Big Bazar Bba

8/12/2019 Big Bazar Bba

1/70

PROJECT REPORT

ON

FACTORS AFFECTING IMPULSE BUYING BEHAVIOR IN FMCG

SECTOR WITH SPECIAL REFERENCE TO BIG BAZAAR & VISHAL

MEGA MART IN CHANDIGARH & AROUND REGION

Submitte t! Pu"#$b Te%"i%$' U"i(e)*it+ i" te ,$)ti$'

-u'-i''me"t !- te )e.ui)eme"t -!) te e/)ee !-

B$%e'!) !- Bu*i"e** Ami"i*t)$ti!"

Submitted to: Submitted by:Mrs. Shweta Sharma Amarinder Singh

H.O.D (U.B.S) Roll o:!"#$%&'$%&$

BBA $thsem

Universal Institute Of Engineering and Technology

PUNJABTECHNICALUNIE!"IT#$ JALAN%HA!


2/70

O*+*S

ACKNOWLEDGEMENT

PREFACE

DECLARATION

LIST OF TABLES

LIST OF GRAPHS

HA,*+R O. HA,*+R AM+ ,A-+ O.

1. INTRODUCTION 1-16

2. REVIEW OF LITERATURE 17-21

3. RESEARCH METHODOLOGY 22-38

3.2. RESEARCH DESIGN 3.3. OBJECTIVES OF THE STUDY

3.4 .SCOPE OF THE STUDY

3.5. DATA COLLECTION

3.6. LIMITATIONS

4. ANALYSIS & 39-46

INTERPRETATIONS

5. CONCLUSION & 474!

RECOMMENDATIONS


3/70

BIBLIOGRAPHY 4"4"

ANNE#URE 5$51

AO/0+D-M+*

This humble endeavor bears the imprint o man! persons "ho "ere in one

"a! or the other helpul in the #ompletion o m! inal pro$e#t report. I "ould

li%e to ta%e this opportunit! to present m! vote o than%s to m! &uides "ho

a#ted as li&htin& pillars to enli&hten m! "a! throu&h out this pro$e#t. This

pro$e#t "ould not have been possible "ithout the %ind assistan#e and

&uidan#e o man! people "ho indeed "ere helpul' #ooperative and %ind

durin& the entire #ourse o m! pro$e#t.

The a#%no"led&ment "ould not be #omplete "ithout e(pressin& m!

indebtedness to m! H)D*+ANAGE+ENT, MRS. SH/+*A SHARMAand

a#ult! &uide MRS DA12D+R AUR"ho &uided us in this pro$e#t and

"as the #onstant sour#e o reeren#e or us and sho"ed ull interest at

ea#h and ever! step o our pro$e#t.

AmarinderSingh


4/70

,R+3A+

Research Project is the bridge for a student that takes him from his theoretical

knowledge world to practical industry world. The main purpose of it is to expose for

industrial and business environment, which cannot be possible in the classroom.

The advantages of this sort of integration, which promotes guided to corporate culture,

functional, social and norms along with formal teaching are numerous.


5/70

DECLARATION

I Amarinder Sin&h Roll no. -/0120120 do hereb! de#lare that

Resear#h Report 4I+567SE 869ING 8EHA:I)6R4 Submitted to 5un$ab

Te#hni#al 6niversit!' in partial ulilment o 8.8.A. Is the result o m! o"n

"or%. I have not submitted this trainin& report to an! other universit! or the

a"ard o de&ree.

Submitted *o Submitted By

Ms Shweta Sharma AmarinderSingh

HOD (Management) Roll. o5

!"#$%&'$%&$

BBA $thS+M


6/70

LIST OF TABLE


7/70

S. o. *able,ageo.

! S$'e* P)!m!ti!" t!!'* $" !,i"i!" )e*,!"*e01

& C!m,$"+2* Te'e(i*i!" !3e &6

7E--e%ti(e"e** !- 'i(e em!"*t)$te

7!

' Cu*t!me) Eu%$ti!" 77

# M!*t *uit$b'e Mei$ 7#

$ Gi-t !--e)e b+ ($)i!u* %!m,$"ie* 7%

% S$'e* ,)!m!ti!" t!!'* 76

P!i"t !- ,u)%$*e '!

6 C!m,$"ie* t)$e *!3 $" -$i) '7

!" C!m,$"ie* %)!** ,)!m!ti!" '#

!! Le(e' !- *$ti*-$%ti!" '%

!& Re$*!" -!) *$ti*-$%ti!" '6


8/70

S. o. -RA,H AM+,age

o.

! C!m,$"+2* Te'e(i*i!" !3e7"

& E--e%ti(e"e** !- 'i(e em!"*t)$te 7&

7Cu*t!me) Eu%$ti!"

7'

' M!*t *uit$b'e mei$ 7$

# Gi-t !--e)e b+ ($)i!u* %!m,$"ie* 7

4 S$'e* ,)!m!ti!" t!!'* '"

5 P!i"t !- ,u)%$*e '&

1 C!m,$"ie* t)$e *!3 $" -$i) ''

6 C!m,$"ie* %)!** ,)!m!ti!" '$

78 Le(e' !- *$ti*-$%ti!" '

77 Re$*!" -!) *$ti*-$%ti!" #"

LIST OF GRAPH


9/70

CHAPTER97

INTRODUCTION


10/70

INTRODUCTION:

&!etailing includes all activities involved in selling goods or services directly to final consu'ers

for (ersonal$ non)*usiness use+ A retailer or retail store is any *usiness enter(rise ,hose sales

volu'e co'es (ri'arily fro' retailing+- !etail is India.s largest industry$ accounting for over /0

(er cent of the country.s 1%P and around eight (er cent of the e'(loy'ent+ !etail industry in

India is at the crossroads+ It has e'erged as one of the 'ost dyna'ic and fast (aced industries

,ith several (layers entering the 'ar2et+

India retail industry is the largest industry in India$ ,ith an e'(loy'ent of around 34 and

contri*uting to over /04 of the country.s 1%P+ !etail industry in India is e5(ected to rise 674

yearly *eing driven *y strong inco'e gro,th$ changing lifestyles$ and favora*le de'ogra(hic

(atterns+ It is e5(ected that *y 60/8 'odern retail industry in India ,ill *e ,orth U"9 /:7) 600

*illion+ A further increase of :)34 is e5(ected in the industry of retail in India *y gro,th in

consu'eris' in ur*an areas$ rising inco'es$ and a stee( rise in rural consu'(tion+ It has further

*een (redicted that the retailing industry in India ,ill a'ount to U"9 6/+7 *illion *y 60/0 fro'

the current si;e of U"9 :+7 *illion+ "ho((ing in India have ,itnessed a revolution ,ith the

change in the consu'er *uying *ehavior and the ,hole for'at of sho((ing also altering+

Industry of retail in India ,hich have *eco'e 'odern can *e seen fro' the fact that there are

'ulti) stored 'alls$ huge sho((ing centers$ and s(ra,ling co'(le5es ,hich offer food$

sho((ing$ and entertain'ent all under the sa'e roof+

India retail industry is e5(anding itself 'ost aggressively$ as a result a great de'and for real

estate is *eing created+ Indian retailers (referred 'eans of e5(ansion is to e5(and to other

regions and to increase the nu'*er of their outlets in a city+ It is e5(ected that *y 60/0$ India

'ay have 800 ne, sho((ing centers+

In the Indian retailing industry$ food is the 'ost do'inating sector and is gro,ing at a rate of


11/70

India retail industry is (rogressing ,ell and for this to continue retailers as ,ell as the Indian

govern'ent ,ill have to 'a2e a co'*ined effort+

The (resence of /7'illion 2irana stores *rings into light the very fact that the Indian retail

industry is highly frag'ented= unorgani;ed+ !etailing in India is gradually inching its ,ay

to,ard *eco'ing the ne5t *oo' industry$ organi;ed retailing in (articular+ The ,hole conce(t

of sho((ing has altered in ter's of for'at and consu'er *uying *ehavior$ ushering in a

revolution in sho((ing in India+ >odern retail has entered India as seen in s(ra,ling sho((ing

centers$ 'ulti)storeyed 'alls and huge co'(le5es offer sho((ing$ entertain'ent and food all

under one roof+

The share of retail trade in the country.s gross do'estic (roduct ?1%P@ ,as *et,een 3/0 (er

cent in 600:+ It is currently around /6 (er cent$ and is li2ely to reach 66 (er cent *y 60/0+

Co''ercial real estate services co'(any$ CB !ichard Ellis. findings state that India.s retail

'ar2et is currently valued at U"9 7// *illion$ and is (oised to gro, to U"9 3 *illion *y 60/+

The re(ort further stated that organised retail that currently accounts for less than 7 (er cent of

the total retail 'ar2et is e5(ected to register a co'(ound annual gro,th rate ?CA1!@ of 0 (er

cent and s,ell to U"9 /0: *illion *y 60/+

A re(ort *y glo*al consultancy fir'$ AT Dearney said The consu'er s(ending in India has

increased *y an i'(ressive :7 (er cent in the last four years and ,ill Fuadru(le in the ne5t 60

years+ >oreover$ India recently to((ed the Nielsen 1lo*al Consu'er Confidence study$

conducted *y Nielsen$ a 'ar2et research co'(any+ The *iannual re(ort revealed that Indians are

the 'ost o(ti'istic lot glo*ally ,ho thin2 that their country ,ill *e out of the econo'ic

recession in the ne5t t,elve 'onths+

According to the recent re(ort *y >cDinsey G Co'(any titled .The 1reat Indian Ba;aar$Organi;ed !etail Co'es of Age in India.$ India.s overall retail sector is li2ely to gro, to U"9

70 *illion *y 60/7+ Another >cDinsey re(ort .The rise of Indian Consu'er >ar2et.$ esti'ates

that the Indian consu'er 'ar2et is li2ely to gro, four ti'es *y 6067+


12/70

In a oint study recently conducted *y A""OCHA> and DP>1$ the follo,ing findings ,ere

revealed

The total retail 'ar2et si;e in India in 6003 ,as esti'ated at U"9 7 *illion+

The annual gro,th of the retail 'ar2et in India is e5(ected to *e around 3 (er cent+

The total retail 'ar2et si;e in India is li2ely to touch U"9 /8 *illion *y 60/0+

The (resent share of organi;ed retail sector is esti'ated at : (er cent+

The esti'ated annual gro,th of organi;ed retail sector is 0 (er cent+

The si;e of organi;ed retail sector *y 60/0 is esti'ated to reach U"9 7/ *illion+

The esti'ated share of organi;ed retail in total retail *y 60/0 is /6 (er cent+

The invest'ent into 'odern retailing for'ats over the co'ing )7 years is e5(ected to

*e around U"9 67)0 *illion+

The great Indian consu'er 'ar2et is still going strong+ The ETI1 analysis carried out *y the

Econo'ic Ti'es revealed that 'ost 'ass consu'er goods and service in India ,ere not 'uch

affected *y the glo*al econo'ic slo,do,n+ %es(ite the inflation e5(erienced during the (eriod$

the second)Fuarter results of leading :0 consu'er)related fir's revealed that their aggregate

revenues increased *y 3+7 (er cent during the "e(te'*er 6003 Fuarter over the sa'e (eriod in

600:+ Even though this ,as a tad lo,er than the < (er cent gro,th (osted during the first Fuarter

of 6003)0


13/70

across the ,orld and one 'ust not confuse India ,ith the rest of the ,orld-$ reiterated >r+

"andee( Dulhalli$ )P$ !etail and >ar2eting$ TanishF+

Kith the 0)0 (er cent dro( in retail rentals$ Indian retailers are a ha((y lot+ In fact$ retailers

are also foreseeing further dro(s in rentals in 600< and they are o(ti'istic a*out their e5(ansion

(lans for this year+

!etailers such as "(encer.s !etail$ uture 1rou($ "ho((ers "to($ Kestside$ Kills Lifestyle$ Bata

India$ and !ay'ond$ have (lenty of e5(ansion (lans for 600% and CEO of the uture 1rou($ Another thrust area ,ill *e entering into

ne, seg'ents li2e rural retail and teleco' (roducts distri*ution+ Through .Aadhar. ,e

can ra'( u( rural retail$ ,hich is outside the 60 (er cent of the (o(ulation ,e have *een

targeting so far+

Aggressive 'ar2eting efforts *y leading retailers are on+ TanishF is (lanning a 'ar2eting

effort for (lain gold along ,ith the Korld 1old Council during the last Fuarter of 6003)

0ahindra G >ahindra ?>G>@ has 'ade a Fuiet foray into the retail

sector ,ith the soft launch of its s(ecialty for'at >o' G >e to sell infant care and

'aternity (roducts+ The co'(any has launched t,o outlets in Ludhiana and Ah'eda*ad+

India has one of the largest nu'*er of retail outlets in the ,orld+ A re(ort *y I'ages !etail

esti'ates the nu'*er of o(erational 'alls to gro, 'ore than t,o)fold$ to cross /6$ ,ith 607


14/70

'illion sFuare feet *y 60/0$ and a further :/7 'alls to *e added *y 60/7$ ,ith 'aor retail

develo('ents even in tier)II and tier)III cities in India+

Even as the organi;ed retail 'ar2et is starting to ta2e off$ there is an associated surge in *randed

discount outlets in India+ To( realtors and local retail chains are develo(ing 'alls in regional

*oroughs$ s(ecifically to sell (re'iu' *randed goods+

Ru)$' Ret$i'

Led *y the rising (urchasing (o,er$ changing consu'(tion (atterns$ increased access to

infor'ation and co''unication technology and i'(roving infrastructure$ the rural retail 'ar2et

is esti'ated to cross U"9 7+6 *illion 'ar2 *y 60/0 and U"9 80+ *illion *y 60/7$ according

to a study *y Confederation of Indian Industry ?CII@ and #E" Ban2+

As (er the National Council of A((lied Econo'ic !esearch ?NCAE!@ re(orts$ there are :60

'illion consu'ers across 8$ 6:$000 villages in rural India+

According to a re(ortIndia !etail !e(ort 600aor do'estic retailers li2e A Birla$ ITC$ 1odre$ !eliance and 'any others have already set

u( far' lin2ages+ Hariyali Disan Ba;aars ?%C>@ and Aadhars ?Pantaloon)1odre J@$ Chou(al

"agars ?ITC@$ Disan "ansars ?Tata@$ !eliance resh$ and Naya #ug Ba;aar$ are esta*lished rural

retail hu*s+ !etail giants li2e !eliance$ "(encer.s and "u*hi2sha are also e5(anding in se'i)

ur*an and rural areas+

Lu;u)+ Ret$i'


15/70

By the ne5t four to five years$ India is e5(ected to *eco'e a 'anufacturing hu* for glo*al

lu5ury *rands$ according to a ICCI)#es Ban2 re(ort on lu5ury *rands+ The re(ort states that

India has the 'ost ra(idly gro,ing high)net ,orth individuals ?HNI@ (o(ulation in the ,orld$

and the inco'e level of consu'ers is e5(ected to gro, three ti'es *y 6067+ The active age

grou( ?677 years@ is li2ely to rise to a third of the (o(ulation+

The re(ort further states that the 'anufacturing *usiness of lu5ury ite's in India can cross U"9

700 'illion ,ith glo*al *rands li2e Louis uitton and rette loo2ing at India as a 'anufacturing

*ase+

According to a survey done *y AT Dearney$ the Indian lu5ury retail 'ar2et is esti'ated to

touch U"9 0 *illion *y 60/7+ Esti'ated to *e the /6th largest in the ,orld$ it has *een gro,ing

at the rate of 67 (er cent (er annu'+

Ret$i' F)$"%i*i"/

Along ,ith e)tailing$ another (erce(ti*le trend in the gro,th of organised retail 'ar2et has *een

the conce(t of retail franchising+ According to industry esti'ates$ retail franchising has *een

gro,ing at the rate of 80 (er cent in the last three years and is set to gro, t,o)fold in the ne5t

five years+ And ,ith i''ense (otential seen in this seg'ent$ the U"9 *illion)franchising

industry is li2ely to see an al'ost t,o)fold rise in the nu'*er of franchisees ?fro' 0+6 'illion@

*y 60/0+

I""!($ti(e Ret$i' C!"%e,t*

Kith the entry of ne, (layers and the 'ar2et *eco'ing increasingly co'(etitive$ retail (layers

are using innovative retail conce(ts to attract consu'ers+

Kith reduced co''odity (rices and the recent e5cise duty cuts$ in(ut costs have co'e do,n *y

around 67)0 (er cent in several categories+ "u*seFuently$ 'any value retailers have *rought

do,n (rices *y over /7 (er cent for various (roduct categories to encourage greater

consu'(tion+ They are also ste((ing u( their *argains and discount offers+ !etailers li2e Big

Ba;aar$ %.>art$ "(encer.s and ood Ba;aar$ a'ong other retailers$ have *egun slashing (rices in


16/70

(roduct categories li2e a((arel$ ho'e (roducts$ and foods ?(rivate la*els@+ In fact$ 'odern

retailers are no, also selling (rivate la*els ,ith consu'ers loo2ing out for chea(er *rands+

!etail co'(anies are also develo(ing and (ro'oting their in)house *rands+ The uture 1rou(

,ill *e targeting (rofits ,orth U"9 6+07 *illion fro' its in)house *rands in >C1$ household

consu'er dura*le and electronics and a((arel categories *y 60/6+ After the good (erfor'ance

of its in)house consu'er *rands such as Tasty Treat$ resh G Pure$ %JGC$ Doreo$ the co'(any

no, ,ants to e5tend it to additional categories li2e health G *eauty$ dairy$ a((arel$ and

accessories+

urther'ore$ Big Ba;aar$ the hy(er'ar2et chain of uture 1rou($ is introducing Custo'er

Advisory Boards ?CABs@ as a 'easure for receiving valua*le custo'er feed*ac2+

Kith the U"9 8+/ *illion (har'a retailing *eco'ing (rogressively 'ore organised$ (layers are

no, loo2ing at ne,er for'ats to attract 'ore (eo(le to their stores+ Phar'acy chains li2e

>edPlus and 1oodlife have started (roviding health chec2)u(s$ diagnostic services$ dental care

and 'edical counselling to its (atients$ *esides selling (har'a and ,ellness (roducts+

1oodlife is tying u( ,ith the retail 'aor$ uture grou($ to set u( these convenience clinics at

'alls and in the high streets+ >edPlus o(erates /7 such integrated clinics$ and is (lanning to

o(en at least 70 such clinics *y >arch 600


17/70

/+ !etailing is a anufacturer+ Hence$

'erchandise can *e offered at lo,er costs+

We$="e**e*:

7> Le** C!"(e)*i!" 'e(e' %es(ite high footfalls$ the conversion ratio has *een very lo, in the

retail outlets in a 'all as co'(ared to the standalone counter (arts+ It is seen that actual

conversions of footfall into sales for a 'all outlet is a((ro5i'ately 60)674+ On the other hand$

a high street store of retail chain has an average conversion of a*out 70)804+ As a result$ a

stand)alone store has a !OI ?return on invest'ent@ of 67)04M in contrast the retail 'aors are

e5(eriencing a !OI of 3)/04

0> Cu*t!me) L!+$'t+ !etail chains are yet to settle do,n ,ith the (ro(er 'erchandise 'i5 for

the 'all outlets+ "ince the stand)alone outlets ,ere esta*lished long ti'e *ac2$ so they have

sta*ili;ed in ter's of footfalls G 'erchandise 'i5 and thus have a higher custo'er loyalty *ase+

O,,!)tu"itie*:

/+ The Indian 'iddle class is already 0 Crore G is (roected to gro, to over 80 Crore *y 60/0

'a2ing India one of the largest consu'er 'ar2ets of the ,orld+ The IMAGES9?SA(roections


18/70

indicate that *y 60/7$ India ,ill have over @@ C)!)e ,e!,'e u"e) te $/e !- 08 ) reflecting the

enor'ous o((ortunities (ossi*le in the =i* $" tee"* )et$i'i"/ *e/me"t+

6+ Organi;ed retail is only 4 of the total retailing 'ar2et in India+ It is esti'ated to gro, at the

rate of 67)04 (+a+ and reach IN! /$00$000 Crore *y 60/0+

> Pe)%!'$ti"/ !3" In India it has *een found out that the to( 8 cities contri*ute for 884 of

total organi;ed retailing+ Khile the 'etros have already *een e5(loited$ the focus has no, *een

shifted to,ards the tier)II cities+ The .retail *oo'.$ 374 of ,hich has so far *een concentrated in

the 'etros is *eginning to (ercolate do,n to these s'aller cities and to,ns+ The contri*ution of

these tier)II cities to total organi;ed retailing sales is e5(ected to gro, to 60)674+

> Ru)$' Ret$i'i"/: India.s huge rural (o(ulation has caught the eye of the retailers loo2ing for

ne, areas of gro,th+ ITC launched India.s first rural 'all Chau(al "aga offering a diverse

range of (roducts fro' >C1 to electronic goods to auto'o*iles$ atte'(ting to (rovide

far'ers a one)sto( destination for all their needs+ Hariyali Ba;ar is started *y %C> "rira'

grou( ,hich (rovides far' related in(uts G services+ The 1odre grou( has launched the

conce(t of .agri)stores. na'ed Adhaar ,hich offers agricultural (roducts such as fertili;ers G

ani'al feed along ,ith the reFuired 2no,ledge for effective use of the sa'e to the far'ers+

Pe(si on the other hand is e5(eri'enting ,ith the far'ers of Puna* for gro,ing the rightFuality of to'ato for its to'ato (urees G (astes+

T)e$t*:

/+ If the unorgani;ed retailers are (ut together$ they are (arallel to a large su(er'ar2et ,ith

no or little overheads$ high degree of fle5i*ility in 'erchandise$ dis(lay$ (rices and

turnover+

6> S!,,i"/ Cu'tu)e "ho((ing culture has not develo(ed in India as yet+ Even no, 'alls

are ust a (lace to hang around ,ith fa'ily and friends and largely confined to ,indo,)

sho((ing+


19/70

+ Cultural ariation leads to variation in 'erchandise in India at different geogra(hical

locations+

C$''e"/e* i" Ret$i':

The follo,ing are the 2ey areas that 'ay (ose a threat to those retail co'(anies that ignore the

i'(acts of giving less i'(ortance to 'anage their de'and and su((ly )

orecasting and Inventory >anage'ent for JIT re(lenish'ents of (roducts+

Pea2 "eason %e'and Handling+

Order >anage'ent in case of retailers ,ith 'ulti(le outlets+

Karehouse >anage'ent in case of 'ulti(le outlets+

Introducing ne, (roducts+

Handling variety of ite's+

Futu)e T)e": S%!,e !- 0) )et$i'i"/

The conce(t of 6hr+ retailing in India has *een (resent only in very li'ited for'ats li2e

the (har'aceuticals ?A(ollo@ and fuel retail outlets ?H+P$ !eliance etc+@ and the other

retail for'ats used to o(erate only till the early hours of the night+ But *ecause of the

changing lifestyles and the *uying ha*its of the consu'ers the retailers have *een

e5tending their o(erating hours till late nights+

>ost of the Indian retail for'ats though ca(a*le of o(erating their for'ats round the

cloc2 do not choose to do so *ecause of the non feasi*ility of the idea at (resent ta2ingin conunction the custo'ers readiness+ or instance if any of the hy(er 'ar2et or

su(er'ar2et is functioning during the night the retailer has to *ear the e5tra costs of

electricity$ la*or and 'aintenance if the nu'*er of footfalls are less very lo, during the

late nights ,hich other,ise ,ould *e (rofita*le to hi'+ Any,ays$ the sho((ing ti'e of

the consu'er is considera*ly increasing+ >oreover$ in India 'ost of the retailing is all


20/70

a*out food and groceries+ It 'ight not *e a rational (rediction that all the consu'ers ,ill

ste( into the retail outlet at 'idnights to *uy food and groceries+

This (ro*le' can *e overco'e *y i'(le'enting the idea in (laces ,hich have a floating

(o(ulation even during the nights li2e rail,ay stations and *us stations+ Ho,ever ,ith

the u(co'ing culture of 'alls and the changing lifestyles of the (eo(le one can design a

s'all (art of the store or a 'all for a ne, 6=: retail for'at ,hich consists of the

essential (roducts li2e 'edicines$ fruits and vegeta*les$ groceries and so'e other >C1

(roducts and test 'ar2et it+ Once if the sales start sho,ing so'e consistent (ositive

figures and if the cro,d increases then the store can co'e in a *igger ,ay to reach out to

their custo'ers+

The other o(tion for trying the conce(t of 6hr retailing is that the retailer can have a

'o*ile outlet ,hich can (lace itself in the areas ,hich have su*stantial night traffic for

the sales to ha((en+ And once the (eo(le are to the 6hr sho((ing then the retail (lans

can *e altered accordingly+


21/70

FMCG SECTOR


22/70

FMCG SECTOR:

Ke regularly tal2 a*out things li2e *utter$ (otato chi(s$ tooth(astes$ ra;ors$ household care

(roducts$ (ac2aged food and *everages$ etc+ But do ,e 2no, under ,hich category these things

co'e They are called >C1s+ >C1 is an acrony' for Fast Moving Consumer Goods$ ,hich

refer to things that ,e *uy fro' local su(er'ar2ets on daily *asis$ the things that have high

turnover and are relatively chea(er+

ast >oving Consu'er 1oods ?>C1@ goods are (o(ularly na'ed as consu'er (ac2aged

goods+ Ite's in this category include all consu'a*les ?other than groceries=(ulses@ (eo(le *uy at

regular intervals+ The 'ost co''on in the list are toilet soa(s$ detergents$ sha'(oos$

tooth(aste$ shaving (roducts$ shoe (olish$ (ac2aged foodstuff$ household accessories and

e5tends to certain electronic goods+ These ite's are 'eant for daily of freFuent consu'(tion

and have a high return+ A 'aor (ortion of the 'onthly *udget of each household is reserved for

>C1 (roducts+ The volu'e of 'oney circulated in the econo'y against >C1 (roducts is

very high$ as the nu'*er of (roducts the consu'er use is very high+ Co'(etition in the >C1

sector is very high resulting in high (ressure on 'argins+

>C1 co'(anies 'aintain intense distri*ution net,or2+ Co'(anies s(end a large (ortion of

their *udget on 'aintaining distri*ution net,or2s+ Ne, entrants ,ho ,ish to *ring their

(roducts in the national level need to invest huge su's of 'oney on (ro'oting *rands+


23/70

>anufacturing can *e outsourced+ A recent (heno'enon in the sector ,as entry of

'ultinationals and chea(er i'(orts+ Also the 'ar2et is 'ore (ressuri;ed ,ith (resence of local

(layers in rural areas and state *rands+

SCOPE OF THE SECTOR:

The Indian >C1 sector ,ith a 'ar2et si;e of U"9/+/ *illion is the fourth largest sector in the

econo'y+ A ,ell)esta*lished distri*ution net,or2$ intense co'(etition *et,een the organi;ed

and unorgani;ed seg'ents characteri;e the sector+ >C1 "ector is e5(ected to gro, *y over

804 *y 60/0+ That ,ill translate into an annual gro,th of /04 over a 7)year (eriod+ It has *een

esti'ated that >C1 sector ,ill rise fro' around !s 78$700 crores in 6007 to !s C1 'ar2et is so'ething no one can overloo2+ Increased focus on far' sector ,ill *oostrural inco'es$ hence (roviding *etter gro,th (ros(ects to the >C1 co'(anies+ Better

infrastructure facilities ,ill i'(rove their su((ly chain+ >C1 sector is also li2ely to *enefit

fro' gro,ing de'and in the 'ar2et+ Because of the lo, (er ca(ita consu'(tion for al'ost all

the (roducts in the country$ >C1 co'(anies have i''ense (ossi*ilities for gro,th+ And if the

co'(anies are a*le to change the 'indset of the consu'ers$ i+e+ if they are a*le to ta2e the

consu'ers to *randed (roducts and offer ne, generation (roducts$ they ,ould *e a*le to

generate higher gro,th in the near future+ Ho,ever$ the de'and in ur*an areas ,ould *e the 2ey

gro,th driver over the long ter'+ Also$ increase in the ur*an (o(ulation$ along ,ith increase in

inco'e levels and the availa*ility of ne, categories$ ,ould hel( the ur*an areas 'aintain their

(osition in ter's of consu'(tion+ At (resent$ ur*an India accounts for 884 of total >C1

consu'(tion$ ,ith rural India accounting for the re'aining 4+ Ho,ever$ rural India accounts

for 'ore than 04 consu'(tion in 'aor >C1 categories such as (ersonal care$ fa*ric care$


24/70

and hot *everages+ In ur*an areas$ ho'e and (ersonal care category$ including s2in care$

household care and fe'inine hygiene$ ,ill 2ee( gro,ing at relatively attractive rates+ Kithin the

foods seg'ent$ it is esti'ated that (rocessed foods$ *a2ery$ and dairy are long)ter' gro,th

categories in *oth rural and ur*an areas+

MAR?ET POTENTIALITY OF FMCG INDUSTRY

"o'e of the 'erits of >C1 industry$ ,hich 'ade this industry as a (otential one are lo,

o(erational cost$ strong distri*ution net,or2s$ (resence of reno,ned >C1 co'(anies+

Po(ulation gro,th is another factor ,hich is res(onsi*le *ehind the success of this industry

TOP 78 PLAYERS IN FMCG INDUSTRY

T$b'e 7>7>

S> NO> C!m,$"ie*

-. Hindustan Unilever Ltd+

2. ITC ?Indian To*acco Co'(any@

3. Nestl India

. 1C>> ?A>UL@

/. %a*ur India

0. Asian Paints ?India@

1. Cad*ury India

Britannia Industries

;.Procter G 1a'*le Hygiene and Health

Care

-. >arico Industries
http://www.naukrihub.com/india/fmcg/top-companies/hindustan-unilever.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/itc-limited.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/itc-limited.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/nestle.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/gcmmf.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/dabur.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/asian-paints.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/cadbury.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/britannia.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/procter-gamble.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/procter-gamble.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/marico-industries.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/hindustan-unilever.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/itc-limited.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/nestle.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/gcmmf.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/dabur.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/asian-paints.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/cadbury.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/britannia.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/procter-gamble.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/procter-gamble.htmlhttp://www.naukrihub.com/india/fmcg/top-companies/marico-industries.html


25/70

INDIAN COMPETITIVENESS AND COMPARISON WITH THE WORLD MAR?ETS:

The follo,ing factors 'a2e India a co'(etitive (layer in >C1 sector

/+ AAILABILIT# O !AK >ATE!IAL

Because of the diverse agro)cli'atic conditions in India$ there is a large ra, 'aterial

*ase suita*le for food (rocessing industries+ India is the largest (roducer of livestoc2$

'il2$ sugarcane$ coconut$ s(ices and cashe, and is the second largest (roducer of rice$

,heat and fruits Gvegeta*les+ India also (roduces caustic soda and soda ash$ ,hich are

reFuired for the (roduction of soa(s and detergents+ The availa*ility of these ra,

'aterials gives India the location advantage+

6+ LABOU! CO"T CO>PA!I"ON Fi/ 7>7>

Lo, cost la*or gives India a co'(etitive advantage+ India.s la*or cost is a'ongst the

lo,est in the ,orld$ after China G Indonesia+ Lo, la*or costs give the advantage of lo,


26/70

cost of (roduction+ >any >NC.s have esta*lished their (lants in India to outsource for

do'estic and e5(ort 'ar2ets+

CONCEPT

OF


27/70

IMPULSE BUYING

IMPULSE BUYING:

I'(ulsive (urchasing$ generally defined as a consu'ers un(lanned (urchase ,hich is an

i'(ortant (art of *uyer *ehavior+ It accounts for as 'uch as 864 of su(er'ar2et sales and 304of all sales in certain (roduct categories+ Though i'(ulsive (urchasing has attracted attention in

consu'er research$ unfortunately there is a dearth of research on grou()level deter'inants+

>ar2eters and retailers tend to e5(loit these i'(ulses ,hich are tied to the *asic ,ant for instant

gratification+ or e5a'(le$ a sho((er in a su(er'ar2et 'ight not s(ecifically *e sho((ing for

confectionary+ Ho,ever$ candy$ gu'$ 'ints and chocolate are (ro'inently dis(layed at the

chec2out aisles to trigger i'(ulse *uyers to *uy ,hat they 'ight not have other,ise considered+

Alternatively$ i'(ulse *uying can occur ,hen a (otential consu'er s(ots so'ething related to a

(roduct that stirs a (articular (assion in the'$ such as seeing a certain country.s flag on the

cover of a certain %%+ "ale ite's are dis(layed in 'uch the sa'e fashion+

I'(ulse *uying can also e5tend to so)called *ig tic2et ite's such as auto'o*iles and ho'e

a((liances+ Auto'o*iles in (articular are as 'uch an e'otional (urchase as a rational one+ This
http://en.wikipedia.org/wiki/Candyhttp://en.wikipedia.org/wiki/Chewing_gumhttp://en.wikipedia.org/wiki/Mints_(candy)http://en.wikipedia.org/wiki/Chocolatehttp://en.wikipedia.org/wiki/DVDhttp://en.wikipedia.org/wiki/Candyhttp://en.wikipedia.org/wiki/Chewing_gumhttp://en.wikipedia.org/wiki/Mints_(candy)http://en.wikipedia.org/wiki/Chocolatehttp://en.wikipedia.org/wiki/DVD


28/70

in turn leads auto dealers all over the ,orld to 'ar2et their (roducts in a ra(id)fire$ al'ost

carnival)li2e 'anner designed to a((eal to e'otion over reason+

I'(ulse *uying disru(ts the nor'al decision 'a2ing 'odels in consu'ers. *rains+ The logical

seFuence of the consu'ers. actions is re(laced ,ith an irrational 'o'ent of self gratification+

I'(ulse ite's a((eal to the e'otional side of consu'ers+ "o'e ite's *ought on i'(ulse are not

considered functional or necessary in the consu'ers. lives+ Preventing i'(ulse *uying involves

techniFues such as setting *udgets *efore sho((ing and ta2ing ti'e out *efore the (urchase is

'ade+

A study (u*lished in the June 6003 issue of the Journal of Consu'er !esearch suggests that

consu'ers are 'ore susce(ti*le to 'a2ing i'(ulsive (urchases for one *rand over another if

they are distracted ,hile sho((ing+ In the study$ Central >ichigan University Psychology

(rofessor Bryan 1i*son surveyed college students *y 'easuring their (reference for a variety of

soft drin2s$ including Co2e and Pe(si+ !esults of 1i*son.s study found that i'(licit attitudes$ or

those that (eo(le 'ay not *e conscious of and a*le to ver*ally e5(ress$ (redicted (roduct choice

only ,hen (artici(ants ,ere (resented ,ith a cognitive tas2$ suggesting that i'(licit (roduct

attitudes 'ay (lay a greater role in (roduct choice ,hen the consu'er is distracted or 'a2ing an

i'(ulse (urchase+

There ,as a study conducted *y &"ales G Custo'er "ervice %e(art'ent- of &Te5as

Agricultural E5tension "ervice Te5as AG> University "yste' College "tation$ Te5as-+

According to this study the researchers find the ti(s to increase the i'(ulsive sales of the

flo,ers+ The findings of the study ,ere

Ti,* -!) B!!*ti"/ Im,u'*e S$'e*:

Creating variety in the de(art'ent ,ith freFuent changes of dis(lay and 'ove'ent of regularly

sold 'erchandise also entices custo'ers+ !ecogni;ing ite's that ty(ically 'a2e a 'ini'al

contri*ution to sales and re(lacing the' ,ith ite's that create sales a((eal increases theli2elihood of i'(ulse sales+ %is(lays that tie in ,ith a national slogan or store,ide the'e

generate interest$ as do dis(lays that highlight s(ecial (roducts and services+

QRTi( / use color to create original$ eye)catching dis(lays+

QRTi( 6 use the'es to create interest in unusual (roducts and rene, interest in everyday ite's+


29/70

QRTi( 2ee( undecorated (lants availa*le to attract consu'ers ,ho are *uying for

the'selves+

QRTi( create dis(lays that e'(hasi;e s(ecial (roducts or services+

QRTi( 7 change stoc2 and dis(lays often so consu'ers are dra,n into the de(art'ent each

,ee2+

QRTi( 8 *e fle5i*le enough to change an ite' or arrange'ent that isnSt selling+

QRTi( : have a (erson on hand to (rovide infor'ation and assistance at all ti'es+

Q Ti( 3 create a friendly$ co'forta*le at'os(here ,ith accessi*le dis(lays that encourage

*ro,sing+

QRTi(


30/70

INTRODUCTION


31/70

TO

THE COMPANIES

COMPANY PROFILE:

In the (resent research (a(er$ the study has *een focused on Big Ba;aar and ishal >ega 'art

to 2no, the i'(ulse *uying *ehavior of the consu'ers+ The *rief (rofiles of t,o co'(anies are

as follo,s

Big *a;aar is o,ned and o(erated *y uture Ba;aar India Ltd+$ a su*sidiary of Pantaloon !etail

?India@ Li'ited+ As (art of Indias largest retail chain$ it enoys the *enefits of *uying in *ul2 for

BIG BAZAAR


32/70

the entire grou( and 2ee(s the 'argins lo,$ so that custo'ers get a great range of (roducts at

great (rices+ Pantaloon !etail ?India@ Li'ited led *y Dishore Biyani is the country.s largest

retailer+ It o,ns and o(erates 'ulti(le retail for'ats including Pantaloons$ Big Ba;aar$ ood

Ba;aar$ Central$ E)one$ ashion "tation$ %e(ot and 'any others+ Pantaloon !etail ,as selected

as the Best of Best !etailers in Asia *y !etail Asia)Pacific To( 700 'aga;ine in 6008+Big

Ba;aar ,as a,arded the CNBC)A,aa; Consu'er A,ards in 6008 and the !eaders. %igest

Platinu' Brand A,ard 6008+

uture 1rou($ led *y its founder and 1rou( CEO$ >r+ Dishore Biyani$ is one of Indias leading

*usiness houses ,ith 'ulti(le *usinesses s(anning across the consu'(tion s(ace+ Khile retail

for's the core *usiness activity of uture 1rou($ grou( su*sidiaries are (resent in consu'er

finance$ ca(ital$ insurance$ leisure and entertain'ent$ *rand develo('ent$ retail real estate

develo('ent$ retail 'edia and logistics+ Led *y its flagshi( enter(rise$ Pantaloon !etail$ the

grou( o(erates over /6 'illion sFuare feet of retail s(ace in :/ cities and to,ns and 87 rural

locations across India+ HeadFuartered in >u'*ai ?Bo'*ay@$ Pantaloon !etail e'(loys around

0$000 (eo(le and is listed on the Indian stoc2 e5changes+ The co'(any follo,s a 'ulti)for'at

retail startegy that ca(tures al'ost the entire consu'(tion *as2et of Indian custo'ers+ In the

lifystyle seg'ent$ the grou( o(erates Pantaloons$ a fashion retail chain and Central$ a chain of

sea'less 'alls+ In the value seg'ent$ its 'arFuee *rand$ Big Ba;aar is a hy(er'ar2et for'at

that co'*ines the loo2$ touch and feel of Indian *a;aars ,ith the choice and convenience of

'odern retail+ In 6003$ Big Ba;aar o(ened its /00th store$ 'ar2ing the fastest ever organic

e5(ansion of a hy(er'ar2et+ The first set of Big Ba;aar stores o(ened in 600/ in Dol2ata$

Hydera*ad and Bangalore+ The grou(s s(eciality retail for'ats include$ *oo2s and 'usic chain$

%e(ot$ s(orts,ear retailer$ Planet "(orts$ electronics retailer$ E;one$ ho'e i'(rove'ent chain$

Ho'e To,n and rural retail chain$ Aadhar$ a'ong others+ It also o(erates (o(ular sho((ing

ABOUT THE FUTURE GROUP


33/70

(ortal$ future*a;aar+co'+ uture Ca(ital Holdings$ the grou(s financial ar' (rovides

invest'ent advisory to assets ,orth over 9/ *illion that are *eing invested in consu'er *rands

and co'(anies$ real estate$ hotels and logistics+ It also o(erates a consu'er finance ar' ,ith

*ranches in /70 locations+ Other grou( co'(anies include$ uture 1enerali$ the grou(s

insurance venture in (artnershi( ,ith Italys 1enerali 1rou($ uture Brands$ a *rand

develo('ent and IP! co'(any$ uture Logistics$ (roviding logistics and distri*ution solutions

to grou( co'(anies and *usiness (artners and uture >edia$ a retail 'edia initiative+

The grou(s (resence in Leisure G Entertain'ent seg'ent is led through$ >u'*ai)*ased listed

co'(any 1ala5y Entertain'ent Li'ited+ 1ala5y leading leisure chains$ "(orts Bar and Bo,ling

Co+ and fa'ily entertain'ent centres$ /6+ Through its (artner co'(any$ Blue oods the grou(

o(erates around /00 restaurants and food courts through *rands li2e Bo'*ay Blues$ "(aghetti

Ditchen$ Noodle Bar$ The "(oon$ Co((er Chi'ney and 1elato+ uture 1rou(s oint venture

(artners include$ U")*ased stationery (roducts retailer$ "ta(les and >iddle East)*ased A5io'

Co''unications+ The grou(s flagshi( co'(any$ Pantaloon !etail ,as a,arded the

International !etailer of the #ear 600:$ *y the U")*ased National !etail ederation$ the largest

retail trade association and the the E'erging >ar2et !etailer of the #ear 600: at the Korld

!etail Congress in Barcelona+ uture 1rou( *elieves in develo(ing strong insights on Indian

consu'ers and *uilding *usinesses *ased on Indian ideas$ as es(oused in the grou(s core value

of Indianness+ The grou(s cor(orate credo is$ !e,rite rules$ !etain values+

THE VISHAL GROUP:

VISHAL MEGA MART
http://www.vishalmegamart.net/index.htm


34/70

Khat started as a hu'*le one store enter(rise in /


35/70

CHAPTER90

REVIEWOF


36/70

LITERARURE

REVIEW OF LITERATURE

Ti)mii A'i Mu$mm$ Rem$"9U)9 ?$*i- S$i- I.b$' M>0886 This (a(er investigates

the relationshi( *et,een inde(endent varia*les ,hich are sho((ing lifestyle of consu'ers$

fashion involve'ent of consu'ers$ (re)decision stage and (ost)decision stage of consu'er

(urchase *ehavior ,ith the attitudinal and *ehavioral as(ects of i'(ulse *uying *ehavior+ This

study atte'(ts to e5(lore the association e5ists *et,een the varia*les involved$ *y ta((ing the

res(onses of /87 res(ondents fro' higher inco'e grou( in the area of !a,al(indi and

Isla'a*ad+ The 'aor findings of the study de'onstrated an overall ,ea2 association of the set

of inde(endent varia*les ,ith the de(endent varia*le *ut$ the in)de(th analysis found that (re)

decision stage of consu'er (urchase *ehavior is the only varia*le that resulted into strong

association ,ith the i'(ulse *uying *ehavior+ Its true that young (eo(le 'ore often get

attracted to (roducts dis(layed on store shelves and has greater tendency of i'(ulse *uying

*ehavior *ut results of this (a(er sho,ed no association of i'(ulse *uying in higher inco'e

grou( of young (eo(le having (revalent i'(ulse *uying tendencies+ This study re(orted ne,


37/70

evidences in the field of i'(ulse *uying *ehavior of consu'ers (ertaining to the local 'ar2ets

of the t,in citiesof Pa2istan+

Ce"/ Hu$9Ci"/$ C$"/ H*ie9u$"0884

This study (ro(oses a social influence(ers(ective to co'(are the consu'ers i'(ulse *uying *ehaviors *et,een Tai,an and China+

The social herding i'(ulse *uying factors are (ursuing fashion$ social nor'$ self) identity$ and

consu'er e5(erience+ Ke use *ino'ial and 'ultino'ial logistic 'odel to understand ho,

consu'ers influenced *y social herding factors so that they *eca'e i'(ulse *uying *ehavior

and esti'ate the relationshi( *et,eenthe freFuency of i'(ulse *uying and herding factors+ The

results are the consu'ers i'(ulse *uying influenced *y social herding factors *oth in Tai,an

and China+ The consu'ers i'(ulse *uying in China and Tai,an ,ould *e influenced fro'

different social herding factors+ Kith the freFuency of (urchasing$ consu'ers ,ould *e

influenced fro' different social herding factors+

Gutie))e Be" P$u' B>088The (a(er investigates factors influencing (lanned and i'(ulse

(urchases in si5 (ersonal care (roduct categories+ This study utili;es a *ehavioral 'easure$

rather than an attitudinal 'easure of (lanned=i'(ulse (urchase+ %ata consist of


38/70

i'age+ This study also (rovides insights to retailers a*out ty(es of visual 'erchandising that can

influence consu'ers i'(ulse *uying *ehaviors+

Bue"i%! P$t)i%i$088The author identifies that I'(ulse (urchasing has *een a focus of

'ar2eting research since the si5ties+ !esearchers have atte'(ted to e5(lain i'(ulse (urchasing

,ith the sciences of (sychology and even (hiloso(hy+ Previous research has failed to co'e u(

,ith a 'odel for such$ (erha(s *ecause of the intangi*ility of (sychological traits of i'(ulsivity

or the rationality in ,hich (hiloso(hy has its roots in+ #et it is a (revalent (heno'enon in the

daily life of the average consu'er$ you and 'e+ E'(irical studies have reached no consensus

either$ and adding the confusion are the 'any definitions if i'(ulse (urchasing and 'any

(roducts of different (ur(oses and (rices+ There e5ists no 'odel that serves as an effective

(redictor of an i'(ulse *uy+ It see's that the (heno'enon of i'(ulse (urchasing has 'anaged

to evade+ This study focuses on e5(laining i'(ulsive sho((ing through trends *y testing the

validity of hy(othetical relations *et,een socioecono'ic factors such as gender$ ,ealth$ age$

residence$ (resent co'(any and i'(ulse sho((ing+ Vualitatively$ this is a case study in ,hich

,e e5(lore ,hat (eo(le (urchase and their (ersonal reasons+Vuantitatively$ ,e set out to find

(redictors as ,e e5a'ine ,hat 'a2es Orlando sho((ers o(en their ,allets on the s(ot+

M$i Tu+et Ti N/u+e" ?3!" Ju"/ L!eb S$")$ L$"t G$)!'0887 The author

(ro(oses that the econo'y transition in ietna' has created 'any changes including the

changes in consu'er values and the retail environ'ent+ This significantly affects consu'er

*uying *ehaviors+ I'(ulse *uying is very interesting and i'(ortant consu'er *ehavior that has

attracted a lot of research effort in the ,orld+ This (a(er e5a'ines several factors influencing

the i'(ulse *uying *ehavior of ur*an ietna'ese consu'ers+ A consu'er survey ,as

conducted in t,o 'aor cities of ietna' Hanoi and Ho Chi >inh City+ The results su((ort the

hy(otheses that *uying i'(ulsiveness$ sho((ing enoy'ent tendency$ and level of 'odern)self

are (ositively related to i'(ulse *uying+ Ho,ever$ the level of traditional)self (erce(tion is not

found to *e significantly related to i'(ulse *uying *ehavior+ Other findings regarding the

i'(act of de'ogra(hic varia*les are also re(orted+

R!!= De""i* W>$Fi*e) R!be)t J>766@ The author e5a'ines that although consu'er

researchers have investigated i'(ulse *uying for nearly 70 years$ al'ost no research has


39/70

e'(irically e5a'ined its nor'ative as(ects+ This article (resents conce(tual and e'(irical

evidence that consu'ers. nor'ative evaluations ?i+e+$ udg'ents a*out the a((ro(riateness of

engaging in i'(ulse *uying *ehavior@ 'oderate the relationshi( *et,een the i'(ulse *uying

trait and consu'ers. *uying *ehaviors+ "(ecifically$ the relationshi( *et,een the *uying

i'(ulsiveness trait and realted *uying *ehaviors is significant only ,hen consu'ers *elieve that

acting on i'(ulse is a((ro(riate+ The findings fro' t,o studies across student and retail

custo'er sa'(les converge and su((ort the hy(othesi;ed 'oderating role of consu'ers.

nor'ative evaluations+

?!''$t Wi''et7645defined the first categories of i'(ulse (urchases as follo,s Brand

decidedM category decidedM (roduct class decidedM general need recogni;ed ?i+e+ need a *irthday

gift@M general need not recogni;ed+ The latter has no (lanning ,hatsoever and is there fore

recogni;ed as (ure i'(ulse (urchasing ?Bayley@+ The (heno'enon regained attention in the

eighties$ ,here the e5(eriential as(ect of i'(ulse sho((ing itself *egan to *e e5(lored+ Engel

and Blac2,ell defined i'(ulse (urchasing as &a *uying action underta2en ,ithout a (ro*le'

(reviously having *een recogni;ed or *uying intention *een for'ed *efore entering the

store+-?Engel+@ This is the 'ost ,idely acce(ted definition of i'(ulse sho((ing+

CHAPTER9

RESEARCH


40/70

METHODOLOGY

RESEARCH METHODOLOGY

!esearch 'ethodology is a ,ay to syste'atically solve the research (ro*le'+ It 'ay *e

understood as a science of studying ho, research is done scientifically+

TITLE 9 actors affecting i'(ulse *uying *ehavior in >C1 sector ,ith s(ecial reference to

*ig Ba;aar and ishal >ega 'art in Chandigarh G around region+

The research 'ethodology ,as divided into t,o stages ,hich involve t,o sources for collecting

the data in order to achieve the o*ective of (roect+

/+ Collecting data regarding the (otential custo'ers fro' the e5isting outlets of Big Ba;aar G

ishal >ega 'art+

6+ Collecting the (ri'ary data directly ,ith the custo'er ,ith the hel( of the

Fuestionnaire Re-e) A""e;u)e97


41/70

The research 'ethodology ,as divided into t,o stages ,hich involve t,o sources for collecting

the data in order to achieve the o*ective of (roect+ Ke have ta2en into consideration a

+,!teti%$' %!"*ume) im,u'*e bu+i"/ be$(i!) m!e'

,hich has *een 'entioned in conclusion and findings (art+

RESEARCH DESIGN:

A research design is an arrange'ent of conditions for collection and analysis of data in a

'anner that ai's to co'*ine relevance to the research (ur(ose ,ith econo'y in (rocedure+ A

good research design has the characteristics vi; (ro*le' definition$ s(ecific 'ethod of data

collection and analysis$ a research design is (urely and si'(ly the fra'e ,or2 or (lanned for a

study that guides the collection and analysis of data+ In this research E5(loratory research

'ethod is ado(ted+

SAMPLE DESIGN:

A sa'(le design has *een defined as a definite (lan for o*taining a sa'(le fro' a given

(o(ulation+In this (roect Mu'ti St$/e S$m,'i"/ is used *ecause the total (o(ulation ,as too

large and due to ti'e constraint it ,as not (ractically (ossi*le to 'a2e a list of entire

(o(ulation+ At first stage I have divided sa'(le area ,ise and then further divided it into inco'e

status so that I can get correct and related infor'ation+

QRS$m,'i"/ U"it ishal >ega 'art and Big Ba;aar Custo'ers

QRS$m,'i"/ Sie /00 (otential custo'ers

QRS$m,'i"/ te%"i.ue >ultistage sa'(ling

QRS$m,'i"/ $)e$ Chandigarh and around region

QRC!"t$%t Met! Personal Contacts

DATA COLLECTION:

Both (ri'ary data and secondary data have *een used for the (ur(ose of data collection+

Pri'ary data has *een collected *y conducting survey ,ith the hel( of a Fuestionnaire+

Vuestionnaires ,ere for'ed as to search the s(ecific varia*le on ,hich o*ectives de(ends+


42/70

"econdary data on the other hand are those data ,hich have already *een collected *y so'eone

else ,hich have already *een (assed through the statistical (rocess+

OBEC!IVES OF S!U"#

To understand and analyze various factors influencing sales promotion

program in retail industry.

To know the factors which influence the purchase decision.

To measure the sales promotion effectiveness in retail ndustry.

t attracts the brand switchers and increases the sales volume.


43/70

SCOPE OF !HE S!U"#

The scope of the study gives an idea to develop the sales promotion activities in

retail industry. t involves the evaluation of the present promotional activities. !ith the

help of the study we can give suggestion regarding sale promotion and services offeredby the retail industry. The study brings an awareness of the sales promotional activities

by advertising in an accepted media.


44/70

LIMITATIONS OF THE STUDY:

In atte'(t to 'a2e this (roect authentic and relia*le$ every (ossi*le as(ect of the to(ic ,as 2e(t

in 'ind+ Nevertheless$ des(ite of fact constraints ,ere at (lay during the for'ulation of this

(roect+ The 'ain li'itations are as follo,s

%ue to li'itation of ti'e only fe, (eo(le ,ere selected for the study+ "o the sa'(le of

consu'ers ,as not enough to generali;e the findings of the study+

The 'ain source of data for the study ,as (ri'ary data ,ith the hel( of self)

ad'inistered Fuestionnaires+ Hence$ the chances of un*iased infor'ation are less+

Peo(le ,ere hesitant to disclose the true facts+

The chance of *iased res(onse cant *e eli'inated though all necessary ste(s ,ere ta2en

to avoid the sa'e+

CHAPTER9

DATA


45/70

ANALYSIS &

INTERPRETATION

DATA ANALYSIS

Dem!/)$,i% ,)!-i'e !- )e*,!"e"t*

%escri(tive (rofile of res(ondents ?nW/00@

GENDER

Fi/>>7> Dem!/)$,i% $t$ -!) /e"e)*


46/70

The a*ove gra(h inferences that 'ost of the ti'e 'ale genders are the one ,ho goes for i'(ulse

*uying decision i+e+ 334 are 'ale res(ondents in our research ,hile fe'ale co'(rises of only

/64 of the total res(ondents+

AGE

Fi/>>0> Dem!/)$,i% $t$ %!"*ie)i"/ i--e)e"t $/e /)!u,*

ro' the gra(h its easily visi*le that the age grou( 60)67 are the one ,ho go 'a5i'u' ti'es

for i'(ulse *uying since this is the age grou( ,hen they are 'ost active having so'e (o,er of

(urchasing too+


47/70

OCCUPATION

Fi/>>> Dem!/)$,i% $t$ %!"*ie)i"/ tei) !%%u,$ti!"*

ro' the gra(h its clear that 'ost of the i'(ulse *uying is *eing done *y students ,hich

co'(ro'ises of 7/4 of total /00 res(ondents 64 is for the services (roviding (eo(le and 60

4 to the *usiness oriented (erson and at last only 84 co'(rises of house ,ifes+


48/70

F$%t!) A"$'+*i* -!) -$%t!)* $--e%ti"/ im,u'*e bu+i"/ e%i*i!" !- C!"*ume)*

To continue to,ards the 'ain analysis$ factor analysis has *een (erfor'ed to identify the 2ey

di'ensions affecting (urchase of >C1 (roducts (rovided at these retail stores+ The res(ondent

ratings ,ere su*ect to (rinci(al a5is factoring ,ith vari'a5 rotation to reduce (otential

'ulticollinearity a'ong the ite's and to i'(rove relia*ility on the data ?!efer Ta*le 8 !otated

actor >atri5@+ ari'a5 rotation ?,ith Daiser Nor'ali;ation ,as converged in t,enty si5

iterations+ T,enty "i5 ite's ,ere reduced to seven orthogonal factor di'ensions ,hich

e5(lained :6+7:4 of the overall variance ?!efer Ta*le @ indicating that the variance of

original values ,as ,ell ca(tured *y these seven factors+ The seven factors and their

co'(onents is given in ta*le :+ ?!efer Ta*le :@

Re'i$bi'it+ !- D$t$ ?MO $" B$)t'ett* Te*t

Analysis done ,ith the hel( of statistical soft,are "P""

Daiser)>eyer)Ol2in >easure of "a'(ling +807AdeFuacy+

Bartlett.s Test of A((ro5+ Chi)"Fuare //3+


49/70

C!mmu"$'it+9 C!mm!" F$%t!) V$)i$"%e

Co''unality of each state'ent refers to the variance *eing shared or co''on *y other

state'ents+ Kith reference to the first state'ent$ the e5traction is +8< ,hich indicates that

8+0: C!mmu"$'itie* C!mm!" F$%t!) ($)i$"%e


50/70

T$b'e >>: T!t$' V$)i$"%e E;,'$i"e

C!m

,!"e

"t

I"iti$' Ei/e"($'ue* E;t)$%ti!" Sum* !-

S.u$)e L!$i"/*

R!t$ti!" Sum* !- S.u$)e

L!$i"/*


51/70

T$b'e >>: Di*t)ibuti!" i" i--e)e"t %!m,!"e"t*

Co'(onent / E5(lain a variance of +:7$,hich is /3+6/4 of the total

/3+6/4


52/70

variance of 68

Co'(onent 6 E5(lain a variance of +03$,hich is /6+:64 of the totalvariance of 68

0+


53/70

T$b'e >@> C!m,!"e"t M$t)i;:

This ta*le re(orts the factor loadings for each varia*le on the unrotated co'(onents or factors+

C!m,!"e"t

7 0 @ 4 5

/

6

7

8

:

3

ethod ari'a5 ,ith Daiser Nor'ali;ation+

C!m,!"e"t

/

6

7

8

:

3

5>: F$%t!)*

F$%t!) 7:

S@ :Advertise'ent of (roduct in (rint and visual 'edia

S4 :arious (ro'otional activities regarding (roduct

": Hording and (a'(hlets of (roduct

S78 :Pac2aging of (roduct

"// Placing of (roduct in store

"/ E'otional attach'ent ,ith (roduct

"/ Behavior of sales (erson

"/7 Po(ularity of (roduct

"/: The (erson ,ith ,ho' you are going for sho((ing

F$%t!) 0:

S :arious sche'es li2e ?*uy / get / free@

"/6 Co'(ati*ility of another (roduct ,ith the (roduct you are *uying

"/3 Influenced *y other (eo(le

"/


57/70

"68 arious festival discounts on (roduct

F$%t!) :

S7 :Price of (roduct

S08 :#our inco'e status

S07 :"tandard of living

F$%t!) @:

S :Availa*ility of (roduct

S0 :!eFuire'ent of (roduct in festival season

F$%t!) 4:

S0 :%iscount offers regarding (roduct

F$%t!) 5:

S74 :Changing trends in society

S0 :"(ecial occasions


58/70

T$b'e >1>: C!m,!"e"t S%!)e C!e--i%ie"t M$t)i;

ro' the ta*le 3 of co'(onent score coefficient 'atri5$ ,e can o*tain the Fuantifia*le data of

each factor+ The coefficients *et,een the state'ents and the factors are ta2en according to the

state'ent affecting the factor ?on the *asis of Ta*le :@

C!m,!"e"t

7 0 @ 4 5 1 6"/ +0/< )+0


59/70

CHAPTER9@

CONCLUSIONS


60/70

AND

SUGGESTION

CONCLUSIONS AND FINDINGS

"ince Indian retail 'ar2et is continuously increasing$ (eo(le are (urchasing goods as there is

increase of inco'e of co''on (eo(le as ,ell as change in tastes and (references of consu'ers+

It is i'(ortant for the retail (layers to *e a*le to understand the different factors affecting the

e5tent in i'(ulse *uying *ehavior+

The factor analysis results indicate that F$%t!) 7 ?Ta*le :@ ,hich consists of Infor'ation

(rovided *y custo'ers ) Advertise'ent of (roduct in (rint and visual 'edia$ arious

(ro'otional activities regarding (roduct$ Hording and (a'(hlets of (roduct$ Pac2aging of

(roduct$ Placing of (roduct in store$ E'otional attach'ent ,ith (roduct$ Behavior of sales

(erson$ Po(ularity of (roduct$ The (erson ,ith ,ho' you are going for sho((ing are the 'ain

factors for i'(ulse *uying *ehavior ,hich *roadly defines a*out the Em!ti!"$' $,,e$' !-

$(e)ti*eme"t*>


61/70

F$%t!) 0includes various sche'es li2e ?*uy / get / free@$ Co'(ati*ility of another (roduct ,ith

the (roduct you are *uying$ Influenced *y other (eo(le$ Dind of (roduct ,hich you are *uying

Custo'ers i'(ulse *uying decision causing a variance of +03+This sho,s that i'(ortance of

influence of other (eo(les on *uying *ehavior of custo'ers+

F$%t!) $ includes fro' Ta*le): $Any event organi;ed *y organi;ation %is(lay of (roduct in

store$ #our (erce(tion a*out saving and invest'ent$ Traditions and custo's$ various festival

discounts on (roduct$ ,hich in totally sho,s the direct i'(act (roduct (lace'ent in the stores in

a retail outlet li2e ishal >ega 'art G Big Ba;aar+

F$%t!) includes Price of (roduct$ your inco'e status$ and "tandard of living$ ,hich clearly

defines the individual (urchasing (o,er+

Continuing ,ith the ne5t factor) F$%t!)* @includes Availa*ility of (roduct$ !eFuire'ent of

(roduct in festival season ,hich sho,s that discount offers during festival seasons attract

custo'ers for their i'(ulse *uying *ehavior+

Khile F$%t!) 4 includes %iscount offers regarding (roduct$ focusing on effective (rice and

discount strategies ,hich is in *rought *y the retail (layers in order to attract there (otentialcusto'ers+

At last F$%t!) 5includes Changing trends in society$ s(ecial occasions ,hich signifies that ho,

'uch today also (eo(le give (references to the traditions and rituals during festival season that

it has created a e'otional *ond ,hich results in i'(ulse *uying *ehavior+ Overall$ various

internal and e5ternal factors affects the i'(ulse *uying *ehavior of the consu'er ,hich is

e5(lained *y the a*ove findings

Fi/ @>7>

IMPULSE BUYING BEHAVIOR MODEL


62/70

Although the study ,as conducted on a s'all (o(ulation to find I'(ulse Buying Behavior of

the consu'er In ishal >ega 'art and Big Ba;aar$ the finding of the studies can *e generali;ed

to the ,hole (o(ulation+ It can *e very co'forta*ly inferred that

/+ E'otional a((eal of advertise'ents

6+ Brand i'age of the (roduct+ Product (lace'ent in the store

+ Inco'e of the custo'er

7+ arious festival seasonal discounts

8+ Effective (ricing and discount strategy

:+ E'otional Bonding and usage of the (roduct in festivals affect i'(ulse *uying *ehavior of

the consu'er very strictly+

The Indian 'ar2eters has to go a long ,ay to understand the i'(ulse *uying *ehavior as it is avery su*ective and its de(ends on 'ulti(le factors$ *ut 'ar2eters can ta2e advantage for this*ehavior and in al'ost every (roduct category i'(ulse *uying ,itness+


63/70


64/70

BIBLIOGRAPHY

Re-e)e"%e*:

Alice Hanley and >ari "+ Kilhel' ?/aa >a2ovec Brencic ?600@+ Co'(ulsive *uying *ehavior+ Journal

of consu'er 'ar2eting$ ol 60$ No+6+


65/70

Celia ray Hayhoe$ Lauren Leach$ G Pa'ela !+ Turner ?/ar2ets$ol+63 No+ $ ((+766)76

Cheng Hua)Ching Chang Hsieh)Vuan?6008@ ol /6$No+6$ 8)

1utierre; Ben Paul B+?600@ol+$ no+/?"e( 600/$(ages 6)8@

>ai Tuyet Thi Nguyen$ D,on Jung$ Loe* "andra$ Lant; 1arold?600/@ol6ay

/


66/70

ANNEKURE

QUESTIONNAIRE

Na'e [[[[[[[[[[[[[[[[[[[[[[[[[++Age [[[[[[[[[[[[[[[[[[[[[[[[[[+1ender ) MALE FEMALEOccu(ation [[[[[[[[[[[[[[[[[[[[[[[+

According to you$ ,hich of these factors affect your i'(ulse *uying *ehavior for >C1(roducts


67/70

7> PRICE AND DISCOUNT

0> POINT OF PURCHASE ADVERTISEMENT AND

SALES PROMOTION

> VISUAL MERCHANDISING

> EMOTIONAL ATTACHMENT

SA A DA SDA

Attractive (rice of (roduct affects 'y i'(ulse *uying

*ehavior

%iscount offers regarding (roduct attracts 'e

arious sche'es li2e ?*uy / get / free@ affects 'y *uying*ehavior (ositively

Availa*ility of discounted (roducts 'otivates 'e to *uy

Advertise'ent of (roduct in (rint and visual 'edia attracts'e to *uy

arious (ro'otional activities regarding (roduct 'otivatesto *uy the (roducts

Hording and (a'(hlets of (roduct hel( 'e in i'(ulse*uying

Any event organi;ed *y organi;ation affects 'y *uying*ehavior

%is(lay of (roduct in store attracts 'y attention

Pac2aging of (roduct attracts 'e to *y the (roducts

Placing of (roduct in store gains 'y attention to,ards it

Co'(ati*ility of another (roduct ,ith the (roduct you are*uying


68/70

@> COMPANY

4> INCOME

5> FESTIVAL SEASON

E'otional attach'ent ,ith (roduct is a 'otivational factorto *uy (roduct

Behavior of sales (erson affects 'y *uying *ehavior

Po(ularity of (roduct increases recall value and hel(s ini'(ulse *uying

Changing trend in society is a 'aor factor in i'(ulseBuying

The (erson ,ith ,ho' you are going for sho((inginfluences 'y *uying *ehavior

Co''ents of reference grou( influence 'y *uying

*ehaviorDind of (roduct ,hich i a' *uying

#our inco'e status affects 'y i'(ulse *uying *ehavior

"tandard of living has a role to (lay in *uying (roducts

#our (erce(tion a*out saving and invest'ent

"(ecial occasion 'otivate 'e to *uy

!eFuire'ent of (roduct in festival season (ro'(ts 'e to*uy

Traditions and custo's triggers 'y (urchase decision

arious festival discounts on (roduct induces (urchase of(roduct


69/70


70/70

Documents

Big Bazar Bba