shirt you should pay
less per garment than if you buy 2 jeans. In practice, however, you often pay a
size premium by buying the larger quantity. In other words, in this case, knowing this
fact will sensitize you to the need to check the unit cost labels to determine if you
are really getting a bargain. In JEALOUS21 (INDUSLEAGUE) they have power
pricing.
Figure2.1: Power pricing by Jealous21
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2.2- Decision Making :
Figure2.2: Influences on the decision making process.
Internal search involves the customer identifying alternatives from his or her memory. For
certain low involvement products, it is very important that marketing program creates awareness.
For example, consumers are aware of new traditions & fashions.
In Indus League it was observed that Individual members of families often serve different roles
in decision making. Some individuals are information gatherers, who seek out information about
products. These individuals often have a great deal of power because they may selectively pass
on information that favors their chosen alternatives. Influencers do not ultimately have the power
to decide between alternatives, but they may choose from the available alternatives based on
word of mouth. The decision maker(s) have the power to determine issues such as
o Whether to buy,
o Which product to buy,
o Which brand to buy,
o Where to buy it and
o When to buy.
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Types of Consumer Buying Behavior:
Types of consumer buying behavior are determined by:
-Level of Involvement in purchase decision. Importance and intensity of interest in a
product in a particular situation.
-Buyers level of involvement determines why he/she is motivated to seek information
about a certain products and brands in retail showroom but virtually ignores others.
The four types of consumer buying behavior are;
1. Routine Response/Programmed Behavior- In Indus League buying low involvement
frequently purchased low cost items, need very little search and decision effort,
purchased almost automatically.
2. Limited Decision Making- Customer purchase clothes occasionally. When you need to
obtain information about unfamiliar brand in a familiar product category. Requires a
moderate amount of time for information gathering.
3. Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or
infrequently bought products- High degree of economic/performance/psychological risk.
Spend a lot of time seeking information and deciding.
4. Impulse buying, no conscious planning. Many a times at Pune Central customers visit
without any conscious planning and this is how impulse behavior is resulted.
Categories affecting Consumer Behavior:
A consumer, making a purchase decision will be affected by the following three factors. The
marketer must be aware of these factors in order to develop an appropriate strategy for its target
market.
1. Personal.
2. Psychological.
3. Social.
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1. Personal:
Personal factor includes aspects like sex, race, age and decision making ability. Young people purchase things for different reasons than older people.
2. Psychological factors:
Psychological factors include:
o Motiveso Perception
o Ability and Knowledge
o Attitudes
o Personality
o Lifestyles
3. Social Class:
Black box model:
In Retail Customer behaviour follows the Black Box Model.
ENVIRONMENTAL FACTORS BUYER'S BLACK BOX
BUYER'S RESPONSE
Marketing Stimuli
Environmental Stimuli
Buyer Characteristics Decision Process
Product,Price,Place,
Promotion.
Economic,Technological,
Political,Cultural,
Demographic,Natural.
Attitudes,Motivation,Perceptions,Personality,Lifestyle,
Knowledge.
Problem recognition,Information
search,Alternative evaluation,Purchase decision,
Post-purchase behavior.
Product choice,Brand choice,Dealer choice,
Purchase timing,Purchase amount.
Figure2.3: Black box model
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Chapter-3
Research Design
AND
Methodology
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3.1-Research design:
Research objective:Study of impact of promotional activities of Indus League at Pune Central through customer
analysis.
Type of research:Descriptive Research: The type of research that was used for the project was the descriptive
research. It is also known as statistical research and it describes data and characteristics about the
population or phenomenon that is studied.
Sampling Design : The sample had been designed by keeping in mind the research objective of the project. The
population selected for the research were the customers coming to Central. The type of sampling
that was used in this case was the non-probability sampling, where the samples to be surveyed
were randomly selected from the total population i.e. sampling was done by convenient
sampling. The data was collected from both the Centrals in Pune city i.e. Pune Central Bund
Garden and University Road. The data was collected on weekdays, weekends as well as on day
of in-store event Youthopia, an annual promotional event of Central. The data was collected
from the sample size of 200 respondents over the period of 2 months amongst the customers
coming to Pune Central.
Type of data:
Primary Data :
A questionnaire was designed with a view to collect the requisite information. The questionnaire
that was designed was the structured non-disguised type of questionnaire. The questionnaire was
a direct type i.e. the objective of the study was told to the surveyed people.
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Collection of data :
The primary data was collected using a pre-designed questionnaire and by the method of
observation. All the data collected was by face to face conversation with the targeted customers,
and also from the observations by the response of the customers to the in-store promotion and
visual merchandise in the shopping mall.
Secondary data :
The secondary data was collected from the website of the organisation and also from various
online databases available for the retail.
Methods of Data analysis: The analysis of the surveyed samples was done by the simple methods like tabular analysis,
graphical analysis, and percentage analysis. These methods that had been used to analyze the
data were the simplest methods.
Limitations of the study :Although utmost care was taken in conducting the survey, still every survey has some
limitations. So was the case in this survey on ‘Assessing the effectiveness of the promotional
activities of Indus League: Customer Analysis’. These limitations are as follows:
Firstly, the study was conducted only for two months, so due to the limited time period,
the study was briefly conducted.
The survey is subjected to the personal opinion of the respondent; therefore the responses
got from them may be biased.
The sample size selected was small considering the time and cost constraint.
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3.2-Data Analysis and Interpretation :1. Number of people visiting for first time
Yes No Total
78 122 200
Table3.1: People visiting for the first time.
Figure3.1:People visiting for the first time.
Interpretation : Majority of the customer visiting the mall are repeat customer denoting good brand
loyalty.
Promotional activities for Central helps to retain customers as well as attract new
customers.
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2. Frequency of visit to Central
Once a
Month
Twice a
Month
Once in Two
Months
Once in Three
Months
Different Total
50 30 64 38 18 200
Table 3.2: Frequency of visit.
Figure 3.2:Frequency of visit.
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Frequency of Various Age Groups of People Visiting Central
Age
Frequency of Visit to Central
TotalOnce a Month
Twice a Month
Once in Two
Months
Once in Three
MonthsDifferent
<= 18 Years 2 2 6 5 3 18
19-25 Years 14 14 24 8 4 64
26-35 Years 23 10 27 14 6 80
36-45 Years 5 2 4 6 3 20
> 45 Years 6 2 3 5 2 18
Table 3.3: Frequency, age group wise.
Figure 3.3:Frequency, age group wise
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Gender Frequency of People Visiting Central
Gender
Frequency of Visit to Central
TotalOnce a Month
Twice a Month
Once in Two
Months
Once in Three
Months
Different
Male 27 18 42 29 12 128
Female 23 12 22 9 6 72
Table 3.4: Gender wise frequency.
Figure 3.4: genderwise frequency.
Interpretation : Majority of percentage of people visiting Central have buying cycle of two months.
Majority of male come to Central once in two months while many others visit generally
once a month.
Majority of female visit Central with a gap duration of one month
Youth frequently visit Central as compared other age groups.
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3. Type of promotion stimulating people :
Press
Ad
Radio
Commercial
Hoardings Communication
Outside store
Self
Walk In
Different Total
44 42 18 36 48 12 200
Table 3.5: Promotions stimulating people.
Figure 3.5:Promotions stimulating people.
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Type of Promotion Influencing Various Age Groups
Age
Type of Promotion Influencing People
TotalPress
AdRadio
Commercial
Hoardings
Communication
Outside the Store
Self Walk
inDifferen
t
<= 18 Years
3 5 2 3 4 1 18
19-25 Years
14 17 5 10 15 3 64
26-35 Years
17 14 5 18 21 5 80
36-45 Years
6 2 4 3 4 1 20
> 45 Years 4 4 2 2 4 2 18
Table 3.6: Influence of the promotional activities.
Figure 3.6: Influence of the promotional activities
Type of Promotion Influencing people of various Occupations
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Occupation
Type of Promotion Influencing People
TotalPress Ad
Radio Commercial
Hoardings Communication Outside the
Store
Self Walk
inDifferent
Student 16 20 4 12 21 3 76
Service 14 10 10 20 21 5 80
Self Employed
6 4 2 2 4 2 20
Housewife 8 8 2 2 2 2 24
Table 3.7:Influence of the promotion occupation wise.
Figure 3.7:Influence of the promotion occupation wise.
Interpretation : Major effect of communication is by Radio & Press Ad. Press ads have impact on self-employed people and housewives while Radio Commercial
influences housewives and students more. Youth prefer self walk-in, they are also influenced by Radio Commercials and
Communication outside the store.4. Number of people exposed to the communication of Indus League at
Central :
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Yes No Total
132 68 200
Table 3.8:Number of people exposed to communication of Indus League.
Figure 3.8:Number of people exposed to communication of Indus League.
People of various age groups exposed to communication of Indus
League
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No of People Exposed to
Communication of Indus League
Age
Total<=18 Years
19-25 Years
26-35 Years
36-45 Years
>45 Years
Yes 12 48 55 9 8 132No 6 16 25 11 10 68
Table 3.9:Exposure of the communication age group wise.
Figure 3.9:Exposure of the communication age group wise.
Interpretation : Good effect of communication for Indus League.
Majority of the influence of the promotional communication of Indus League is on the
customers between the age group of 15 to 35 years.
Indus League is successful to communicate the message to their target customers.
5. Number of people exposed to the special communication for Indus
League in the store :
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Standees Signage Gift Display Other Total
76 60 44 20 200
Table 3.10:People exposed to instore communication.
Figure 3.10:People exposed to instore communication.
Interpretation: In store communication has good recall power.
Customer pays attention to whatever is communicated, so message should be designed as
per the trend.
6. Number of people liking communication for Indus League :
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Yes No Total
144 56 200
Table 3.11: People liking the communication
Figure 3.11: People liking the communication
Interpretation: Majority of people visiting Central liked the in-store communication for Indus League.
Visual Merchandise ( VM ) team plays important role in In-store communication.
7. Ratings for Indus League:
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Aspects Unsatisfactory (1)
Average unsatisfactory
(2)
Average (3)
Average satisfactory
(4)
satisfactory (5) Total
Brand Awareness 10 28 72 55 35 200
Brand Image 12 21 85 62 20 200Quality 10 39 82 25 44 200
Table 3.12: Ratings for IndusLeague.
Figure3.12: Ratings for IndusLeague.
Interpretation: The brand awareness of IndusLeague is not very well satisfactory.
The Image of the brand in the minds of its customers is average to satisfactory.
Customers perception about IndusLeague’s quality is average.
8. People’s opinion about offers on Indus League :
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Good Average Not Good Total
110 50 40 200
Table 3.13:People’s opinion on the offers.
Figure 3.13:People’s opinion on the offers.
Opinion of people of various age groups about offers on Indus League
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People Opinion About
Offers on Indus
League
Age
Total<=18 Years
19-25 Years
26-35 Years
36-45 Years
>45 Years
Good 9 30 50 9 12 110Average 5 24 12 8 1 50
Not Good 4 10 18 3 5 40Table 3.14:Opinions of the people on offers, age-group wise.
Figure 3.14:Opinions of the people on offers, age-group wise.
Interpretation : Major percentage of customers is of the opinion that offers at Indus League are average
to good which can be a reason for good brand loyalty.
Greater percentage of customers in age group 26-35 years and customers above 45 years
liked the offers on Indus League.
9. People describing shopping experience with Indus League :
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Excellent Good Average Poor Total
74 96 20 10 200
Table 3.15: Shopping experiences.
Figure 3.15: Shopping experiences.
Shopping experience of people of various age group with Indus League
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Shopping Experience of People with Indus
League
Age
Total<=18 Years 19-25 Years 26-35 Years 36-45 Years >45 Years
Excellent 9 25 26 8 6 74Good 6 34 41 7 8 96
Average 2 3 9 4 2 20Poor 1 2 4 1 2 10
Table 3.16: Shopping experiences, age-group wise.
Figure 3.16: Shopping experiences, age-group wise.
Gender wise shopping experience of people with Indus League
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GenderShopping Experience of People at Central
TotalExcellent Good Average Poor
Male 44 62 14 8 128
Female 30 34 6 2 72
Table 3.17: Shopping experiences, gender wise.
Figure 3.17: Shopping experiences, gender wise.
Interpretation : Indus League is still one step behind of customer delight.
Majority of customer think the experience as good, so efforts should be taken to convert
them into excellent.
Teens have better shopping experience as compared to youth and elderly customers.
Majority of females shared their shopping experience with Indus League as excellent,
while majority of males shared their shopping experience as good.
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CHAPTER-4
B2B MARKETING
AND
INSTITUTIONAL TIE-Ups.
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Business-to-business marketing:
These includes organizational sales and purchase of goods and services to support production of
other goods and services for daily company operations or for resale. Like a final consumers,
organizations purchase products and services to fill needs. Their primary need is meeting the
demands of their own customers.
The business buying decisions :
o Are more formal.
o Involve complex interactions among many people.
o Must consider the organization’s goals.
Components of the Business Market:
o Commercial Market: Individuals and firms that acquire goods and services to support,
directly or indirectly, production of other goods and services.
o Trade Industries: Retailers and wholesalers who purchase goods for resale to others.
o Reseller: often used to describe the wholesalers and retailers that operate in the trade
sector.
o Government Organizations: Include domestic units of federal, state, local and foreign
governments.
o Institutions: includes a wide variety of organizations, both public and private, such as
hospitals, churches, universities, museums, and not-for-profit agencies.
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Segmenting B to B marketing:
o Demographic Segmentation: Demographic characteristics define the useful segmentation
criteria for business markets. e.g: Hinjewadi is a proper segmentation and positioning for
Indusleague.
o Customer-Based Segmentation: Dividing a B2B market into homogenous groups based
on buyers’ product specifications.
o Segmentation by End-Use Application: Segmenting a business-to-business market based
on how industrial purchasers will use the product.
o Segmentation by Purchase Categories:
-Centers on the purchasing situations.
-Organizations may use complicated purchasing procedures.
-Firms also structure their purchasing functions in specific ways (e.g. centralized
purchasing departments).
Characteristcs of B2B marketing:o Retail business market is more geographically concentrated.
o Manufacturers concentrate in certain regions of the city.
o Certain industries locate in particular areas to be close to their customers.
o B2B customers often must work with multiple sellers.
o Decision-makers at several layers may influence final orders.
o Process is more formal and professional than with consumers.
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Market Demand Categories:
Figure4.1: Demand categories
o Derived Demand: Demand for a resource that results from demand for the goods and
services that are produced by that resource.
o Volatile Demand: Changes in demand that are disproportionate to normal trends.
o Joint Demand: Demand for a product that depends on the demand for another product used
in combination with it.
o Inelastic Demand: Demand that, throughout an industry, will not change significantly due to
a price change.
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o Inventory Adjustments: Just-in-time inventory policies (JIT & JIT II)
Organizational buying decision making
Figure4.2:Buying decision making process.
Buyer-Seller Relationships: -More intense than consumer relationships.
-Require better communication among the organizations’ personnel.
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-Primary goal of B2B relationships is to provide advantages that no other seller can, for
instance: Lower-prices, quicker delivery, Better quality and reliability, Customized
product features and more favorable financing terms.
Steps involved in Institutional buying Process:
Stage 1: Anticipate a Problem/Need/Opportunity and a General Solution
e.g: Need to provide employees with a good t-shirt to motivate them and increase productivity.
Stage 2: Determine the Characteristics and Quantity of a Needed Good or Service.
e.g: Offering a t-shirt with the company’s logo and of different colors according to each
employee’s preference.
Stage 3: Describe Characteristics and the Quantity of a Needed Good or Service.
Stage 4: Search for and Qualify Potential Sources.
-Choice of supplier may be fairly straightforward or very complex.
Stage 5: Acquire and Analyze Proposals.
-May involve competitive bidding, especially if the buyer is the government or a public
Institution.
Stage 6: Evaluate Proposals and Select Suppliers.
-Buyers choose proposal best suited to their needs.
-Final choice may involve trade-offs between feature such as price, reliability, quality, and
order accuracy of t-shirts.
Stage 7: Select an Order Routine.
-Buyer and vendor work out best way to process future purchases.
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Stage 8: Obtain Feedback and Evaluate Performance.
-Buyers measure vendors’ performance.
-Larger firms are more likely to use formal evaluation procedures.
-Some firms rely on outside organizations to gather quality feedback and summarize results.
Types of B2B buying:
Business buying behavior involves degree of effort involved in the decision and the levels within the organization in which these decisions are made.
Straight Rebuying:
-A recurring purchase decision in which a customer reorders a product that has satisfied needs in the past.-Purchaser see little reason to assess competing options.-Marketers who maintain good relationships with customers can go a long way toward ensuring straight rebuys. E.g: Infosys straight rebuys Indus League’s garments.
Modified Rebuying:
-Purchaser willing to re-evaluate available options.-May occur if supplier has let a rebuy circumstance deteriorate because of poor service or delivery performance.
New-Task Buying:
-First-time or unique purchase situations that require considerable effort by the decision makers.-Most complex category of business buying.-Often requires purchaser to consider alternative offerings and vendors.
Value analysis:
-Examines each component of a purchase in an attempt to either delete the item or replace it with a more cost-effective substitute.
Vendor analysis:
-An ongoing evaluation of a supplier’s performance in categories such as price, EDI capability, back orders, deliv ery times, liability in B2B customers.
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CHAPTER-5
FINDINGS AND SUGGESTIONS
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Findings :1. Brand Awareness Problem: After the marketing research activity that we undertook and
during the times when we were meeting the organisational clients, we observed that the Indus
League brand awareness was very poor. Most of the organisations and institutions were not
even aware of Indus League being a parent brand.
2. Market Penetration for Future group apparels: During our activity of B2B marketing
it was brought to our notice that the penetration of our brand was very less and there were
still many institutions who look for local vendors for the manufacturing of there uniforms
and other apparels.
3. Most preffered time for placing the order: It was found out that the most of the
institutions orders only once in a year. Moreover, the colleges and schools would order only
at the start of there academic year.
4. Need of high promotional activities: Offering corporate discounts, giving free
membership cards to employees, giving high discounts schemes such as buy 100 and get 10
free can probably help us targeting our target customer and to retain and gain maximum
market share.
5. Delivery time: The longer delivery time is also one of the reasons because of which the
penetration of our brand is low as compared to our competitors. Getting the approval from
the Bangalore office and again the transportation time involved in getting the order from
Bangalore results in a longer delivery time.
6. High end customization: There is a need for the high end customisation while delivering
the goods to the organisational customers. Customisation includes the company logo printed
on the shirt, the shirt color and design.
7. Post purchase benefits: It was noted that the post-purchase benefits that the customers
receives and the long-term relation that is been maintained with the customers are some of
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the reasons for high customer satisfaction and also results in customer delight most of the
times.
8. Price consciousness: The majority of the Pune region are price conscious and Indus
League has very well capitalised on such customers. It has segmented its customers and then
positioned its various brands acoording to the classes of the people. They have tried to cater
to every kind of need in the market.
9. Some of the other findings from the marketing research activity conducted to understand
the impact of promotional activities of Indus League includes;
o It was found that majority of customers visiting Pune Central are repeat customers,
denoting a good brand loyalty towards customers towards Central.
o It was also found that majority of percentage of people visiting Pune Central have buying
cycle of two months, i.e. generally customers revisit Central within two months.
o From the study on Indus League, it was found that major effect of promotion is by radio
commercials and press advertisements, where promotions through hoardings found to be
less effective. It was also found that many people come to buy Indus League without any
acquaintance with any of the promotional mediums but they are self walk-ins.
o It was found that the in-store communication has very good recall power; customers pay
attention to various medium of in-store promotion. Visual merchandise(VM) plays a very
important role in in-store promotion.
o From the study it was found that opinion of majority of customers of Indus League is the
offers are very good which is a reason for customer loyalty towards Indus League.
o Indus League is one step behind of customer delight. Majority of customers describe their
shopping experience as good as compared to excellent. There was very less number of
customers who describe their shopping experiences with Indus League as average or poor.
o Also majority of customers for Indus League are between the age group of 19 to 35 years,
it means Indus League’s promotion is effective in getting its target customer.
o From the study it is found that most of the customers coming for Indus League are
students and from service occupation, where the number of house wives and businessmen
is very less as compared to students and servicemen.
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o Also it was found that majority of the customers visiting are the residential near Pune
Central Bund Garden and Pune Central University Road, also these customers are found to
be repeat customers.
Suggestions :
1. Promotional Activities:
Follow the various promotional activities like advertisement on TV, Radio, Newspaper,
Internet, etc more rigourously so as to add-up to the brand awareness in the market.
2. Quality:
Maintain the quality of the apparels as per the requirements of the customers in order to
attain customer satisfaction and then delight. It is also equally important to understand the
customer insights.
3. Time Management:
Time management should be strictly followed in providing the ordered consignment on
time and reduce the delivery time.
4. Training to the sales staff:
A proper training should be provided to the sales executives about the detailed
information of the products and schemes in order to avoid the chances of hampering the
company’s image and reputation in long term and build as well as maintain the company’s image
in the eyes of the customers.
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5. Feed backs:
The feedback taken should be considered and thoroughly studied and the customers
grudges should be properly addressed.
6. The following few suggestions can be given to the company based on the research
findings:
More detailed promotion at store level can be planned in order to increase the overall
effectiveness of the promotional activities by Indus League.
Indus League can introduce some ‘Loyalty programs and schemes’ such as Loyalty
Cards, which will result into repeat visit of the customer to store and hence customer
loyalty.
Number of female customers buying Indus League garments is much less than male
customers, so more promotional activities can be planned keeping women section in the
mind to increase the number of female customers for the brand.
Majority of the customers visiting the Pune Central are residential of the zone near both
the Central stores in the city, so more promotions can be planned in the zones other than
those nearer to both the stores so as to increase the foot-falls to the store and attract
customers for Indus League.
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APPENDICES
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QUESTIONNAIRE :
Q1. Is this your first visit to Central? A) Yes B) No
Q2. How often do you visit Central? A) Once a month B) Twice a month C) Once in two months D) Once in three months E) If different please specify
Q3. Which of the following communications did stimulated your visit? A) Press ad B) Radio commercial C) Hoardings D) Communication outside the store E) No, Self walk in F) If different please specify
Q4. Did you see any communication on Indus League? A) Yes B) No
Q5. Which communication/ displays did you see for Indus League during your visit? A) Standees B) Signage C) Gift display D) Other
Q6. Do you like the in store communication for Indus League? A) Yes B) No
Q7. How will you rate the brand ‘Indus League’? (5 being highly satisfactory)
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1 2 3 4 5
Brand Awareness
Brand Image
Quality
Q8. What is your opinion on the offers available for Indus League? A) The offers are very good B) The offers are average C) The offers are not goodQ9. How would you describe the shopping experience with Indus League? A) Excellent B) Good C) Average D) Poor
Please help us with your personal information
11) Name:
12) Gender: Male Female 13) Age Group A) <= 18 B) 19-25 years C) 26-35 years D) 36-45 years E) > 45 Years
14) Occupation: A) Student B) Service C) Self Employed D) Housewife
15) Address: (Please tick the below mentioned zone) A) Zone 1 B) Zone 2 C) Zone 3 D) Zone 4 E) Outstation
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Zone 1- Yerwada, Viman Nagar, Chandan Nagar, Kalyani Nagar, Koregaon Park, Camp, and Dhole Patil Road, Bund Garden, Vishrantwadi, Shastri Nagar, Kharadi, Deccan College, Vadgaon Sheri.
Zone 2- Hadapsar, Kondhawa, Mundhwa, NIBM Road, Dhankavadi, Bibvewadi, Swarget, Katraj.
Zone 3- Peth Area, Deccan, Karve Road, Kothrud, Sinhgad Road.
Zone 4- Aundh, Baner, Pashan, PCMC Area (viz Khadki, Pimpri, Wakad, etc), Senapati Bapat Road, Model Colony.
List of the organisations for B2B marketing and Institutional Tie-ups:
S No
Company Name
Adress of the Company
Contact Person Email id
1Kobe Restaurant
Parihar chowk,Aundh
Mr.Sainath (Manager) mps@bom5.vsnl.net.in
2Kimberley clerk
PhaseII, Hinjewadi
Ms.Preeti (HR) preeti.bhatnagar@kcc.com
3 Infosysphase-II, Hinjewadi
Mr.Mahindra Hitkal
4 knorrPhase-II, Hinjewadi
Mr.Nilesh (HR)
5Kaya skin Clinic
Parihar chowk,Aundh Ms.Aishwariya kayapunelc@kayaindia.com
6 Cybage
West avenue,Kalyani Nagar
Mrs.Riya santani (HR Executive ) rheas@cybase.com
7 Hero Honda Wakedewadi Mr.Preetam gurjeetsingh@herohonda.com
8
Indira Institute Of Management, Shree Chanakya Education Society
New Mumbai Pune Highway, Tathwade
Mr.Nandlal Prasad,
(Purchase Manager)
nprasad@indiraedu.com
9INTOX Private Kothrud road Mr.Vilas Patil
intox@vsnl.com
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10
BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LTD Paud Road Ms.Sharmila
shreeraj.deshpande @bajajallianz.co.in
11
Oasis restaurant and bar
Baner link road, Aundh, Pune, Maharashtra
Mr.Shankar Habbu cluboasis@vsnl.net
Figure :List of organisations
REFERENCES :
Books :
1. Swapna Pradhan , Retailing Management, 2nd edition, 2004, Tata McGraw-Hill
Publication Company Ltd., New Delhi.
2. P. Kotler, K Keller, A. Koshy, M. Jha, Marketing Management: South Asian Perspective,
13th edition, 2009, Dorling Kindersley (India) Pvt Ltd., licensees of Pearson Education
Inc., New Delhi.
3. C. R. Kothari, Research Methodology, 2nd edition, 2004, New Age International (P) Ltd,
Publishers, New Delhi.
4. Rajendra Nargundkar, Marketing Research, 3rd edition, 2009, Tata McGraw-Hill
Publication Company Ltd., New Delhi.
5. Prof. M. V. Kulkarni: Marketing research (Text & Cases), 8th edition 2008, Everest.
Web-reference :
1. www.pantaloon.com
2. www.futuregroup.in
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3. www.retailworld.com
4. www.businessworldindia.com
5. www.indus-league.com
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