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Mini Project Report on

Study on changing consumer preference towards organized retailing


from un-organized retailing

KRISHNA GROUP OF COLLEGES, BIJNOR(U.P)

Submitted to

DEPARTMENT OF COMMERCE

In partial fulfillment of the requirements for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Under the guidance of


Dr.

INTRODUCTION
Retailing is a distribution channel function, where one organisation buys

products from supplying firms or manufactures products themselves, and then

sells these directly to consumers .


The Indian Retail Industry is the fifth largest in the world. Comprising of

organized and unorganized sectors, Indian retail industry is one of the fastest

growing industries in India, especially over the last few years. Though initially the

retail industry in India was mostly unorganized, however with the change of taste

and preferences of consumers, the Industry is getting more popular these days and

getting organized as well. According to the 10th Annual Global Retail

Development Index (GRDI) of A.T. Kearney,India is having a very strong growth

fundamental base that’s why it’s the perfect time to enter into Indian Retail

Market. Indian Retail Market accounts for 22% of country’s GDP and it

contributes to 8% of the total employment. The total retail spending is estimated

to double in the next five years. Of this, organized retail –currently growing at a

CAGR of 22%- is estimated to be 21% of total expenditure. The unorganized

retail sector is expected to grow at about 10% per annum with sales expected to

rise from $309 billion in 2006-07 to $496 billion in 2011-12. This paper focused

on changing face of Retail Industry, organized or unorganized retail industry,

major players in retail industry and also highlights the challenges faced by the

industry in near future.

Kind of Indian retail industry

The Indian retail industry is divided into organized and unorganized

sectors. The Indian retail sector is highly fragmented, with a major share of its

business is being run by unorganized retailers like the traditional family run stores
and corner stores. The organized retail however is at a very nascent stage, though

attempts are being made to increase its proportion bringing in a huge opportunity

for prospective new players.

There are two types of Retailing:

 Organized Retailing

 Unorganized Retailing

→ Organized Retailing

Organized retailing refers to trading activities undertaken by licensed retailers,

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

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

large retail businesses.

→ Unorganized Retailing

Indian retail is dominated by a large number of small retailers consisting of the

local kirana shops, owner-manned general stores, chemists, footwear shops,

apparel shops, paan and beedi (local betel leaf and tobacco) shops, hand-cart

hawkers, pavement vendors, etc. which together make up the so-called

"unorganized retail" or traditional retail.

Major retail sector in India

 There are many sectors in retail industry in India and there are established in
various company at specific sectors.

1. Food and grocery:


 Food Bazaar

 Aditya Birla Retail Ltd

 Trinethra Super Market Ltd

 Reliance Retail

2. Fashion and accessories

 Pantaloons

 Shoppers Stop

3. Koutons:

4. Footwear

 Reebok

 Bata

5. Khadim’s:

6. Home and office improvement

 Godrej Lifespace

 Home Stop

 Home Town

7. Electronics

 eZone:

 Viveks:

8. Catering services

 Yum! Restaurants:

 McDonald’s

 Café Coffee Day

9. Telecom
 The Mobile Store:

 MobileNXT:

10. Pharmaceuticals

 Apollo Pharmacy

 MedPlus:

11. Beauty and wellness

 Reliance Wellness

 Himalaya Drugs

12. Jewellery

 Gitanjali:

 Tanishq:

 Reliance Jewels

13. Timewear

 Citizen:

 Titan.

NEED OF THE STUDY

As we all know that Indian retain sector in growing day by day and

specially the organized retailing sector because after these study I have observe

that most of the people are moving towards the organized retailing now a days the
old kirana shopes are been changed to organized sector just because the public

demand is been changing and chaining and because of that the there is several

change in the market growing because in past the retail sector is full depends up

on the festival market but now a days the retail depends up on the offer and the

discount provided by the retailer for a certain period of time. So because of the

change in the taste of the customer the tradition of the retail sector is been

chaining. .

1.5Difference between Organized Retailing &Unorganized Retailing

Organized Retailing Unorganized Retailing

Organized retailing refers to trading Unorganized retailing, on the other hand,


activities undertaken by licensed retailers, refers to the traditional formats of low-cost
that is, those who are registered for sales retailing
tax, income tax, etc

There are include the corporate-backed There are include the local kirana shops,
hypermarkets and retail chains, and also the owner-manned general stores, chemists,
privately owned large retail businesses. footwear shops, apparel shops, paan and
beedi (local betel leaf and tobacco) shops,
hand-cart hawkers, pavement vendors, etc

Multi storied malls and huge complexes Low cost retailing. These are highly
that offer a large variety of products in competitive outlets, with negligible rental
terms of quality, value for money and costs (unregistered kiosks or traditional
makes shopping a memorable experience. property), cheap workers (work is shared by
members of family) and low taxes and
overheads. 
The ownership and management rest with The ownership and management rest with
two or more person. one person only

The organized stores are not having number The unorganized stores are having number
of options to cut their costs of options to cut their costs

The customersare want to change in This is one of the good reasons which
many shopping malls. the customer doesn't want to change
their old loyal kirana shop.

Literature review

→ According to Dholakia (1999),i the rationale for shopping is making physical visits
to a shopping site. It is considered as a household task as well as a form of
recreation, relaxation and entertainment. Shopping is also considered to have
the most positive attribute of being a leisure activity along with work (Dholakia,
1999).
→ Sinha & Banerjee (2004)ii studied the drivers of store choice in various product
categories, in the context of evolving retail industry in India and found that the
distinct store features as perceived by respondents with true motivations of
various consumers in patronizing various stores. Study suggests that consumers
of Indian unorganized retail market do not require the service paraphernalia
offered by many retailers. Store environment plays a vital role for store
patronage and repeat purchases which includes convenience, value for money
products, etc.
→ Backstrom & Johansson (2006)iii studied factors that influence consumers' in-
store experiences. In-store experiences are constituted by traditional values such
as the behavior of the personnel, a satisfactory selection of products, price and a
layout that facilitates the store visit.
→ Terblanche & Boshoff (2006)iv suggested that retailers will have to accept that it
is not only what they are marketing but also how it is done. The personal (face-
to-face) interaction between retail staff and shoppers is of critical importance.
→ Kalhan (2007)v studies the impact of organized retail on unorganized retail
shops. Major findings reveal that 70 % of unorganized retailers reported falling
sales. This fall in sales is due to superior shopping environment, convenience,
availability of variety, ambience of shop, and availability of parking space and
perception of quality of products sold in organized retail setup.
→ Goswami (2008)vi studied the shopping experiences in kirana stores and in
modern stores. The major findings suggest Kirana stores to improve or to enrich
shopping experiences. Kiranas also have to stay alert, try to upgrade and have to
improve on service quality while concentrating on innovation and efficiency.
→ Das & Kumar (2009)vii studied the impact of sales promotion on consumers
shopping experiences. A major finding reveals that keeping product satisfaction
constant, sales can be improved by enhancing shopping experience which
includes convenience of shopping, ease of locating products, easy check in and
checkouts, customer friendly sales people and customer friendly policies.
Secondly finding reveals that purchase decision for the same product under same
promotion at different stores may vary because difference in shopping
experiences provided by different stores. Further this study shows that
promotion plays a limited role on consumers buying behavior where only small
percentage of people are attracted to such sales promotion and wait for it. Study
lastly emphasizes on the importance of shopping experience (ease of shopping,
parking space, convenience etc.) for positively impacting consumer buying
behavior.
→ Goswami & Mishra (2009)viii seek to understand whether Indian consumers are
likely to move from traditional Kirana stores to large organized retailers while
shopping for groceries. The research finding reveals that customer patronage to
grocery stores was found to be positively related to location, helpful, trustworthy
salespeople, and home shopping, cleanliness, and offers, quality and negatively
related to travel convenience. Kiranas do well on location but poorly on
cleanliness, offers, quality, and helpful trustworthy salespeople. The converse is
true for organized retailers. Study also finds that Kiranas have major
disadvantages on all customer perception scores except location. These scores
being less important determinants of patronage compared with location, in the
short run kiranas may not be ousted out of customers' flavor. However, in the
long run if they do not work on these other factors, they would face oblivion.
Kiranas need to upgrade their facilities to be able to compete with the organized
retailers to provide consumers better shopping experiences, whereas organized
retailers which are expected to improve their location scores rapidly in the near
future will grow rapidly.
→ Inside store (2009)ix studied the shopping experiences at traditional Indian retail
stores. Major findings reveal that 70% of purchases are made at the point of
purchase, so store environment can impact the 70% of purchases which is one of
the important constituent of shopping experience in unorganized retail setup.
→ Mittal and Parashar (2010) x explained that irrespective of area, people prefer
grocery stores to be nearby, product assortment is important for grocery. Ghosh
& Srivastava (2010) in his research found that service quality has become vital for
service firms to pay attention due to increased competition.

→ Sivaraman (2010)xianalyzed customer attitude toward unorganized retailers on


the attributes of store image, range of products, brand choices, price, store
ambience, credit availability, shop proximity and complements. However there
were no perceived difference on product freshness and customer care. This
study clearly point out that the unorganized retailers are facing stiff competition
from the organized retailers. This has reduced their sales, profit, and
employment considerably. The operational cost, consumer credit also increased
due to the presence of organized retailers.
→ Kumar (2011)xiistudied on the strategies of unorganized retailers with reference
to consumer durables and found that a product strategy which means
merchandise is the most important factor followed by price, distribution and
promotion.
→ Kushwaha (2011)xiii compared the perception of consumers in organized and
unorganized retail market and found that factors like cleanliness, distance, price,
quality, safety and space for shopping are the determinant factors for
unorganized retail.
→ Purohit and Kavita(2013) according to their studies that the traditional retailers
are not very much clear about the consequences of the modern retailing the
traditional retailers are neutral or undecided, modern retailing will cut the profit
margin of the traditional retailers; the modern retailing will lead healthy
competition in the market, modern retailing will reduce the sales volume of the
traditional retailers and traditional retailers should improve customer care
services in the era of modern retailing.
→ Shaoni Shabnam (2013): It is important to highlight that in organized retail, the
status of employment is much better than that in unorganized retail. Hence it is
definitely desirable that more and more labor gets absorbed in this sector of
retail. In the current context, the labor employed in unorganized retail stands
unfit for finding employment in organized retail. If appropriate training and skills
could be imparted to them, it is possibly feasible to offer better forms of
employment to them in the organized retail sector. The status of employment is
much better than that in unorganized retail. Hence it is definitely desirable that
more and more labor gets absorbed in this sector of retail. In the current context,
the labor employed in unorganized retail stands unfit for finding employment in
organized retail. If appropriate training and skills could be imparted to them, it is
possibly feasible to offer better forms of employment to them in the organized
retail sector.
→ Meeta Punjabi (2013): According to their study they suggest that the
development efforts in this area are based on three grounds: First, farmers
associated with the modern value chains earn higher returns than selling to the
traditional markets. Second, the modern supply chains have specific quality
requirements which are easier to meet by the large and medium farmers and the
small farmers tend to get left out of these markets.Third, there are several
successful examples of linking small farmers to these modern value chains with
effort from government agencies, NGOs and development agencies. This
knowledge presents strong grounds for a closer look at the emerging sector in
India.
→ Mathew Joseph (2013): Unorganized retailers in the vicinity of organized
retailers experienced a decline in their volume of business and profit in the initial
years after the entry of large organized retailers. The adverse impact on sales and
profit weakens over time. There was no evidence of a decline in overall
employment in the unorganized sector as a result of the entry of organized
retailers. There is some decline in employment in the North and West regions
which, however, also weakens over time. The rate of closure of unorganized
retail shops in gross terms is found to be 4.2% per annum which is much lower
than the international rate of closure of small businesses. The rate of closure on
account of competition from organized retail is lower still at 1.7% per annum.
There is competitive response from traditional retailers through improved
business practices and technology up gradation. A majority of unorganized
retailers is keen to stay in the business and compete, while also wanting the next
generation to continue likewise. Small retailers have been extending more credit
to attract and retain customers.

BACKGROUND OF THE STUDY


The Indian Retail Industry is the fifth largest in the world. Comprising of organized and
unorganized sectors, Indian retail industry is one of the fastest growing industries in India,
especially over the last few years. Though initially the retail industry in India was mostly
unorganized, however with the change of taste and preferences of consumers, the Industry
is getting more popular these days and getting organized as well. The Indian Retail
Industry is expected to grow from US$330 billion in 2007 to US$640 billion by 2015.

According to the 10th Annual Global Retail Development Index (GRDI) of A.T. Kearney,
India is having a very strong growth fundamental base that’s why it’s the perfect time to
enter into Indian Retail Market. Indian Retail Market accounts for 22% of country’s GDP
and it contributes to 8% of the total employment. The total retail spending is estimated to
double in the next five years. Of this, organized retail –currently growing at a CAGR of
22%- is estimated to be 21% of total expenditure. The unorganized retail sector is expected
to grow at about 10% per annum with sales expected to rise from $309 billion in 2006-07
to $496 billion in 2011-12. This paper focused on changing face of Retail Industry,
organized or unorganized retail industry, major players in retail industry and also
highlights the challenges faced by the industry in near future.

 Indian Retail Industry

India’s Retailing Boom has acquired further momentum, dynamism and vibrancy with
international players experimenting in the Indian market and the country’s existing giants
taking bold innovative steps to woo the consumer. At the same time, the early entrants are
redefining their strategies to stay competitive and suit the new market landscape.

The next few years are liking to witness rapid growth in the organized retailing sector with
several leading international players establishing their presence in India by adjusting their
formats to suit local tastes and buying behaviour while regional players have stepped up
their defences and are striving to gain edge over global players by using their knowledge of
local markets. Clearly the next wave of the retail boom is upon us. Retailing is one of the
pillars of the economy in India. Over the past few years, the retail sale in India is hovering
around 33-35% of GDP as compare to 20% in the US.

The Indian retail industry is the fifth largest in the world. Comprising of organized and
unorganized sectors, Indian retail industry is one of the fastest growing industries in India,
especially over the last few years. Though initially, the retail industry in India was mostly
unorganized, however with the tastes and preferences of the consumers, the industry is
getting more popular these days and getting organized as well. Now with growing market
demand, the industry is expected to grow at pace of 25-30% annually.

The Indian retail industry is currently growing at a great pace and is expected to go up to
US $ 833 billion by the year 2013. In the last four years consumer spending in India has
climbed up to 75%. In India though, organized retail accounts for app. 5-6% of total retail
revenues, however, with a young population, increasingdisposable income, changing life
styles and a robust economy India is set to emerge as one of the fastest growing organized
retail markets in the world.

Retailing is one of the biggest sectors and it is witnessing revolution in India. The new
entrant in retailing in India signifies the beginning of retail revolution. India's retail market
is expected to grow tremendously in next few years. According to AT Kearney, The
Windows of Opportunity shows thatRetailing in India was at opening stage in 1995 and
now it is in peaking stage in 2006. The origins of retailing in India can be traced back to
the emergence of Kirana stores and mom-and-pop stores. These stores used to cater to the
local people. Eventually the government supported the rural retail and many indigenous
franchise stores came up with the help of Khadi & Village Industries Commission. The
economy began to open up in the 1980s resulting in the change of retailing. The first few
companies tocome up with retail chains were in textile sector, for example, Bombay
Dyeing, S Kumar's, Raymond’s, etc. Later Titan launched retail showrooms in the
organized retail sector. With the passage of time new entrants moved on from
manufacturing to pure retailing.

Retail outlets such as Food world in FMCG, Planet M and Music world in Music,
Crossword in books entered the market before 1995. Shopping malls emerged in the urban
areas giving a world-class experience to the customers. Eventually hypermarkets and
supermarkets emerged. The evolution of the sector includes the continuous improvement in
the supply chain management, distribution channels, technology, back-end operations, etc.
this would finally lead to more of consolidation, mergers and acquisitions and huge
investments. India's retail market is expected to grow tremendously in next few years.
India shows US$330 billion retail market that is expected to grow 10% a year, with
modern retailing just beginning.

In India, the most of the retail sector is unorganized. The main challenge facing the
organized sector is the competition from unorganized sector. Unorganized retailing has
been there in India for centuries. The main advantage in unorganized retailing is consumer
familiarity that runs from generation to generation. It is a low cost structure; they are
mostly operated by owners, have very low real estate and labour costs and have low taxes
to pay. Organized retail business in India is very small but has tremendous scope.

Data Analysis and interpretation


1.Are you a localite (Bangalore based) or are you from other place and working here ?

No Of Responds Percentage
Bangalore based 85 61
Other 55 39
TOTAL 140 100

Figure showing of responds.

Other

Bangalore based

Interpretation: The above figure showing the data collected from the
responds shows that 61% of them are from Bangalore and 39% of them
are from outside Bangalore.

2. Do you prefer to Organized or Unorganized retail shops for your purchase?

Responds Percentage
Organized Retail 90 65
Unorganized Retail 40 28
Depends/Not Fixed 10 7
TOTAL 140 100

Figure showing what people prefer :-

Depends/Not Fixed
7%

Unorganized Retail
29%

Organized Retail
64%

Interpretation: The figure is showing 64%of the people are


preferred to the organized retailing sector , 29% of the
preferred to the unorganized retailing and 7% of the people
said it depends.

3. How did you make your most recent purchase?

Respond Percentage
Online 28 20
By phone 21 15
By mail/catalogue 14 10
In-person/in-store 70 50
Through a dealer 7 5
TOTAL 140 100

Most recent purchase


through a dealer
5%
1st Qtr
20%

In personal/in store 2nd Qtr


50% 15%

By mail/cata-
logue
10%

Interpretation: The figure showing the recent purchase done


by the consumer its shows that 50% of the people purchased
from personal/stores,20% of them purchased from online, 15%
of them had purchased from phone ,5% of them purchased
through the mail/catalogue and 5% of them purchased from
them dealers .

4. If you organized Retail, Which shop do you prefer?

Respond Percentage
D-Mart 14 10
Big Bazar 42 30
Spinach 28 20
Reliance Fresh 35 25
other 21 15
TOTAL 140 100

Figure showing the preferred retain organization:-

Other
15% d-MART
10%

Big Bazar
31%
Reliance Fresh
26%

sainach
18%

Interpretation: The figure showing the from were people prefer to purchase
its shows that 31% of the people prefer to purchase from big bazaar, 26% of the
people prefer to purchase from reliance fresh, 18%of the people prefer to
purchase from sainach, 31% of the people prefer to purchase from big bazaar,
10% of the people prefer to purchase from d mart, 15%of the people prefer to
purchase from other.

5. What do you shop, how often from where?

Daily Weekly Monthly TOTAL


Vegetables 7 4 3 14
Grocery(Dal 7 14 28 49
Rice ,Wheat)
FMCG 7 14 7 28
Garments/Clothes 0 3 4 7

Utensils 7 10 11 28
Oil 4 10 14
TOTAL 28 49 63 140
Figure showing how offen they shop:-

Frequent of shopping
Daily
20%

Monthy
45%

Weekly
35%

Interpretation: The above figure shows the how offen they


shop according to the study its shows that 20% of the people
shop daily ,35% of the people shop weekly and 45% of people
shop monthly .

6. Why do you prefer to go for Organized Retail formats?

Responds Percentage
Price is less 15 10.71
Near house 14 10.00
Everything at one 21 15.00
place
Good Service 12 08.57
Good Quality 20 14.28
Long Relationship 14 10
Good Offers 10 07.15
Large Variety 11 07.85
Self Service 10 07.15
Overall experience 13 09.29
TOTAL 140 100

Figure showing public prefer to go for retailing format:-

Format of retailing
Overall experience
9% Price is less
seif service 11%
7% Near house
Large Variety 10%
8%

Good Offer Everything in 1 place


7% 15%
Long Relation
10% Good service
Good Quality 9%
14%

Interpretation : The format retailing shows that 10.71% of the people shop because
of the price is less ,10% of the shop to near to there house ,15% of them shop from everything
get at one place,8.57% go for good service,14.28% of go for good quality, 14% go for the long
relationship, 7.85% go for the large variety, 7.15% of them go for the self service, 9.29% go
for overall experience.

8. What is your gender?


Responds Percentage
MALE 84 60
FEMALE 56 40
TOTAL 140 100

Figure showing of gender:-

FEMAIL
40%

MALE
60%

Interpretation : The figure shows the out of the total 40% of


the 140 are female that is 56. And 60% of 140 them are male
that is 84.
9. What is your age?

Responds Percentage
18 or under 21 15
19-35 55 40
36-50 39 28
50 or more 25 17
TOTAL 140 100
Age
60

50

40
Series 1
30

20

10

0
18 as under 19-35 36-50 50 or above

Interpretation: In these study we observed that under 18 there are 15% that
is 21, between the 19-35 there are 40% of that is 55 out of 140, between 36-50
there are 28% that is 39 of 140 , between 50 and above there are 17% that is 25
of 140.

10. What is your annual household income?

Responds Percentage
Under 25000 pm. 21 15
25000-50000 42 30
50000-75000 35 25
75000-100000 28 20
100000 or More 14 10
TOTAL 140 100

Figure showing annual income of household income:-

Household Income
Series 1

42
35
28
21
14

Under 25000 p.m 25000-50000 50000-75000 75000-100000 100000& More

Interpretation: The figure is showing the income status of the 140 responds
in which under 25k there are 21 that is 15%, between 25k-50k there are 42 that Is
30%, between 50k-75k there are 35 that is 25% ,between 75k-100k there are 28
that is 20% of total, and above 100k there are 14 people that is 10% of the total.

12. Do you plan to continue to buy organized retail ?

Responds Percentage
YES 102 85
NO 38 15
TOTAL 140 100
Figure showing what people prefer :-

Preferance
NO
27%

YES
73%

Interpretation: The study shows that 73% that is 102 of the


total will continue shopping in organized retailing and
remaining 27% that is 38 of the total feel they will not continue
with the organized retailing.

13. How would you rate organized retailing in term of store cleanliness ?

Responds Percentage
Excellent 54 38.6
Very good 43 30.7
Average 24 17.2
Fair 19 13.5
TOTAL 140 100.0

Figure showing store cleanness of organized retailing:-

60

50

40

30

20

10

0
Excellent Very Good Average Fair

Interpretation: The study is showing the store cleanness has we analysis


38.6% that is 54 people are telling excellent in term of cleanness, report shows
that 30.7% that is 43 people tells very good, 17.2%of people that is 24 says that
stores are Average in term of cleaning and 13.5% people that is 19 of them tells
that stores are fair in terms of cleaning.

14. How would you rate organized retailing in term of Meat Quality/Freshness?

Responds Percentage
Excellent 43 30.8
Very good 38 27.15
Average 33 23.57
Fair. 26 18.57
TOTAL 140 100

Figure showing of meat Quality/Freshness:-

Meat Quality

45
40
35
30
Series 1
25
20
15
10
5
0
Excellent Very Good Average Fair

Interpretation: The study says that the quality of the meat provided by the
organized retailer is 30.8% that is 43 people says quality is excellent,27.15 people
that is 38 of them says that quality is very good, 23.57% people that is 33 of them
says that quality is average and 18.57% of the that is 26 of them says that quality
is fair.

15. How would you rate organized retailing in term of Regular Prices ?

Responds Percentage
Excellent 28 20
Very good 37 26.42
Average 36 25.71
Fair. 39 27.87
TOTAL 140 100

Figure showing pricing of organized retailing :-

Regular Pricing

40
35
30
25
20
15
10
5
0
Excellent Very Good Average Fair

Series 1

Interpretation: The study says that 20% of people that is 28 of them says
that pricing in excellent, 26.42% people that is 37 says that pricing is very good,
25.71 that is 36 people says that pricing is average and 27.87 that is 39 people
says that pricing is fair.

16. Kindly rate the below of an organized retail and unorganized retail based
upon your preference?

POOR-1 , FAIR-2 ,AVERAGE-3 ,VERY GOOD-4 ,EXCELLENT-5

ORGANIZED UN-ORGANIZED
Everything at one place 3 4 2 1 1 0 1 2 1 3
Offers 7 5 7 5 4 2 1 2 2 1
Relationship 5 4 1 2 1 1 2 1 2 1
Ambience 1 4 5 2 2 1 1 1 2 1
Home Delivery 4 5 6 4 3 0 2 1 1 2
Faster 5 2 4 1 2 0 1 1 1 1
TOTAL 102 38

organized Un-Organized

1.6

1.2

1.4 1.2 0.8


1.4 5.6
4.4

2.6 2.8 2.8


2.2

At one place Offer Relationship Ambience Home Delivery Faster

17. Why do you like shopping at a department store?

Responds Percentage
Convenience – near 27 19.28
where I live
Items I normally buy are 21 15.00
all under one roof
Good customer service 23 16.43
Excellent brand name 14 10.00
Comfortable browsing 24 17.15
experience
know I can ask for 31 22.14
product advice
TOTAL 140 100.0

Series 1

30
20
10
0
ce f e e e e
i en r oo r vi c am e nc dvic
n i a
Axis Title en ne se d er t
onv ro er r an exp d uc
C e m ro
nd sto tb g
la l u cu llen wsin orp
re oo
d ce br
o kf
a G Ex le as
bu
y b an
ly o rta Ic
al f w
r m om kno
C
no
sI
em
It

Interpretation : In these study we seen that 27 people go for convenience


out of 140, the 21 people go for the item under one roof,23 of the will go for the
good consumer service, 14 of them prefer for the excellent brand name, 24 for
them will go for the comfortable browsing and 31 of them will go for the know I
can ask for product advice.

18. Why do you prefer organized retailing?


Responds Percentage
Quality 47 33.89
Brand 54 38.34
Varity or choice 39 27.77
TOTAL 140 100.0

Figure showing the prefer Organized retailing:-

Organized retailing depends on


60

50 54

47
40
39

30

20

10

0
Quality Brand Variety or choice

Interpretation: In this study it shows that 33.89% that is 47 out of 140


depends on the Quality, 38.34% that is 54 out of the 140 prefer the brand and
27.77 that is 39 out of 140 prefer the variety or the choice. ,

19. At what time you use to visit the for retail shopping ?
Responds Percentage
Morning 46 32.85
Afternoon 31 22.14
Evening 63 45.00
TOTAL 140 100.0

Figure showing the visiting time of public:-

Time of visit
70

60

50

40
Axis Title
30

20

10

0
Morning Afternoon Evening

Interpretation: In these showing the visit of the customer in the organized


retailing sector it shows that 32.85% that is 46 out of 140 visits in the morning,
22.14% that is 31 out of the 140 visits in the afternoon and as the graph only
shows that 45% of them that is 63 out of 140 visits in the evening .

20 Are you attracted due to offers and discounts in organized retailing ?


Responds Percentage
YES 73 52.28
NO 67 47.72
TOTAL 140 100

Figure showing the public attracted due to offer & Discount :-

RESPONDS

73
72
71
70
Axis Title 69
68
67
66
65
64
YES NO

Interpretation: The study shows that 52.28% that is 73 out of the 140
are attracted to the offers and the discounts and remaining 47.72% that
is 67 out of the 140 are not attracted to the offers and the discounts.

Chapter 5
Findings

 The data collected from the responds shows that 61% of them are from Bangalore and
39% of them are from outside Bangalore.
 The recent purchase done by the consumer its shows that 50% of the people purchased
from personal/stores,20% of them purchased from online, 15% of them had purchased
from phone ,5% of them purchased through the mail/catalogue and 5% of them
purchased from them dealers .
 The study shows 64%of the people are preferred to the organized retailing sector , 29%
of the preferred to the unorganized retailing and 7% of the people said it depends.
 2

 The result shows how offen they shop according to the study its shows that 20% of the
people shop daily ,35% of the people shop weekly and 45% of people shop monthly .
 The format retailing shows that 10.71% of the people shop because of the price is
less ,10% of the shop to near to there house ,15% of them shop from everything get at
one place,8.57% go for good service,14.28% of go for good quality, 14% go for the long
relationship, 7.85% go for the large variety, 7.15% of them go for the self service, 9.29%
go for overall experience.
 The data collection is showing the income status of the 140 responds in
which under 25k there are 21 that is 15%, between 25k-50k there are 42
that Is 30%, between 50k-75k there are 35 that is 25% ,between 75k-100k
there are 28 that is 20% of total, and above 100k there are 14 people that is
10% of the total. By these we understand that who have income 50k to 75k
they are more attracted to organized structure as compare to others.
 The study shows that 73% that is 102 of the total will continue shopping in organized
retailing and remaining 27% that is 38 of the total feel they will not continue with the
organized retailing.
 The study is showing the store cleanness has we analysis 38.6% that is 54 people are
telling excellent in term of cleanness, report shows that 30.7% that is 43 people tells very
good, 17.2%of people that is 24 says that stores are Average in term of cleaning and
13.5% people that is 19 of them tells that stores are fair in terms of cleaning.
 The study says that the quality of the meat provided by the organized retailer is 30.8%
that is 43 people says quality is excellent,27.15 people that is 38 of them says that quality
is very good, 23.57% people that is 33 of them says that quality is average and 18.57% of
the that is 26 of them says that quality is fair.
 The study says that 20% of people that is 28 of them says that pricing in excellent,
26.42% people that is 37 says that pricing is very good, 25.71 that is 36 people says that
pricing is average and 27.87 that is 39 people says that pricing is fair.
 In these study we seen that 27 people go for convenience out of 140, the
21 people go for the item under one roof,23 of the will go for the good
consumer service, 14 of them prefer for the excellent brand name, 24 for
them will go for the comfortable browsing and 31 of them will go for the
know I can ask for product advice.
 In this study it shows that 33.89% that is 47 out of 140 depends on the
Quality, 38.34% that is 54 out of the 140 prefer the brand and 27.77 that is
39 out of 140 prefer the variety or the choice.
 In these showing the visit of the customer in the organized retailing sector
it shows that 32.85% that is 46 out of 140 visits in the morning, 22.14% that
is 31 out of the 140 visits in the afternoon and as the graph only shows that
45% of them that is 63 out of 140 visits in the evening
 The study shows that 52.28% that is 73 out of the 140 are
attracted to the offers and the discounts and remaining 47.72%
that is 67 out of the 140 are not attracted to the offers and the
discounts.

Managerial Implications Be everywhere, do everything and never fail to astonish the customer. –
Macy’s Motto

For Unorganized Retail

 Unorganized retailers should purchase variety of products from the single wholesaler to avail
adequate discounts so that they meet the cost expectations and needs of their customers.
 The unorganized retailers should continuously improve their display to compete with the
organized sector.
 The unorganized retailers should provide adequate self service facilities to the customers.
 The unorganized retailers should offer cash discounts to customers on bulk purchases.
 The unorganized retailers should offer attractive weekly or monthly schemes for
groceries and other items and promote them through leaflets or pamphlets. If they target
only “category killer” customers, it could help them to retain customers.
 Unorganized retailers should make remarkable changes in their store ambience to retain
the existing customers and attract new customers with sophisticated facility and more
space.
 The unorganized retailers should make a strategy to retain their customers by providing
quality goods and services because it is well said that “Quality is remembered long after
the price is forgotten.” - Gucci Family Slogan
 They should also go for collaborations within the regional level so that they can survive
in this globally competitive world.

For Organized Retail

 organized retailers should provide attractive offers to compete with the unorganized sector.

 The organized retailers should offer lucrative schemes, discounts to generate costumers‟
stimulus.
 The organized retailers should provide necessary arrangements for home delivery of goods.

 Organized retailers have been adding value to their products through prices, services and offers
to attract and retain customers.
 Organized retailers should organize efficient and effective loyalty programs. This could help in
providing recognition to the customers.
 Organized retailers should make necessary arrangements for consumer complaint management
because customer complaints are the schoolbooks from which they could learn

Suggestion

 The organized stores should have more cleaness

 If we see the un organized stores they should improve their quality of the

loose product.
 In the un-organized stores the store man should use the hand gloves and

should be properly dressed.

 The organized stores improve there service it mean all variety should be

kept in a sequence way so it will be easy for the consumer.

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