Major Research Project Kisna[1]

8/6/2019 Major Research Project Kisna[1]

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Major Research Project

On

A Comparative study between Organized and Unorganizedretail industry in India

For Partial Fulfillment

Of the Requirement for the Degree of

MBA (Full Time)

Batch - 2009 2011

Submitted by : Guided by :

(GOVIND NAGAR) (Dr. C.K.GOYAL)

MBA (IV) IPS Academy,

Indore

SOC&E, IPS ACADEMY

Rajendra Nagar, A.B. Road, Indore 452 012 (MP)Affiliated to : Devi Ahilya Vishwavidyalaya, Indore


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CERTIFICATE

This is to certify that Mr. Govind Nagar student of IV Sem MBA bearing has carried out

the Major research project Report entitled A Comparative study between Organized

and Unorganized retail industry in India under my supervision & guidance.

The project report prepared by him/her is original to the best of my knowledge.

Signature of External, Signature of the Guide,

Dr. C. K. Goyal,

Associated prof.

MBA dept. I.P.S. Academy.,

Indore.


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DECLARATION

I hereby declare that this dissertation entitled a study on A Comparative study

between Organized and Unorganized retail industry in India, Submittedin partial

fulfillment for the Award of Master of Business Administration to I.PS. Academy

D.A.V.V. INDORE is a record of independent research work carried out by me.

I also declare that this dissertation is a result of my own efforts and has not been

submitted earlier for the award of any degree/ diploma or any other University.

Place: INDORE Govind Nagar

Date: MBA (IV)


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ACKNOWLEDGEMENT

I would like to take this opportunity to express my since gratitude to all those whoguide me in right direction to complete this Project.

I express my deep sincere gratitude to Mr. Vivek Kushwah Director of I.P.S.

ACADEMY, DEPT. OF MANAGEMENT for his encouragement throughout the course

of this study.

I also express my sincere thank to Dr. C. K. Goyal Department of Management

Study, I.P.S. Academy, Indore, for his constant guidance and assistance throughout thisstudy.

Last but not the least, I would like to thank my respondents for sparing their precious

time to answer my questionnaire and giving me the valuable information I needed.

Finally my sincere thanks to my parents and to my entire friend to their support and

motivation throughout the project.

Govind Nagar

MBA(IV)


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INDEX

Chapter Content Page No.

Research Topic 1

1 Introductiona) Detail Of Retail sectorb) Rationale of study

6-25

2 Review of literature 26-39

3 Research Methodologya) Objectivesb) Hypothesisc) Research designd) Sample designe) Tools for data collection

40-43

4 Analysis and interpretation of data 44-505 Discussion of result

a) Findingsb) Limitationsc) Suggestionsd) Conclusion

51-55

6 Bibliography and Webliography 56-57

7 Annexure 58-62


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INTRODUCTION


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Introduction

The Indian retail industry is now beginning to evolve in the line with

the transformation that has swept other large economies. There is a change a footin Indian retail too, the liberalization of the consumer goods industry initiated inthe mid-80s and accelerated through the 90s has begun to impact the structureand conduct of the retail industry.The concept retail, which includes the shopkeeper to customer interaction, hastaken many forms and dimensions, from the traditional retail outlet and streetlocal market shops to upscale multi brand outlets, especially stores ordepartmental stores.

Hence, focusing on two aspects of retail marketing i.e. Store Retailing and Non

store Retailing. Store Retailing as the departmental store, which is a store or multibrand outlet, offering an array of products in various categories under one roof,trying to cater to not one or two but many segments of the society and Non storeretailing as the direct selling, direct marketing, automatic vending.Therefore, this concept of retail marketing through organized retail stores, whichis coming up in a big way in India was decided to be studied in detail.The objective being to assess the various parameters that influences a buyer toshop at organized retail food and grocery store thereby contributing to its turnover(in terms of sales and profits) hence leading to its overall success.The extensive research brought me to conclude that departmental stores are soon

emerging on the top priority lists, amongst the shopping spree in Delhi, as theyseem to derive immense pleasure as shopping is considered as a experience nowrather than a task and exposure to variety under one roof, in their extremely busylives, when they dont have time for things.The organized retail food and grocery stores make constant efforts to inducecustomers to visit the store by discount offers.

Most of these stores believe in creating not just a marketing activity with itscustomers, but rather favor relationship building with him so as to convert firsttime customers into a client. They provide better parking facilities to customers

and the facility to examine the product. They also offer a wide range of paymentoptions to customers.

Hence this document entails me through these aspects in great detail, helping meto understand the concept of retail marketing through departmental stores inDelhi.


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India is currently the twelfth largest consumer market in the world. According to a

study by McKinsey Global Institute, India is likely to join the premier league of the

worlds consumer markets by 2025, improving its position to the fifth.

But this growth is not going to happen is smooth way. Any change always comes up

with some friction, and Indian retail sector is and will be witnessing the same friction.Indian retail sector is still in its nascent form if we consider its full potential. While

most of the developed market of US and Europe and also some SE Asian emerging

market economies have reaped the benefits of modern retail, India has not yet entered

into advanced phase of modern retail forms.

Tug of war: organized vs. unorganized sector

Future of retail sector in India is swerving- on one side organized retail is marchinginto life of urban consumers, while on the other our own neighborhood kirana stores

are resisting fiercely with their existing strong foothold. India today is at the

crossroads with regard to the retail sector. A shift between organized and unorganized

retail sector is evident, which has led to a number of speculations on the fate of Indian

retail.

Unorganized sector cannot be ignored

In any newspaper or television channel, we find hordes of news about happening in

organized retail sectors, which is indeed fairly real situation. While the role of

organized retail sector in growth of economy cannot be denied, but one thing is also

of extreme importance that unorganized retail format is a support to a large chunk of

population- providing direct employment to 39,500,000 individuals. So there is no

way that government or anyone can discount these foundation stone of Indian

economy.

Changing landscape of Indian consumerism

The face of Indian consumerism is changing: not Indian consumerism is evolving

from Bajaj Scooter family man to Bajaj Pulsar trendy youngster. This changing


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consumers taste and lifestyle, somewhere automatically give some advantage to

organized sector. This makes imperative for unorganized retail sector to restructure

itself in order to withstand the increasing competition and to meet consumer

expectations by moving with trends. What they can do and what they are doing, some

of these issues will be discussed in future parts of article.

Role of government

As in other countries, government policy can and should play an important role in

modernizing the unorganized sector and improve its competitiveness. But question is

what should be exact role of government. Should it go for policies for protection of

traditional retailers by restricting organized retail or encourage organized retail toreap benefits that are generated by it? What should be mechanism to promote or

protect one or other? Can government act only as a facilitator or enablers or both?

In the said context, it is imperative to develop a strategic roadmap for unorganized

retail form to be able to survive, compete and keep the economy growing.

Retail Trends in past few years

Before the decade of eighties, India with hundreds of towns andcities was a nation striving for development. The evolution was being witnessed atvarious levels and the people of the nation were learning to play different roles as businessmen and consumers. The foundation for a strong economy were beinglaid, youth were beckoning new awareness in all spheres. And this brought in anopportunity for retail industry to flourish. First in the metros and major cities laterto impact sub urban and rural market as well.

Retailing in India at this stage was completely unorganized and it thrived asseparate entities operated by small and medium entrepreneurs in their ownterritories. There was lack of international exposure and only a few Indiancompanies explored the retail platform on a larger scale. From overseas onlycompanies like Levi's, Pepe, Marks and Spencer etc. had entered targeting uppermiddle and rich classes of Indians. However as more than 50 % population wasformed by lower and lower middle class people, the market was not completelycaptured. This was later realized by brands like Big Bazaar and Pantaloons whomade their products and services accessible to all classes of people and today thesuccess of these brands proves the potential of Indian retail market.


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A great shift that ushered in the Indian Retail Revolution was the eruption of Mallsacross all regional markets. Now at its peak, the mall culture actually brought inthe organized format for Retailing in India which was absent earlier. Though mallswere also initially planned for the higher strata, they successfully adapted to caterto the larger population of India. And it no wonder, today Malls are changing the

way common Indians have their shopping experience. However there is still greatscope for enhancing Indian mall culture as other than ambience and brandingmany other aspects of Retail Service remains to be developed on internationalstandards.

To your surprise there was not a single mall in India a decade before and just afew years ago only a handful of them were striving, today there are more than 50malls across different cities and 2 years from now around 500 malls are predictedto come up.

Indeed this shows a very promising trend ahead, however before taking a leap intothe future of Retail in India, let's see what the Indian retail Industry is currentlyoccupied with.


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ORGANIZED

RETAILING


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Organized Retailing

Organized retailing comprises mainly of modern retailing with busy

shopping malls, multi storied malls and huge complexes that offer a large variety of

products in terms of quality, value for money and makes shopping a memorable

experience.

The recent years have witnessed rapid transformation and vigorous profits inIndian retail stores across various categories. This can be contemplated as a result

of the changing attitude of Indian consumers and their overwhelming acceptanceto modern retail formats. Asian markets witness a shift in trend from traditionalretailing to organized retailing driven by the liberalizations on Foreign DirectInvestments. For example, in China there was a drastic structural developmentafter FDI waspermitted in retailing. India has entered a stage of positive economicdevelopment which requires liberalization of the retail market to gain a significantenhancement.

Domestic consumption market in India is estimated to grow approximately 7 to8% with retail accounting for 60% of the overall segment. Of this 60%, organizedretail is just 5% which is comparatively lesser than other countries with emergingeconomies. In developed countries organized retailing is the established way ofselling consumerproducts. Despite the low percentage, Indian textile industry hasgrown noticeably in organized retailing of textile products. The negative phase inexports may have compelled the Indian textile retailers to explore theopportunities in the domestic market substantially causing the outstanding growthin the concerned segment. These indications give a positive notion that organizedretailing has arrived in the Indian market and is here to stay. It is expected to grow

25-30 per cent annually and would triple in size from Rs35,000 crore in 2004-05to Rs109,000 crore ($24 billion) by 2010.

India is on the radar screen in the retail world and global retailers and at theirwings seeking entry into the Indian retail market. The market is growing at asteady rate of 11-12 percent and accounts for around 10 percent of the countrys


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GDP. The inherent attractiveness of this segment lures retail giants andinvestments are likely to sky rocket with an estimate of Rs 20-25 billion in thenext 2-3 years, and over Rs 200 billion by end of 2010. Indian retail market isconsidered to be the second largest in the world in terms of growth potential.

A vast majority of India's young population favors branded garments. With theinfluence of visual media, urban consumer trends have spread across the ruralareas also. The shopping spree of the young Indians for clothing, favorable incomedemographics, increasing population of young people joining the workforce withconsiderably higher disposable income, has unleashed new possibilities for retailgrowth even in the rural areas. Thus, 85% of the retail boom which was focused

only in the metros has started to infiltrate towards smaller cities and towns. Tier-IIcities are already receiving focused attention of retailers and the other smallertowns and even villages are likely tojoin in the coming years. This is a positivetrend, and the contribution of these tier-II cities to total organized retailing sales isexpected to grow to 20-25%.

Major Indian Retailers

y Next retail India Ltd (Consumer Electronics)(www.next.co.in)y Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre, Viveks

Safe Deposit Lockersy PGC Retail -T-Mart India [3], Switcher , Respect India , Grand India Bazaar ,etc.,y REI AGRO LTD Retail-Formats:6TEN Hyper & 6TEN Supery RPG Retail-Formats: Music World, Books & Beyond, Spencers Hyper, Spencers

Super, Daily & Freshy Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion

Station, Brand Factory, Depot, aLL, E-Zone etc.y Marks & Spencer: Clothing, lifestyle products, etc.y The Tata Group-Formats: Westside, Star India Bazaar, Steel junction, Landmark,

Titan Industries with World of Titans showrooms, Tanishq outlets, Croma.y K Raheja Corp Group-Formats: Shoppers Stop, Crossword, Hyper City, Inorbit

Mally Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International

Franchise brand stores.y Pyramid Retail-Formats: Pyramid Megastore, TruMarty Nilgiris-Formats: Nilgiris supermarket chainy Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount

chain.


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y Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chainy Vishal Retail Group-Formats: Vishal Mega Marty BPCL-Formats: In & Outy Reliance Retail-Formats: Reliance Freshy Reliance ADAG Retail-Format: Reliance Worldy German Metro Cash & Carryy Shoprite Holdings-Formats: Shoprite Hypery Paritala stores bazar: honey shine storesy Aditya Birla Group - more Outletsy Easy day

Challenges facing the Organized Retail Industry:

Despite the rosy hopes, some facts have to be considered to positively initiate theretail momentum and ensure its sustained growth. The major constraint of the

organized retail market in India is the competition from the un-organized sector.Traditional retailing has been deep rooted in India for the past few centuries and

enjoys the benefits of low cost structure, mostly owner-operated, therein resultingin less labor costs and little or no taxes to pay. Consumer familiarity with the

traditional formats for generations is the greatest advantage to the un-organizedsector. On the contrary, organized sector have big expenses like higher labor costs,

social security to employees, bigger premises, and taxes to meet.

Availability and cost of retail space is one major area where Governmentintervention is necessary. Liberalizing policy guidelines for FDI needs focus aswell. Proper training facilities for meeting the increasing requirements of workersin the sector would need the attention ofboth Government and the industry.Competition for experienced personnel would lead to belligerence betweenretailers and higher rates of attrition, especially during the phase of acceleratedgrowth of the retail industry. The process of avoiding middlemen and providing


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increased income to farmers through direct procurement by retail chains need theattention of policy makers. Taking care of supply chain management, massprocurement arrangements and inventory management are areas that need thefocus of entrepreneurs.

India is now on the radar of global retailers. Accelerated development of retailingindustry in the country and buildingbrand value of domestic products is essentialnot only for marketing our consumerproducts more efficiently, but also for thedevelopment of our own retailing industry.

The Indian organized retail industry is valued at about $300

billion and is expected to grow to $427 billion in 2010 and $637 billion in 2015.

Retail Market India today is the second fastest growing economy of the world

after China. Indian economy will grow larger than Britain's by 2022, Japan by

2032 and by 2050 will become the second largest economy of the world after

China. Indian market has become the most lucrative market for retail investment

in the world. Some of the factors which have contributed to the growth of

organized retail in India are: increase in the purchasing power of Indians, rapid

urbanization, increase in the number of working women, large number of working

young population.

Today people look for better quality product at cheap rate, better service, better

ambience for shopping and better shopping experience. Organized retail promises

to provide all these. The Industry The various formats of organized retail are:

Hypermarkets: They store products of multiple brands comprising food items and

non-food items. Supermarkets: These are self service stores selling food and

personal care products. E.g.: Subhiksha. Departmental stores: Retails branded

goods in non-food categories. E.g.: Shoppers Stop. Specialty Chains : These stores

focuses on a branded product or a product category. E.g.: Bata Convenience

stores: These are small self service outlet located in crowded urban area. Malls: A

huge enclosures which has different retail formats. e.g.: Nucleus Key players in

organized retail are: Pantaloon Retail: It was started by Kishore Biyani- India's

largest retailer. The various formats of pantaloon retail are: Pantaloons, Big

Bazaar, Food Bazaar, Central etc. RPG Retail: Its various formats are: FoodWorld, Music World, Health & Glow, Spencer's Tata Retail (known as TRENT):

Its various formats are: CromaWestsideStar India Bazaar K Raheja Corp. Group:

Shoppers' Stop, Hypercity, Crossword, InOrbit Mall Reliance Retail Job

Opportunities: Retail accounts for8% employment in the country. In the next 2

years the sector is set to provide 2.5 lakh job opportunities.


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The types of jobs available in retail are: Retail sales, Store management, Stock

management, Supply chain management, warehousing and operations. In

organized retail the front liners like shop floor executives, sales executives etc are

in great demand. The frontlines have to directly communicate with the customers.

The other jobs are for store managers, store planners, cashiers, stockiest, logistics,operations, distribution, marketing, finance, HR, IT etc. Good communication

skill, high interpersonal skills, convincing power, positive attitude and ability to

handle stress is a prerequisite for these jobs. Fresh graduates who want to make

career in retail can easily fill these jobs. Stock planners, Operations, logistics,

cashiers have to deal with the numbers daily. Besides having good communication

skills they also require numerical and analytical ability.

Bharati retail is planning to invest $2.5bn by 2015 which will create employment

opportunity for 60,000 people. Bharti Resources, a learning and developmentsolutions subsidiary of Bharti Group, has tied-up with Global Retail School (GRS)

to groom graduates and undergraduates in retail management and other sectors.

They will provide 3-month and 6-month certificate courses for Rs 30,000 and Rs

15,000 respectively in Retail Sales and Marketing, Retail Visual Merchandising

and Space Planning, Retail Supply Chain Management, for creating frontend

manpower professionals. Indeed it is a fact that organized retail in India is all set

to grow at an stupendous pace.


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UNORGANIZED

RETAILING


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Unorganized retailing

Traditional or Unorganized retail outlets are normally street markets,

counter stores, kiosks and vendors, where the ownership and management rest

with one person only. This sector accounts for two thirds of the market andrequires low skilled labor. These are highly competitive outlets, with negligible

rental costs (unregistered kiosks or traditional property), cheap workers (work is

shared by members of family) and low taxes and overheads.

India is the only one country having the highest shop density in the world, with 11outlets per 1000 people (12 million retail shops for about 209 million households).Rather we can see the democratic scenario in Indian Retail (because of low levelof centralization, low capital input and due to a good number of self organizedretail)

.

India started its Retail Journey since ancient time. In Ancient India there was aconcept of weekly HAAT, where all the buyers & sellers gather in a big market for

bartering. It takes a pretty long times to & step to shape the modern retail. Inbetween these two concepts (i.e. between ancient retail concept & the modern onethere exist modern kirana/ mom and pop shops or Baniya ki Dukan.

Still it is predominating in India So the Indian retail industry is divided into twosectors- organized and unorganized.

Unorganizedretailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, hand cart and pavement vendors, & mobile vendors,the local kirana shops, owner manned general stores, paan/beedi shops,

convenience stores, hardware shop at the corner of your street selling everythingfrom bathroom fittings to paints and small construction tools; or the slightly moreorganized medical store and a host of other small retail businesses in apparel,electronics, food etc.


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Characteristics of unorganized retail-------

Small-store retailing has been one of the easiest ways to generate self-employment, as it requires limited investment in land, capital and labor. It isgenerally family run business, lack of standardization and the retailers who are

running this store they are lacking of education, experience and exposure. This isone of the reason why productivity of this sector is approximately 4% that of theU.S. retail industry. Unorganized retail sector is still predominating over organizedsector in India, unorganized retail sector constituting 98% (twelve million) of totaltrade, while organized trade accounts only for 2%.

The reasons might be-

1. In smaller towns and urban areas, there are many families who are traditionallyusing these kirana shops/ 'mom and pop' stores offering a wide range ofmerchandise mix. Generally these kirana shops are the family business of thesesmall retailers which they are running for more than one generation.

2. These kiran shops are having their own efficient management system and withthis they are efficiently fulfilling the needs of the customer. This is one of the goodreasons why the customer doesnt want to change their old loyal kirana shop.

3. A large number of working class in India is working as daily wage basis, at theend of the day when they get their wage, they come to this small retail shop topurchase wheat flour, rice etc for their supper. For them this the only place to havethose food items because purchase quantity is so small that no big retail storewould entertain this.

4. Similarly there is another consumer class who are the seasonal worker. Duringtheir unemployment period they use to purchase from this kirana store in creditand when they get their salary they clear their dues. Now this type of credit facilityis not available in corporate retail store, so this kirana stores are the only place for

them to fulfill their needs.

5. Another reason might be the proximity of the store. It is the convenience storefor the customer. In every corner the street an unorganized retail shop can befound that is hardly a walking distance from the customers house. Many timescustomers prefer to shop from the nearby kirana shop rather than to drive a longdistance organized retail stores.


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6. This unorganized stores are having n number of options to cut their costs. Theyincur little to no real-estate costs because they generally operate from theirresidences. Their labor cost is also low because the family members work in thestore. Also they use cheap child labor at very low rates. As they are operating fromtheir home so they can pay for their utilities at residential rates. Even they cannot

pay their tax properly.

Currently the value of the retail market is estimated at around $ 270billion with a growth rate of5.7 per cent per annum according to the Indian retailreport which creates a big threat for the small unorganized retailers. The wellestablished organized retail sector in India are Big bazaar Retail, Food bazaar, &newly emerging Reliance etc.

Over 20,000 new retail outlets are expected to open within this segment. Majorcorporate retail like Wal-Mart and have started to try and take over the Indian

retail sector.

But in India the unorganized retail is a source foods and other necessities ofmillions of Indians , major link between rural and urban societies. Not only that itis also act like a convenience store for the customer offering right product at righttime at right place. In a country with large numbers of people, and high levels ofpoverty, this model of retail democracy is the most appropriate

So these unorganized retail sector need to be promoted so that they can organize &supply food to Indian consumer.

Now the question is how to promote this sector-

The suggestions might be-

(a) Establishment of Retailer co-operatives among retailers which is highlyrequired for the sustenance of the unorganized retail sector

(b) Merger and buy-out of weak retailers by a stronger one that would give a new

horizon to the small retailer

(c) Setting up of franchisee organization may also help in strengthening theposition of the retailers. The franchiser can exert a tremendous control over theway retailing is done.


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(d) There must be good network connection between retail organizations, thesuppliers and other channel members to use compatible technology so that theycan build strong distribution set-up to satisfy the customers.

(e) Setting up of more and more non-store retailing centers would also ensure a

strong retailing organization. Non-store retailing makes implementation of modernprinciples easier and less costly.

(d) Moreover there must be a change in the mindset of the unorganized retailer.They have to understand the pulse of the trend. They have to understand, comeforward & lead this change management then only this sector not only can existbut flourish.


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Retail Theft Most in India

Its one of the most sought-after shopping markets that Wal-Mart and every otherbig retailer is desperate to get in to, but India is also the place where retailers aremost prone to shoplifting and employee theft. The country tops the world in retail

shrinkage rate at 3.2% of total sales, according to the Global Retail TheftBarometer 2009 that tracked retail loss and crime in 41 countries and regionsincluding the US, China, India, Europe, Japan and Australia.

Some of the countries retailers, however, said the study was unfair to Indiaand that inventory loss was not a big issue here. The survey conducted by Centrefor Retail Research and funded by Checkpoint systems covered 1,285 stores inIndia and more than 1.2 lakh stores around the world and reported $7.4 billion asthe total value of shrinkage between July 2008 and June 2009.

Retail shrinkage is basically the difference between the value of stock asper the book and the actual stock in a store and includes loss due to shoplifting,employee theft, supplier fraud and paperwork errors. Indias shrinkage loss of $2.6billion was the highest among nine Asia Pacific countries covered in the survey.One retailer ET spoke to said that the situation was not grim. Though shrinkage isa concern in India, the situation is not of hand. Customer shrinkage is typicallylesser than 1%, but in value terms the figures can be big, said the person,requesting anonymity.

The most stolen merchandise by Indians included electronics, cosmetics,

alcohol/food, clothing and jewellery as they are small, lightweight and easy toconceal and transport. Kumar Rajagopalan, president, Retail Association of India,said the survey is being unfair to India. In India, modern retail is only 5% of thetotal retail, and 95% is still non-modern retail, the survey is being unfair to themarket.

According to him, modern retailers who have been in the business for morethan three to four year know how to handle shrinkage and have managed to put in place systems that take care of shoplifting and employee shrinkage. The actualshrinkage rate for modern retailers, he said, would be less than half of what thesurvey found. Major factors to worry about are accounting errors and stock lossbecause of dumps and wastage, he said. That is because the country still does nothave a good inventory taking system or a robust IT system in place. And even ifsome retailers spend money on bringing in state-of-art systems, the lack of trainingfacilities do not enable use of the systems to the optimum, said Mr. Rajagopalan.

In spite of all this, international retailers looking at entering the country arestill keen on coming in, he said. This is because only experienced retailers with


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robust processes in place can reduce the menace of shrinkage in the retail businessand help grow the overall market. In the Asia-Pacific region, China is at numbertwo in terms of retails shrinkage. The survey puts the cost of crime-that is,shoplifting plus employee theft plus suppliers/vendors fraud plus loss preventionexpenditure-at $2,190 million for India. While this is a big figure, only 29.7% of

the 50 most-stolen product lines were covered by surveillance systems, leaving alarge part of the merchandise still unprotected.

The survey attributed 33.6% of shoplifting thefts around the world toeconomic recession as the perceived cause. Interestingly, only less than 20% of theretailers in the Asia-Pacific region plan to increase their investments in loss-prevention solutions. So, it looks like shrinkage will remain a concern for sometime to come.


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RATIONALE OF STUDY


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Rationale of study

This study is conducted to know about customer behavior and customer preference . The

study is based on customer satisfaction for organized and unorganized retail industry. We

know that organized retail industry is very booming sector and popularity of organized

retailing is increasing day by day. So this study is only to know about few facts and

figures about both retail sector.

From the beginning of retail sector Unorganized retail sector was

very famous. Now we know that 96% of retail market is captured by unorganized retail

sector. Indian customers are still believe in unorganized retail. So by this study we come

to know about booming organized retail and well established unorganized sector.

This study will help us to know about customer preference of Indore region.

Study will show us what significant difference between organized retail andunorganized retail.


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REVIEW OF LITERATURE


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1)As per the study ofMeeta Punjabi1, Vijay Sardana2UNFAO, New Delhi, Achievers Resources Pvt. Ltd. an Agribusiness Consulting

Firm

ORGANIZED RETAILING IN FRESH FRUIT AND VEGETABLE MARKETING IN

INDIA: EMERGING MODELS, KEY ISSUES AND WAY FORWARD

Organized retailing in Fresh Fruits and Vegetables (FFV) is gaining a lot ofmomentum in India with huge investment by leading Indian corporations in thisarea. Modern formats of supermarkets such as Reliance Fresh, Choupal Fresh,Food World, etc. promoted by different companies are emerging very rapidly insmall and large towns around the country. Two of the major players in thesupermarket sector in the country are Reliance Industries and Bharti- Walmart tieup. Other key players include ITC, Food World (JV of RPG Group of India and

Dairy Farm International based in Hong Kong), Spencer, Godrej, Pantaloon (BigBaazar and Food Bazaar), Subhiksha and Aditya Birla Group. From thedevelopment perspective, literature review of the evolution of supermarkets inother developing countries suggests that these changes have strong implicationsfor the small and marginal farmers. Experiences of these countries suggest that thedevelopment efforts in this area are based on three grounds: First, farmersassociated with the modern value chains earn higher returns than selling to thetraditional markets. Second, the modern supply chains have specific qualityrequirements which are easier to meet by the large and medium farmers and thesmall farmers tend to get left out of these markets. Third, there are several

successful examples of linking small farmers to these modern value chains witheffort from government agencies, NGOs and development agencies. Thisknowledge presents strong grounds for a closer look at the emerging sector inIndia.


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In the light of the ongoing changes in India, the objective of this study was to geta good understanding of the emerging changes at the ground level. Specificobjectives are:

i) Understand the emerging models in organized sector what are the backwardandforward linkages that have emerged?

ii) Understand the issue faced by these organizations in setting up the supplychains

iii) Understand the implications of these changes for the stakeholders small andmarginal farmers and traders in wholesale markets

iv) Identify areas of intervention by government and donor agencies

2) As per the study ofShushmul Maheshwari

Dated: Aug22, 2009

The retail industry in India is mirroringthe rapid changes in the consumption patterns of

the consumer s. The clientele is clearly segregated with ruraland urban bases bearing

allegiance to unorganizedandorganizedretailing.

The large pool of emerging middle class, with population of more than 350 millionlies at the center of big bets for the major retail industry players. The changingconsumption patterns are raising the demand for lifestyle products. Whileorganized retailer sector in India is targeted at high-income urban customers,unorganized retailsector primarily caters to traditional customer base of lower income sections in therural pockets of India.

This is probably why the two forms of retailing manage to co-exist in

India. Organized Indian Retail Sector has undergone rapid changes and hasmetamorphed into a high-growth industry. With the mushrooming of malls,multiplexes, and supermarkets consumers are treated to a completely differentshopping experience. With a gamut of services, freebies and bonanzas asaddendum, organized retail sector are getting all the customer attention.The stature of the Indian Retail Industry is significant, with a whooping 5 millionretail outlets spanning across the country. However most of these are self-styled


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traditional units, with significant local presence, lacking anything close to amodern retailing industry. For this very reason, industry experts feel thatopportunities in organized retailing are going to increase manifold.

The market research report, India Retail Sector Analysis (2006-

2007), accredits the Indian Retail Industry as a significant revenue churner, witha market size of Rs. 10 Trillion as per 2005. Organized Indian retail sector marketsize hovers around Rs 351 Billion and is rapidly gaining ground.

An analysis Indian Retail Sector reveals that average growth rate forthis segment stands at around 32% in comparison to a modest 8% in theunorganized sector. Rural India is the major revenue driver for unorganizedretailing in India with a share of76%.The overall Indian Retail Industry contributes 10% to the GDP and a source ofemployment for more than 41 million individuals.

The research report presents a comprehensive picture of the overall IndianRetail Industry. About RNCOS: RNCOS, incorporated in 2002, provides MarketResearch Reports for your business needs and aims to put an end to yourinformation pursuit. Our expertise in gathering global business information forindustry research, corporate training, growth consulting, and business consulting,brings reputed companies andfirms to us for business enhancement solutions. We can be your one-stop-shop forIndustry research information and niche market analysis.

3) As per the study of

September 5, 2008

Economic Times

Retail biggies force to focus on destination malls

Modern retailers have begun the first round of corrections in their retail strategies,after taking a beating from cost-efficient kiranas in the neighborhood formatspace. Losses from convenience store formats, which sell groceries (fruits,

vegetables and FMCG), are mounting and retailers like Reliance Fresh, More,Indiabulls, Spencers and Subhiksha are either quickly shutting down unviableones or going slow on expansion plans.

Hyper City Retail recently exited this space. Industry officials said these formatsare taking a hit from high dump rates (wastages in the supply-chain), tough


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competition from low-cost kiranas and unviable operational costs in the low-margin food and grocery business.

Industry experts say players may be forced to exit this space and focus ondestination malls or big-box formats, where margins are significantly higher.

The thru put (sales) for the modern neighborhood formats currently stands at Rs16-Rs 20 per sq ft per day as against Rs 35-Rs 40 per sq ft per day, which industryexperts reckon is the minimum required for viability. There is a huge mismatchbetween the rents paid and the actual sales that take place in the formats.

There are a lot of learning that are taking place and it is a tough place to operate.India is such a heterogeneous country and everyone will have to figure out theright differentiator to exist in the space, said a top Reliance Retail official oncondition of anonymity. Most of the large business groups, which moved into this

space, did not bargain for the kind of unmanageable losses and are now back tothe drawing boards, it is learnt.

Traditional grocers have protected their turf by leveraging their strengths likecustomer relationships, home delivery, credit facilities and by expanding theirproduct portfolio.

After the initial hype, the new formats have begun losing steam with consumersturning back to local kiranas for regular purchases. Burdened by consumerexpectations of more frills compared to the no-frills kirana formats, the newconvenience formats are shelling out 30% higher costs on rent, energy and otheroverheads like security guards, bar codes, ACs and bright lights. The thruput persq ft does not justify the expenses involved, said an industry official.

Spencers Retail, the retail arm of RPG Enterprises, recently announced plans toclose 40 shops across the country, citing losses because of lower revenue, highrentals and bad hinterland. The Indian consumer is already exposed to far toomany conveniences in the traditional structure.

"What kind of conveniences can modern retailers now offer with an inevitablehigh-cost structure. It makes no sense to be in this space says Andrew Livermore

of Hyper City Retail. Most of the existing convenience formats, includingSubhiksha, Reliance Fresh and Spencers, are struggling with the challenges ofoperating a low-margin grocery business in the face of spiraling real estate costs,high supply-chain costs and tough competition from the traditional formats.

Although we had a lead entry into the space, we knew that the neighborhoodformats will never be viable. Even if consumers have the money why will they


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4) As per the study ofSaurabh Kothari

Dated: Aug22, 2009

M.tech IIT KanpurDeloitte in Mumbai

Unorganized retail will have to get organized in India

Now lets have a look at what the unorganized sector has to do to counter theattack. With the onslaught of organized retail in India, the Indian press and theLeft front are devoting endless articles and speeches about how to safeguard the

local kirana store owner.

The usual points are:

1. Give personalized services2. Home delivery3. Short term credit to customers4. Providing added services like P.C.O. and Bill payment.

In my opinion, all these things they already did. As far as I can rememberwhenever I asked my grocer to give me bathing soap, without fail, he always gave

me Pears (which happens to be our family bathing soap) and after I have left,dutifully enters its cost under our family credit account. Of course whenever wepurchased bulk items like sugar, ghee etc. he would deliver it to our doorstep.

No doubt that with the kind of money currently being put in organized retail inIndia, the share of organized retail is bound to increase from the current pittance of3-4%. Its increasing share can be delayed but cannot be averted. Though witha CAGR of50% or so, still the share of organized retail will reach only to 10 15% by 2010. That leaves the unorganized players with ample time to get their acttogether or perish.

Where the organized players score against local retailers is in bulk purchase ofgoods. To counter that the local retailers will have to form certain organization atcity level so that they can pressurize the FMCG majors into giving them betterprices.


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Or maybe some of the local retailers can transform themselves into supermarketswith some loan. It is a necessity in urban areas where organized retailers are fastsetting shops and with changing shopping habits more and more urban Indians aregoing for shopping in Hypermarkets.

The threat of organized sector to local retailers is definitely there in the long run,but in short run they wont feel much of a difference. And those who wont changeon this slight difference will have a hard time, not now, but may be in

5)By Shanker Domodaran

Retail in India - The Past, Present and Future

Before the decade of eighties, India with hundreds of towns and cities was a nationstriving for development. The evolution was being witnessed at various levels andthe people of India were learning to play different roles as businessmen andconsumers.

Retail-which literally means to put on the market, is a very important aspect ofevery city. Without a well organized retail industry we would not have ournecessities and luxuries fulfilled. Be it our daily groceries or fashion accessoriesand everything in between, retail industry brings us the blissful experience of

shopping. Though organized retailing industry began much earlier in thedeveloped nations, India had not actively participated. However with its vastexpanse and young population, India in the 21st century emerges as a highlypotential retail market. The journey of retailing in India has been riveting and thefuture promises further growth. Here is a complete picture deciphering the past,present and future trends of Indian Retail Market.

Retail in India - Past

Before the decade of eighties, India with hundreds of towns and cities was a nationstriving for development. The evolution was being witnessed at various levels andthe people of the nation were learning to play different roles as businessmen andconsumers. The foundation for a strong economy were being laid, youth werebeckoning new awareness in all spheres. And this brought in an opportunity forretail industry to flourish. First in the metros and major cities later to impact suburban and rural market as well.


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A great shift that ushered in the Indian Retail Revolution was the eruption of Mallsacross all regional markets. Now at its peak, the mall culture actually brought inthe organized format for Retailing in India which was absent earlier. Though mallswere also initially planned for the higher strata, they successfully adapted to caterto the larger population of India. And it no wonder, today Malls are changing the

way common Indians have their shopping experience. However there is still greatscope for enhancing Indian mall culture as other than ambience and brandingmany other aspects of Retail Service remains to be developed on internationalstandards.

To your surprise there was not a single mall in India a decade before and just afew years ago only a handful of them were striving, today there are more than 50malls across different cities and 2 years from now around 500 malls are predictedto come up.

Indeed this shows a very promising trend ahead, however before taking a leap intothe future of Retail in India, let's see what the Indian retail Industry is currentlyoccupied with.

Retail in India - Present

At present the Retail industry in India is accelerating. Though India is still not atan equal pace with other Asian counterparts, Indian is geared to become a major player in the Retail Market. The fact that most of the developed nations aresaturated and the developing ones still not prepared, India secures a great positionin the international market. Also with a highly diverse demography, India providesimmense scope for companies brining in different products targeting differentconsumers.

According to the Global Retail Development Index, India is positioned as theforemost destination for Retail investment and business development. The factorthat is presently playing a significant role here is the fact that a large section ofIndian population is in the age group of 20-34 with a considerably high purchasingpower; this has caused the increase in the demand in the urban market resulting inconsistent growth in the Retail business.

And though the metros and other tier 1 cities continue to sustain Retail growth, thebuzz has now shifted from these great cities to lesser known ones. As the spending power is no longer limited to metros, every tier 2 city in the country has goodmarket for almost every product or service. Due to this, tier 2 cities likeChandigarh, Coimbatore, Pune, Kolkata, Ahmadabad, Baroda, Hyderabad,


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Cochin, Nagpur, Indore, Trivandrum etc. provide a good platform for a brand toenter Indian market.

However there are a few precautions for every brand that explores Indian market.As Indian consumers are very curious and have a broad perspective, they respond

well to a new product or concept and there are very fair chances of a brandsurviving well, but every Indian consumer be it an urbanite or a small towndweller needs a feeling of value for money. Although labeled as tight fisted,Indian consumers are great spenders once they realize that they are getting valuefor their money. Also new product /service concepts from the western world arebetter adopted first by the urban Indians, the smaller markets respond well to theneed based retailing rather than luxury concepts.

As the Indian retailing is getting more and more organized various retail formatsare emerging to capture the potential of the market.

y Mega Mallsy Multiplexesy Large and small supermarketsy Hypermarketsy Departmental stores are a few formats which flourishing in the both big and

small regional markets

As the major cities have made the present retail scenario pleasant, the future of theIndian Retailing industry lies in the rural regions. Catering to these consumers willbring tremendous business to brands from every sector. However as the marketexpands companies entering India will have to be more cautious with theirstrategic plans. To tap into the psyche of consumers with different likes anddislikes and differing budgets a company has to be well prepared and highlyflexible with their product and services. In this regard focusing on developing eachmarket separately can save a brand from many troubles.

Retail in India - The Future

According to a study the size of the Indian Retail market is currently estimated at

Rs. 704 crores which accounts for a meager3 % of the total retail market. As themarket becomes more and more organized the Indian retail industry will gaingreater worth. The Retail sector in the small towns and cities will increase by 50 to60 % pertaining to easy and inexpensive availability of land and demand amongconsumers.


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Growth in India Real estate sector is also complementing the Retail sector andthus it becomes a strong feature for the future trend. Over a period of next 4 yearsthere will be a retail space demand of40 million sq. ft. However with growing realestate sector space constraint will not be there to meet this demand. The growth inthe retail sector is also caused by the development of retail specific properties like

malls and multiplexes.

According to a report, from the year 2003 to 2008 the retail sales are growing at arate of8.3% per annum. With this the organized retail which currently has only3% of the total market share will acquire 15-20 % of the market share by the year2010.

Factors that are playing a role in fuelling the bright future of the Indian Retail areas follows:

yThe income of an average Indian is increasing and thus there is aproportional increase in the purchasing power.

y The infrastructure is improving greatly in all regions is benefiting themarket.

y Indian economy and its policies are also becoming more and more liberalmaking way for a wide range of companies to enter Indian market.

y Indian population has learnt to become a good consumer and all nationaland international brands are benefiting with this new awareness.

y Another great factor is the internet revolution, which is allowing foreignbrands to understand Indian consumers and influence them before enteringthe market. Due to the reach of media in the remotest of the markets,consumers are now aware of the global products and it helps brands tobuild themselves faster in a new region

However despite these factors contributing to the growth of Indian retail Industry,there are a few challenges that the industry faces which need to be dealt with inorder to realize the complete scope of growth in Indian market.

Foreign direct investment is not allowed in retail sector, which can be a concernfor many brands. But Franchise agreements circumvent this problem. Along withthis regulations and local laws and real estate purchase restrictions bring up

challenges. Other than this lack of integrated supply chain and management andlack of trained workforce and flux of the market in terms of price and productchoice also need to be eliminated.

Despite these challenges many international brands are thriving in the Indianmarket by finding solutions around these challenges. A company that plans to


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enter Indian market at this time can definitely look forward to great business if itanalyzes and puts efforts on all parameters.

And with Good Planning, Timely Implementation and a media campaign thattouches Indian consumers any brand can go far ahead in the Indian Retail

Revolution.

6) By Dr. M. Dhanbhakyam

Dpt. Of commerce

Bharathiar university

This paper provides detailed information about the growth of retailing industry in

India. It examines the growing awareness and brand consciousness among people

across different socio-economic classes in India and how the urban and semi-

urban retail markets are witnessing significant growth. It explores the role of the

Government of India in the industrys growth and the need for further reforms.

In India the vast middle class and its almost untapped retail industry are the key

attractive forces for global retail giants wanting to enter into newer markets, which

in turn will help the India Retail Industry to grow faster. The paper includes

growth of retail sector in India, strategies, strength and opportunities of retailstores, retail format in India, recent trends, and opportunities and challenges. This

paper concludes with the likely impact of the entry of global players into the

Indian retailing industry. It also highlights the challenges faced by the industry in

near future.

The India Retail Industry is the largest among all the industries, accounting for

over 10 per cent of the countrys GDP and around 8 per cent of the

employment. The Retail Industry in India has come forth as one of the most

dynamic and fast paced industries with several players entering the market. But allof them have not yet tasted success because of the heavy initial investments that

are required to break even with other companies and compete with them. The

India Retail Industry is gradually inching its way towards becoming the next boom

industry.


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7) By Gaurav Doshi

Business analyst

opportunities. The retail market in India is anticipated to grow to 427 billion USD by the year

2010.

However, the face of the Indian retail industry is changing. India is passing through a retail boomtoday. A number of changes have taken place on the Indian retail front such as increasingavailability of international brands, increasing number of malls and hypermarkets and easyavailability of retail space. With the Indian government having opened up the doors for FDI, theentry of foreign retailers into the country has become easier. India has come a long way from thetraditional Kirana stores and is on its way to becoming a 'mall country'. The emphasis has shiftedfrom reasonable pricing to convenience, efficiency and ambience.

The major factors fuelling this change are the increase in disposable income of the people,

improving lifestyles, increasing international exposure and increasing awareness among thecustomers. India has a large middle class as well as youth population, which has contributedgreatly to the retail phenomenon. The middle class is considered to be a major potential customergroup. The youth are perceived as trend setters and decision makers. Tourist spending in India isincreasing, which has also prompted the retail boom.

8) By book of ICRIER

Impact Of Organized Retailing On Unorganized Retailing In India

INTRODUCTION:

Retailing is playing a major part in Indian business emergence. There are many modern

business systems taking place in Indian market because of Globalization. But retailing is

the foremost part of them which is predicted to have a better growth. When it was said

retailing, organized and unorganized retailing will come in to picture to debate.

Unorganized retailing is the tradition of India and organized retailing was on track from

early 90s.

In this context organized retailing is successively grown in recent years. Concerns are

raised by many unorganized retailers that emergence of organized retailing is showing an

adverse affect on unorganized retail. The book Impact of Organized Retailing on

Unorganized Sector discussed about the existence of adverse affect of organized

retailing on unorganized sector. . This book also enlightened if there exist an adverse

affect, how much does organized retailing is affecting unorganized sector.


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9) By Govt. Studies

New Delhi, Apr30 : Commerce and Industry Minister Kamal Nath told the Rajya Sabha

today that the Government has instituted a study through Indian Council for Research on

International Economic Relations to assess the impact of organized retailing on

unorganized retail trade.

Nath said, "The government has also commissioned a study to the Nation Council of

Applied Economic Research on growth linkages of Foreign Direct Investment (FDI) in

India."

The study will also focus on the impact of FDI on the rural economy.

The government has received a number of representations against permitting FDI in retail

trade from various industry associations, including small scale industry and retail traders.

Almost 97 per cent of the retail business was in the unorganized sector.

"Nothing would be done that could lead to job loss or have an adverse impact on those

involved in this sector," he said.

10) By Ernst &Young, The Great Indian Retail Story, 2006),

Indian Retail Sector Analysis 2006-2007

Two of the current innovation projects I am working on involve an Insight study of theunorganized business sector in India. We are seeking first-hand Insights into this sectorthat can help us design new business models, new products and a host of new solutions

Primarily this involves studying unorganized retail. These include your neighborhoodconvenience store (popularly called theKirane-ki-dukan in north India); or the hardwareshop at the corner of your street selling everything from bathroom fittings to paints andsmall construction tools; or the slightly more organized medical store and a host of othersmall retail businesses in apparel, electronics, food etc.

With retail growing in India at a breakneck speed, there are plenty of statistics availableon this sector:


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.

RESEARCH

METHODOLOGY


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Objectives:

1. To compare non organized retail shops and organized retail shops,2. To know about customers choice and to predict the future of both retail

stores.

3. To find out customer perception for both retails.4. To find out increasing popularity of organized retail in Indore city.5. To find out customer preference in urban area.

Hypothesis

1. There is a significance difference between organized and unorganized retail.2. Unorganized retailers are not so brand conscious.3. There is a big challenge for organized retailers to compete unorganized

retailers.

4. Popularity of Organized retailing is going high day by day.5. Customer are getting price benefits in organized retailing.

Research Methodology

Exploratory research methodology applicable at preliminary

stage after data collection descriptive research methodology is applicable.

Introduction to the Study & Research design

The study will be conducted to study and

measure the satisfaction level of customer. Secondary as well as primary sources of data

will be used to arrive at findings and analyze the results.

Secondary sources of data like internet and books will used to do exploratory studies.

Relevant variables will be generated and developed questionnaire to obtain primary data


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from the market. 75-200 respondents will selected necessarily retail customers and based

on convenience. Study will be based on the following points.

- Scope

- Research Design

- Sampling Design

- Data Sources

- Research Instrument

- Mode of Survey

- Identification of Problem

Findings based on questionnaire filled will be analyzed. Requisite conclusions willbe developed and recommendations made. The research had limitations like:

1. Time constraint2. Sample size3. Respondent biasness

Sample design

The respondents will be necessarily buyer of FMCG products. The sample

would be selected from residential areas house wives, other customers who arrive

at retail shops and organized retail stores of Indore. It is a non-probability based

sampling based on convenience.

Sample size

Sample size will be 75 to 200 respondent including customers and retailers.


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Respondent

Respondent would be four types

1. Non-organized retailers

2. Organized retailers

3. Customer of unorganized

4. Customer of organized retail store

Tools for data collection

There is insufficiency of secondary data so survey is conducted. Data has

been collected from related people to organized and unorganized retail industry.

Interview questionnaire are based on responded there are three types of questionnaires

which are mention below in annexure section.


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ANALYSIS AND

INTERPRETATION OF

DATA


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Number of responded - 20

Retail customer ratio on the basis of gender

Retail customer ratio on the basis of gender

There are 60% of male and 40% of female are arrived at retail store to shop.

2) Which kind of store you prefer

Customer preference

20% of customer prefer only organized retail store. 20% of customer prefer only Unorganized retail store. 60% of customer prefer both retail sotre.

0%

10%

20%

30%

40%

50%

60%

70%

MALE FEMALE

MALE

FEMALE

organized

20%

unorganized

20%both

60%

Customer preference


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3) in which store all brands are available?

Availability of all brands in retail store

60% customer think that in organized retail all brands are available.

15% customer think that all brands are available at Unorganized retail store.

25% of customer think that in both retail store all brands are available.

4) Where do you get seasonal and weekend offer?

Seasonal and Weekend offers

80% of customer get attracted by seasonal and weekend offer provided byorganized retail only 20% attracted by unorganized retail stores

0%

10%

20%

30%

40%

50%

60%

Organized Unorganized Both

0%

20%

40%

60%

80%

Organized Unorganized


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5) What do you like in un organized retail

Good things in Unorganized retail

25% customer like unorganized retail because it is near to home and also 25% like

it due to familiarity of sales man, 20% like credit facility provided by unorganized

retailer and also 20% like to due to time saving shopping.

6)What kind of changes you want in Unorganized retail store?

According to customer changes needed in unorganized retail store

20% want home delivery, 20% want self service also 20% want professionalism,

25% want AC store and 15% customer want huge space in unorganized retail.

0%

5%

10%

15%

20%

25%

Easy to reach familiar sales

man

Credit facility Time saving

0%

5%

10%

15%

20%

25%

Home delevery Self service Professionalism Air conditionar Huge space


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7) What is good thing in organized retail store?

Specialty of organized retail

30% like Home delivery 15% self service also 15% like professionalism 10% like

AC store and 30% of customer like Huge space in Organized retail.

0%

5%

10%

15%

20%

25%

30%

Home delevry Self service professional AC store Huge space


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8) Customer satisfaction level..

Customer satisfaction level

Retailer type Satisfied Highly satisfied Neither satisfied nordissatisfied

Organized 65% 20% 15%

Customer satisfaction level

Retailer type Satisfied Highly satisfied Neither satisfied nordissatisfied

Dissatisfied

Unorganized 45% 10% 7% 10%

satisfied

65%

highly satified

20%

neither satisfied

nor dissatisfied

15%Organized

Retail

Satisfied

50%

Highly

Satisfied

11%

Neigther satisfied

nor dissatisfied

39%

Unorganized Retail


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9) Customer care rating.

Customer care rating

Retailer type Fair Good Excellent Bad Poor Very poorOrganized 15% 55% 30% 00% 00% 00%

Unorganized 35% 30% 25% 00% 2.5% 2.5%

15% Customer customer care of organized retail is fair55% think its good 30%

think its excellent no one think it is bat at all.

35% respondents think customer care by unorganized retail is fair 30% think its

good and 25% think it is excellent 2.5% - 2.5% think poor and very poor.

0%

10%

20%

30%

40%

50%

60%

Fair Good Excellent Bad Poor Very poor

Customer care

organi

Unorga


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DISCUSSION OF RESULT


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Findings

Popularity of Organized retail industry is increasing in India. Customers are moving towards organized retail. Maximum customer used to shop on both retail stores. Unorganized retail store are on walking distance so to shop in store retail is

easy.

Maximum customer think all brands are available in organized retailstore.

Selection of store is not depend on income of customer its depend ontheir nature.


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Limitations

No of questionnaire for customer are 150 for retailers are 5 each. Respondents are those people who arrived at retail store. There were many customer refuse to respond so all customers are not gave

their feedback.

Many respondents did not show their income group. In the condition of hurry respondents can give wrong information. Research is based on sample of customers of Indore region.


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Suggestions

Unorganized retail shop should be with huge space. Unorganized retailer should be brand conscious. Organized retail shop should be in walking distance. Organized shop should have to time saving. Unorganized retailer should start Home Delivery. Both retailer have specific specialty.


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Conclusion

Before the decade of eighties, India with hundreds of towns and cities was a nation

striving for development. The evolution was being witnessed at various levels andthe people of India were learning to play different roles as businessmen andconsumers.

The Indian retail industry is now beginning to evolve in the line with the

transformation that has swept other large economies. There is a change a foot in

Indian retail too, the liberalization of the consumer goods industry initiated in the

mid-80s and accelerated through the 90s has begun to impact the structure and

conduct of the retail industry.

The concept retail, which includes the shopkeeper to customer interaction, has

taken many forms and dimensions, from the traditional retail outlet and street local

market shops to upscale multi brand outlets, especially stores or departmental

stores.

Both retail store have their own specialty and quality. Customer prefer

both sore on their priority. Now customer are very time conscious they have not

enough time to think about choosing type retail store, they choose according to

their priority.

Many time customer arrive at organized retail store due to seasonal and

weekend offers, so at the time of festival customer prefer shop from organized

retailing.

Female retail customer generally like self service so they prefer

organized retail more. Housewife which have free time they used to shop from

organized retail. But due to time consuming and limited shop busy people like to

shop from nearest unorganized retail store.


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REFERENCE AND

BIBLIOGRAPHY


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Reference & Bibliography

www.wikipedia.org

www.articlesbase.com

www.glgroup.com

www.outlookindia.com

www.fibre2fashion.com

www. skot.wordpress.com

www.scribed .com

Marketing Research Malhotra

Marketing Management Philip Kotler

Research Methodology Methods & Tech- Kothari

Research Methodology- Yogesh kumar singh


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ANNEXURE


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ANNEXURE

In review with retail customers

1) Personal detail

Name-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Age/ Sex -. . . .

Occupation- . . . . . . . . . . . . . .

Income-

a. Below 1,00,000. b. 1,00,000 - 2,00,000. c. 2,00,000 - 3,00,000.

d. 3,00,000 - 4,00,000. e. above 4,00,000.

2) Do you go to purchase FMCG product in retail shop? Yes No

3) Which kind of store you prefer?

Organized Unorganized Both

4) do you think Popularity of Organized retailing is increasing? Yes No

5) How frequently do you shop?

a. Once a day b. Twice a day c. Once a week d. Twice a week

e. Once a month f. Twice a month

6) Why do you like to shop from Organized/Unorganized retail store?

a. Easy shop b. Variety c. Offers d. other

7) What is the reason of preference of Organize/Unorganized retail store?

a. Near to home b. Good service c. Discount d. Credit facility e. other

8) In which store all brands are available? Organized Unorganized

9)Do you like self service in Organized retail store? Yes No

10) Where do you get seasonal and weekend offers? Organized Unorganized

11) Are these offer attract you? Yes No

(Multi option question..12-15)


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12) what is the good thing in Unorganized retail store?

Sales service Easy to reach Familiar sales man Credit facility Time saving

13)What kind of changes you want in Unorganized retail store?

Home delivery Self service Professional Should be AC Huge space

14) what is the good thing in Organized retail store?

Home delivery Self service Professionalism AC store Huge space

15)What kind of changes you want in Organized retail store?

Easy to reach Credit facility Familiar sales man Time saving

(Single option question..16 & 17)

16)Rate the customer care level on following scale

Fair Good Excellent Bad Poor Very poor

Organized

Unorganized

17) Rate the performance on following scale

Satisfied Highly Satisfied Neither satisfied

nor dissatisfied

dissatisfied Highly

dissatisfied

Organized

Unorganized


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Interview with unorganized retailers

1) Personal detail

Name-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Age/ Sex -. . . .Retail store name- . . . . . . . . . . . . . .

2) Do you know popularity of organized retail is increasing? Yes No

3) Is organized retail making any effect on your business? Yes No

4) Are you trying to update your old retail style? Yes No

5) Which kind of additional facility you are providing?

Good Sales

service

Easy to shop Familiar sales

man

Credit facility Time saving

6) Do you provide home delivery service? Yes No

7) Do you have seasonal and festival offer scheme for customers? Yes No

8) Do you have any idea about your customers income group? Yes No

(Ask question no. 9 if Yes in 8th answer)

9)Income group arrive most

A. Max. no. of

lover class

B. Max. no. of

middle class

C. Max. no. of

high class

A & B Both All

10) Are all brands available in your store? Yes No


62/62

Interview with Organized retailer

1) Personal detail

Name-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Age/ Sex -. . . .

Retail store name- . . . . . . . . . . . . . .

2) Do you know unorganized retail is well establish in India? Yes No

3) Is Unorganized retail making any effect on your business? Yes No

4) Are you trying to overtake them? Yes No

5) Which kind of additional facility you are providing?

Good

Sales

service

Easy

to

shop

Familiar

sales

man

Credit

facility

Time

saving

Home

delivery

Self

service

Professionalism AC

store

Huge

space

6) Do you provide home delivery service? Yes No

7) Do you have seasonal and festival offer scheme for customers? Yes No

8) Do you have any idea about your customers income group? Yes No

(Ask question no. 9 if Yes in 8th answer)

9)Income group arrive most

A. Max. no. of

lover class

B. Max. no. of

middle class

C. Max. no. of

high class

A & B Both All

Documents

Major Research Project Kisna[1]