2siba Project 93 Edited by Sagar Xerox

8/14/2019 2siba Project 93 Edited by Sagar Xerox

1/47

Consumer Purchasing Behaviour

A Summer Internship Project ReportSubmitted in partial fulfillment of

The Master of Business AdministrationDegree under Biju Patnaik University of Technology, Rourkela.

By

SIBASANKAR SAHU

Roll No. # MBA 200810707 Regd. No. # 0806202044

September - 2009

Under the guidance of

Mr. Suresh Ch. Pattnaik

NATIONAL INSTITUTE OF SCIENCE & TECHNOLOGY

Palur Hills, Berhampur- 761008, Orissa, India


2/47

ACKNOWLEDGEMENT

I wish to express my deep sense of gratitude to my project guide, Mr. Suresh

Pattnaik, Faculty, NIST for his valuable guidance and useful suggestions, which

helped me in completing the project work.

I also would like to thankMr. Ratnakar Mishra, project coordinator MBA, NIST for

being supportive and for being a helping hand from the beginning till to the end of the

completion of the project.

I take immense pleasure in thanking Mr. Shom Prasad Das, Course CoordinatorMBA, for having permitted me to carry out this project work.

The boosting from our honorable director, Prof. Sangram Mudali, once in a while is

really worth mentioning.

Words are inadequate in offering my thanks to the Project Trainees and Project

Assistants ofVishal Mega Mart for their encouragement and cooperation in carrying

out the project work.

Finally, yet importantly, I would like to express my heartfelt thanks to my beloved

parents for their blessings, my friends/classmates for their help and wishes for the

successful completion of this project.

Sibasankar Sahu

i


3/47

LIST OF TABLES

Table 1.1 Top Major Retail Players ..........................................................................4

Table 1.2 Floor Wise Product Details.......................................................................18

ii


4/47

LIST OF FIGURES

Figure 1.1 Fastest Growing Formats in India...........................................................3

Figure 2.1 Model of Consumer Buyer Behavior.....................................................20

Figure 2.2 Consumer Decision-Making Process......................................................22

Figure 4.1 Awareness of Retail Shop .......................................................................30

Figure 4.2 Preferation of Departmental Store.........................................................31

Figure 4.3 Reason for Choosing Vishal....................................................................32

Figure 4.4 Major Influencer .....................................................................................32

Figure 4.5 Own Brand Vs. Other Brand..................................................................33

Figure 4.6 Preferable Item to Purchase ..................................................................33

Figure 4.7 Effect of Display Strategy........................................................................34

Figure 4.8 Decision Maker .......................................................................................34

Figure 4.9 Factor Effecting Buying Process............................................................35

Figure 4.10 Preferred Buying Situation ..................................................................35

Figure 4.11 Overall Ranking of Vishal.....................................................................36

iii


5/47

TABLE OF CONTENTS

ACKNOWLEDGEMENT ............................................................................................i

LIST OF TABLES ....................................................................................................... ii

LIST OF FIGURES ....................................................................................................iii

TABLE OF CONTENTS ............................................................................................iv

1. INTRODUCTION ...................................................................................................1

1.1 General Overview .............................................................................. 1

1.1.1 Introduction of Retail Industry ...................................................... 1

1.1.2 Retail Formats .............................................................................. 2

1.1.3 Top Major Retail Players ............................................................... 4

1.1.4 SWOT Analysis ............................................................................. 5

1.2 Objective of the Study ........................................................................ 7

1.2.1 Primary Objective ......................................................................... 7

1.2.2 Secondary Objective .................................................................... 7

1.3 Scope of the Study ............................................................................. 7

1.4 Company Profile ................................................................................. 7

1.4.1 Promoters and Group Companies ................................................. 8

1.4.2 Major Events .............................................................................. 11

1.4.3 Their Competitive Strengths ...................................................... 11

6. Private Labels .................................................................................. 13

7. Information Technology Systems .................................................... 13

8. Experienced and Skilled Management Team ................................... 14

1.4.4 Their Strategy ............................................................................ 14

1.4.5 Corporate Mission ................................................................ 16

1.4.6 Corporate Manifesto ................................................................... 16

1.4.7 Core Value .................................................................................. 16

1.4.8 Company Vision ......................................................................... 17

iv


6/47

1.5 Vishal Mega Mart (Berhampur) ......................................................... 17

2. REVIEW OF LITERATURE ............................................................................... 18

2.1 Consumer ......................................................................................... 19

2.2 Consumer Behavior ......................................................................... 19

2.3 How and Why Consumer Buy ........................................................... 20

2.4 Characteristics Affecting Consumer Behavior .................................. 20

2.4.1 Cultural Factor ............................................................................ 20

2.4.2 Social Factor ............................................................................... 21

2.4.2 Personal Factor: ......................................................................... 21

2.5 Types of Buying Behavior ................................................................. 21

2.6 Roles in the Buying Process .............................................................. 21

2.6.1 Problem Recognition .................................................................. 22

2.6.2 Information Search ..................................................................... 23

2.6.3 Alternatives Evaluation .............................................................. 23

2.6.4 Purchase Action .......................................................................... 23

2.6.5 Post-Purchase Actions ................................................................ 24

3. METHODOLOGY .................................................................................................25

3.2 Data Collection ................................................................................. 25

3.3 Sampling Plan ................................................................................... 25

3.4 On the Job Training ........................................................................... 25

3.4.1 Work Schedule ........................................................................... 26

.............................................................................................................. 26

3.4.2 Schedule for Project Work in Vishal Mega Mart .......................... 26

3.5 Limitations of the Study ................................................................... 26

4. DATA ANALYSIS & INTERPRETATION ...................................................... 27

5. CONCLUSION & SUGGESTIONS .....................................................................37

5.1 Conclusion ........................................................................................ 37

5.2 Suggestions ..................................................................................... 37

v


7/47

ANNEXURE ............................................................................................................. 38

vi


8/47

CONSUMER PURCHASING BEHAVIOUR

1. INTRODUCTION

1.1 General Overview

1.1.1 Introduction of Retail Industry

The retail industry is divided into organized and unorganized sectors. Organized

retailing (Vishal Mega Mart) refers to trading activities undertaken by licensed

retailers, that is, those who are registered for sales tax, income tax, etc. These include

the corporate-backed hypermarkets and retail chains, and also the privately owned

large retail businesses. The unorganizedretailing refers to trading activities done by

local retailers which are not registered like kirana shops, fruits and vegetable vendors

etc.

The term "Retailing" refers to any activity that involves a sale to an individual

customer. In India, the unorganized retailing sector comprises of 96.5% while that of

organized sector just 3.5% that is mainly in major metropolitan and urban areas.

Indian retailing traditionally dominated by a small family run "Kirana" store.

Retailing in India is the second largest untapped market after China. Professional

management and strong customer focus characterize organized retailing. Despite the

huge size of the industry, only 8% of the country's population is engaged in retailing

while that in United States of America it is 20%. The positive factor such as increased

purchasing power, rise in number of double income families and demanding

customers, due to change in life style and paucity of time, customers are increasingly

looking for convenience. To woo the customers to the store retailers are providing a

wide product range, quality and value for money, apart from creating a memorable

shopping experience.

If economy continues to register a growth of 7- 8 %of the GDP annually, estimated by

2010, retailers will comprises of $300bn industry .retailing is the last stage of

distribution process. Retailing is one of the fundamental building block of the Indian

economy. Indian retail market has undergone an immense transformation in the post

liberalization & witnessing tremendous growth. Indian retail growing at the rate of

30% per annum and provides the highest employment after agriculture in India. The

1


9/47


growing sophistication in retailing like A.T Kearney & Kurt Salmon Associates have

become active in India. Industrial houses take to Retailing and set up retail chains like

R.P. Goenkas, Nandas, K Rahejas, Tata, Birlas, Piramals, ITC, Ambanis, find a place

in the list. Many others have worked out their plans and are likely to enter the line in

the next couple of months

1.1.2 Retail Formats

Hypermarket: It is the largest format in Indian retail so far is a one stop shop for the

modern Indian shopper.

Merchandise: food grocery to clothing to spots goods to books to stationery.

Space occupied: 50000 Sq .ft. and above.

Example: Pantaloon retails Big Bazaar, RPGs Spencers (Giant).

Supermarket: A subdued version of a hypermarket.

Merchandise: Almost similar to that of a hypermarket but in relatively smaller

proposition.

Space occupied: 5000 Sq. ft. or more.

Example: Nilgiris, Apna Bazaar, Trinethra.

Convenience store: A sub dude version of a supermarket.

Merchandise: Groceries are predominantly sold.

Space occupied: Around 500 Sq. ft. to 3000 Sq. ft.

Example: stores located at the corners of the streets, Reliance Retails Fresh and

Select.

Department store: A retail establishment which specializes in selling a wide range of

products without a single prominent merchandise line and is usually a part of a retail

chain.

Merchandise: Apparel, household accessories, cosmetics, gifts etc.

Space occupied: Around 10000 Sq. ft. 30000 Sq. ft.

Example: Landmark Groups LifeStyle, Trent India Ltd.s Westside.

2


10/47


Figure 1.1 Fastest Growing Formats in India

Discount store: Standard merchandise sold at lower prices with lower margins and

higher volumes.

Merchandise: A variety of perishable/ non perishable goods.

Multi Brand outlets, also known as Category Killers. These usually do well in busy

market places and Metros.

Merchandise: Offers several brads across a single product category.

Example: Viswapriya Groups Subiksha, Piramals TruMart.

Specialty store: It consists of a narrow product line with deep assortment.

Merchandise: Depends on the stores

Example: Bata store deals only with footwear, RPGs Music World, Crossword.

Kirana stores: The smallest retail formats which are the highest in number (15

million approx.) in India.

Merchandise: Mostly food and groceries.

Space occupied: 50 sq ft and even smaller ones exist.

3


11/47


Malls: The largest form of organized retailing today. Located mainly in metro cities,

in proximity to urban outskirts.

Merchandise: They lend an ideal shopping experience with an amalgamation of

product, service and entertainment, all under a common roof.

Space occupied: Ranges from 60,000 sq ft to 7, 00,000 sq ft.

Example: Pantaloon Retails Central, Mumbais Iorbit.

1.1.3 Top Major Retail Players

Table 1.1 Top Major Retail Players

Retailer Existing formats Brand Names

No.of

Stores

Total Retail

Space

(000 sq ft)

Pantaloon

Retail Indian

Ltd

Department store Pantaloon 13 1,948

Hypermarket Big Bazaar 450 5000

Seamless Malls Central 12 1200

RPG Retail

Hyper markets Spencers 400 6000

Music Stores Music world 225 230

books Stores Books and Beyonds

Shoppers Stop

Ltd.

Department stores Shoppers Stop 20 1000

Books & Music Stores Crosswords 33 N/A

Home furnishing Home Stop N/A N/A

Landmark

Group (Based

in Dubai)

Department Stores Lifestyle 8 370

Trent India Ltd

Department Stores West side 19 350

Hypermarkets Star India Bazaar 1 N/A

Books & Music Stores Land Mark 4 N/A

Vishal Group Hyper markets Vishal Mega Mart 183 13,45

4


12/47


1.1.4 SWOT Analysis

A SWOT analysis of the Indian organized retail industry is presented below:

1. Strength:

Retailing is a "Technology-intensive" industry. It is technology that will help

the organized retailers to score over the unorganized retailers. Successful

organized retailers today work closely with their vendors to predict consumer

demand, shorten lead times, reduce inventory holding and ultimately save

cost. Example: Wal-Mart pioneered the concept of building competitive

advantage through distribution & information systems in the retailing

industry. They introduced two innovative logistics techniques cross-docking

and EDI (electronic data interchange)

On an average a super market stocks up to 5000 SKU's against a few hundreds

stocked with an average unorganized retailer. This will provide variety in

products(required breadth & depth for consumers)

As a consequence of high volumes, procurement will be direct from the

Manufacturer. Hence, merchandise can be offered at lower costs.

2. Weakness :

Less Conversion level: Despite high footfalls, the conversion ratio has been

very low in the retail outlets in a mall as compared to the standalone counter

parts. It is seen that actual conversions of footfall into sales for a mall outlet is

approximately 20-25%. On the other hand, a high street store of retail chain

has an average conversion of about 50-60%. As a result, a stand-alone store

has a ROI (return on investment) of 25-30%; in contrast the retail majors are

experiencing a ROI of 8-10%

Customer Loyalty: Retail chains are yet to settle down with the proper

merchandise mix for the mall outlets. Since the stand-alone outlets were

established long time back, so they have stabilized in terms of footfalls &

merchandise mix and thus have a higher customer loyalty base.

3. Opportunity:

The Indian middle class is already 30 Crore & is projected to grow to over 60

Crore by 2010 making India one of the largest consumer markets of the world.

The IMAGES-KSA projections indicate that by 2015, India will have over 55

5


13/47


Crore people under the age of 20 - reflecting the enormous opportunities

possible in the kids and teens retailing segment.

Organized retail is only 3% of the total retailing market in India. It is

estimated to grow at the rate of 25-30% p.a. and reach INR 1,00,000 Crore by2010.

Percolating down: In India it has been found out that the top 6 cities

contribute for 66% of total organized retailing. While the metros have already

been exploited, the focus has now been shifted towards the tier-II cities. The

'retail boom', 85% of which has so far been concentrated in the metros is

beginning to percolate down to these smaller cities and towns. The

contribution of these tier-II cities to total organized retailing sales is expected

to grow to 20-25%.

Rural Retailing: India's huge rural population has caught the eye of the

retailers looking for new areas of growth. ITC launched India's first rural mall

"Chaupal Saga" offering a diverse range of products from FMCG to electronic

goods to automobiles, attempting to provide farmers a one-stop destination for

all their needs." Hariyali Bazar" is started by DCM Sriram group which

provides farm related inputs & services. The Godrej group has launched the

concept of 'agri-stores' named "Adhaar" which offers agricultural products

such as fertilizers & animal feed along with the required knowledge for

effective use of the same to the farmers. Pepsi on the other hand is

experimenting with the farmers of Punjab for growing the right quality of

tomato for its tomato purees & pastes.\

4. Threat:

If the unorganized retailers are put together, they are parallel to a large

supermarket with no or little overheads, high degree of flexibility in

merchandise, display, prices and turnover.

Shopping Culture: Shopping culture has not developed in India as yet. Even

now malls are just a place to hang around with family and friends and largely

confined to window-shopping.

Cultural Variation leads to variation in merchandise in India at different

geographical locations

6


14/47


1.2 Objective of the Study

1.2.1 Primary Objective

The primary objective of study is enhance the sale of vishal mega mart.

1.2.2 Secondary Objective

To know the consumer preference & choices.

To study consumer behavior & increase market share.

To know the customer flow & revenue generated by the stock from the each

department.

1.3 Scope of the Study

The scope of my study restricts itself to analyze the consumer purchasing behavior on

the basis of Garments, Gifts, Cards and Music Department where as in the recent

trend its seen that the key players in this Industry are more emphasizing on the

Garments, Personal Grooming, Home furnishings, Life style and Footwear

Departments in their Store

1.4 Company Profile

VISHAL MEGAMART is a retail house in India. As of April 30, 2007, it operates

50 retail stores, including two stores which are operated by their franchisees. These 50

stores are spread over about 1,282,000square feet and are located in 18 states across

India. In its efforts to strengthen their supply chain, it has set up seven regional

distributions centres and an apparel manufacturing plant.

It started as a retailer of ready-made apparels in Kolkata in 2001. At the time of

incorporation, the registered office of their Company was situated at 4, R. N.

Mukherjee Road, Kolkata 700 001. In 2003, it acquired the manufacturing facilities

from Vishal Fashions Private Limited and M/s Vishal Apparels. Subsequently, with

evolution of retail industry in India and change in consumer aspirations, it diversifiedtheir portfolio of offerings to include other retail goods. Currently, it sell ready-made

7


15/47


apparels and a wide range of household merchandise and other consumer goods such

as foot tar, toys, watches, toiletries, grocery items, sports items, crockery, gift and

novelties.

It follows the concept of value retail in India. In other words, their business approach

is to sell quality goods at reasonable prices by either manufacturing themself or

directly procuring from manufacturers (primarily from small and medium size

vendors and manufacturers). It endeavtheir to facilitate one-stop-shop convenience for

their customers and to cater to the needs of the entire family. It believes this concept

has helped them grow to their current size within a short time frame of their years.

Mr. Ram Chandra Agarwal has been ranked as the 28th most pitiful person in the

Indian retail industry.

In order to reduce costs and take advantage of economies of scale it has embarked on

backward integration of their products. Their apparel manufacturing plant is located at

Gurgaon, Haryana. For ensuring efficiency in supply chain, it has set up seven

regional distribution centres located around Kolkata, Thane (Maharashtra), Jaipur

(Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and

Delhi. Further, it has focussed on developing a cost and time efficient distribution and

logistics network, which currently comprises seven distribution centers and a fleet of

trucks for transportation. It achieved total sales of Rs. 6,026.53 million for fiscal

2007, as opposed to a turnover of Rs. 2,884.43 million for fiscal 2006 and Rs.

1,463.12 million for fiscal 2005. During the same period their profit after tax was Rs.

249.83 million, Rs. 124.74 million and Rs. 30.20 million, respectively. As a result,

their sales increased batten fiscal 2004 and fiscal 2007 at a CAGR of 89.83% and

their profit after tax increased batten fiscal 2004 and fiscal 2007 at a CAGR of302.89%.

1.4.1 Promoters and Group Companies

Promoters

The following individuals are the Promoters of our Company:

a). Mr. Ram Chandra Agarwal;

b). Mrs. Uma Agarwal; and

c). Mr. Surendra Kumar Agarwal.

8


16/47


The following companies are the Promoters of our Company:

a). Unicon Marketing Private Limited;

b). Ricon Commodities Private Limited; and

c). Vishal Water World Private Limited.

In addition, the following HUFs are the Promoters of our Company:

a). Mr. Ram Chandra Agarwal (HUF)

The details of our Promoters who are individuals, are as follows:

Mr. Ram Chandra Agarwal, a resident Indian national aged 42 years, the pioneer of

budget stores in India, holds a bachelors degree in commerce. He has about two

decades of experience exclusively in readymade garments including manufacturing,

retailing and marketing. He was brought up in Kolkata and started the business under

the name of Vishal Garment with a small store at 9, Lal Bazaar Street, Kolkata. Mr.

Agarwal has been ranked as the 28th most powerful person in the Indian retail

industry. He is the Chairman and Managing Director of our company and has been on

the board of our Company since its inception.

Mrs. Uma Agarwal, a resident Indian national, W/o Mr. Ram Chandra Agarwal,

aged 32 years, holds a bachelors degree in arts. Mrs. Agarwal has more than five

years of experience in the retail industry. She has been on the board of our Company

since its inception. She started the business under the name The Vishal Garments in

1998 and the above concern was taken over by the Vishal Retail Private Limited in

2001 with all assets and liabilities. She has been associated with accounts department

of our Company and is currently overseeing our marketing

strategies.

Mr. Surendra Kumar Agarwal, a resident Indian national, aged 44 years, is a

commerce graduate. He has been on the board of our Company since its inception. He

was brought up in Calcutta and is engaged in the business with Mr. Ram Chandra

Agarwal and actively looking after the entire purchasing activities of the company. He

has two decades of experience in the 119 garments industry.

9


17/47


For other details relating to Mr. Ram Chandra Agarwal, Mrs. Uma Agarwal and

Mr. Surendra Kumar Agarwal, including addresses, terms of appointment as

our Directors and other directorships, see the section titled Our Management

beginning on page 109. The details of our Promoter companies are as below:

Vishal Water World Private Limited (Vishal Water World)

Vishal Water World was incorporated on May 7, 1999 as a private limited company

under the Companies Act. Its registered office is situated at Mouza-Kuchpukur, P.S.

Bhangore, 24 Parganas (South) West Bengal, Kolkata. Vishal Water World is

presently engaged in the business of operating an amusement centre and sports

complex. Mentioned below are certain details of Vishal Water World:

S. No. Particulars Details

1. Registration No: 21-89342 of 1999

2. PAN AABCB1188J

3. Bank account no. 116010200003148

Promoters of Vishal Water World

The promoters of Vishal Water World are Mr. Ram Chandra Agarwal and Mrs. Uma

Agarwal.

Shareholding pattern

The equity shares of Vishal Water World are not listed on any stock exchange. The

shareholding pattern of Vishal Water World as of April 30, 2007, is as follows:

S. No. Name of Shareholder Number of Shares % of shareholding

1. Unicon Marketing Private Limited 315,000 49.53

2. Ricon Commodities Private Limited 300,000 47.17

3. Mr. Ram Chandra Agarwal 12,010 1.89

4. Mrs. Uma Agarwal 9,010 1.42

Total 636,020 100.00

10


18/47


Board of Directors

As of April 30, 2007, the board of directors of Vishal Water World comprises Mr.

Ram Chandra Agarwal

and Mrs. Uma Agarwal.

1.4.2 Major Events

A chronology of some key events in the history of the Company is setforth below:

Year---- Milestone

2001-- Incorporated as Vishal Retail Private Limited acquired the proprietorship firm

Vishal Garments & the Vishal Garments opened firststore outside Kolkata.

2002-- Opened first Store in Delhi

2003 --Acquired Vishal Apparels, a manufacturing unit. Set up a manufacturing unit

in Gurgaon.

2004--Started their largest store of at Mathura Road, New Delhi having an area of

80,000 square feet nominated for the Images Retail Awards2004

2006--Their Company was converted into a public limited company103

implementation of production and retail module of SAP Broadband

connectivity with each and every location Increased their presence to an

aggregate of 17 States.

2007-- Increase in number of stores to 50 spread across in 18 States.

2008- Increase the number of store up to 183 in 89 cities.

1.4.3 Their Competitive Strengths

It believes that the following are their principal competitive strengths which have

contributed to their current position in the retail sector in India.

1. Understanding of the value retail segment

Their business plan involves implementation of the concept of the value retailing,

targeting the middle and loiter middle income groups, which constitute majority of the

population in India. It intend to provide quality products at competitive prices. It sells

a vast range of merchandise across apparels and accessories, FMCG(frequently

11


19/47


marketed consumer goods) products, food products and consumer durables with over

74,000 SKUs. Their emphasis has been to maximize the value that the customers

derive in spending on goods bought in their stores. It endear their to continuously

reduce their costs through a variety of measures, such as, in-house production of

apparels, procurement of goods directly from the small and medium size vendors and

manufacturers, efficient logistics and distribution systems along with customized

product mix at their stores depending on the regional customer behave their and

preferences. Central to their value retail strategy is to pass on the benefits of cost

reduction measures to their customers.

2. Supply Chain Management

Their supply chain management involves planning, merchandizing sheering,

standardization, vendor management, production, logistics, quality control,

pilferage control replacement and replenishment. Their supply chain management

provides us flexibility to adapt to changing patterns in consumer behave their and

their ability to add value at various steps/levels. In particular, their supply chain

management gains strength from their ability to undertake in-house manufacture,

design and development of apparels.

3. Logistics and Distribution Network

Their distribution and logistics network comprises seven distribution centers. Besides,

It hastier own fleet of 41 trucks, which helps us to transport and deliver their products

in a cost and time efficient manner. It believe that their distribution and logistics set

up is It'll networked and allows us to fulfill the store requisition within short time

period of generation and receipt of order, which has helped us to optimize in-store

availability of merchandise and minimize transportation costs. Their strong

distribution and logistics network has enabled us to dispense with the requirement of a

dedicated storage space at every store, which is an industry practice, and instead

undertake periodical replenishment of depleted stock. Due to adoption of an efficient

racking system, it is able to benefit from optimum utilization of the space allocated

for display in their stores. This provides us assistance in maintaining a low working

capital requirement and less carrying cost.

12


20/47


4. Geographical Spread

Their stores and distribution centers are spread in various parts and regions of the

country. This has not only enabled us to build their brand value but also facilitated us

to explore cost-effective stheircing from different locations, identify potential markets

and efficiently establish new stores in different locations. An aggregate of 43 of 50 of

their existing stores are located in Tier II & Tier III cities, which, It believe, enables

us to capture market share in locations where a majority of their target customers are

located.

5. Identifying New Locations

It believe that It possess the ability to identify locations with potential for growth, in

particular in Tier II and Tier III cities. It has an exclusive site identification and

assessment team, which undertakes systematic analysis of the business prospects,

taking into account factors such as population, literacy levels, nature of occupation,

income levels, accessibility, basic infrastructure and establishment and running costs.

Further, it has a dedicated warehouse for the purposes of storing the materials

essential for setting up of new stores.

6. Private Labels

It has a number of private labels for apparels (i.e. apparels manufactured by us- such

as Zeppelin, Paranoia, Chlorine, Katina Studio, Famine, Fltheirier Women and

Roseau. In fiscal 2007, their Income from their Private labels was Rs. 583.60 million,

which accounts for 9.68% of their total sales for fiscal 2007. It believes that their

focus on their private labels and their recognition in their customer segment enables

us to differentiate themselves from their competitors.

7. Information Technology Systems

It believes that efficient information technology systems, processes and business

applications are essential to handle retail chain of their magnitude. Their office

processes are computerized which support procurement, supply chain logistics,

distribution centers management & store operations including inventory management

and billing. It is in process of implementing SAP. All their stores & distribution

centers are connected through a company-wide virtual network connection which

helps to efficiently manage their network of outlets throughout the country.

13


21/47


8. Experienced and Skilled Management Team

It has an experienced management team which is complemented by a committed

workforce. Their management team comprises of talented professionals who are

skilled in the retail sector. This has assisted us in management of their stores. It

believes it has created the right balance of performance bonuses and other incentives

for their employees.

1.4.4 Their Strategy

It intends to pursue the following strategies in order to consolidate their position

as an operator in the value Retail segment in India. Their growth strategy is

based on:

It intends to increase their penetration in the country by setting up new stores in cities

where it already have Presence, as also entering into new areas in the country. In

particular, it intends to focus on expansion in TierII and Tier III cities. It believe that

their existing infrastructure have been designed for a higher scale of operations than

their current size, and can help us grow without the need to significantly increase

costs. Moreover, their continuous effort to improve systems and processes leads us to

believe that it can deal with higher scale of operations without any hindrance. Higher

business volumes will also improve their negotiating pouters and help us get further

economies of scale in their buying.

1. Emphasis on Backward Integration

It believes that through backward integration It will continue to substantially control

the cost of production, resulting in such cost benefits being passed on to their

customers. It intends to increase the in house manufacture, design and development of

their products and realizes economies of scale. It intends to manufacture at least 25%of their requirement for apparels and may require expansion of their existing

manufacturing facilities. This will also enable us to reduce their reliance on external

agencies for supply of their products and will result in loiter turn-around time. In

addition, their focus would be to undertake in-house such functions of the

manufacturing processes, which, in their view, would add maximum value and would

enable us to reduce their procurement costs.

14


22/47


2. Expansion of FMCG

Historically, it has derived significant portion of their revenue from sale of apparels.

In pursuance of their business plan to diversify their portfolio of offerings, FMCG

products play a key role. FMCG products are usually meant to fulfill the daily needs

of consumers and therefore, It believe retailing of FMCG products will bring

customers to their stores on a frequent basis and this may in-turn lead to consumption

of their apparels. It believe retailing of FMCG products would help us to eliminate the

impact of seasonality of the apparels market in India, which depends on factors such

as change in tether conditions and festival celebrations. In furtherance of their

endeavtheirs to reduce costs, It intend to procure FMCG products directly from the

manufacturers. For this purpose, It has entered into and will continue to explore the

possibilities of entering into certain arrangements with domestic FMCG majors on

such terms and conditions, which are suitable to their business model.

3. Procurement from low-cost production centres outside India

In addition to their strategy to continue procurement of goods from small and medium

size vendors and manufacturers which leads to cost efficiencies, It intend to procure

FMCG and apparels from low-cost production centers located outside India. Towards

this objective, It propose to increase their procurement of finished and semi-finished

goods from China and there by realize economies of scale and pass on the benefits so

accrued to their customers.

4. Increasing customer satisfaction and their base of loyal customers

It believes that understanding the needs of their customers is of prime importance for

the continuous growth of their business. In order to continuously provide customer

satisfaction, their customer management team assimilates customer feedback and it

endeavtheir to take necessary steps to address the requirements of their customers. In

addition, It has introduced, in association with SBI Cards & Payment Services Private

Limited, a co-branded credit card. It proposes to continuously undertake such

initiatives to increase the satisfaction of their customers.

5. Continue to upgrade information technology systems and processes

It believe that any retail business requires efficient information technology systems

for control over the functioning of various stores including stock management, pricing

and promotion, replenishment, sales, quality control and financial accounting. It are

15


23/47


currently in the process of upgrading their information technology set up and have

entered into arrangements with leading vendors of information technology services

for implementation of more advanced ERP applications such as SAP. It intends to

periodically upgrade their information technology systems and processes.

6. Continue to train employees & seek entrepreneurship from employees

It believes a key to their success will be their ability to continue to maintain and grow

a pool of strong and experienced professionals. It has-been successful in building a

team of talented professionals and intend to continue placing special emphasis on

managing attrition and attracting and retaining their employees. It intend to continue

their employees to be enterprising and expect them to learn on the job and contribute

constructively to their business, either through ideas, personal networks or effective

knowledge management. It also intend to continuously re-engineer their management

and organizational structure to allow us to respond effectively to changes in the

business environment and enhance their overall profitability.

1.4.5 Corporate Mission

"We share the vision and belief that by improving our performance through

innovative spirit and dedication, we shall serve our customers and stakeholders

satisfactorily.

1.4.6 Corporate Manifesto

Knowledge is the only weapon at our disposal. Everything else is temporary, transient

and misleading. Our quest for knowledge will be focused, systematic and unwavering.

But, it will never be at expense of our values or our beliefs.

1.4.7 Core Value

Indian-ness confidence in ourselves

Dedication to customer satisfaction

Leadership to be a leader both in thought and business

Self Development by continuous hard work

Respect for every individual

Introspection leading to purposeful thinking

16


24/47


1.4.8 Company Vision

Products that offer real value for money

Caters to the entire household

Customer assistance par excellence

Providing service of customized suits within 48 hours

No question asked exchange policy

Building long term relationships

1.5 Vishal Mega Mart (Berhampur)

There is a boom going on in the retailing sector in the present world. The business

environment in India as well as in other countries like China, South Korea, Germany,

France, UK, Japan, Thailand, Hong Kong, Indonesia etc is becoming very complex

and opportunistic with respect to various sectors as of now Customer is the

KING. Vishal mega mart has been trying to differentiate itself from other local

stores like Lohiya Brothers, Sri Durga Cloth Stores, other franchisee outlets, local

kirana stores so that more number of existing as well as new customers will enter and

be converted into regular loyal customers. From time to time it is providing discounts,

offers, schemes, better ambience, wide assortment of goods with innovative visual

merchandising, competitive pricing, better customer value, better service through

employees etc. it has been very difficult for the management of the store for making

the customers loyal towards the store because of the complexities of the consumers

and competitors.

17


25/47


Table 1.2 Floor Wise Product Details

Floors Categories Products

Grounds Mens wear T-shirts,

Shirts,

Serwani, Jean Pants, trousers

FMCG Edible Oils, Pulses, Juices, Spices, Milk

Products, Groceries, Frozen Foods, Beverages,

Rice, Ready to Cook items

Life style Personalcareproducts (Body spray Perfume,

Powder, Nail polish, Soaps, Face Creams etc.)

Gift Items(Birthday Gifts, Cards, Flower

Base),1st Floor Home linen

Section

Single Bed sheets, Double Bed sheets, Pillow

Covers, Sari Covers, Blouse Covers, Bags,

Blankets, Bed Covers

Electronics Light and sound (television, audio system,

home theatre, dvd/mp3 player)

My thing (iron, inverters. shavers, , fans, hair

dryers)

Cook and serve(microwaves, cooking ranges,

mixers & grinders)

Kids wear girls wear,

boys wear(Seasonal Wear, Party wear,

Bottom wear)

Infant wear(Infant utility, Essential and wear)

Ladys wear Ladies Ethnics,

Western Wear(capris, jeans, Trousers, cargos,

Half Sleeves, Full sleeves),

Ladies Fabrics ,Accessories and Saree

Section(South Cotton, Smooth, Bandhini,

Kotta Cotton, Lizibizi, Batik Print, Lucknow

Stitch, Boby Print, Khadi, Tossar

2. REVIEW OF LITERATURE

18


26/47


The aim of marketing is to meet & justify target customers need & want. The field of

consumer behavior studies how individuals, groups, and organizations select, buy,

use, and dispose of goods, services, ideas, or experiences to satisfy their need and

desires. Understanding consumer behavior is never simple, because customer may say

one thing but do another. They may not be in touch with their deeper motivation, and

they may respond to influences and change their minds at the last minute.

2.1 Consumer

A Consumer is anyone who engages himself/her self in physical activities of

assessing, attaining, using or disposing of good and services for which he/she pays the

money for its usage. If a person buys the product but is consumed by his/her family

then in that case that family member will be actual CONSUMER and the person

who has paid the money will be termed as CUSTOMER.

2.2 Consumer Behavior

Consumer behavior refers to the mental emotional process and the observable

behavior of consumers during searching, purchasing, and post consumption of productand service.

Consumer behavior involves the study of how people buy, what they buy, when they

buy, and why they buy. it blends the element from psychology, socio psychology,

anthropology and economics. It also tries to assess the influence on the customer

from group such as family, friend, reference groups and society in general.

Buyer behavior has two aspects: the final purchase activity visible to any observer and

the detailed or short decision process that may involve the interplay of a number of

complex variables not visible to anyone.

19


27/47


2.3 How and Why Consumer Buy

The starting point for understanding consumer buying behavior is the stimulus

response model shown in the figure . as the model shows both marketing and

environmental stimuli enter the buyer consciousness. In turn, the buyer characteristics

and decision process lead to certain purchase decisions. The marketers task is to

understand what happens in buyer consciousness between the arrival of outside

stimuli and buyers purchase decisions.

As this model indicates, a consumers buying behavior is influenced by cultural,

social, personal and psychological factor

Figure 2.1 Model of Consumer Buyer Behavior

2.4 Characteristics Affecting Consumer Behavior

2.4.1 Cultural Factor

CULTURE: Set of basic values, perceptions, wants & behavior learn by a

member Society from family and other institution

SUBCULTURE Group of people with shared value system based on common life

experience & expectation.

SOCIAL

CLASS

Measured by occupation, income, education & wealth.

20


28/47


2.4.2 Social Factor

REFERENCE

GROUP

Formal or in formal group to which a person belong

FAMILY Key group in terms of attitudes, briefs & learned behavior.PERSONAL Personal characteristic such as age, occupation, family life style

2.4.2 Personal Factor:

AGE & LIFE

CYCLE

Tastes in food, cloth, furniture, recreation change with age.

OCCUPATION Eg. Purchase of rugged cloth by a labourer.

ECONOMIC

SITUATION

More or less income affect the persons buying behavior.

2.5 Types of Buying Behavior

ROUITINE OR PROGAMMED: HABITUAL PURCHASE- It applies to

low involvement product such as salt. consumers keep buying same brand out of

habit, not due to strong brand loyalty, because they are passive receiptent of

information conveyed by advertising. Ad reception creates a brand familiarity rather

than brand conviction.

DISSONANCE-REDUCING BUYER BEHAVIOR - It applies to high

involvement product such as car. Car is a expensive & self expressive. Yet the

buyer may consider most brand in given price range to be same. After buying,

the consumer might experience dissonance after noticing certain disquieting

feature. marketer should there fore supply belief & evaluation that help

consumer feel good about their brand choice.

VARIETY-SEEKING BUYING BEHAVIOR - It applies to low

involvement products such as cookies .in this category, consumer switch brand

often because they want more variety. The market leader will there fore try to

encourage habitual buying behavior by keeping shelves stocked and running

frequent reminder ad.

2.6 Roles in the Buying Process

21


29/47


INITIATER: The person who suggest for think of the idea of buying a particular or

service.

INFLUENCER: a person whose views or advice carry weight in making the final

buying decision.

DECIDER: The person who ultimately makes the final buying decision or any part

of it.

BUYER: The person who makes the actual purchase.

USER: The person who consume the product or service.

Figure 2.2 Consumer Decision-Making Process

2.6.1 Problem Recognition

Purchase decision making process begins when a buyer becomes aware of an

unsatisfiedneed or problem. This is the vital stage in buying decision process, because

without recognizing the need or want, an individual would not seek to buy goods or

service. There are several situations that can cause problem recognition, these include:

Depletion of stock

Dissatisfaction with goods in stock

Environmental Changes

Change in Financial Situation

Marketer Initiated Activities

22


30/47


2.6.2 Information Search

After the consumer has recognized the need, he / she will trying to find the means to

solve that need. First he will recall how he used to solve such kind of a problem in the

past, this is called nominal decision making. Secondly, a consumer will try to solve

the problem by asking a friend or goes to the market to seek advice for which product

will best serve his need, this is called limited decision making.

Sources of information include:

Personal sources

Commercial Sources

Public sources

Personal experience

2.6.3 Alternatives Evaluation

Consumers evaluates criteria refer to various dimension; features, characteristics and

benefits that a consumer desires to solve a certain problem. Product features and its

benefit is what influence consumer to prefer that particular product. The consumer

will decide which product to buy from a set of alternative products depending on each

unique feature that the product offers and the benefit he / she can get out of that

feature.

2.6.4 Purchase Action

This stage involves selection of brand and the retail outlet to purchase such a product.

Retail outlet image and its location are important. Consumer usually prefers a nearby

retail outlet for minor shopping and they can willingly go to a far away store when

they purchase items which are of higher values and which involve higher sensitive

purchase decision. After selecting where to buy and what to buy, the consumer

completes the final step of transaction by either cash or credit.

23


31/47


2.6.5 Post-Purchase Actions

Consumer favorable post-purchase evaluation leads to satisfaction. Satisfaction with

the purchase is basically a function of the initial performance level expectation and

perceived performance relative to those expectations. Consumer tends to evaluate

their wisdom on the purchase of that particular product. This can result to consumer

experiencing post purchase dissatisfaction. If the consumers perceived performance

level is below expectation and fail to meet satisfaction this will eventually cause

dissatisfaction, and so the brand and/ or the outlet will not be considered by the

consumer in the future purchases. This might cause the consumer to initiate complaint

behavior and spread negative word-of-mouth concerning that particular product.

24


32/47


3. METHODOLOGY

Research methodology is a systematic way to solve the research problems, It refers

for knowledge, a scientific and systematic search for information Marketing research

is the systematic design, collection, analysis and reporting of data and finding relevant

to a specific marketing design, collection, analysis and reporting of data and finding

relevant to a specific marketing situation facing the company.

3.2 Data Collection

Data collection means collections of information, facts or figures for the problem.

Primary data collection- Primary data is the first hand information obtained by

investigator. Primary source is one itself collects the data. Primary data can be

collected by observation, by interviews, by face to face questioning, by using

questionnaire, when the needed data do not exist or are dated, inaccurate, incomplete,

or unreliable.

Secondary Data Collection Secondary data is collected by others already and there

searcher is using that information for his own research purpose. Secondary data can

be collected from published reports, newspaper, websites, journals, publications of

national and international organization.

3.3 Sampling Plan

Sampling unit - Walk-in customers in retail outlet.

Sample size - 50

Sampling Instruments- Questionnaire, face to face interview

3.4 On the Job Training

On the job training (OJT) gives a practical exposure and helps acquiring knowledge

about Vishal Mega Mart.

25


33/47


3.4.1 Work Schedule

In 1st & 2nd week I did my project at electronics and FMCG item. I collected the data

about the products and took feedbacks and suggestions of costumers.

In 4th & 5 th week I stayed at Males wear, ladies wear & kids wear section. I got the

basic product knowledge and interacted with the costumers and took their

suggestions.

3.4.2 Schedule for Project Work in Vishal Mega Mart

I used to report at 11:00am in the morning session .I used o start my job at 11:00a.mand used to finish my job at 7:00p.m onwards.

3.5 Limitations of the Study

In attempt to make this project authentic and reliable, every possible aspect of the

topic was kept in mind. Nevertheless, despite of fact constraints were at play during

the formulation of this project. The main limitations are as follow.

The main source of data for the study was primary data with the help of self-

administered questionnaires. Hence, the chances of unbiased information are

less.

Concern person from the organised retail stores were hesitant to disclose the

true facts as the data related to strategic secrets.

The chance of biased response cant be eliminated though all necessary steps

were taken to avoid the same.

26


34/47


4. DATA ANALYSIS & INTERPRETATION

By analyzing the questionnaire the following data obtained.

Responden

t

name

Occupa

tion

Permanen

t

Address &

phone no.

Purpose

To come

Attrced

towards

product

Expectati

ons

Towards

Products

Influe

nce

by

Decisi

on

make

rs

Servic

e

qualit

y

Rakesh

Nayak

Student Courtpeta,

Berhampur

993738667

1

Furniture

item

Price After sales

Service

News

paper

Parent

s

Excelle

nt

Jagganath

Sathpathy

Doctor Berhampur Electronic

s item

Design Quality

Guarantee

Media Wife Excell-

entSom

Achari

Student berhampur FMCG

item

Price Quality Media Parent

s

Very

goodOlempia

Chaterjee

Govt.

employe

e

Kolkotta FMCG

item

Price Quality Media Own Good

Chitrita

Prusty

MBA Pune,

993794050

Furniture Price Quality

gaurante

News

paper

Own Good

Sasmita

Nayak

Bank

employe

e

Pune,

986114769

9

Fmcg

item

Price Quality Media Parent

s

Very

good

Deba Ranjan

Parida

Contract

or

BBSR,

986115532

3

Garments Quality After sales

Service

Friends Wife Very

good

Ganesh

mishra

ISDO

ONIDA

BBSR Garments Design After sales

Service

Others Wife Excelle

ntSantosh

Majhi

Employe

e

Berhampur Garments Brand

name

Quality

guarantee

Friends Wife Excelle

ntRashmita

Dehuri

House

wife

Kommapali,

Berhampur

Food item Home

Require

ment

Quality

guarantee

News

paper

Husba

nd

Good

Debashis

Majhi

Student,

R.I.T.

R.I.T. Hostel Electronic

s item

Brand

name

After sales

Service

Friends Parent

s

Very

goodGopal

Mukherjee

Employe

e

Gatebazaar

,

Berhampur

Garments Quality Quality

guarantee

Media Wife Very

good

Ashis

Panda

Employe

e

Old bus

stand,

Berhampur

Electronic

s item

Brand

name

After sales

Service

Friends Own good

Amit Kumar Student Berhampur Electronics item

Quality Qualityguarantee

Newspaper

Own good

27


35/47


Rajesh

Parida

Engineer BBSR Food item Home

Require

ment

After sales

Service

Friends Own Excelle

nt

Sonam

Yougal

Admini-

strator

Berhampur Garments price After sales

Service

News

paper

Own Excelle

ntSnigdha PR

consulta

nt

BBSR Food item Home

Require

ment

After sales

Service

Friends Own Very

good

D.Swarna

Kumar

Student Berhampur garments design Quality

guarantee

Friends Own Poor

Madhabi House

wife

Berhampur Garments Price Quality

guarantee

Media childre

n

Good

Sasmita

Mahapatro

House

wife

New bus

stand,

Berhampur

Fmcg

item

Home

Require

ment

After sales

Service

Friends Husba

nd

Good

Sushil

Mehta

Business

man,

9853409

63

New bus

stand,

Berhampur

Fmcg

item

Price Quality

guarantee

Media Own Good

Sugiura House

Wife

Old bus

stand,

Berhampur

Fmcg

item

Price After sales

service

Friends Husba

nd

Excelle

nt

Ranjan

Pradhan

Student Old bus

stand,Berhampur

Electronic

sitem

Design After sales

service

Media Friend

s

Excelle

nt

Sidhart

Mishra

Student Rourkela garments Brand

name

Quality

guarantee

Friends Own Good

Pratyush

Mihsra

Business Rourkela garments Price After sales

service

Media Wife Very

good

Kishor

sahu

student Mahavir

college,

BBSR

Others Price Quality

guarantee

Friends Own Excelle

nt

SubhalaxmiAchary

HouseWife

Tata benz,Berhampur Fmcg

item

Price After salesservice

Newspaper

children

Verygood

Debasish

Mishra

Employe

e Ericson

Bangalore Others Brand

name

Quality

guarantee

Newsp

aper

Parent

s

Excelle

nt

Monoj

Pattnaik

Teacher Berhampur Garment Quality Quality

guarantee

Own Own good

Chandra

Sekhar

Sethy

RCM BBSR Others Quality Quality

guarantee

Own Own good

28


36/47


Ashis

Panigrahy

Student,

employe

e,

satyam

Gunupur Others Price After sales

service

News-

paper

Own Excelle

nt

Guptesh

Mishra

Employe

e , India

Bulls

Berhampur Garments design After sales

service

Media Parent

s

Very

good

B.C Mishra City

Finance

BBSR Electronic

s

item

Quality Quality

guarantee

Own Parent

s

Good

T.Sanjeev Student,

BCA

Jamsedhpur garments design After sales

service

Media Own Excelle

nt

Jyotshna

Padhi

Lecturer

IRPM

V.Udayagiri Fmcg

item

Price After sales

service

Own Husba

nd

Adyasha

Menon

Student Mahavir

college

Garments design Quality

guarantee

Friends Own Very

good

Suman

Kumari

Student BRM,BBSR Electronic

s item

Price After sales

service Others

Own Excelle

nt

Prasana

Rath

Engineer

,RSP

Rourkela Others Quality Quality

guarantee

Media Wife Excelle

ntPadma

NabhaMahapatro

BM,KCC

Bank

Rayagada Others Brand

name

After sales

service

News

papers

Childr

en

Very

good

Gyani Rao Business

man

Vishakapat

nam

Food

Bazaar

Price After sales

service

Media Own Excelle

nt

Asha Rao House

Wife

Berhampur Others design Quality

guarantee

Own Childr

en

good

Reema

Debnath

House

Wife

Cuttack Others Price After sales

service

News

papers

Husba

nd

good

Charchita

Mahapatro

Student Rayagada garments quality Quality

guarantee

Own Parent

s

Excelle

ntV.Avilash

Rao

Employe

e,studen

t

Hyderabad Others design After sales

service

Media Own Excelle

nt

Radha

madhav

Sathpathy

Employe

e,CIPLA,

Goa

Goa Electronic

s

Items

Price After sales

service

Media Parent

s

good

Deba Prasad

Pattnaik

Teacher Koraput garments price Quality

guarantee

News

papers Wife

Very

good

29


37/47


Keshab

TIwari

Teacher Cuttack Furniture

items

Brand

Name

After sales

service

Friends Husba

nd

good

Jinita

tripathy

House

wife

Cuttack Fmcg

item

Brand

Name

After sales

service

Own Own good

Chandan

Dash

Employe

e, IBM

Bangalore Electronic

s item

Home

requirem

ent

Quality

guarantee

Media Parent

s

Very

good

Rekha

Priyadarsha

n

Student Berhampur Fmcg

items

Design After sales

service

News

paper

0wn Poor

INTERPRETATION:

(1) ARE YOU AWARE ABOUT THE RETAIL SHOP?

Figure 4.1 Awareness of Retail Shop

From the above pie chart shows that maximum number of customers know about

retail shop i.e. 85%.

(2) WHICH DEPARTMENTAL STORE YOU PREFER MOST?

30


38/47


Figure 4.2 Preferation of Departmental Store

Most of the customers are prefer Vishal i.e. 67% where as Murali Departmental store

is below i.e 3%.

31


39/47


(3) WHY YOU PREFER VISHAL MEGA MART TO PURCHASE?

Figure 4.3 Reason for Choosing Vishal

Most of the customer prefer vishal for its low price.i.e.40%.even some of them prefer

its service quality.i.e.25%.its product quality & product variety adopted by 15% &

20% of customer respectively in survey.

(4) FROM WHICH MEDIUM YOU ARE INFLUENCED FOR PURCHASE?

Figure 4.4 Major Influencer

Most of the customer influenced by newspaper i.e. 35%. 20% customer influenced

by media.25% customer are influenced ownly.20% customer are influenced byfriends.

32


40/47


(5) WHICH BRAND PRODUCT YOU PREFER TO PURCHASE FROM

VISHAL?

Figure 4.5 Own Brand Vs. Other Brand

Most of the product in Vishal are their own brand product. Customer are also prefer

its own brand product i.e. up to 60%.other brand product are preferred up to 40%.

(6)WHICH ITEM YOU USUALLY PREFER TO PURCHASE?

Figure 4.6 Preferable Item to Purchase

Home needs items are prefered mostly i.e. up to 40%.20% customer are preferd Foot

wear.30% & 10% customer prefer to purchase dresess % electronic goods.

33


41/47


(7) WHICH DISPLAY STRATEGY EFFECTS ON YOU TO PURCHASE

FROM VISHAL?

Figure 4.7 Effect of Display Strategy

Display with touch make more effect on consumer behavior.i.e. 50%. Display with

smell make less effect in comparison to display with light & sound.

(8) WHO IS THE DECISION MAKER FOR PURCASING THE PRODUCT?

Figure 4.8 Decision Maker

In buying process decision are mostly taken by parents i.e.40%.husband/wife make

decision for purchse i.e. 20%.30% customer are make decision ownly.

34


42/47


(9)WHICH FACTOR INFLUENCE THE CONSUMER BUYING PROCESS?

Figure 4.9 Factor Effecting Buying Process

Income level of customer affecting buing behavior in 40% case.25% customer Buying

process affected by store location & size.education level make less effect

On consumer buying process.

(10) IN WHICH BUYING SITUATION CUSTOMR PREFER TO

PURCHASE?

Figure 4.10 Preferred Buying Situation

45% of customer prefer to straight rebuy they are preferig habitual uing process. 20%of customer are prefer to take new task.

35


43/47


(11) OVERALL YOU MARK VISHAL AS?

Figure 4.11 Overall Ranking of Vishal

40% of customer ranked vishal as excellent.30% of customer ranked vishal as

Good. 5% of them ranked it not good.

36


44/47


5. CONCLUSION & SUGGESTIONS

5.1 Conclusion

The customers needs are straight and specific. The customer should not be forced to

change despite his reluctance to accept change. It is essential that bank understand and

accept the fact that the marketplace is made up of individual customers. The mantra

should be to create and deliver value in such a way that it always stays one step ahead

of its customers. The first step towards this is entry-level satisfaction, which helps in

fine-tuning the customer mind. This must be followed by the identification of the

specific problems, which arise from time to time, and resolving the same. Deep and

insightful knowledge of the customer will be the key asset for staying competitive in

the millennium.

5.2 Suggestions

The company should measure customer satisfaction regularly.

Company can increase the sales when it considering more on stock of the material,

their suggestions or complaints about service or product so that necessary action can

be taken.

Review meeting should be often held so that the working pattern of the executives can

be checked and improved if needed.

Since customers are value maximizes and their expectation to this brand is high, as

the brand image shows their quality is supervene so the company should also take

feed back at time to time. By this can make their brand level.

Company should try to maintain manpower.

Sales people and delivery persons should properly monitor the market whether stocks

are available and are properly utilized in the store or not.

Display material should be provided to the retail store on more regular basis to

increase the sales level.

37


45/47


ANNEXURE

Respondent Name:

Permanent Address:

Occupation:

Gender:

Age:

Phone No:

1. Are you aware about retail market?

A. YES

B. NO

2. Which is the best retail store to purchase?

A. BIG BAZAR

B. BAZAR KOLKATA

C. THE WORLD

D. VISHAL MEGA MART

3. Why you prefer Vishal mega mart to purchase?

A. GOOD QUALITY PRODUCT

B. PRODUCT PRICE IS LOW

C. QUALITY SERVICE

D. VARITY OF PRODUCT AVAILABLE IN STORE

4. From which medium you are influence for purchase?

A. NEWS PAPER

B. FRIENDS

C. MEDIA

D. OWN

5. Which brand product you prefer to purchase from Vishal?

A. OWN BRAND

B. OTHER BRAND

38


46/47


6. Why you prefer Vishals own brand product?

A. PRODUCT PRICE IS LOW

B. PRODUCT QUALITY IS GOOD

C. GUARANTY & WARANTY SERVICE

D. DEFECTIVE PRODUCTS EXCHANGED

7. Which item you usually prefer to purchase?

A. HOME NEEDS

B. FOOTWEARS

C. DRESSES

D. ELECTRONIC GOODS

8. Is the display strategy effect the customer purchasing behavior?

A. YES

B. NO

9. Which display strategy effect on you to purchase from Vishals?

A. DISPLAY WITH LIGHTING

B. DISPLAY WITH SOUND

C. DISPLAY WITH SMELL

D. DISPLAY WITH TOUCH

10. Is the discount given by Vishal attract the customer attention for the product?

A. YES

B. NO

11. Who is the decision maker for purchasing the product?

A. PARENTS

B. OWN

C. HUSBAND /WIFE

D. CHILDREN

12. Which factor effect the consumer buying process?

A. STORE LOCATION, SIZE, FACILITIES

B. INCOME LEVEL

C. EDUCATION LEVEL

D. TASTE & PREFERENCE

39


47/47


13. In which buying situation the customer prefer to purchase?

A. STRAIGHT REBUY

B. MODIFIED REBUY

C. NEW TASK

13. Overall you mark Vishal as?

A. EXCELLENT

B. GOOD

C. OKAY

D. NOT GOOD

14. Any suggestion

A. (--------------------------------------------------)

B. (--------------------------------------------------)

C. (--------------------------------------------------)

Documents

2siba Project 93 Edited by Sagar Xerox