INVESTIGATING SHOPPERS’ BEHAVIOUR@

FOOD BAZAAR-SHIPRA MALL

submitt Submitted By:

Deepesh Belwal

Rohit KapoorSuruchi GoyalUmang Dubey

Food bazaar is an establishment of the Future group operating as a standalone value chain

retail outlet established in 2004 at Shipra mall, is the oldest retail chain of the conglomerate.

The standalone had a target of 1.37 crore for the 6 days offer and is estimated to earn around

50 crore annually for the group.

STRUCTURE OF THE RETAIL CHAIN

Store manager

HRDepartment

manager

Food itemsGeneral

merchandiseWarehouse

Non food items(Personal and home care)

CashingCustomer

Service desk

Marketing division

Finance and accounting

Facilities and Administration

C O N S U M E R A LWAY S L O O K F O R E X T R A B E N E F I T S ( P E R C E I V E D O R A C T U A L ) F O R

T H E P U R C H A S E T H E Y M A K E A N D T H I S C O N C E P T I S U T I L I Z E D B Y T H E F O O D

B A Z A A R VA L U E C H A I N R E T A I L F O R M A T T O A C H I E V E H I G H E R S A L E S .

Food Bazaar – Customer base

One time Purchaser(Devil

Customer)

•Looking for extra benefit: usually seen during sale.

•Wants value for every rupee invested : Points out nitty-gritty issues

•Difficult to satisfy with the offers

•Doesn’t require personal assistance

Repeat purchase

•Occasionally shops and interested more in the offers and discount

•Shops less argues more :Voices dissatisfaction openly but still comes back for more offers.

•Difficult to handle but can be converted into loyal customers.

•Time Consuming

Loyal Customer

•Neighborhood residents –Aware of the schemes and regularly visit the place

•Looks out for extra benefit like loyalty cards, total purchase discount ,points out dissatisfaction in a systematic manner.

•Happy to Shop usually comes back for more offers and discount but want extra benefits for loyalty.

•Offer suggestions for improvement and correction..

•Resistant to change.

TYPE OF FOOTFALL AT FOOD BAZAAR

C o n s u m e r i s t h e m o s t i m p o r t a n t p a r t o f a n y b u s i n e s s m o d e l a n d s p e c i a l l y a r e t a i l c h a i n ( v a l u e f o r m a t b a s e d ) w h i c h i s d e p e n d e n t o n t h e t o p l i n e ( t o t a l s a l e s ) s i n c e i t h a s a r e v e n u e b a s e d t a r g e t . T h u s , t h e h e a v y i n f l u x o f c o n s u m e r h e l p s t h e c o m p a n y a c h i e v e i t s t a r g e t w h i c h m a k e s i t n e c e s s a r y f o r t h e c o m p a n y t o u n d e r s t a n d t h e c o n s u m e r e x p e c t a t i o n , a r e a s o f d i s s a t i s f a c t i o n a n d e x p e r i e n c e i n o r d e r t o a t t r a c t t h e m t i m e a n d a g a i n .

Consumer Behavior @ Foodbazzar

SWOT Analysis of VALUE retail In purview of Customer Behavior

Play on your Strength

•Provides perceived value to price sensitive

customer.

•One Stop solution for home needs(Time Value)

•Standardized product

Tap the Opportunity

•Increased in working class(high disposable

income)

•Paucity of time(work schedule) leading to one

service provider

•Increase In lifestyle and shift of shopping

location (Neighborhood to malls)

Neutralize the Weakness

•Negative connotation of positioning

strategy(Inexpensive perceived as cheap)

•Maintenance of low customer turnover is difficult

(Extraneous variable)

Mitigate the Threat

•Low switching cost

•Heavy inflow of similar format store(inverse

competition)

•Supply and demand constraints due to PESTEL.

To s t u d y t h e c a u s e a n d e f f e c t o f a n y s i t u a t i o n , i t i s n e c e s s a r y t o c o n d u c t a n e x c l u s i v e r e s e a r c h t o u n d e r s t a n d t h e u n d e r l y i n g i s s u e s .

To c o n d u c t a r e a l i s t i c r e s e a r c h , s a m p l i n g i s p e r f o r m e d w h i c h i s t h e r e p r e s e n t a t i v e d a t a o f t h e p o p u l a t i o n u n d e r s t u d y.

I n o u r r e s e a r c h , w e h a v e t a k e n t h e c u s t o m e r v i s i t i n g t h e s t o r e a s o u r r e s e a r c h s a m p l e s i n c e t h e y w o u l d p r o v i d e t h e t r u e s t o r e e x p e r i e n c e a n d r e a l i s t i c p i c t u r e t h r o u g h t h e i r f e e d b a c k .

R e s e a r c h t y p e : d e s c r i p t i v e r e s e a r c h ( t o u n d e r s t a n d c o n s u m e r e x p e r i e n c e )

To t a l s a m p l i n g u n i t : 1 5 4

R e s e a r c h m e t h o d o l o g y : q u e s t i o n n a i r e ( f e e d b a c k f o r m " s h a r e w i t h u s ” )

S c a l e : g r a p h i c a l s c a l e

Research Methodology

58%27%

7%6% 2%

Demography of sample

AGE(18-30) AGE(31-40) AGE(41-50)

AGE(51-60) AGE(61-70)

Profile of Sample

Female45%

Male55%

Profiling of sample

SOP: Customer Analysis

As already seen the importance of customer in a retail chain, it is important to operate in a customer centric environment.

Since, a retail market suffers from

a high churn rate which needs to be minimized since

it is difficult to create a customer.

So in order to serve the customer better the feedback wastaken

so that the customer can be attracted to the

store to continually contribute as loyal customer

Customer Oriented Strategy

Identify a customer

Create a Customer

Retain a customer

Customer creation ISSUE

80-20rule(80% revenue from 20% old

customer)

Rise In acquisition Cost(5 times)

The Customer Expectation pyramid

According to the paper by Chu and Pike on Customer strategy in retail chain(2002 the most

important aspect for a retail chain customer was in-store experience and staff assistance

whereas marketing and communication(promotion) had little impact on the customer

satisfaction so accordingly we designed our feedback form to incorporate the values customer

feel most importantly:

Customer Overall experience

In store Experience

• Music

• Lighting

• Temperature

• Cleanliness

Facilities management

• Ease of moving Around

• Ease of finding a trolley

• Checkout Counter

Staff Support

• Courteousness

• Knowledge and efficiency

Presentation

• Cashier Interaction

• Cashier speed

Product

• Range

• Prices

• Quality

• Availability

Communication and marketing

• Ease of finding a product

In-Store Experience The organized retail format has changed the way people shop today. Not only has it provided

the ease of access and availability of product and service , the concentration is on the customer In store experience which cannot be provided in an unorganized retail via Delightful Music, Lively display and Lighting, Sanitation and hygiene and Ambience.

Analysis: The results show that around 73% of the respondents are highly satisfied with the overall store experience and consider lighting of the store (Visibility)to be relatively better to other parameter. The overall customer respomses shows high level of satisfaction among all the attribute measured.

0

20

40

60

80

100

120

140

160

180

music temperature lighting cleanliness

bad

ok

good

73%

13%

14%

0%

Overall In Store Experience

Highly satisfied Satisfied

Dissatisfied Highly dissatisfied

In a customer oriented business, the personal interaction between the seller and customer plays an important role in the purchase decision thus several attribute of the staff involved in the process is considered to influence the customer. In food bazaar, the customer mainly interacts with staffs at three departments:

Department Function

Product Purchase department Product Knowledge and SP personality

Cashing counter Billing time and interaction

Checkout counter(CSD and security) Query handling and delivery

020406080

100120140160180

good

bad

Ok

We can conclude that the

customers are mostly satisfied with

the support staff and ranked the

services good with little scope of

improvement required in the area

of staff courteousness and product

knowledge area and also certain

training should be provided to the

selling staffs in order to improve

them over the cashier rating.

Staff Support

S t o r e m a n a g e m e n t i s a v e r y i m p o r t a n t s o t h a t t h e o v e r a l l p r o c e s s c a n t a k e p l a c e s m o o t h l y p r o v i d i n g a g o o d e x p e r i e n c e t o t h e c u s t o m e r . A s p a r t o f t h e i n – s t o r e m a r k e t i n g v a r i o u s d i s p l a y s , s i g n a g e ( d e p a r t m e n t l o c a t i o n ) a n d p r o d u c t d i s p l a y a r e p u t u p w h i c h h e l p t h e e a s y n a v i g a t i o n t o t h e c u s t o m e r . A g a i n , f a c i l i t e s l i k e t r o l l e y a s a t h e s h o p p i n g c a r t w h i c h i s f a c i l i t a t e d b y s p a c i o u s m o v i n g a r e a a r o u n d t h e f l o o r i s p r o v i d e d .

“ M i s u t i l i s a t i o n o f s p a c e i s a c r i m e i n a r e t a i l s t o r e ” s o p r o p e r u s a g e o f t h e s p a c e i s e s s e n t i a l t o p r o v i d e b e n e f i t t o t h e o u t l e t a s w e l l a s c u s t o m e r .

S o , t h e f e e d b a c k p r o v i d e d w o u l d h e l p u s f i n d s o l u t i o n t o o p t i m a l l y u t i l i z e t h e f l o o r s p a c e a n d p r o v i d e m o r e c o n v e n i e n c e f o r b r o w s i n g t h e s t o r e f o r a s a t i s f a c t o r y s h o p p i n g e x p e r i e n c e

Marketing and Facilities management

As it can be seen majority of

respondents are happy about

the product display and floor

movement area also the

facility of trolley is also very

efficient .Only some issues

in navigation for some

customer has been observed

which maybe due to peak

hour shopping.0

20

40

60

80

100

120

Ease of moving aroundin the store - Navigation

Ease of finding aproduct - Product

Displays

Ease of finding atrolley/basket

ok

bad

good

The Product The most important factor which attracts the customer is the product portfolio provided

by the store. The customer are attracted to a store because of the one stop shopping solution which Food bazaar provides through its various food and non food categories.

In spite of the easy accessibility it is very essential to provide an uncompromising product with the following feature:

Large Portfolio

Quality and Standard maintained

Availability of the Product in the catalogue

Value for money

0

20

40

60

80

100

120

140

Range Prices Quality Availability

PERCEIVED PRODUCT VALUE

ok

bad

good

As seen the customer are

satisfied by the overall feature

and benefit provided by the

product but certain

inefficiency has been

observed on the following

points:

•Quality of product not

maintained

•Prices perceived to be

inflated

•Low replacement rate

causing unavailability of Fast

Moving product.

Customer Reasons of Deflection

As already mentioned the switching cost of customer in a retail outlet is very less and it is important to minimize the instances which can possibly lead to deflection of customer. It is unavoidable that certain situations arise where the customers are likely to be irritated but it is important to mitigate those inefficiencies and develop a flawless system of operation.

As observed in food bazaar a lot of customer query and cases of issuance of credit note and cash refund(special cases) has been confronted which needs to be handled at the points it arises so that the customers are prompted to come back later happily.

19%

19%

4%8%

18%

14%

18%

Department wise classification of issue

chefzone chill station farm fresh GM

home care personal care staples

10% 6%

2%

12%

1%69%

Customer Issue

barcode issue Billing error

damage and defective discount not given

dislike customer change of mind

As we can see that the consumers mostly return the product because of their own

choice or change of mind which contributes to around 69% of the return.

Again, some 12% cases are of the barcode issues and 10% are the mismatch of discount

offers(Updation in the POS) so it is necessary to take care of the issues at the end of the

outlet so that there is certain reduction in the refund cases which contributes to heavy

loss of sale.

As ,we can see that in a period of a month, the outlet has issued a refund worth Rs

30,000 of which around 30% is internally caused from errors like billing ,discount

mismatch etc which can be completely eliminated and sale can be escalated.

Type of refund Amount(Rs)

Cash refund 4872

Credit refund 24910

Handling the Customer It is very important to be very patient and listen to the problems of the customer to avoid negative

network (BIG Bazaar news) publicity

Store manager

Department

manager

Quality defect

Offer Mismatch(Barco

de Issue)

Customer

Service Desk

Bill Error

Customer

change of Mind

Share with

us(Feedback)

IdentificationThe dept manager or LT would be called to know the problem(faulty display, barcode

mismatch ,wrong communication of offers by staff or SP)

RectificationThe problem would be tackled by issuance of CN or CR as per the demand and type of customer and

the concerned authority be held liable for the credit inwards(register maintained and signed)

Communicati

onInformation through a CSD report to the store manager (Customized SAP Software for reporting)

M a j o r i t y c o n s u m e r s c h o s e s c h e m e o v e r b r a n d e x c e p t i o n b e i n g h e a l t h c o n s c i o u s c o n s u m e r s

B r a n d l o y a l c u s t o m e r s r e m a i n e d s t i c k y i r r e s p e c t i v e o f s c h e m e s

M a n y c o n s u m e r s a r e u n a w a r e a b o u t t h e d i f f e r e n c e b e t w e e n b r a n d s

Te n d e n c y t o a s k r e p e t i t i v e l y f o r t h e o f f e r s

Va l u e p e r c e i v e d i s u s u a l l y l o w d e s p i t e d i s c o u n t s a n d o f f e r s

R e g u l a r c u s t o m e r s p r e f e r l o y a l t y c a r d s a n d e x t r a b e n e f i t .

A p p r e h e n s i o n t o w a r d s a n y c h a n g e l i k e c h a rg e a b l e p o l y b a g s w e r e h i g h l y c r i t i c i z e d

P r e f e r e n c e o f h o m e d e l i v e r y ( m a n y e n q u i r y r e g a r d i n g t h e s a m e )

O n e t i m e b u y e r s m o r e s k e p t i c a l a n d u s u a l l y f u s s e s a b o u t t h e p r o d u c t q u a l i t y.

A h i g h a m o u n t o f s h r i n k a g e ( t h e f t ) p r e v a l e n t .

F a l s i f i c a t i o n o f b i l l e r r o r s b y c u s t o m e r s a l s o p r o v i d e d f o r s o m e b e n e f i t .

S h o p p i n g a s s i s t a n c e u s u a l l y n o t r e q u i r e d b y t h e s h o p p e r s ( o n l y b r i e f i d e a o f t h e s c h e m e s a r e r e q u i r e d )

M o s t o f t h e b i l l i n g e r r o r s c a u s e d b y i g n o r a n c e o n t h e c u s t o m e r s i d e .

Conclusion