Analytical Study On Consumer Behaviour Towards D-Mart Products

PRAHLADRAI DALMIA LIONS COLLEGE OF COMMERCE AND ECONOMICS
ANALYTICAL STUDY ON CONSUMER BEHAVIOUR TOWARDS

D-MART PRODUCTS.
CHAPTER 1. INTRODUCTION
Currently the retailing industry is booming industry in India. It has been considered as equal competent
with IT industry. D-MART is one among the renowned retail companies in India. It is famous for its
low price and good quality products. It has its branches everywhere the India. Retailing is one such
step within the marketing chain of activities that facilitates the distribution function. Initially it had
been considered as just another step within the marketing chain and therefore the function was accepted
as obvious. As the competition increased globally, differentiation became more and harder . Consumer
purchasing power increased as economy opened into more market-oriented mode. Often used and final
link with the last word consumer, marketers thought of using it for differentiating and positioning.
Therefore, retailing emerged as a discipline and considerable thinking and research went into it for the
event and substantiation. The research paper considers understanding customer’s satisfaction towards
DMART. D-MART is one such big retail giant that features a wide it's introduced its own brands of
products to its customers. This research study mainly focuses on the consumer response towards D-
MART.
Consumer behaviour is that the study of how individual customers, groups or organizations select, buy,
use, and dispose ideas, goods, and services to satisfy their needs and needs . It refers to the actions of
the consumers within the marketplace and therefore the underlying motives for those actions. It is a
study of the actions of the consumers that drive them to shop for and use certain products.
Understanding consumer behaviour at the current market moment is very important for all companies
that strive for achieving competitive advantage. Study of consumer buying behaviour is most vital for
1
ANALYTICAL STUDY ON CONSUMER BEHAVIOUR TOWARDS D MART PRODUCTS.
marketers as they will understand the expectation of the consumers. It helps to know what makes a
consumer to shop for a product. With many consumers staying on the brink of home, around 4 in 10
consumers reported spending more on groceries. A quarter are becoming food delivered more
frequently, and 22% have increased spending on books, games, apps and subscriptions during an
equivalent time-frame . Over forty percent (44%) of consumers have also increased their online
shopping habits overall. But while many are changing what they purchase and the way , the survey also
reveals that 4 in 10 of consumers are making fewer impulse purchases, highlighting that a lot of are
being more deliberate about what they purchase. The retail sector scenario in India is
extremely dynamic and varied. With the exceptional growth during this sector, India has become a
beautiful destination for the foreign players.
India's retail market is estimated to succeed in $1.1-1.3 trillion by 2025, from $0.7 trillion in 2019,
growing at a compound annual rate of growth (CAGR) of 9-11%, driven by socio-demographic and
economic factors like urbanization, income growth and rise in nuclear families. D-Mart may be a one-
stop supermarket chain that aims to supply customers a good range of basic home and private products
under one roof. From the launch of its first store in Powai in 2002, D Mart today features a well-
established presence in 2021.Customer satisfaction is defined as a measurement that determines how
happy customers are with a company’s products, services, and capabilities. Customer satisfaction
information, including surveys and ratings, can help a corporation determine the way to best improve
or changes its products and services. Indian retail industry is under transition today, bringing tons of
transformations in retailing business. The shoppers enjoy the privilege of shopping the products and
services required by them during a sort of formats to satisfy their expectations. Retail comes from the
French word retaillier, which refers to "cutting off, clip and divide". In terms of Tailoring (1365) it first
was recorded as a noun with the meaning of a "sale in small quantities" in French. Its literal meaning
for retail was to "cut off, shred, paring". According to Gilbert, D (2013), it's a business that directs its
marketing effort towards satisfying the ultimate consumer based upon the organization of selling goods
and services as a means of distribution. Retailing was never as seen today. It is believed that the
primary true emporium within the world was founded within the Paris in 1852 by Aristide Boucicaut
and was named as Bon Marche. (Lamba, 2003) Retailer performs various functions while selling their
products and services to their customers and it enable the products to ultimately be sold successfully. In
this context, they perform various functions like sorting, breaking bulk, holding stock, as a channel of
communication, storage, advertising and certain additional services. The emergence of organized retail
in India dates back to the pre-independence era when the country’s established business houses, mostly
textile majors, ventured into the retail arena through company-owned or franchisee outlets. The
consumers hardly continue the other mercantile establishment to shop for things instead of D-Mart at
the present . Malls and shopping centre have become the places consumers frequently visit.
According to Kavita Kanabar (2012) the mall culture has gained acceptance and consumers are
repeating their visits for successive purchases marked by the rise of normal users at malls. Unlike the
normal mercantile establishment , D-Mart may be a mall where almost kind of products are available.
Consumers are liberal to view and examine all the products before buying which they don’t get to try
to in any mercantile establishment . Thus, they need developed feeling of dissatisfaction against
retailers. Anil Barbole and Varsha Borade (2012) mentioned in their study about customer’s
dissatisfaction towards the retailers. They also conducted that supermarkets try to understand their
customers and thus provides a tough competition to the retailers. The study deals with the buying
behaviour of the local consumers from D-Mart. Consumers have a positive attitude towards D-
Mart thanks to the various benefits it provides. It has most kinds of products under one roof. It not only
provides sort of goods but also at the simplest affordable prices. Factors like offers, brands, quality,
proper response, personalization adds to the positive behavioural outcome of the purchasers. Zanual
Bhutoo and Vikram Singh (2012) mentioned in their study that there are dimensional factors also which
affects the behaviour like personalization, responsiveness, flexibility, parking lot , privilege to regular
customers. Payment mechanism is one among the factors which play an important in buying from the
department stores or supermarkets (Ashutosh Sandhe, 2012). Thus, this study takes into consideration
these factors to assess the behaviour of the consumers.
2
D-Mart may be a three storey building aside from its godowns, which is systematically categorized in
three sections foods items clothing, and plastic and stationary. there's a linkage between the
shop attributes and therefore the preference of consumers . (Sanjiv Verma, 2007). D-Mart has
increased the variability of products tons . It now provides a good range of products than the
other mall. the foremost important objective behind its establishment is to supply good quality
products at the best affordable value. And study provides the feedback which
shows they're successfully achieving their core objective. along side providing comfortable and
convenient shopping experience to people D-Mart features a simple and straightforward policy for
return and exchange. they like to affect this manually within the particular branch. Thus, they don’t
entertain the queries asked via email or the other medium. D-Mart executives informed that the
graceful functioning possible thanks to the chain’s operating model. This operating chain pays its
supplies within 48 hours of delivery. it had been found by keeping in mind the center income group
people, but today people belonging from all income groups like better to buy from it. Our present study
has shown people from high income group also shop from D-Mart in Mumbai city. As of June 2019, it
had 181 stores across the country. the corporate aims to determine more branches within the near
future to deal with the growing needs of the Indian family.
All operational wisdom was gathered from the supermarket, while philosophically, it had been clear
that the shop must follow the principles laid down by Sam Walton. Wal-Mart had treated some
fundamentals as gospel and if they might succeed with their simple approach to retail, there was no
reason for a store in India to not do so. during a very basic way, therefore, all D Mart did was to
observe the customer trolley and skim everything about Sam Walton and Walmart. The strategy paid
off decidedly and its retailing has customers lining up at their doors. the straightforward formula that
creates D Mart tick is shared and intuitively understood as invaluable within the large organisation.
Probably this simplicity has helped it scale nicely while staying lean as an organisation. one among the
cornerstones of D Mart’s continued success is how it's retained its frugal outlook to retail through all
market upheavals and internal changes over the years.
They need the subsequent unique selling proposition
1. Selling Tool: Heavy discounts and has managed to sell cheap.
2. Market Segment: Price sensitive group ·
3. Target Market: Middle income households ·
4. Market Positioning: One-stop value mercantile establishment chain
1.1 COMPANY PROFILE

Description: the corporate organized retail and operates supermarkets under the name of D-Mart.
Products & Services: food products, including dairy products, staples, groceries, snacks, frozen
products, processed foods, beverages and confectionery, and fruits and vegetables; non -food products
comprising home care products,
Category: Service Provider
3
The current status of Avenue Supermarts Limited is - Active.
The last reported AGM (Annual General Meeting) of Avenue Supermarts Limited, per our records,
was persisted 17 August, 2021. Also, as per our records, its last record was prepared for the
amount ending on 31 March, 2021.
Avenue Supermarts Limited has seven directors - Chandrashekhar Bhaskar Bhave, Ramakant
Kanhaiyalal Baheti, et al. .
The Corporate number (CIN) of Avenue Supermarts Limited is L51900MH2000PLC126473. The

registered office of Avenue Supermarts Limited is at ANJANEYA CHS LIMITED, ORCHARD
AVENUE,,OPP. HIRANANDANI FOUNDATION SCHOOL, POWAI,, MUMBAI, Maharashtra.
.
Avenue super marts ltd doing business as D-MART is an Indian chain of hypermarkets in India
founded by MR. RADHAKISHAN DAMANI. within the year 2002, with its first branch in Powai’s
Hiranandani gardens. D-mart was started on 15 may 2002. the complete sort of D-Mart is Damani
Mart and Disaster Mortuary Affairs Team. internet worth of Radhakishan Damani is 2160 crores
USD (2022). Before entering the stock exchange , Radhakishan Damani had begun his career
with alittle 'ball-bearing' trading business. In 2001, After reaching such great heights, he suddenly quit
the stock exchange business and decided to enter the retail industry. He launches D-mart supermarkets
and hypermarket chain. Their brand tagline is “Daily Savings, Daily Discounts”.
The head office of D-mart is at Mumbai. D-mart categorized as Avenue Supermarkets Ltd group,
specialized as Hypermarket and has 28 branches in Mumbai. Its total number of stores as of September
30, 2021 stood at 246. As of 31 December 2019 (latest data), it had 196 stores in 72 cities across 11
states in India including Maharashtra, Andhra Pradesh , Telangana, Gujarat, Madhya Pradesh,
Chhattisgarh, Rajasthan capital region, Tamil Nadu , Karnataka, Uttar Pradesh , Daman and Punjab. D-
MART may be a one-stop supermarket chain that aims to supply customers a good range of basic
home and private products under one roof. the corporate has its headquarters in Mumbai. As of 31
March 2019, D-Mart had a complete of seven ,713 permanent employees and 33,597 employees hired
on contractual basis. Each D-MART store stock home utility products - including food, toiletries,
beauty products, garments, kitchenware, bed and linen , home appliances and more - available at
competitive prices that our customers appreciate. Our core objective is to supply customers good
products at great value. The brands are D-Mart, D Mart Minimax, D Mart Premia, D Homes, Dutch
4
Harbour, etc.
1.2 Foundation of D Mart & Why D Mart is Successful?

Unlike Flipkart was established by two 25year old youngsters toward the beginning of their
professions, D Mart's establishing story couldn't have been more extraordinary as D Mart was
established in 2002 by a then-45-year-old Radhakishan Damani at a flash that he'd effectively made his
millions. When he established D Mart, Damani was a fantastic name in Indian securities exchanges. He
had already got a couple of worth stocks that surpassed Gillette and HDFC Bank’s valuations.
Damani, who dropped out of a trade degree after the first year, had first joined his dad's metal rollers
business, yet had begun putting resources into stocks when he was 32. He aroused going to be one
among the best stock financial specialists of the 90s, and current securities exchange bull Rakesh
Jhunjhunwala believes him to be a teacher . In any case, after an efficient financial exchange
profession putting resources into shopper confronting organizations, Damani chose to start his own.
On May 15, 2002, Damani established grocery chain D Mart and embraced techniques that were one
among a sort to Indian retail. Up thereto point, most retail chains rented their stores, yet D Mart picked
carefully do its exploration and possessed its very own stores by and enormous . That technique
appears to possess worked as D Mart has never needed to shut down a store since it's opened in all of
the long periods of its activity.
While other retail players forayed into different classifications, including hardware and design, D Mart
stayed focussed on its centre sustenance and basic food item business. What's more, when other store
chains are on the entire propelling their very own private brands in a suggestion to enhance edges, D
Mart still stocks just outsider items.
It's this moderate methodology that has worked for D Mart. Other retail chains were picking
development, yet for the initial 15 years, D mart just worked its stores in 4 states. Indeed, even
today, the corporate has 214 stores in 72 cities across 11 states. D Mart had a benefit to-deals
proportion of 3.7%.
In correlation, other significant Indian retailers don't passage very also Future Group has a benefit to
deals proportion of 0.21%, Spencer's Retail had a negative benefit to deals proportion of - 8.9%, and
Reliance Retail which works high-edge classifications including hardware and adornments and has
more than double the incomes of D Mart just dealt with a benefit to deals proportion of 1.6%.
D Mart's traditionalist yet beneficial approach is by all accounts demonstrated after its author. Damani
is famously media-bashful and provides no meetings. He's said to be modest, all things considered, also
he doesn't appear to speak much, yet is evidently an honest audience, engrossing tons of
knowledge rapidly, and afterward following up on it. and keeping in mind that Damani's success has
made him hugely rich due to the arrive D Mart's stock value, he's currently worth $15.5 Billion (over
Rs 116,200 Crores) regardless he wears a white shirt and white jeans to figure , the dress he's been
wearing since the 80s. Despite everything, he goes for night strolls on Girgaum Chowpatty in Mumbai
and unconditionally converses with the outsiders who approach him after his D mart's open
achievement.
1.3 INDUSTRY PROFILE
5
The service industry and in particular, the retail market has been vital to the world economy and
undergone the intensified competition under recent crisis and economic turndown period. The modern
retail industry is booming across the planet . Therefore, it's essential for retailers to use strategies
which specialise in satisfying current customers. Supermarkets and Hypermarkets have played a
crucial role in food distribution since they appeared. For modern life, the existence of traditional
markets has been gradually replaced by their descendent supermarkets and people depend on
supermarkets for their basic grocery needs. Shopping at the grocery has become an enormous deal
and it's one among the foremost important food sources for several households. In addition, unlike
previous studies that have focused more on industry like bank, healthcare, beauty etc, the researchers
considered a supermarket setting which fully represents both product and service characteristics The
Indian retail industry has emerged together of the foremost dynamic and fast-paced industries thanks
to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic
Product (GDP) and around 8 per cent of the utilization . India is the world’s fifth-largest global
destination in the retail space.
● Retail businesses sell finished goods to consumers in exchange for money. Retail businesses can
include grocery, drug, department and convenient stores.
● Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the
entry of several new players.
● The retail sector in India is emerging as one of the largest sectors in the economy.
● The total market size of the Indian retail industry reached US$ 672 billion in 2017.It is forecasted to
increase to US$ 1,200 billion by 2021 and 1,750 billion by 2026.
● India will become a favourable marketplace for fashion retailers on the rear of an outsized young
adult consumer base, increasing disposable incomes and relaxed FDI norms
● India is ranked first within the Global Retail Development Index 2017, backed by
rising bourgeoisie and rapidly growing consumer spending.
● India's population is taking to online retail big way. India's E-commerce business will reach US$ 99
billion by 2024.
The retail revolution in India can be explained in four stages as below:
Table 1: Phases of Retail Evolution in India
NO PHASE YEAR SIGNIFICANCE
1 Initiation Pre 1990 It was essentially dominated by manufacturers

establishing their presence in retail.
2 Conceptualization 1990 - 2005 This time around it was not the manufacturer
looking for an alternative sales channel, but pureplay
retailers who entered the retail market, to expand
pan-India.
6
3 Retail Expansion 2005-2010 This is perhaps the most active phase of the Indian
retail industry in terms of growth, entry of new
players and development of new formats
4 Consolidation and Growth 2010 Considering the challenges and competition faced by
onwards the industry at present, retail chains are likely to
focus on consolidations and growth
1.4 HISTORICAL BACKGROUND OF D MART

• Avenue Super marts was incorporated as Avenue Super marts Private Limited on May 12 2000 at
Mumbai Maharashtra as a private limited company under the Companies Act 1956. Subsequently the
name of the Company was changed to Avenue Super marts Limited due to conversion from a private
company to a public company pursuant to a special resolution passed by the Shareholders at a
rare general meeting persisted February 1 2011. Pursuant to the aforesaid change of name a fresh
certificate of incorporation was issued to the corporate by the ROC on May 3 2011.The supermarket
chain of D Mart stores is owned and operated by Avenue Super marts Ltd. (ASL). The company has its
headquarters in Mumbai. The brands D Mart D Mart Minimax D Mart Premia D Homes Dutch Harbour
etc are brands owned by ASL. D Mart is a one-stop supermarket chain that aims to offer customers a
wide range of basic home and personal products under one roof. Each D Mart store stocks home utility
products - including food toiletries beauty products garments kitchenware bed and linen home
appliances and more - available at competitive prices. The company's core objective is to
supply customers good products at great value. D Mart was started by Mr. Radhakishan Damani and his
family to address the growing needs of the Indian family. From the launch of its first store in Powai in
2002 D Mart today has a well-established presence in 154 locations across Maharashtra Gujarat Andhra
Pradesh Madhya Pradesh Karnataka Telangana Chhattisgarh NCR Tamil Nadu P unjab and Rajasthan.
In 2007 D Mart entered Gujarat with its first store in the state. In 2010 the entire store count of our
company crossed 25 stores and therefore the audited consolidated revenue crossed Rs 1000 crore mark.
In 2012 the shop count of the corporate crossed 50 stores. In 2014 the store count of our company
increased to 75 stores. In 2015 audited consolidated revenue of the corporate crossed Rs 5000 crore
mark. In 2016 the store count of our company increased to 110 and the consolidated reven ues crossed
Rs 7500 crore mark. On 30 September 2016 the company filed Draft Red Herring Prospectus and on 2
March 2017 filed Red Herring Prospectus with SEBI for raising Rs. 1870 crore. The IPO was open
through the book building route from 8 March 2017 to 10 March 2017 with Price Band of Rs 295 to Rs
299 per share. The Issue got subscribed 73.41 times leading to its Issue Price being fixed at Rs 299 per
share. The Shares got listed on BSE and NSE on 21 March 2017. The stock debuted at Rs 604.40 on
BSE which is 102.14% above issue price. On 2 February 2018 Avenue Super marts (ASL) announced
that the company has completed the acquisition of 4.35 crore equity shares of Rs 10 each fully paid -up
of Avenue E-Commerce Limited at a price of Rs 11.30 per equity share aggregating to Rs 49.21 crore.
Pursuant to this Avenue E-Commerce Limited has become a wholly-owned subsidiary of the company.
Before the acquisition of additional shares ASL held 49.21% stake in Avenue E -Commerce Limited.
Earlier ASL's Board of Directors at its meeting held on 25 January 2018 had approved acquisition of
additional 4.35 crore equity shares constituting 50.79% of the share capital of Avenue E -Commerce
Limited an Associate Company from other shareholders for total consideration of Rs 49.21 crore.
Avenue E-Commerce Limited is engaged within the business of online retail of food products and
groceries in India. The company clocked turnover of Rs 1.20 crore in 2016-17. On 7 March 2018
7
Avenue Super marts (ASL) announced that the shareholding of the company in Avenue E-Commerce
Limited has reduced from 100% to 99.66% pursuant to the allotment of shares on preferential basis by
Avenue E-Commerce Limited to ASL and other applicants of the difficulty .
• On 17 February 2020, Radhakishan Damani, the founder of D Mart and Avenue Supermarts Limited
(ASL), became the second richest person in the Indian subcontinent with a net worth of USD 17.8
billion, second only to Mukesh Ambani, the richest person in Asia with a net worth of USD 57.4
billion.1 He moved ahead of Shiv Nadar (USD 16.5 billion), Uday Kotak (USD 14.9 billion), Gautam
Adani (USD 14.1 billion), and Lakshmi Mittal (USD 12.1 billion), when the share price of ASL, the
firm that owns D Mart supermarket chain, surged 730 per cent from its initial public issue in 2017.
• D Mart earned higher revenues and net profit per square foot in comparison to the country’s leading
supermarket chains, Future Retail and Reliance Retail. D Mart, with a robust 17.8 per cent same store
sales growth (SSSG) and eight .3 per cent earnings before interest, taxes, depreciation, and
amortization (EBITDA) margin unfailingly outperformed its peers who had EBITDA margins between
2 and 5 per cent in FY 2018/19). Moreover, it was ahead of Walmart and Costco, the world’s top two
listed retailers basedon market capitalization, on various financial parameters including return on
equity, revenue, net profit, asset turnover, and inventory turnover
1.5 Growth Milestones of D Mart:
• Since the time R. K. Damani was an investor, he liked the consumer business and was seen investing
in similar stock too! So he always had a robust affinity to start out something within the same sector
and in 1999, when retailing was faraway from reality, a minimum of in India. The early days of the
business were all about intensive learning, understanding the customer’s mindset and accordingly
creating a store layout, billing systems, gaining the confidence of vendors. Within a year, they decided
to apply the model to multiple locations as well.
• In 2007, D Mart began its expansion and went on to open various stores in Ahmedabad, Baroda,
Pune, Sangli and Solapur. Their expansion strategy followed a collective approach and was designed in
such how that they used the local vendor support.
• By 2012-13, D-Mart had soared its revenues from Rs. 260 crores in 2006-07 to Rs. 3,334 crores,
making them India’s third-largest branded chain . The beauty here was that, what Future Group with
1000 stores was clocking (turnover of Rs.14,201 crores), and Reliance Retail was clocking (Rs.10,800
crores) with 1450 stores; D Mart was achieving with just 65 stores, which weren’t pan India. Their
sales per store was somewhere on the brink of Rs. 53 crores, while Reliance was making around Rs.
7.45 crores per store. In just a span of 13 years, D Mart had also managed to achieve profitability
around 2.5 %. ·
• By 2014, they had reached to account for 73 stores across Maharashtra, Gujarat, Hyderabad and
Bangalore. The company has been growing robustly despite a slowing economy and were also crossing
the Rs. 100-crore mark in profits. At a time when other retailers were finding ways to chop costs
or hamper , D Mart was on an expansion drive to open more supermarkets.
• Moving on to 2015, with revenues worth Rs. 6450 crores, D Mart booked a profit of Rs. 211 crores in
8
FY14-15, which was above Reliance Retail’s Rs. 159 crores and Future Retail’s Rs. 153 crores.
Avinash Pawar and B. V. Sangvikar NIDA International Conference for Case Studies on Development
Administration 2019 (NIDA-ICCS 2019) 6 ·
• D Mart now accounts 91 stores spread across 26 cities including states of Maharashtra, Gujarat,
Telangana, Andhra Pradesh, Madhya Pradesh and Karnataka. Since its initiation, D Mart became the
first retailer to cross the billion dollar market profitably and D Mart’s target audience being the middle
income group, it uses discount offers as a promotional tool for attracting the customers and increasing
sales as well.
1.6 D Mart - Business Model & Supply chain Model
The business model lies at the core of a successful company. A good, foolproof business model not
only acts as a pillar for a business to grow but also helps it prosper during a comparatively less
amount of your time .
D Mart, often termed because the Walmart of India, has been quite successful in its business thus far ,
and a serious credit goes to the robust business model it's developed over the years.
The chain of D Mart operates on a B2C (Business to Consumer) model during which the
corporate sells its goods from the manufacturer’s house thereto of the end-user. D Mart sells a
wide range of products ranging from home care and personal care to grocery and staples, daily
essentials, home appliances, footwear, luggage, fruits and vegetables, men’s and women’s apparel, and
more. These goods, as we all know, fulfill our everyday needs, and hence, have a big demand
throughout the year. Therefore, they wipe out the possibilities of fluctuations due to high demand and
helps the brand get the stability that many others dream about.
D Mart is recognized for its thrifty cost structure that has made the company keep its losses under
control. Here are some prominent characteristics of D Mart’s business model:
Low operational costs and fewer expenses
D Mart believes in the effective utilization of the spaces instead of adorning its interiors and shelves
fancifully. The company works in launching more and more products in fewer spaces for the
purchasers to settle on from, which may even be summed up as a low-interior-cost concept to reduce
the operational costs. Besides, once you walk into a D Mart store you'd also find lesser billing counters,
which further works in reducing employee costs.
Ownership model
Damani, the company’s founder, had decided quite early in the game to adopt a store-ownership model.
This played a major part in making D Mart a low or no debt company, thereby strengthening it
financially. Furthermore, the company doesn’t accrue any rental costs, which helps D Mart open more
stores and gain high positive cash flows. The company owns around 80% of all the stores that it is
credited for.
Affordable rates of products

9
It is usually observed that within the FMCG sector, the retailers pay off the credit to their vendors
within a period of three weeks whereas D Mart pays off their credit within a week. This helps the
corporate benefit in some ways including the large discounts that they get from the vendors,
which successively is entirely rewarding for the end-users too.
Affordable rate of products with plenty of discounts on various products results in increasing the
general footfall and spike up the sales volume. This increasing sale also helps the manufacturers
to believe the brand and convey in additional stocks for the rising demand, which extends another
volume discount from the manufacturers' end.
Also Read: The Complete Psychology behind Free Samples & How it Works
Slotting fee
D Mart levies a ‘Slotting Fee’. As the term might indicate, it is a fee that D Mart charges from the
manufacturers to store their products on the shelves of D Mart stores, which is also sometimes referred
to as an entry fee. D Mart, on the other hand, with its appealing marketing strategies and attractive discounts
ensures that the products are sold out as quickly as possible.
Sales channel
As discussed earlier, D Mart opts for a B2C (Business to Consumer) business model, where the company
sells the products directly from manufacturers to the end-consumer. The company purchases its goods in
bulk and this eliminates the middleman (distributors and wholesalers) from the chain, which helps in passing
their commissions as discounts to the consumers.
Target customers
D Mart’s target customers are the middle-class groups and lower-middle-class groups, those who often want
to buy low-cost goods that come with hefty discounts but are of good quality. This makes D Mart attract an
extensive customer base than many other retailers.
Regional Goods
A land of diversity, India nurtures an array of region-specific goods. This gave D Mart an amazing
opportunity to capture the niche markets with products specific to different regions. D Mart researches the
popular local brands of a particular region and makes them available, thereby avoiding people’s need to go
to the local Kirana stores. This has helped D Mart to gain more market share.
Operating strategy
Contrary to their peers and rivals, D Mart has always stuck to their own stores and deliberately avoided the
malls, which might have otherwise risked the overall sales of the company and increased the expenditure.
Besides, the company is also not very comfortable expanding geographically. The company had its stores
only in 4 Indian states until 2014, which only expanded in recent years to 11 states. One another thing is that
D Mart attracts low marketing costs because the main marketing strategy of D Mart is that the company is
recognized among its end-users via “word of mouth”.
Marketing Strategy of D Mart
10
D Mart is a company that doesn’t believe in marketing aggressively unlike many of its competitors. The
company maintains a marketing mix where its Unique Selling Position (USP) lies in offering the products at
less than Maximum Retail Price (MRP). This is the most important factor that contributes to keeping the
company ahead of its peers.
What D Mart indulges in is aggressive CSR activities and other low-cost promotional activities. One of the
most promising campaigns is:
Better School, Brighter Futures!
D Mart is a company that takes pride in the laudable CSR initiatives that it takes. Over the years, the
company has grown to be a huge support for its employees and other communities alike with the help of its
socially responsible business practices. This undoubtedly spreads positive vibes all around.
In its “Better School, Bright Futures!” campaign, D Mart has launched an amazing program in various
schools that are there in and around Mumbai. The sole aim of which helps students understand things
better and create an ecosystem that allows them to benefit from better education, mentoring research
facilities, and new networking opportunities.
Embracing Low-Cost Advertising Mediums for Promotion
D Mart looks up to visual and print mediums to promote its brand name and products. The print medium of
advertising revolves around newspaper ads with information about their products, discounts, sales, and
coupons.
On the other hand, the visual component of advertisement comprises the banners, flexes, and hoardings that
are put to display in locations near the stores to mention the product-specific offers, seasonal discounts, and
other freebies that the company offers from time to time.
Digital Presence of D Mart
D Mart was founded back in 2002 and boasts of an enviable offline presence but when it comes to digital
presence it bothered little about it to be true. However, the company has taken a few steps to place it ahead
on the digital front. These steps include the installation of a chatbot on Facebook Messenger and the launch
D Mart Ready.
As of now, D Mart uses Facebook as a medium for information, which the brand uses to inform and clear
customers’ doubts. The company is yet to explore Instagram and Twitter fully, the proper utilization in the
upcoming times will surely help the company set itself more stable in the future.
Factors Affecting the Profit of D Mart
Damani is a calm man who stays under the radar, yet his triumphant characteristics are too obvious to
possibly be missed. The following are his ways to deal with a business that drove him to thundering
achievement:
Design of Logo
Like Warren Buffett, Damani too has been a worth speculator who might take a shrewd perspective on the
long haul. When he turned into a business person, he held a similar methodology and manufactured D Mart
without depending on any speedy alternate ways. For example, he never rents the property for his stores
11
however gets it. In the long haul, it spares him from a major rental outgo. This was a key factor behind the
productivity of D Mart.
What Is Trifle That's Important
Damani began little and did not rush to grow. Low scale gave him superior control of the store network and
enabled him to concentrate on benefits directly from the earliest starting point. In the 18 years of its reality,
D Mart has turned a benefit every year.
Evaluation Of People
Damani started with purchasing an establishment of Apna Bazar. That was the point at which he started
fabricating individual relations with merchants and providers. He esteems both and they never let him down.
The stores never leave stock.
Selling As Cheap
Damani realized what he was doing: offering individuals buyer results of everyday use at substantial limits.
That turned into his sole objective. One of his strategies was to pay his providers and sellers inside days
rather than weeks which was the business standard. They gave the merchandise at a less expensive rate to
him in lieu of early installment. He passed on the money-saving advantages to his clients, which guaranteed
steady success.
Go Steady and Slow
In spite of the fact that D-Mart began 18 years prior, despite everything it has 119 stores in a couple of
states, a modest number contrasted with those claimed by Ambani and Biyani. Rather than fast development,
Damani received a moderate pace which gave him his emphasis on productivity. That is the reason D-Mart
has not closed a solitary store since it began and creates higher per-store incomes than the stores of Ambani
or Biyani.
Neglect the Herd
Damani had learned and drilled with the progress the craft of not following the crowd while he was a
financial specialist. As a business person, he has a similar methodology. There have been such a large
number of brand new thoughts in retail, for example, different online business patterns, which he didn't give
any significance. Designs or patterns can't impact the man who realizes what he needs and how he can get it.
Available Locally
Despite the fact that D Mart is the best basic food item retail chain in the nation, Damani has restricted it
towards the western states. One reason is his dependence on neighbourhood supplies rather than expand
supply chains.
A Job Has Conversation
Damani stays under the radar which bears him all-out devotion to his work. His moderate and quiet ascent in
a discouraged division is a sign of his resolute spotlight on work. He has once in a while given a meeting to a
TV channel or a paper.
12
Growth of D Mart in India
Avenue Supermarts running the D Mart chain of stores in the nation revealed a 21.4 % year-on-year net
benefit development and a 32.1 % year-on-year income development for the quarter finished March 31,
2019, (Q4) at Rs 203 crore and Rs 5,033 crore, separately.
For the three months finished December 31, 2018, D Mart had announced its slowest net benefit
development in eight quarters at 2.1 % as it pondered developing challenges in basic food item retail.
Second from last quarter income development came in at 33 % (year-on-year), which is likewise a merry
quarter, said experts, suggesting the organization had figured out how to keep up its pace of development as
far as the top line in Q4 in the midst of focused power. The numbers were comprehensively in accordance
with Street gauges. A survey by investigators of Bloomberg had pegged net benefit at Rs 211 crore and
income at Rs 5,122 crore for the quarter under audit.
Income before intrigue, duty, deterioration, and amortization (EBITDA) for Q4 was at Rs 377 crore, up 27.9
% throughout the year-prior period and again extensively in accordance with Street assessments of Rs 395
crore. Yet, EBITDA edges contracted for the third straight quarter, however, the drop was negligible at 20
premise focuses to 7.5 % from a year sooner.
This is additionally the most reduced as far as EBITDA edges for D Mart in 75%. While the organization did
not indicate same-store deals development for Q4, examiners said it was somewhere in the range of 15 and
18 % for the period under audit.
Same-store deals development is the development of a similar deal of stores for one year or more. For the
entire year finished March 31, 2019, (FY19), Neville Noronha, overseeing executive (MD) and (CEO),
Avenue Super marts, said same-store deals development was 17.8 % even as income grew 32 % year-on-
year to Rs 19,916 crore and net benefit went up 19 % from a year sooner to Rs 936 crore.
The FY19 same-store deals development was higher than the 14.2 % revealed for FY18, division examiners
stated, as the firm drove higher deals throughput at its stores. Income from deals per square feet at D Mart
stores remained at Rs 35,647 for FY19 against Rs 32,719 in FY18, an ascent of about 9 %. The organization
additionally included 21 stores in FY19, of which 12 were included in Q4 alone, taking the aggregate to 176
for the monetary year.
Future of D Mart
Avenue Supermarts runs the D Mart grocery store chain of stores. If in any case, the nation experiences a
crisis, financial specialists question whether the organization shows enough strength during these intense
occasions. But examiners in a note from Systematic Shares and Stocks (India) Ltd. said, " The continuous
crisis in utilization and higher aggressive force in staple retail should confine development in determining
deals per square feet to 7% in the financial year 2020 from 13% in FY19."
While speculators will intently follow how that works out in the coming quarters, Avenue Supermarts'
income development of almost 27% in the June quarter is nothing to get surprised at. Obviously, it should
likewise be referenced at the same time that high development rates are a basic for the D Mart share, which
is one of the most costly stocks in the nation.
It currently exchanges at amazing multiple times evaluated income for FY20. FY20 has begun an idealistic
note for the organization. The development in EBITDA (income before premium, assessment, deterioration,
13
and amortization) edge in the June quarter will mitigate financial specialists' uneasiness about weights on
productivity somewhat.
CHAPTER 2. RESEARCH METHODOLOGY
2.1 Definition of Research
“Research is any organized inquiry designed and carried out to provide information for solving problem”
“Research is defined as the creation of new knowledge and/or the use of existing knowledge in a new
and creative way so as to generate new concepts, methodologies and understandings. This could include
synthesis and analysis of previous research to the extent that it leads to new and creative outcomes”
2.2 Types of Research
1) Basic Research
Basic research, also called pure research or fundamental research, is a type of scientific research with
the aim of improving scientific theories for better understanding and prediction of natural or other
phenomena. In contrast, applied research uses scientific theories to develop technology or techniques
which can be used to intervene and alter natural or other phenomena. Though often driven simply by
curiosity, basic research often fuels the technological innovations of applied science. The two aims are
often practiced simultaneously in coordinated research and development. Basic research advances
fundamental knowledge about the world. It focuses on creating and refuting or supporting theories that
explain observed phenomena. Pure research is the source of most new scientific ideas and ways of
thinking about the world. It can be exploratory, descriptive, or explanatory; however, explanatory
research is the most common. Basic research generates new ideas, principles, and theories, which may
not be immediately utilized but not the less form the basis of progress and development in different
fields. Today's computers, for example, could not exist without research in pure mathematics conducted
over a century ago, for which there was no known practical application at the time. Basic research rarely
helps practitioners directly with their everyday concerns.
2) Applied Research
Applied research is the practical application of science. It accesses and uses accumulated theories,
knowledge, methods, and techniques, for a specific, state- , business-, or client-driven purpose. Applied
research is contrasted with pure research (basic research) in discussion about research ideals,
methodologies, programs, and projects. Applied research usually has specific commercial objectives
related to products, procedures, or services. The comparison of pure research and applied research
provides a basic framework and direction for businesses to follow. Applied research deals with solving
practical problems and generally employs empirical methodologies. Because applied research resides in
the messy real world, strict research protocols may need to be relaxed. For example, it may be
impossible to use a random sample. Thus, transparency in the methodology is crucial. Implications for
interpretation of results brought about by relaxing an otherwise strict canon of methodology should also
be considered. Since applied research has a provisional close-to-the-problem and close-to-thedata
orientation, it may also use a more provisional conceptual framework such as working hypotheses or
pillar questions. The OECD's Frascati Manual describes applied research as one of the three forms of
research, along with basic research & experimental development.
3) Descriptive Research
14
Descriptive research is used to describe characteristics of a population or phenomenon being studied. It

does not answer questions about how/when/why the characteristics occurred. Rather it addresses the
"what" question (what are the characteristics of the population or situation being studied?). The
characteristics used to describe the situation or population are usually some kind of categorical scheme
also known as descriptive categories. For example, the periodic table categorizes the elements. Scientists
use knowledge about the nature of electrons, protons and neutrons to devise this categorical scheme. We
now take for granted the periodic table, yet it took descriptive research to devise it. Descriptive research
generally precedes explanatory research. For example, over time the periodic table's description of the
elements allowed scientists to explain chemical reaction and make sound prediction when elements were
combined. Hence, descriptive research cannot describe what caused a situation. Thus, descriptive
research cannot be used as the basis of a causal relationship, where one variable affects another. In other
words, descriptive research can be said to have a low requirement for internal validity.
4) Analytical Research
Analytical research is a specific type of research that involves critical thinking skills and the evaluation
of facts and information relative to the research being conducted. A variety of people including students,
doctors and psychologists use analytical research during studies to find the most relevant information.
From analytical research, a person finds out critical details to add new ideas to the material being
produced. Research of any type is a method to discover information. Within analytical research articles,
data and other important facts that pertain to a project is compiled; after the information is collected and
evaluated, the sources are used to prove a hypothesis or support an idea. Using critical thinking skills (a
method of thinking that involves identifying a claim or assumption and deciding if it is true or false) a
person is able to effectively pull-out small details to form greater assumptions about the material. Some
researchers conduct analytical research to find supporting evidence to current research being done in
order to make the work more reliable. Other researchers conduct analytical research to form new ideas
about the topic being studied. Analytical research is conducted in a variety of ways including literary
research, public opinion, scientific trials and Meta-analysis.
5) Empirical Research
Empirical research is research using empirical evidence. It is also a way of gaining knowledge by means
of direct and indirect observation or experience. Empiricism values some research more than other
kinds. Empirical evidence (the record of one's direct observations or experiences) can be analyzed
quantitatively or qualitatively. Quantifying the evidence or making sense of it in qualitative form, a
researcher can answer empirical questions, which should be clearly defined and answerable with the
evidence collected (usually called data). Research design varies by field and by the question being
investigated. Many researchers combine qualitative and quantitative forms of analysis to better answer
questions which cannot be studied in laboratory settings, particularly in the social sciences and in
education
6) Qualitative Research
Qualitative research relies on data obtained by the researcher from firsthand observation, interviews,
questionnaires, focus groups, participant-observation, recordings made in natural settings, documents,
and artifacts. The data are generally numerical. Qualitative methods include ethnography, grounded
theory, discourse analysis, and interpretative phenomenological analysis. Qualitative research methods
have been used in sociology, anthropology, political science, psychology, social work, and educational
research. Qualitative researchers study individuals' understanding of their social reality.
7) Quantitative Research
15
Quantitative research is a research strategy that focuses on quantifying the collection and analysis of
data. It is formed from a deductive approach where emphasis is placed on the testing of theory, shaped
by empiricist and positivist philosophies. The objective of quantitative research is to develop and
employ mathematical models, theories, and hypotheses pertaining to phenomena. The process of
measurement is central to quantitative research because it provides the fundamental connection between
empirical observation and mathematical expression of quantitative relationships Quantitative data is any
data that is in numerical form such as statistics, percentages, etc. The researcher analyses the data with
the help of statistics and hopes the numbers will yield an unbiased result that can be generalized to some
larger population. Qualitative research, on the other hand, inquires deeply into specific experiences, with
the intention of describing and exploring meaning through text, narrative, or visual-based data, by
developing themes exclusive to that set of participants.
8) Historical Research
Historical research is a qualitative technique. Historical research studies the meaning of past events in an
attempt to interpret the facts and explain the cause of events, and their effect in the present events. In
doing so, researchers rely heavily on primary historical data (direct accounts of events, archival data -
official documents, personal records, and records of eyewitnesses) and less frequently on secondary
historical data (information from persons who didn’t witness the event; example, textbooks, newspapers,
encyclopedias)
9) Scientific Research
Scientific research is a systematic way of gathering data and harnessing curiosity. This research
provides scientific information and theories for the explanation of the nature and the properties of the
world. It makes practical applications possible. Scientific research is funded by public authorities, by
charitable organizations and by private groups, including many companies. Scientific research can be
subdivided into different classifications according to their academic and application disciplines.
Scientific research is a widely used criterion for judging the standing of an academic institution, but
some argue that such is an inaccurate assessment of the institution, because the quality of research does
not tell about the quality of teaching (these do not necessarily correlate).
10) Field Research

Field research, field studies, or fieldwork is the collection of raw data outside a laboratory, library, or
workplace setting. The approaches and methods used in field research vary across disciplines. For
example, biologists who conduct field research may simply observe animals interacting with their
environments, whereas social scientists conducting field research may interview or observe people in
their natural environments to learn their languages, folklore, and social structures. Field research
involves a range of well-defined, although variable, methods: informal interviews, direct observation,
participation in the life of the group, collective discussions, analyses of personal documents produced
within the group, self-analysis, results from activities undertaken off- or on-line, and life.
2.3 OBJECTIVES OF STUDY

• To analyse the customer satisfaction towards the products sold by D-Mart.
• To analyse the satisfaction level of customer experience while shopping at D-mart.
• To find the factors influencing purchasing behaviour with respect to D-Mart
• To study which income level group people are purchasing more from D-marts.
• To analyse buying behaviour of consumers of D-mart stores in Mumbai Cities.
• To know the customers shopping habits.
16
• To find out the consumer perception of D-Mart services.

• To find out the effect of D-Mart on competitor’s business.
D Mart do research, identify and make available new products and categories that suit the everyday needs
of the Indian family.
Their mission is to provide the best value possible for customers, so that every rupee they spend on
shopping with D mart gives them more value for money than they would get anywhere else.
2.4 NEED FOR THE STUDY

India is having a huge customer base having different choices and behaviour. To satisfy their need is a
different task.
To advise this Indian retail has changed Kirana to retail outlets and has become the need in India. Different
retail outlets are offering different schemes and promotional strategies.
Thus, a study is being conducted to know the effective marketing strategies needed to attract new as well as
retaining customers.
2.5 CUSTOMER SERVICE PLEDGE
D Mart place strong emphasis on excellence in customer service. Their employees believe in the values of
Action, Care and Truth (ACT) to get the job done, with Dedication and Determination. D mart strongly
believe that honesty and sincerity are critical in achieving complete customer satisfaction. They welcome
individuals who share our values and believe in leading by action.
ACTION
Focus: To be focused about what I do.
Motivated: To be clear of achieving my goal.
Enthusiastic: To love what I do.
CARE
Respect: To respect every individual in the organisation and provide her/him with the dignity and attention
to make her/him believe that she/he makes a difference to the organisation.
Listen: To listen and resolve any employee / customer grievance quickly and fairly.
TRUTH
Integrity: By being open, honest and fair in all our relationships and being respectful and trustful to others.
2.6 Data Collection
2.6.1 Definition
“Data Collection refers to the collection of data for the purpose of research”
Data collection is the process of gathering and measuring information on variables of interest, in an
established systematic fashion that enables one to answer stated research questions, test hypotheses, and
evaluate outcomes.
17
Data collection is defined as the procedure of collecting, measuring and analyzing accurate insights for
research using standard validated techniques. ... In most cases, data collection is the primary and most
important step for research, irrespective of the field of research.
2.7 Types of Data Collection
2.7.1 Primary Data
It refers to first-hand information which is collected to solve specific problem. The primary data provides
accurate data as it is collected first hand. The researcher can obtain in depth information.
2.7.2 Features of Primary Data

❖ First Hand Information
It is collected directly from the respondents. For example, the college may take up primary data collection
source from their students to study the facilities provided by them. The college may collect the data through
survey and or interview. The data collected through this source is original and more specific.
❖ Time Consuming
This type of data collection is a time consuming and a lengthy process. It involves:
• Deciding the types and size of respondents.
• Scheduling the survey/ interview
• Gathering the responses
• Data analysis and interpretation, etc.
❖ Expensive
Primary data collection is an expensive affair; as it involves:
• Training the research staff
• Preparation of questionnaire
• Printing of questionnaire, etc
❖ Paper Work
Primary data collection involves a lot of paper work in respect of:
• Preparation of questionnaire
• Coding and tabulation of data
• Analysis of data, etc.
❖ Types/ Methods
There are various methods of collecting primary data, such as:
• Survey method
18
• Observation method
• Experimental method
❖ Availability
The primary data is not available but needs to be gathered by the researcher with the help of his research
staff. The researcher has to spend a lot of time, effort and money to collect data from primary sources. The
primary data sources supplement the secondary data.
❖ Reliability
The primary data is reliable. The researcher can check the reliability of the data. It is collected first hand.
Latest data is collected from the respondents.
❖ Accuracy
The data collected from primary sources is more accurate. The researcher can check the accuracy of data at
the time of interviews. He can check the accuracy by cross questioning the respondents, whenever required.
2.7.3 Secondary Data

The secondary data is collected from readily available sources such as published journals, magazines,
newspaper, books, directories etc. The secondary data can be collected at a quicker pace as compared to
primary data. The cost of collecting secondary data is comparatively low as compared to that of primary
data. However, the secondary data is less accurate and less reliable and therefore may affect the quality of
decision making.
2.7.4 Features of Secondary Data

❖ Recorded Data
Secondary data is collected from recorded and published or unpublished paper source. The data has
already been collected by somebody for some purposes other than the project on hand.
❖ Easy to collect
The data is readily available and hence easy to collect in the most economical way. The researcher
needs to put less efforts to collect secondary data as compared to primary data.
❖ Quantitative Data
Secondary data is called quantitative data. It can be used for substantiating the primary data.
❖ Comprehensive
Secondary data is available on every subject and even in those subjects where collection of primary
data is difficult. It can supply volume of large data.
❖ Sources
Secondary data may be collected from primary source or secondary source. For example, the
government conducts primary census survey and its report is called census report. Newspaper and
magazines may publish a part of this report which is called secondary source. The researcher may go
through the census report which is the primary source.
❖ Relevance
Secondary data is a readymade information which is meant for general purpose. The researcher must
evaluate the secondary data with reference to its accuracy, relevancy and reliability.
19
❖ Availability
Secondary data is available internally (from the company’s own record, accounts, etc.) or externally
(books, magazines, published reports, etc.)
❖ Less time consuming and less expensive

Secondary data requires less time to collect the data as compared to primary as it is readily available.
Secondly, it is less expensive because there is no need to conduct surveys or other methods of
primary data collection.
2.8 Scope of study
Since the study is on D mart shopping the detail study of the D mart is been conducted about its customers
and their behaviour regarding shopping in D mart.
Based on the topic objectives were set and to arrive at the opinion on objectives a set of questionnaire were
designed of 15 questions and responses is collected from the customers who are visiting the D mart.
2.9 Limitations of study
The research is conducted on a sample size, so it might be possible that the information given by such
respondents may not match with replay of total customer of the D-Mart.
• The study was restricted to only the customers of D-Mart.

• The result and analysis based on the customer survey method and small sample size has taken
only 100.
• Findings are related to particular area.
• It might be possible that the answers given by the respondents are of biasness.
2.10 Hypothesis
2.10.1 Definition
Webster’s Dictionary defines Hypothesis as

“An unproved theory, proposition, supposition, etc., tentatively accepted to explain certain facts or to
provide a basis for further investigation, argument etc.”
H0: Customers are satisfied with the services of D mart.
H1: Customers are not satisfied with the services of D mart.
2.11 Selection of problem
To study the Satisfaction level of customers.

To know the consumer behaviour
To study the problems faced by customers of D mart.
CHAPTER 3. SWOT ANALYSIS
20
Strengths:
✓ High brand equity enjoyed by D-Mart.
✓ State of the art infrastructure.
✓ A vast variety of stuff available under one roof.
✓ Everyday low prices, which attract customers.
✓ Maximum percent of footfalls converted in sales.
✓ Huge investment capacity.
✓ Biggest value retail chain in India
✓ It offers a family shopping experience, where entire family can visit together.
✓ Available facilities such as online booking and delivery of goods
Weakness:
✓ Unable to meet store opening targets on time

✓ Falling revenue per square ft
✓ General perception: Low price = Low quality
✓ Overcrowded during offers
✓ Long lines at billing counters which are time consuming
Opportunity:
✓ A lot of scope in Indian organized retail as it stands at approximately 4%
✓ Increasing mall culture in India.
✓ More people these days prefer to visit big stores where they can find large variety under one roof
Threats:
✓ Competition from other value retail chains such as Shoprite, Reliance (Fresh and trends), Hypercity
and big bazar.
✓ Unorganized retail also appears to be a threat to D mart business.
✓ A large population still prefers to visit local convenient stores for daily purchases
✓ Changing Government policies
✓ International players looking to foray India
21
CHAPTER 4. STRATEGIC AND ORGANISATIONAL STRUCTURE OF DMART.
The ultimate start with D Mart needs to make a picture among the majority of a rebate store that offers the
vast majority of the items from over every single real brand. Fundamentally, a store that offers an incentive
for cash! Presently, since individuals for the most part come to D Mart on the grounds that they all what they
need under one rooftop; consequently, D Mart stores are operational in high rush hour gridlock territories
and crosswise over three organizations including Hypermarkets that are spread crosswise over 30,000-
35,000 square ft, Express group, that is spread more than 7,000-10,000 square ft and in conclusion, the
Super Centres, that are set up at more than 1 lakh square ft.
What's more, D mart's intended interest group being the centre pay gathering, it uses Discount offers as a
deals too special instrument for baiting the clients and expanding.
Generally speaking – D mart's prosperity is centred around three things: Customers, Vendors,
and Employees! Take Customers. Since D mart is focusing on centre salary family units, every one of their
stores is in, or near, neighbourhoods and not in shopping centres.
Their thought isn't to meet each customer's need like different contenders, yet rather, D mart tries to meet
most normal shopper needs, while offering some benefit for their cash. Furthermore, since, 90% of these
stores are possessed legitimately by D mart, they don't need to stress over month-to-month rentals and their
ascent, or migration chance. Moreover, this is helping them manufacture resources on their books.
This likewise keeps D mart all around promoted and obligation light, while its tasks produce extra money.
All the cash that is spared utilizing this procedure is at the end offered back to the clients as limits! Sellers!
Seller connections are the second mainstay of their model. Since he originates from a dealer foundation, his
seller connections have been his greatest quality
22
The FMCG business has an installment standard of 12-21 days, however, D mart pays its sellers on the
eleventh day itself. This causes him to remain in the great books of the merchants and dodges stockouts.
Furthermore, since D mart purchases in mass and pays its sellers well in time, they additionally get the
chance to win higher edges. Essentially, their procedure is to "Get it low, Stack it high and sell it
shabby"! Workers! This is the third mainstay of their model. D Mart offers great cash, adaptability,
strengthening, and loose and effective work culture.
They even proceed to employ tenth standard dropouts with the correct frame of mind and duty. They incline
toward procuring crude ability and afterward put intensely in preparing, to shape them according to their
prerequisite. Representatives are simply educated once concerning the worth framework and arrangements at
D-Mart and after that are enabled by giving them the opportunity to work without someone continually
investigating their shoulders. There is outright lucidity on what should be accomplished, yet you don't have
to dread targets.
A fairly large store size allows D-Mart to offer a greater variety of products to customers. And coupled with
the cheap prices on offer, people might be tempted to pick up stuff that's not on their “list”. When they spend
more, D-Mart wins. But D-Mart is now buying bigger retail stores. Although expansion and growth of self-
owned stores may be slow, it has its own advantages. Almost 80% of D-mart stores are self-owned. With
a wide variety of low-cost prices, customers are tempted to buy more goods at discounted prices. Ignatius
Noronha, CEO of Avenue Supermarkets Ltd, which runs D-Mart retail stores, joins the billionaires list as
the company's shares have risen 113 percent this year
The chain of D-Mart operates on a B2C (Business to Consumer) model in which the company sells its
goods from the manufacturer's house to that of the end-user. D-Mart follows “Everyday low cost –
Everyday low price” model. It has established itself as a lowest-priced retailer network across India. It
ensures that they get the product for the best price and is directly given to the end-user which further helps
them save a lot of money given as commission to these middlemen. Unlike most of the retail stores, D-Mart
23
pays their suppliers within just 10 days instead of the usual 60 days. D-Mart is able to sell its inventory
quickly and restock it. This cycle attracts manufacturers who extend additional volume discount, thereby
reducing purchasing price for D-Mart. Unlike other retailers, D-mart pays their debt very quickly to their
suppliers, as a result, the supplier gives them a good cash discount. D-mart charges a slotting fee to the
company for keeping their products on the shelf of D-mart. One of the major reasons for D mart's dedicated
customer base is its low prices for Indian households. For instance, there is a minimum of a 3% discount on
every product off its shelf if you buy it from D-mart. Ultimately, the store décor of D mart is simple, even
for the ones situated in urban localities like Mumbai.
D-Mart uses both visuals and print advertisements to promote its name. The visual component consists of
hoardings that are displayed in major locations of stores announcing specific product offers. It also uses
newspaper ads that contain information about sales and coupons.
CHAPTER 5. LITERATURE REVIEW
This chapter enumerates and attempts to review important research efforts previously undertaken to
understand the dynamics of customer satisfaction and behaviour of D mart. Review of literature helps a
researcher to get acquainted with his/her selected research problem and also may provide some guidelines in
selecting a proper research methodology. It is also helpful in finding out the research gaps in the existing
literature. This will help the researcher in fine-tuning his/her research problem and methodology. Another
advantage of reviewing in the existing literature is that in cases where the research problems are similar, the
conclusions and findings may be easily compared. This will help the researcher in determining whether
his/her findings are possible or not. The literature under review may be of two types: (i) The concern the
conceptual and theoretical framework. (ii) The empirical literature dealing with the studies made in the past
which are similar to the one that the researcher intended to undertake. The basic outcomes of such review
will be the knowledge as to what data are available for analytical purposes, which will help the researcher to
specify his/her own research problem in a more meaningful way. Thus, review of literature is helpful in
formulating the research problem and also helps the researcher in deciding about the most appropriate
methodology to be used. While comparing the results of the earlier studies with his/her own results, care
must be taken to verify whether the objectives and methodology are similar.
Broadly, Literature review has been done on empirical studies in books, journals, printed paper, etc these
area unit mentioned well within the following paragraphs of this chapter. The purpose of this Literature
review is to provide a theoretical framework on the “D-mart and its customer behaviour”.
1. Kotler and Armstrong (2012) define retailing as all the activities for selling goods or services
directly to ultimate buyers for their personal, non-business use.
2. According to Amit & Kameshvari, (2012), the origin of word “retail‟ comes from the French
„retailer‟, that means „to cut a piece off‟ or „to break bulk‟. In other words, it shows a first hand-
transaction with the customer The retailer is a person or agent or agency or company or organization
who sends the products or services to the ultimate consumer Thus, the customer and the fullfilment of
customer desires and needs which are the key points of retailing are the retailing focus.
3. According to Tiwari, (2009), Retailing is as old as exchange. Retailing is one of the oldest
businesses in the world and was practiced in prehistoric times. Earlier it was the exchange of food and
traditional weapon which followed the emergence of traders and peddlers. The day barter has been
replaced by exchange through money (in any form) the retailing came into existence A few centuries
ago, in the 16th and 17th centuries, some retail chains in some European cities were known. However,
the beginning of retailing development is acknowledged to be at the end of the 19th century and early
of the 20th century. At the beginning, retailers dominated with any merchandise. Later, retailers
24
specializing in the market began to gain momentum. Last few years, there are very large stores, but
again selling every kind of merchandise. In countries that have developed retailing, competition has
reached high levels and has again started focusing on specialized stores.
4. According to Hansemark & Albinsson (2004), “satisfaction is an overall attitude towards a product
provider or an emotional reaction to the difference between what customers expect and what they
actually receive regarding the fulfilment of a need”. Kotler (2000) also define satisfaction as a
person’s feelings of pleasure, excitement, delight or disappointment which results from comparing a
products perceived performance to his or her expectations.
5. Nair Suja (2008) in her book ‗Retail Management has tried to explain the growth of retailing in
Indian context especially in the context of new economic policy, global economic development,
changes in the marketing and economic system as well as changing pattern and classification of
economic activity.
6. Hamilton Ryan (2009) in their research paper majorly focused on the important decision that
retailers always involve in selecting the number of items constituting their assortments. A key issue in
making these decisions is the role of assortment size in determining consumers choice of a retailer.
The authors address this issue by investigating how consumer choice among retailers offering
various-sized assortments is influenced by the attractiveness of the options constituting these
assortments. The data show that consumer preference for retailers offering larger assortments tends to
decrease as the attractiveness of the options in their assortments increases and can even lead to a
reversal of preferences in favour of retailers offering smaller assortments. This research further
presents evidence that the relationship between assortment size and option attractiveness is concave,
such that the marginal impact of assortment size on choice decreases as the attractiveness of the
options increases. Data from eight empirical studies offer converging evidence in support of the
theoretical predictions.
7. Krishnaveni (2006) identified that the most important paradigm which is associated with promotion
of loyalty among consumers is the attribute of quality. Present generation invest more on the basic
factors such as books, clothes, food, music and gadgets such as mobile phones.
8. Kuruvilla and Ganguli (2008) explained that shopping develops into important aspect in the lives of
people, as they are becoming financially sound to do purchase in malls and they begin to consider the
shopping value as an important factor along with the price of the products. In 1990s the modern trend
in shopping mall concept had been introduced by ‗Spencer Plaza in Chennai and Crossroads in
Mumbai. After that, there has been a great improvement in this modern concept.
9. Dwivedi (2010) explained that when compared to major cities in India, the smaller cities seem to be a
better place for investment. This is because these cities have low priced lands, low functional and
operational expenses and greater number of available lands. He further specified and explained that
there has been a transition in the taste and purchasing priorities of the customers from Tier II and III
cities in the past ten years. He also presented the views of Ernst and Young which illustrated that there
was 26 % of growth in mall of the metropolitan cities while malls in Tier II and III cities showed fifty
five percentage of growth.
10. Bijapurkar (2008) explained that the reduction indicates the increase in the number of middle class
populations who can manage to pay for food, beverage and entertainment in addition to their basic
needs. In India a great increase in family income has been observed.
11. Feinberg, Sheffler, Meoli and Rummel (1989) considered the social stimulation provided by malls,
finding that the mall served as an outlet for social behaviour.
25
12. C S Venkata Ratnam (2007) have detailed changing consumer behaviour in retail trade in India in
his paper entitled “Changing Consumer Behaviour and Emerging Challenges to the Retail Trade In
India” The author has highlighted that sustained and rapid growth of China and India, which together
provide home to over a fifth of the humanity, are creating a tremendous surge in consumerism on a
scale which is unprecedented. Both the countries are attractive destinations for investment and
production as well as sales and marketing.
13. Fornell (1992) found in the study that customer satisfaction enhances the customer loyalty, reduce the
customer churn, decrease the costs of failed marketing, signifies the price sensitivity of customers,
create new customers, enhance the effect of advertising, lowers the cost of operations and finally
improves the reputation.
14. Hamburg and Koschate (2004) studied the role of perceived fairness and customer satisfaction on
the repurchase intention after a price increase. Their findings of the study suggested that perceived
fairness has a positive impact on the repurchase intention while satisfaction moderates this
relationship.
15. Martenson (2007) researched the effect of the corporate store image on customer satisfaction and
store loyalty in grocery retailing and deduced that the brand image of the store is an important aspect
for the customer satisfaction. If the retailers understand and address the need of the customers, the
customers are satisfied.
16. Zielke (2008) indicated that value for money, the price level and special offers are both satisfiers and
dissatisfies; price perceptibility, price process ability and price fairness tend to be dissatisfiers only;
and price advertising and products in the upper price range are indifferent requirements.
17. Fonseca (2009) by adopting a new technique and a new conceptual model of customer’s satisfaction
expressed that in order to estimate the global customer satisfaction measure; one should appeal to
methodologies recognising that satisfaction must be understood as a latent variable, quantified
through multiple indicators.
18. Sánchez-Fernández and Iniesta-Bonillo (2009) studied the relationship between consumer
satisfaction and economic value. They suggested an operational tool to measure economic value of
designing suitable strategies to create and deliver value to customers by retailers.
19. Torben et al. (2011) detected that the level of satisfaction among the customers with various retailers
cannot be understood by matching expectations with products & services, but may also be based
mental justification of the customer.
20. DR. Girish K. Nair & Harish K. Nair (2013) conclude that “the customer perception of retail
service quality is an important segment to the emerging and the existing retailers in the market. As the
study reveals that perception of service quality is influenced by the various natures among various
customers, even some of the general factors like Personal interaction, physical aspects are the
dimensions on which customer perception remains constant and common to the entire customer on a
majority basis. So, the retail outlets have to frame their own strategies in order to attract the customers
on a longer basis.
CHAPTER 6. Strategic Elements of D-Mart

1. Every Day Low Price:
26
D Mart wants to create an image amongst the masses of a discount store that offers most of the products
from across all major brands. Basically, a store that offers value for money. Now, since people mostly come
to D Mart because they all what they need under one roof, D Mart stores are operational in high traffic areas
and across three formats including Hypermarkets, that are spread across 30,000-35,000 square ft, Express
format, that is spread over 7,000-10,000 square ft and lastly, the Super Centres, that are set up at over 1 lakh
square ft.
• No matter where it operates, the prices that D Mart offers are 6-7 % lower than its competition. What
lets it achieve such pricing tactics is its operational style. · Out of the all the stores it runs, D Mart
owns majority of the properties, which helps them to save a huge chunk of money on rent.
• They also avoid opening stores inside malls unlike other hypermarkets to avoid high CAM (Common
Area Maintenance) charges and highly inflated rents. · Most D Mart stores are in the suburbs in the
metros and in tier II & tier III cities, the operational costs remain low.
• D Mart also saves a good amount of 2-3% from the suppliers by paying them upfront in about 48
hours of delivery, when all other organized retailers, buy goods on credit of 30-60 days.
• Unlike bigger retailers, costs are further kept low by keeping a basic and economical layout without
any flashy interior. Strategy and Success of D Mart: The Case of Retail Chain in India 7 National
Institute of Development Administration
• Given its size, D Mart also manages to keep its financials at check and grounded too. They have kept
their debts and a bare minimum and have also cut their advertising budgets by 30-40 % in the last
couple of years to save costs.
There is an unsaid rule in the market that, “one must not open any store within a 1km radius of D Mart,
simply because, no one can beat them on prices.” but D Mart’s cost efficiency model is practically very
difficult to replicate. One a larger scale, it is not possible for bigger chains to own stores because, it requires
huge capital expenditure, and this method is only affordable till the time you’re a small chain, which is why
D Mart is growing slowly. Using such strategies, D Mart has managed to reach profitability much before any
other peers.
A winning formula making products available at Every Day Low Price (EDLP) is D-Mart’s winning formula
in value retailing. For EDLP, the company focuses on Every Day Low Cost (EDLC).
2. Pillars of D Mart:
D Mart’s success is focused on three pillars Customers, Vendors and Employees.
i. Customers: Since D Mart is targeting middle income households, all their stores are in, or close to,
residential areas and not in malls. Their idea is not to meet every consumer need like other competitors, but
instead, D Mart aspires to meet most regular consumer needs, while providing value for their money and
since, 90% of these stores are owned directly by D Mart, they don’t have to worry about monthly rentals and
their rise, or relocation risk. Additionally, this is helping them build assets on their books. This also helps to
keep D Mart well capitalized and debt-light, while its operations generate spare cash. All the money that is
saved using this strategy is eventually offered back to the customers in the form of discounts.
ii. Vendors: The relationships with vendors are the second pillar of their model. Since he comes from a
trader background, his vendor relationships have been his biggest strength. The FMCG industry has a
payment norm of 12-21 days, but D Mart pays its vendors on 11th day itself. This helps him stay in the good
books of the vendors and avoids stock outs and since D Mart Avinash Pawar and B. V. Sangvikar NIDA
International Conference for Case Studies on Development Administration 2019 (NIDA-ICCS 2019) 8 buys
in bulk and pays its vendors well in time, they also get to earn higher margins. Basically, their strategy is to
“Buy it low, stack it high and sell it cheap”.
27
iii. Employees: It is the third pillar of their model. D Mart offers good money, flexibility, empowerment,
and relaxed & efficient work culture. They even go on to hire 10th standard dropouts with the right attitude
and commitment. They prefer hiring raw talent, and then invest heavily in training, to mold them as per their
requirement. Employees are just told once about the value system and policies at D-Mart and then are
empowered by giving them the freedom to operate without somebody constantly looking over their
shoulders. There is absolute clarity on what needs to be achieved, but you don’t need to fear targets.
3. Strategies for Success of D Mart:
A) Strategy 1:
Full Ownership of Space: Majority of the known names like Big Bazaar, Star Bazaar, Hypercity etc. have a
good number of stores located in malls which is rented space. This is done to benefit from customer footfalls
& also because the initial investment is much lesser, since good malls only give out spaces on rent which is
significant and becomes a fixed operational cost month on month. D Mart have their own properties. Over a
period of last 10 years, this strategy has made perfect sense because, now these properties have all
appreciated in value and they do not have to pay any rent, which is usually the most major cost factor for a
retailer which resulted in higher margins.
B) Strategy 2:
Low Margin and High Volume: FMCG business is based on low margin and high-volume business. The
better way to attract the Indian consumers is by offering more discounts. D-Mart bought good volume of
goods from the distributors and instead of requesting them to extend a credit line to D Mart. They assured
Payment of Goods in about 15 days. Other players work usually on a 60-day credit line. No comparable
competitor competes with D Mart on this and D Mart gets extra margin for quick cash. Behind the scenes,
this fast turnover is what it uses to negotiate with wholesalers and companies for better prices. This doesn’t
mean arm-twisting suppliers though. In fact, payment to most suppliers are arranged fortnightly. This is
among the shortest credit periods in any industry. Strategy and Success of D Mart: The Case of Retail Chain
in India 9 National Institute of Development Administration
C) Strategy 3:
Low Private Brands: They offer a lesser array of top brands for a particular product when compared to
other shopping malls. This is because, they contract people to directly manufacture products. This ensures
elimination of distributors and middlemen. Now since, they have volume bargaining & cash power, they
negotiate best margins. Some of which are passed to the customer and remaining become profits along with
better control on the supply chain. Similarly, contrary to other chains, it does not have private labels, nor
does it offer a wide choice of brands in each segment. The focus is clear: daily consumption goods + known
brands only + limited options = ultra-fast turnover.
D) Strategy 4:
Elimination of Intermediaries: D Mart uses bargaining power to negotiate with top brands by eliminating
distributors. While, the best of brands makes an exception for them because the sales volume is too large to
ignore. This strategy has caught up with other retailers too.
E) Strategy 5:
Value Based Management and Team: They have a wonderful top management and employee team. They
have developed the unique value proposition for their organization and employees to perform better which
contributed to the growth of the D Mart.
28
F) Strategy 6:
Cautious Business Focus: Other retail companies have expanded quickly into multiple segments with
differentiated retail chains, D-Mart’s sales mix is largely limited to food, groceries and daily products.
Categories like high-end electronics, jewellery and watches which companies like Reliance have forayed
into and which make up as much as 25% of Indian consumer spending is something the company stays far
away from. D Mart thrives on low margins and, to a certain extent, D-mart is built around this philosophy.
Industry executives call it their threestep business model as “Start with low-cost products that consumers
need on a daily basis and that you can sell for slightly below MRP. This allows to rack up a great inventory
turnover ratio. Then use that quick inventory turnover to negotiate better prices with wholesalers which
supports to get low prices”
G) Strategy 7:
Different Duckling Approach: Private labels and top-end products bring in higher margins but saddle
companies with inevitably higher inventory turnover. Offering multiple brands of the same product also
leads to similar outcomes, which is why the assortment of products and variety of brands that one finds at a
D-Mart store is often limited when compared to other retail stores. Avinash Pawar and B. V. Sangvikar
NIDA International Conference for Case Studies on Development Administration 2019 (NIDA-ICCS 2019)
10
H) Strategy 8:
Assembly Chain of Sales: They want the products are converted into sales as fast as possible because of
this, they are able to avoid the high-stakes, perennial discount game that other retailers often get trapped in.
Customers who walk into a D Mart store understand that they are getting a no-frills approach but also know
that most food items and groceries on offer will be 6% to 12% cheaper than what they will find at other
stores. In some cases, certain products will be 10% below MRP.
I) Strategy 9:
Regimented Business Model: Much of the company’s focus, as well as comparisons to Walmart, stems
from decision to follow a store-ownership model. The company has spent over Rs 23 billion on acquiring
land and buildings but either owns most of its stores or has them on a 30-year long-term lease. This is, in
part, what has forced it to rack up debt of a little over Rs. 1000 crores; a certain amount of its IPO proceeds
have been allocated towards repaying this debt.
J) Strategy 10:
Particular Location as per Density: While competitors head to India’s rapidly-growing malls because
that’s where consumer spending is highest, D-Mart hasn’t and doesn’t ever plan on opening a store in a mall.
As other retailers are experimenting with a wide range of formats and geographic locations, D-Mart sticks to
what it knows best. It uses one of two formats of stores whose size is calculated based on location and
shopper density. The company is also extremely reluctant to expand geographically. Until 2014, it had stores
only in four Indian states. Over the last three years, it has expanded into five more states but is still
conspicuously absent in the NCR region and other high consumer spending states like Tamil Nadu. This
strategy pays off for the company.
K) Strategy 11:
Conscious Pricing Approach: D-Mart operates on pricing and discounts. Consumers are offered a
minimum 3% discount on every product off its shelf, and in some cases the discount is as much as 10% off
MRP. As we will see, it influences all decision-making for the chain.
29
L) Strategy 12:
Lowest Product Inventory Turnover: Profitability in retail is driven by a combination of profit margins
and inventory turnover. With price as the differentiator, profit margins on individual items will be squeezed
(its gross margin is only about half of its competitors). Hence, D-Mart operates in limited product segments
mainly food and groceries. Most other retail chains have expanded into high-end segments too, but D-Mart
has stayed away from them to keep inventories low and inventory turnover high Strategy and Success of D
Mart: The Case of Retail Chain in India 11 National Institute of Development Administration (during 2012-
2016, inventory turnover was about 11.6 times in a year i.e. its stock was bought and sold an average of 11.6
times every year).
M) Strategy 13:
Diligent Cost Control: It has been another key focus area of D Mart. Unlike its peers in the retail space, D
Mart has steered clear of exuberant spending on marketing and advertising. It has simple store plans and has
never set up fancy stores in malls or launched multiple formats and categories. Instead, it moved forward
taking measured steps. It owns most of its stores or has them on 30-year long-term leases. This has brought
down costs further as real estate dents revenues to some degree. Besides avoiding swift and costly expansion
strategies to gain market share, D Mart has also avoided forking out astronomical pay packages to top
honchos. In fact, it does not hire high profile executives like its competitors.
N) Strategy 14:
Low Cost Promotional Methods: D Mart advertises mainly about its store openings, and occasionally
about the prices. Also, because the combination of product lines and prices offered by the store will build
habitual visits hence the promotion has a limited role.
O) Strategy 15:
Emphasis on Fast Moving Products: The idea behind launching D Mart stores was simple, It cater to the
growing middle-class’s daily household needs by purveying groceries, vegetables, electronics and apparel at
ultra-competitive prices. On the lines of global retail giant Wal-Mart’s everyday low prices, D Mart also
started offering Every Day Low Price and Every Day Low Cost. It proved to be its biggest unique selling
point and till date is the sole reason behind housewives and other bargain hunters making a beeline for its
stores. This has resulted in high inventory turnover, particularly in the food segment which sees over half the
demand, and thus even with low profit margins, the retail chain has managed to flourish. Further, D Mart’s
tight and a relatively small assortment has also helped it arrest losses from wastage.
P) Strategy 16:
Stringent Distribution System: Since location is the most expensive and critical decision in retail, D-Mart
ensures it doesn’t burn money by a compact supply chain and staying away from malls. The concentrated
supply chain means not spreading their footprint far and wide. In fact, until 2014, it was present only in 4
states. It follows a policy of opening 75% of its new stores in existing states or markets. In terms of formats
too, it has limited itself just to 2 size formats, and choosing between them is based on Avinash Pawar and B.
V. Sangvikar NIDA International Conference for Case Studies on Development Administration 2019
(NIDA-ICCS 2019) 12 location and shopper density. While, not being in malls helps the chain to keep retail
costs low. It also believes in owning the retail space so that rental costs are low. In places where owning is
not possible, the store is on 30-year leases.
Q) Strategy 17:
30
Maintaining Loyal Consumers: One of the primary reasons for D Mart’s dedicated customer base is its low
prices. For one, there is a minimum 3% discount on every product off its shelf. Secondly, the store decor is
simple, even for the ones situated in urban localities this does not drive away any strata of consumers and
they keep returning. This, coupled with low prices, means that bulk buying is a very common phenomenon,
on the demand side.
CHAPTER 7. DATA ANALYSIS AND INTERPRETATION
7.1 Meaning
Data Analysis is the process of systematically applying statistical and/or logical techniques to
describe and illustrate, condense and recap, and evaluate data. An essential component of ensuring
data integrity is the accurate and appropriate analysis of research findings.
Data analysis is a process of inspecting, cleansing, transforming, and modelling data with the goal of
discovering useful information, informing conclusions, and supporting decision-making. Data
analysis has multiple facets and approaches, encompassing diverse techniques under a variety of
names, and is used in different business, science, and social science domains. In today's business
world, data analysis plays a role in making decisions more scientific and helping businesses operate
more effectively.
7.2 Types of Data Analysis
❖ Text Analysis
Text Analysis is also referred to as Data Mining. It is one of the methods of data analysis to discover
a pattern in large data sets using databases or data mining tools. It used to transform raw data into
business information. Business Intelligence tools are present in the market which is used to take
strategic business decisions. Over all it offers a way to extract and examine data and deriving patterns
and finally interpretation of the data.
❖ Statistical analysis
Statistical Analysis shows “What happen?” by using past data in the form of dashboards. Statistical
Analysis includes collection, Analysis, interpretation, presentation, and modelling of data. It analyses
a set of data or a sample of data. There are two categories of this type of Analysis – Descriptive
Analysis and Inferential Analysis.
❖ Descriptive analysis
Analyses complete data or a sample of summarized numerical data. It shows mean and deviation for
continuous data whereas percentage and frequency for categorical data.
❖ Inferential Analysis
31
Analyses sample from complete data. In this type of Analysis, you can find different conclusions
from the same data by selecting different samples.
❖ Diagnostic Analysis
Diagnostic Analysis shows “Why did it happen?” by finding the cause from the insight found in
Statistical Analysis. This Analysis is useful to identify behaviour patterns of data. If a new problem
arrives in your business process, then you can look into this Analysis to find similar patterns of that
problem. And it may have chances to use similar prescriptions for the new problems.
❖ Predictive Analysis
Predictive Analysis shows “what is likely to happen” by using previous data. The simplest data
analysis example is like if last year I bought two dresses based on my savings and if this year my
salary is increasing double then I can buy four dresses. But, of course it’s not easy like this because
you have to think about other circumstances like chances of prices of clothes is increased this year or
maybe instead of dresses you want to buy a new bike, or you need to buy a house! So here, this
Analysis makes predictions about future outcomes based on current or past data. Forecasting is just
an estimate. Its accuracy is based on how much detailed information you have and how much you dig
in it.
❖ Prescriptive Analysis
Prescriptive Analysis combines the insight from all previous Analysis to determine which action to
take in a current problem or decision. Most data driven companies are utilizing Prescriptive Analysis
because predictive and descriptive Analysis are not enough to improve data performance. Based on
current situations and problems, they analyse the data and make decisions.
7.3 Sampling Method
The primary data is collected from 200 respondents from different regions using convenient
sampling. I have collected responses with questionnaire. The validity and reliability of the
instruments is ensured in the study.
Sample size 200 respondents
Sampling method Convenient sampling
Sample unit Customers of d mart
Measuring tools Questionnaire
32
7.4 Questionnaire discussed with a sample size
Q1) What is your gender?
▪ Male
▪ Female
▪ Prefer not to say
33
➢ It is a general question asked to know about gender crowd among 200 peoples.
➢ It is observed that out of 200 respondents, 60.5% are females and 39.5% are males.
➢ Normally females are the only one who do shopping on this stores that’s the reason I think
that females respondents are more than male respondents.
Q2) You live in which state?
34
➢ This question is asked to know which state’s has higher responses

➢ Since it is the question where respondents were given freedom to put their state name
accordingly.
➢ Out of 200 respondents, it is seen that maximum respondents are from Maharashtra only.
➢ Since researcher is from Maharashtra state, it may be the reason for which respondents are
from Maharashtra state.
Q3) You live in which district?
35
➢ This question askes the name of district of responses.

➢ Since it is the question where respondents were given freedom to put their state name accordingly.
➢ Out of 200 respondents, it is seen that maximum respondents are from Palghar district only.
➢ Since researcher is from Palghar district, it may be the reason for which respondents are from Palghar
district.
36
Q4 what is your occupation?
▪ Housewife
▪ Working
▪ Student
➢ This question asked to know the occupation of respondents.

➢ Out of 200 respondents, 77.5% are students only, further 22% are working people.
➢ Since the researcher is student, it may be the reason students are maximum in
responses.
➢ Working population are the one who is not dependent on the others and have their
own expenditure and income list for all things like d mart monthly bills, electricity,
etc.
37
Q5) Which store comes first to your mind for purchasing products?
▪ D MART
▪ Big bazar
▪ Jio mart
▪ Others
➢ It is a general question asked to know that which stores person thinks about for shopping.
➢ It is observed 92.5% that is maximum respondents prefer going D MART only.
➢ Whereas almost other stores don’t have preference by the respondents.
38
➢ This figure comes into consideration because of many reasons like offers, price, quality etc.
Q6) How frequently do you visit D MART?
▪ Weekly
▪ Monthly
▪ Once in 3 months
▪ Half yearly
▪ Yearly
➢ This question tells us that what is difference between 2 visits of customers to d mart.
➢ Out of 200 respondents, (55.5%) most of them visit d mart on monthly basis.
➢ And next comes 28% of people visit d mart once in 3 months.
39
➢ According to me, People prefer going to d mart monthly because of many reasons like
minimum salary, less storage facility at home etc
Q8) Offers of D MART as compare to others?
▪ Same
▪ High
▪ low
40
➢ It is a general question that what people feel about offers as compare to others.
➢ As we can make out from above pie chart that 41.5% of respondents experienced that offers
of d mart is high as compare to others.
➢ Whereas 33% feel that offers of d mart is low as compare to others
➢ 25.5% of people agreed that it is almost same.
Q9) Rank the price of D MART on the basis of your evaluation?
▪ 1
▪ 2
▪ 3
▪ 4
▪ 5
41
➢ This question is asked for price evaluation for products from customers.
➢ Out of 200 respondents, 28% persons have given rank 3 to price of d mart which is highest.
➢ Whereas lowest is 11.5% persons chooses rank 5 on the basis of their evaluation.
➢ Others has given ranks according to their evaluation.
Q10) How much do you spend from D MART every month?
▪ Below 3000
▪ Below 5000
▪ Below 10000
42
▪ Above 10000
➢ It is a general question that how much people spend on monthly basis on d mart shopping.
➢ From the above mentioned figure, it is clear that 45% of people spend below 3000 on monthly basis
in d mart.
➢ Whereas only 2% spend above 10000 on monthly basis.
➢ It can be inferred that monthly people feel comfortable to visit and do shoping.
43
Q11) What is your mode of payment in D MART?
▪ Cash
▪ Debit card
▪ Credit card
▪ others
➢ This question is asked to know that what is payment mode of customers.

➢ out of 200 responses, 48.5% of people pays their bills through cash only.
➢ 42% of people prefer paying by swiping debit card only.
➢ Whereas only 1.5% of people pays by other modes of payment.
➢ Cash is very much handy to people that’s why maximum people pays by cash only
➢ But my suggestion is every transaction should be online only and cash should be avoided.
44
Q12) How much do you spend in a visit to D MART?
▪ Less than an hour

▪ 1 hour to 2 hours
▪ 2 hours to 3 hours
▪ More than 3 hours.
➢ It is a question that how much time people devote in d mart for shopping.
➢ Almost 66.5% of people spend 2 to 3 hours in d mart for shopping.
➢ Only 2.5% of people spend more than 3 hours in d mart for purchasing products.
➢ It is been observed during my field visit to d mart that is no clock in d mart.
➢ The reason for this may be that people goes on doing shopping on and on without watching clock.
45
Q13) Which time of day do you prefer visit to D MART?
▪ Morning
▪ Afternoon
▪ Evening
➢ It is a normal question that what time people prefer for shopping.

➢ Out of 200 responses, we can see that maximum people visit in afternoon only.
➢ And minimum number of people goes to d mart in morning only.
46
➢ The reason behind this may be crowd.

➢ From the above survey, I come to know that People feel if they go in afternoon, they will get less
crowd and will do shopping in easy manner.
Q14) Are you happy with parking facility of d mart?
▪ Yes
▪ No
▪ May be
▪ U don’t prefer using parking facility
47
➢ It is a question that parking facility brings any difficulty in shopping or not.

➢ Out of 200 responses, 40% of people agreed ‘yes’ that they are happy with parking facility
of d mart.
➢ And 23% are not agree with parking facility.
➢ The reason behind not agreeing may be crowd of vehicles comes for parking.
➢ So, from my survey it is clear that people are absolutely fine with parking facility.
Q15) Does D MART helps in resolving your issue?
▪ Yes
▪ No
▪ Maybe
48
➢ It is a general question is d mart able to solve issues of their customers.

➢ Maximum number that is (61%) of people agree that d mart helps to resolve their issues.
➢ Whereas, 30.5% is still confused and has answered ‘may be’.
➢ Others, said they are not agreed that d mart is resolving their issue.
➢ Issues can be many like refunds, exchanges, enquiries etc.
➢ So, from my survey I agree that yes, maximum people got resolution for their issues.
CHAPTER 8. FINDINGS OF STUDY
FINDINGS:
✓ Age, Income and Family are the main factors influencing the consumer behaviour.
✓ It is found that Middle Income Level group people are the main customers of D-marts
✓ Products availability, Quality, Offers and Discounts are the main reasons for buying from D-mart stores
✓ D-mart customers are happy with the staff and with the resolution process.
✓ D mart customers finds easy in parking facility.
✓ D mart customers are happy with location of d mart
✓ Customers prefer visiting d mart in afternoon only.
✓ It is found that people spend 1 to 2 hours in d mart for shopping.
✓ Maximum peoples pay their bills in cash only.
✓ People prefer spending maximum 3000rs on monthly basis.
✓ It is found that price is the main factor for customers.
✓ People feel comfortable to visit monthly to d mart.
Company’s Key Financial Performance: (in Crores)
49
It is the picture that shows the financial performance of the company.
Revenue is been increasing steadily as shown in the picture from 4670cr to 15009cr and it goes on still
increasing…
Profit after tax (PAT) is increasing in tremendous manner that is from 160cr to 785cr in just 5 years.
From the above study, it has been proved that D MART is increasing its revenue and profits tremendously.
D Mart - Important Financial Metrics
The below table highlights the important financial metrics of D Mart as per its audited, consolidated
financial statements -
(Rs. in crores, unless otherwise stated)
Particulars Year ended March 31, 2021 Year ended March 31, 2020
Revenue from Operations 24,143.06 24,870.20
Total Income 196.21 59.99
Total Expenses 22,855.82 23,185.42
Profit before Tax 1,483.45 1,744.77
Net Profit after Tax 1,099.43 1,300.98
EPS per share of Rs.10/- each (in Rs.) 16.97 20.71
Goodwill 78.27 78.27
Total Non-current assets 9,594.84 9,728.78
Total Current assets 4,061.13 2,347.67
Equity Share Capital 647.77 647.77
Total Non-current liabilities 366.09 270.45
Total Current Liabilities 1,105.77 725.80
50
Standalone Results -
For the quarter ended March 31, 2021 (Q4FY21):
• Total Revenue stood at Rs. 7,303 Crore, YoY growth of 17.9%

• EBITDA of Rs. 617 Crore; YoY growth of 47.6%
• PAT stood at Rs. 435 Crore; YoY growth of 51.6%
• Basic EPS for Q4FY21 stood at Rs.6.71, as compared to Rs. 4.49 for Q4FY20
• 13 stores were added in Q4FY21
For the year ended March 31, 2021 (FY21):
• Total Revenue stood at Rs. 23,787 Crore, lower by 3.6%

• EBITDA of Rs. 1,742 Crore; YoY decline of 17.9%
• PAT stood at Rs. 1,165 Crore; YoY decline of 13.7%
• Basic EPS for FY21 stood at Rs.17.99, as compared to Rs. 21.49 for FY20
• 22 stores were added in FY21 and 2 stores were converted into fulfilment centre for Avenue
ECommerce Limited.
Company’s Credit Rating:

D mart is rated by CRISIL Limited (“CRISIL”) and Credit Analysis and Research Limited (“CARE”) for its
debentures and long-term bank facilities / commercial paper programmes.
On 6th March, 2018, CRISIL revised its outlook on the long-term bank facilities and non-convertible
debentures of the Company to “Positive” from “Stable” and re-affirmed its ratings at “CRISIL AA”.
Further, CRISIL re-affirmed its rating on the Company’s commercial paper programme at ‘CRISIL A1+’.
“CARE A1+” (CARE A one plus) is reaffirmed by CARE for the Company’s commercial paper / short-term
debt programme.
Trade Growth:
51
It is seen from the above picture that modern trade to grow twice as fast as traditional trade.
The data is shown from 2005 to 2020. Almost 12% trade increase is shown.
From 208 in 2005 to 1077 in 2020.
Comparison between diferent companies.
52
The above picture shows the global peer comparison between D MART, WAL MART and COSTCO.
The is been taken into consideration on compounded annual growth rate for 5 years.
It is clearly visible that D MART is forward in all terms as compared to the other two.
Mainly, net profit of D MART is very high as compared to others.
53
This picture’s source is from avenue super marts limited annual report and quarterly report.
There is also an assumption that each store is of 250 square ft.
As on march 2020, total stores were 214 which is expanded in 9 states and 3 UTs.
Whereas online order + pickup – 220 stores which is present in Mumbai, Navi Mumbai and Thane.
Revenue from 214 stores was higher as compared to 220 stores.
Operating profit is also there in 214 stores. Whereas in online there is operating losses.
D mart has rental exp is almost zero because they owned most of the big stores.
54
CHAPTER 9. SUGGESTIONS
SUGGESTIONS:
✓ D-mart should provide high quality products so that it can attract more high-income people too.
✓ D-mart should concentrate on Clothes and Household items So that it can increase the sales.
✓ Offers and Discounts are needed to be provided more, as it is the main reason behind purchasing.
✓ D-mart need to promote about its online services.
✓ The staff is well trained to handle customers belonging to different backgrounds and attitudes.
✓ D mart should make billing system smoothly to avoid huge lines of customers.
55
✓ Almost customers feel that parking facility is good but some people as well as I feel that it should be
improved as every time people have to park their two wheelers out of stores which create lots of traffic
on road.
✓ Also, d mart has policy that at the time of refund they cut 1% of the particular products d marts price
if payment had done with any cards so, this policy should be removed to attract more customers.
CHAPTER 10. CONCLUSION
According to the analysis we conclude that the consumers of D-mart are satisfied with the services provided
by D-mart. Large majority of consumer are loyal to brand. What contribute to the popularity of the demand
is the service. Quality of the service provided by D-mart coupled with the attractive pricing strategy
followed by it. D-mart also has huge Variety of product all under one roof which is one of its largest
competencies.
✓ D Mart’s case study creates awareness about the techniques and strategies it uses especially for cost
efficiency and higher sales.
✓ Their strategy has marked difference from nearly every other Indian retailer.
✓ Whereas other companies have expanded quickly into multiple segments with differentiated retail
chain, D Mart has restricted segmentation.
✓ D-Mart executives and staff were very supportive throughout my research work. The consumers have
shown positive attribute towards this shopping centre.
✓ D mart have built a relation of trust over these years with this shopping centre.
✓ The huge chain of this mart has shown stability and sustainability.
✓ Consumers’ frequently visit D-Mart to buy various things. People visit once a month and make bulky
purchase.
✓ The factors which have developed positive attitude are mentioned in the prescribed study.
✓ D-Mart has also affected on the sales of retailers of the city.
✓ Retail stores did not reach the heights of consumer’s satisfaction as D Mart.
56
✓ Consumers show positive perceptions towards the working style, product range and the facilities
provided by D-Mart mall.
✓ Overall to conclude it becomes mandatory to mention that consumers have played a crucial role in
the success of D-Mart.
D mart is a hypermarket as it provides various kinds of goods like apparels, grocery, stationary, food items,
electronic items, leather items, watches, jewellery, crockery, decorative items, chocolates and many more. It
completes all socially stores of different product which provides good at a discounted rate all throughout the
year. It holds a large customer based and it seemed from the study that the customer is quite satisfied with D
mart. The customers are also satisfied with some services like complaints & return handling, packaging / gift
wrapping, information from the store, safety of personal things, alteration, refreshment facilities, shopping
carts as well as the pricing of these services. However, many services fall short of the expectations of the
customers, e.g. parking, baby strollers, fitting / trial room, personal assistance in selecting merchandise,
washrooms and drinking water, billing facilities, store environment, warranties. It can be concluded that
customer satisfaction is very important. Thus, though customer satisfaction does not guarantee repurchase on
the part of the customers but still it plays a very important part in ensuring customer loyalty and retention.
Therefore, organizations should always strive to ensure that their customers are very satisfied
CHAPTER 11. BIBILIOGRAPHY
1. www.D.Mart.com
2. www.google.com
3. www.Dmartabout.com
4. www.article.com
5. www.article.com
6. www.wikepedia.com
7. www.slideshare.com
8. www.quora.com
10. www.dmartindia.com
57
11. https://dmart.in
12. http://en.m.wikipedia.org/wiki/DMart
58

Analytical Study On Consumer Behaviour Towards D-Mart Products

Uploaded by

Copyright:

Available Formats

You might also like

Analytical Study On Consumer Behaviour Towards D-Mart Products

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Analytical Study On Consumer Behaviour Towards D-Mart Products

Uploaded by

Copyright:

Available Formats

PRAHLADRAI DALMIA LIONS COLLEGE OF COMMERCE AND ECONOMICS

ANALYTICAL STUDY ON CONSUMER BEHAVIOUR TOWARDS

They need the subsequent unique selling proposition

1. Selling Tool: Heavy discounts and has managed to sell cheap.

2. Market Segment: Price sensitive group ·

3. Target Market: Middle income households ·

4. Market Positioning: One-stop value mercantile establishment chain

1.1 COMPANY PROFILE

Category: Service Provider

The current status of Avenue Supermarts Limited is - Active.

The Corporate number (CIN) of Avenue Supermarts Limited is L51900MH2000PLC126473. The

1.2 Foundation of D Mart & Why D Mart is Successful?

1.3 INDUSTRY PROFILE

The retail revolution in India can be explained in four stages as below:

Table 1: Phases of Retail Evolution in India

NO PHASE YEAR SIGNIFICANCE

1 Initiation Pre 1990 It was essentially dominated by manufacturers

1.4 HISTORICAL BACKGROUND OF D MART

1.5 Growth Milestones of D Mart:

1.6 D Mart - Business Model & Supply chain Model

Low operational costs and fewer expenses

Affordable rates of products

Marketing Strategy of D Mart

Better School, Brighter Futures!

Embracing Low-Cost Advertising Mediums for Promotion

Digital Presence of D Mart

Factors Affecting the Profit of D Mart

What Is Trifle That's Important

Go Steady and Slow

Neglect the Herd

A Job Has Conversation

Growth of D Mart in India

CHAPTER 2. RESEARCH METHODOLOGY

2.1 Definition of Research

2.2 Types of Research

Descriptive research is used to describe characteristics of a population or phenomenon being studied. It

10) Field Research

2.3 OBJECTIVES OF STUDY

• To find out the consumer perception of D-Mart services.

2.4 NEED FOR THE STUDY

2.6 Data Collection

2.7 Types of Data Collection

2.7.1 Primary Data

2.7.2 Features of Primary Data

2.7.3 Secondary Data

2.7.4 Features of Secondary Data

❖ Less time consuming and less expensive

2.8 Scope of study

2.9 Limitations of study

• The study was restricted to only the customers of D-Mart.

Webster’s Dictionary defines Hypothesis as

H0: Customers are satisfied with the services of D mart.

H1: Customers are not satisfied with the services of D mart.

2.11 Selection of problem

To study the Satisfaction level of customers.

CHAPTER 3. SWOT ANALYSIS

✓ Unable to meet store opening targets on time