Customer Perceptoin Satisfaction Survey of Organized Fmcg Retail Outlets in in India (2) Copy

8/9/2019 Customer Perceptoin Satisfaction Survey of Organized Fmcg Retail Outlets in in India (2) Copy

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Introduction

Organized retail is definitely a sunrise sector in India but to say that it is a sunrise sectorfor entrepreneurship would be wrong. Entrepreneurship is required in those fields inwhich an individual can go in with small capital and his expertise and go on to create acompany which usually yields returns of the order of 10x or more.

The natural barriers to enter into organized retail are so large that it would not be wisefor and an entrepreneur to jump into it and think that he will be able to compete with the

likes of Reliance, Bharti, Wal-Mart etc. Also, organized retail is something which testsyour operational and logistics skill rather than entrepreneurship abilities.

Though organized retail is in practice around the globe for many decades now, its onlynow that it is making an entry into India in a big way. The reasons for this are many.With a booming economy and burgeoning middle class the shopping habits of Indians arechanging fast. Malls and multiplexes and making headway into tier II and tier III citiesalso after mushrooming in the metros. Also the fact that organized retail accounts foronly 3% of retail sales in India theres a huge untapped potential. So much so that everyconglomerate wants a piece of the pie.

No wonder that every business house from Birlas to Ambanis is busy chalking out theirretail plans. Though it will be too early for them to start counting their chickens as thegovernment policy is still hazy and huge amount of expertise is required to run a pan-India retail network. There is scarce managerial talent in retail business and salaries arealready skyrocketing.

The government is still in process of studying the effect of organized retail on mom-n-pop stores and the economy as a whole. There is huge pressure on government fromforeign multinationals to allow FDI in retail. Of course local giants are keen to put theirplans in place before foreign players are allowed to move in. The bleak chances of FDI inretail have forced foreign retail giants to look for local partners. Bharti has joined hands

with Wal-Mart after failed talks with UK giant Tesco. Shoppers stop has inked a dealwith UKs Home Retail group to develop Argos retail stores. Bombay Dyeing has tied upwith Frances Auchen.Local retailers who already have a huge presence in India includeFuture Group (former Pantaloons), Subhiksha, Shoppers Stop, RPG group. WhileReliance retail, Tata, Bharti and Aditya Birla group are soon to start rolling out theirretail plans.
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The most bullish of them all is Reliance with plans to invest Rs. 25,000 crore in its retailventure. With Mukesh Ambani in driving seat theres little doubt that reliance willchange how Indians shop. His plans include selling everything from vegetables to cars

under one roof and even deploying cargo planes to make sure that you get fruits andvegetables farm-fresh. Reliance has already opened 50 Reliance Fresh stores with thevery first in Hyderabad. Reliance plans to launch 1000 stores by this year end. RelianceRetail will launch its hypermarket, supermarket and specialty formats in April-Junequarter this year. Reliance and Bharti also have plans to set up Micro Finance Institutionsalong with their retail chains. While Bharti will also offer telecom services in its retailstores.

As a result of hyper growth plans and rushed hiring, most retail ventures are struggling tokeep pace. A massive churn is already taking place in retail space while real estate pricesin prime locations are going over the roof. Most retail ventures are going in for mixed

strategy when acquiring retail space. Some are just buying the land and then buildingtheir stores while others are buying finished commercial space or just renting it.When there is a huge competition in market its always a win-win for consumers. Theycan expect better services from mom-n-pop stores and great bargains at their local mall.After all, its all about the customers. To keep the prices low the retailers are doingeverything from buying cargo planes to sourcing fruits and vegetables directly fromfarmers. Also the retail stores promise to give the consumers more choices and a bettershopping experience.

With the economy growing at 10%, nobody is complaining about the money being put inbehind these retail ventures. Though, initially there will be a few surprises and a few newlessons learnt the long term story looks promising.


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RETAIL IN INDIA

India represents an economic opportunity on a massive scale, both as a global base and asa domestic market. Indian Retail sector consists of small family-owned stores, located inresidential areas, with a shop floor of less than 500 square feet. At present the organizedsector accounts for only 2 to 4% of the total market although this is expected to rise by 20to 25% on YOY basis.

Retail growth in the coming five years is expected to be stronger than GDP growth,driven by changing lifestyles and by strong income growth, which in turn will besupported by favorable demographic patterns and the extent to which organized retailerssucceed in reaching lower down the income scale to reach potential consumers towardsthe bottom of the consumer pyramid. Growing consumer credit will also help in boostingconsumer demand.

The structure of retailing will also develop rapidly. Shopping malls are becomingincreasingly common in large cities, and announced development plans project at least150 new shopping malls by 2008. The number of department stores is growing muchfaster than overall retail, at an annual 24%. Supermarkets have been taking an increasingshare of general food and grocery trade over the last 2 decades.

However, Distribution continues to improve, but it still remains a major inefficiency.Poor quality of infrastructure, coupled with poor quality of the distribution sector, resultsin logistics costs that are very high as a proportion of GDP, and inventories, which haveto be maintained at an unusually high level. Distribution and marketing is a huge cost inIndian consumer markets. Its a lot easier to cut manufacturing costs than it is to cutdistribution and marketing costs.

Also, government has relaxed regulatory controls on foreign direct investment (FDI)considerably in recent years, while retailing currently remains closed to FDI. However,the Indian government has indicated in 2005 that liberalization of direct investment inretailing is under active consideration. It has allowed 51% FDI in single brand retail.


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The next cycle of change in Indian consumer markets will be the arrival of foreign

players in consumer retailing. Although FDI remains highly restricted in retailing, mostcompanies believe that will not be for long. Indian companies know Indian marketsbetter, but foreign players will come in and challenge the locals by sheer cash power, the power to drive down prices. That will be the coming struggle.

This report discusses the scenario of organized retail industry in Ludhiana city of Punjaband the opportunities available for companies based on key statistics. I have answeredKey questions like:

What is the market size and scope of the Organized retail industry in Ludhiana? What is the size of organized market segment wise & its growth prospects?

Who are the major players of Retail Industry in Ludhiana, their impact on theunorganized retail outlets?


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FMCG RETAIL IN INDIA

India is one of the largest emerging markets, with a population of over one billion. Indiais one of the largest economies in the world in terms of purchasing power and has astrong middle class base of 300 million.

Around 70 per cent of the total households in India reside in the rural areas, where mostlytraditional retail outlets, commonly called kirana stores exist. These are unorganized,operated by single person and runs on the basis of consumer familiarity with the owner.However, recently organized retailing has become more popular in big cities in India andmost of the metropolitan cities and other big cities are flooded by modern organized retailstores. Many semi-urban areas also witnesses entry of such organized retail outlets. Till

now, entry of foreign retailers was restricted in Indian retail market because of the ban onForeign Direct Investment in Indian Retail Sector. But recently, as government haschanged its policy and the cabinet has allowed 51 per cent FDI in single-brand retail, theprospects of foreign players entering India became high. India is called a nation of shopkeepers and organized retail which has just made an entry has a very small shareestimated between 2-4% of total retail in the country. The entry of major retailers in thecountry has raised passions among the politicians, policy makers and smaller retailersthat the presence of bigger organized retailers would lead to the elimination of the smallershop keepers leading to a large scale problem of unemployment and maybe even socialproblems.


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Organized Retail outlets in india

BIGBAZAAR

Big Bazaar is not just another hypermarket. It caters to every need of your family.Where Big Bazaar scores over other stores is its value for money proposition for theIndian customers.

At Big Bazaar, you will definitely get the best products at the best prices - thats whatwe guarantee. With the ever increasing array of private labels, it has opened the doorsinto the world of fashion and general merchandise including home furnishings,utensils, crockery, cutlery, sports goods and much more at prices that will surpriseyou. And this is just the beginning. Big Bazaar plans to add much more to completeyour shopping expereince.

Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retailformats in both the value and lifestyle segment of the Indian consumermarket. Headquartered in Mumbai (Bombay), the company operates over 16 millionsquare feet of retail space, has over 1000 stores across 73 cities in India and employs over30,000 people.

The companys leading formats include Pantaloons, a chain of fashion outlets, BigBazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blendsthe look, touch and feel of Indian bazaars with aspects of modern retail like choice,convenience and quality and Central, a chain of seamless destination malls. Some of itsother formats include Brand Factory, Blue Sky, aLL, Top 10 and Star and Sitara. Thecompany also operates an online portal,futurebazaar.com.

Future Value Retail Limited is a wholly owned subsidiary ofPantaloon Retail (India)Limited. This entity has been created keeping in mind the growth and the current size ofthe companys value retail business, led by its format divisions, Big Bazaar and FoodBazaar.

The company operates 120 Big Bazaar stores, 170 Food Bazaar stores, among otherformats, in over70 cities across the country, covering an operational retail space of
http://www.futurebazaar.com/http://www.futurebazaar.com/


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over6 million square feet. As a focussed entity driving the growth of the group's valueretail business, Future Value Retail Limited will continue to deliver more value to itscustomers, supply partners, stakeholders and communities across the country and shapethe growth of modern retail in India.

SUBHIKSHA

Subhiksha is India's largest supermarket, pharmacy and telecom chain. Started in 1997 as

a single store entity in South Chennai, it is now present nationally with 1000 outlets andspread across more than 90 cities. ICICI Venture Capital has a 24% stake in Subhiksha.

Derived from the Sanskrit word, Subhiksham or "giver of all things good", Subhikshawas founded by Mr. R. Subramanian, IIT-Chennai & IIM-A alumni. His vision to deliverconsistently better value to Indian consumers, has guided Subhiksha to deliver savings toall consumers on each and every item that they need in their daily lives, 365 days a year,without any compromise on quality of goods purchased.

Subhiksha now has the pan Indian presence with stores across Delhi, UP, Punjab,Hariyana, Gujarat, Maharashtra, AP, Karnataka and TN. Today, it is a multi-locational,professionally managed and vibrant organization that is poised to change the lives of

millions of Indians, faster than ever before!

Lowest Prices & Great Savings Everyday!

Subhiksha offers all goods at sharply discounted prices so that consumers can genuinelysave in every transaction. Unlike other stores, the low prices at Subhiksha are not limitedto a few goods or to a few specific days. Customers can get the same discounted prices onall items, on all days and irrespective of whether they make a small or a big purchase. Infact, the discounts and customer savings at Subhiksha are 4-5 times that offered by othersmall and big retailers.
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VISHAL Group

What started as a humble one store enterprise in 1986 in Kolkata(erstwhile, Calcutta) istoday a conglomerate encompassing 91 showrooms in 62 cities / 20 states. Indias firsthyper-market has also been opened for the Indian consumer by Vishal. Situated in the

national capital Delhi this store boasts of the singe largest collection of goods andcommodities sold under one roof in India.

The group had a turnover of Rs. 1463.12 million for fiscal 2005, under the dynamicleadership of Mr.Ram Chandra Aggarwal . The group had of turnover Rs 2884.43 millionfor fiscal 2006 and Rs. 6026.53 million for fiscal 2007

The groups prime focus is on retailing. The Vishal stores offer affordable family fashionat prices to suit every pocket.

The groups philosophy is integration and towards this end has initiated backward

integration in the field of high fashion by setting up a state of the art manufacturingfacility to support its retail endeavors.

Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost allprice ranges. The showrooms have over 70,000 products range which fulfills all yourhousehold needs, and can be catered to under one roof. It is covering about 1996592 lacsq. ft. in 18 state across India. Each store gives you international quality goods and priceshard to match. The cost benefits that is derived from the large central purchase of goodsand services is passed on to the consumer.
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SpencerS

Spencers Retail is one of Indias fastest growing retail stores with multiple formats andretailing food, apparel, fashion, electronics, lifestyle products, music and books.Established in 1996, Spencers has become a popular destination for shoppers in Indiawith supermarkets, hypermarkets and dailies spread all over India.OperationsSpencers has retail footage of over 1.3 million square feet and over 350 Spencers storesin 50 cities.The company operates through the following formats:

Spencers Hypermarkets: a fast growing retail network of hypermarkets with large formatstores in Mumbai, Gurgaon, Ghaziabad, Lucknow, Ludhiana, Calicut, Hyderabad, Vizag,Vijayawada, Aurangabad Durgapur and Kolkata.

Spencers Super: one of the largest supermarket chains in the food and grocery segmentin India.Spencers Daily: small format stores conveniently located with a range of products tomeet your daily household needs.Spencers Express : food and grocery store next door
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MORE

MOREs mission is to change the way people shop.

Aditya Birla Retail Limited re-brands its Fabmall grocery supermarkets to more. a namereflective of its commitment to offering consumers a more fulfilling retail experience.The re-branding follows the acquisition of the Trinethra Super Retail that includes theretail brands Fabmall, Trinethra and FabCity by Aditya Birla Retail in January 2007. As aresult of the integration process, 68 Fabmall stores in Karnataka will be re-branded underthe umbrella of more., the retail brand from the Aditya Birla Group.

With the underlying objective to enhance the shopping experience for consumers, thenew stores will continue to be built around the proposition of quality, affordability andconvenience with new in-store merchandise and a whole new retail experience. Themore. stores will offer a wide range of product categories including fruits and vegetables,

staples, personal care, home care, household general merchandise and dairy products.

The acquisition of Trinethra Super Retail has provided Aditya Birla Retail with a strongretail footprint in South India extending to 275 stores and over more than half a millionsquare feet in Andhra Pradesh, Karnataka, Tamil Nadu and Kerala, where it is the leadingfood and grocery retailer. Currently Aditya Birla Retail has 60 stores in Bangalore, eightstores in Mysore and 10 stores in Mangalore.

All Fabmall stores were re-branded to more in January 2007.

The more. chain of supermarkets is spread over convenient locations and with layoutsthat allow ease of navigation. The project display is well-orgranised and facilitates easeof choice. The stores have been designed by Fitch, the leading international retail designfirm. Demographic movements in India over the last two decades have made organisedretail a necessity. The rapid growth of this industry is confirmation that the idea oforgranised retailing has taken root in India. The industry is today valued at around US$320 billion. Within the organised retail sector, food and groceries account for around 14per cent of the total market with potential to garner an even bigger share of the market.

About Aditya Birla Retail Ltd.:Aditya Birla Retail Ltd is the retail arm of the AdityaBirla Group, a US$ 24 billion corporation with a market capital of US$ 31.5 billion and
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in the league of Fortune 500 companies. In May 2007, Aditya Birla Retail Ltd launchedits first store,more. in Pune and currently has 100 stores across the country. With theacquisition of Trinethra Super Retail, the company will increase its retail foothold to 300 plus stores with re-branding of Trinethra and Fabmall stores in South India.9

Reliance Fresh

Reliance Fresh is the retail chain division of Reliance Industries of India which is headedby Mukesh Ambani. Reliance has entered into this segment by openingnew retail stores

into almost every metropolitan and regional area of India. Reliance plans to invest Rs25000 crores in the next 4 years in their retail division and plans to begin retail stores in784 cities across the country. The Reliance Fresh supermarket chain is RILs Rs 25,000crore venture and it plans to add more stores across different g, and eventually have apan-India footprint by year 2011. The super marts will sell fresh fruits and vegetables,staples, groceries, fresh juice bars and dairy products and also will sport a separateenclosure and supply-chain for non-vegetarian products. Besides, the stores wouldprovide direct employment to 5 lakh young Indians and indirect job opportunities to amillion people, according to the company. The company also has plans to train studentsand housewives in customer care and quality services for part-time jobs.

Reliance Fresh recently (24th Jan, 2007) opened several "Fresh" outlets in Chennai, NewDelhi, Hyderabad,Jaipur, Mumbai, Chandigarh, Ludhiana increasing its total store countto 40. Reliance is still testing its retail concepts by controlled entry beginning in thesouthern states

The company is planning on opening new stores with store-size varying from 1,500 sq ftto 3,000 sq ft, which will stock fresh fruits and vegetables, staples, FMCG products anddairy products. Each store is said to be within a radius of 1-2 km of each other, in relationto the concept of a neighbour store. However, this is only the entry roll-out that thecompany has planned. Bangalore is said to have 40 stores in all by the end of the year.

In a dramatic change due circumstances prevaling in UP, West Bengal and Orissa, It wasmentioned recently in News Dailies that, Reliance Retail is moving out stocking.Reliance Retail has decided to minimise its exposure in the fruit and vegetable businessand position Reliance Fresh as a pure play super market focusing on categories like food,FMCG, home, consumer durables, IT, wellness and auto accessories, with foodaccounting for the bulk of the business. The company may not stock fruit and vegetablesin some states, Orissa being one of them. Though Reliance Fresh is not exiting the fruitand vegetable business altogether, it has decided not to compete with local vendors partly
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due to political reasons, and partly due to its inability to create a robust supply chain.

This is quite different from what the firm had originally planned. When the first RelianceFresh store opened in Hyderabad last October, not only did the company said the storesmain focus would be fresh produce like fruits and vegetables at a much lower price, but

also spoke at length about its farm-to-fork theory. The idea the company spoke aboutwas to source from farmers and sell directly to the consumer removing middlemen out ofthe way. Reliance may exit some businesses If the business does not increases by March2008.

Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance Footprint,Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance Super are variousformats that Reliance has rolled out.

In addition, Reliance Retail has entered into an alliance with Apple for setting up a chainof Apple Specialty Stores branded as iStore, starting with Bangalore.


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OBJECTIVES OF THE

STUDY


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Objectivesbjectives1. To find out the effectiveness of Organized FMCG Retail in the Ludhiana city.

2. To study about the future prospects of Organized FMCG Retail in the city .

3. To elicit customers views regarding Organized FMCG Retail .

4. To study satisfaction level of customers about Organized FMCG Retail beingprovided by Relaince Fresh, More, Spencers, Vishal Mega Mart,V Mart,6Ten,Subhiksha.

5. To study about the changes that customers wants in these Organized FMCGRetail Outlets.

6. To know about the quality, services, product range provided by these OrganizedFMCG Retail Outlets.

7. To undertake a competitive analysis of all the Organized FMCG Retail Outlets inthe city.

8. To suggest improvements to these Organized FMCG Retail Outlets in the city.


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RESEARCHMETHODOLOGY


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Research Methodology

This study is based on survey and fact-findings inquiries with the customers purchasingfrom organized FMCG retail outlets in Ludhiana. It is aimed to collecting all the relevantdata and its optimal usage keeping in mind objectives of the research.

Sample Size: - Sample size of 50 respondents was taken.The survey was conducted ineastern india only.

Sampling technique: - All the respondents were selected on random basis. So far every surveyedentity, the respondents are an essential prerequisite. For broader perspective the

customers were contacted directly and by there association.

Research Instrument: - A standard questionnaire was prepared for the collection of data from thevarious respondents. The questionnaire was designed to keep objectives of the study withthe aim of collecting important information for the study.

COLLECTION OF DATA: Forthis research project, data was collected both fromthe Primary and Secondary sources.

1. Primary Data:

Students were personally contacted and the data was collected with the help ofquestionnaire. The questionnaire was so designed so as to contain appropriate no. ofquestions and to satisfy all the research objectives. The questionnaire contained both;close-ended and open-ended questions. Special care was taken to ensure that questionswere simple & sequential.

2. Secondary Data:The secondary data was collected from catalogues, magazines, records and,

websites, related to organized FMCG retail outlets in the city.


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Data Usage:For analysis and interpretations only primary data is used. However for the

conclusion and recommendations both primary and the secondary data along with theverbal knowledge and information although obtained from students, though they areoutside the parameters of questionnaire were also included. The data collected from thesesources was analyzed using various tools like percentage and weight age analysis methodis applied throughout the study for the formulation and analysis of tables


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INTERPRETATION&

ANALYSES


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Gender wise Distribution of respondents:

Gender wise Distribution

62%

38%

Male

Female

As FMCG organized retail is concerned more with home managers (women) so no. offemale respondents are taken more as compared with male respondents. Out of totalrespondents 62% are female & 38% are male.


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Occupation/Profession Of Respondents:

30%

18%4%

26%

6%

2%

6%

8%

House Wife

Business

Doctor

Teacher

Private Job

Engg.

Govt.

Employee

Any other

After dividing the respondents on the basis of gender, they are further divided accordingto their profession. In the profession wise distribution it is found that maximumrespondents are housewives, because they are more related with FMCG goods. In this itis found that out of total respondents 30% are housewives, 26% are teachers, 18% belongto business background,4% are doctors,6% are from private job, 2% are engineers, 6%are govt. employees, 8% are from other backgrounds.


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Q.1 Are you aware about the Organized FMCG Retail Outlets in Ludhiana?

Awareness About Organized FMCG Outlets

YesNo

This is the first question which is asked from the respondents in order to check theawareness of organized FMCG retail. In this question I tried to find out how manyrespondents are aware about organized FMCG retail. In this survey as I include theeducated professionals (Through Exit Interview) from different backgrounds, so everyoneis aware about organized FMCG Retail. Hence 100% respondents are aware aboutorganized FMCG Retail.


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Q2 Which Organized FMCG Retail outlets are you aware about?

Aware Not Awarwe

Relaince Fresh 100% 0%

Vishal Mega Mart 100% 0%

Big bazar 100% 0%

V Mart 70% 30%

Spencer's 82% 18%

Subhiksha 100% 0%MORE 70% 30%

This question was asked from the respondents to find out the individual awareness of theorganized FMCG retail outlets. In this it is found that all the respondents are aware aboutthe Reliance Fresh, Subhiksha & Vishal mega mart, because these are older outlets in thecity as compare to another .Also most of the people were not aware about one of thebigger brand i.e. MORE, because it launched recently in the city. The percentage ofawareness of different organized FMCG brands is shown in the above table.


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Q3 Out of these which you have visited?

visited Not visited



Big bazar 95% 05%

V Mart 56% 44%

Spencer's 72% 28%

Subhiksha 82% 18%

MORE 36% 64%

In this question I tried to find out that how many respondents visited all the organizedretail outlets and which outlet is mostly visited by respondents. In this it was found thatalmost all the respondents had visited Reliance Fresh, Subhiksha & Vishal Mega Mart.The percentage of respondents visited different retail outlets is shown in the above table.

Q.4 Have you bought any FMCG products from these outlets?


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Awareness About Organized FMCG Outle

Yes

No

This question was asked from the respondents to check that either they purchased fromthese organized retail outlets or not. As the exit interview was conducted in the starting ofthe project so all the respondents were the customers of these organized retail outlets.

Q5 Out of these organized FMCG retail outlets where do you generally purchase


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from?

Aware Not Awarwe



Big bazar 90% 10%

V Mart 14% 86%

Spencer's 66% 34%Subhiksha 72% 63%

MORE 28% 72%

In this question it was asked from the respondents that from where they generallypurchase. In this it is found that most of the respondents purchased from Relaince Fresh,Subhiksha & Vishal Mega Mart because these were the oldest in the market & had madegood reputation in the Ludhiana market. In this question it was also found thatrespondents purchased very less from MORE because it is new in the market. The

purchase pattern of respondents explained in the above table.

Q.6 Where were you shopping before buying from these organized FMCG retail

outlets?


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34%

52%

10%4%

NeighbourhoodKaryana store

Wholesale Market

Store which isconvenient

Any other

This question was asked to study past purchase behavior of the respondents. In this theywere asked that from where were they purchased before buying from these organizedFMCG outlets. In this 52% respondents told that initially they purchased from wholesalemarket,34% respondents told that they purchased from nearer karyana store for theirFMCG needs.


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Q.7 How much of your monthly budget grocery products are you shopping from

these organized FMCG retail outlets?

0%

5%

10%

15%

20%

25%

30%

35%40%

45%

0%-20%

20%-40%

40%-60%

60%-80%

More than 80%

0%-20% 12%

20%-40% 18%

40%-60% 42%

60%-80% 22%

More than

80%

6%

1

This question was asked from the respondents to find out that how much out of theirmonthly budget were they shopping from these organized FMCG retail outlets. In this itis found that 42% of the respondents spend 40%-60% of their monthly budget. while only6% respondents spend more than 80% of their monthly budget.


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Q.8 Out of the total shopping specify %age expenditure in the following categories

at Organized FMCG retail outlets?

A) Food Products

24%

26%24%

12%

8%6%

0-%15%

15%-30%30%-45%

45%-60%

60%-75%

More than 75%

This question was asked from the respondents to find out that out of their total budget infood products, how much they spent to purchase food products from the organized retailoutlets. In this it is found that 26% of the respondents spent 15%-30% on the foodproducts, while only 6% respondents spent more than 75% to purchase food products

from these organized retail outlets.


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B) Confectionery

22%

16%

24%

20%

10%

8%

0%-15%

15%-30%

30%-45%

45%-60%

60%-75%

More than75%

This question was asked from the respondents to find out that out of their total budget inconfectionery, how much they spent to purchase confectionery from the organized retailoutlets. In this it is found that 24% of the respondents spent 30%-45% on confectionery,while only 8% respondents spent more than 75% to purchase confectionery from theseorganized retail outlets.

C)Detergents


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14%

26%

16%

28%

10%

6%

0%-15%

15%-30%

30%-45%

45%-60%

60%-75%

More than75%

This question was asked from the respondents to find out that out of their total budget indetergents, how much they spent to purchase detergents from the organized retail outlets.In this it is found that 28% of the respondents spent 45%-60% on confectionery, whileonly 6% respondents spent more than 75% to purchase detergents from these organizedretail outlets.

D) Vegetables &Fruits


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24%

18%

22%

24%

8%4%

0%-15%

15%-30%

30%-45%

45%-60%

60%-75%More than75%

This question was asked from the respondents to find out that out of their total budget inSoaps & sanitary products, how much %age they spent to purchase sanitary productsfrom the organized retail outlets. In this it is found that 24% of the respondents spent45%-60% on confectionery, while only 4% respondents spent more than 75% to purchase

sanitary products from these organized retail outlets.

Q.9What is your average one time purchase at FMCG retail outlets in rupees?


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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Below1000

1000-1500

1500-2000

More than 2000

Below10

00

16%

1000-

1500

44%

1500-

2000

26%

More

than

2000

14%

1

This question was asked to the respondents in order to find out their average one timepurchase at the organized retail outlets. In this 44% of the respondents told that theypurchase between 1000-1500 Rs. At one time.26% of the respondents told that they spent1500-2000 at one time purchase at organized retail outlets.14% said that they spent morethan 2000 at one purchase, while 16% said that they purchase below INR1000 on anaverage purchase at organized retail outlets.


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Q.10 How many time do you visit the organized FMCG retail outlets in a month?

0%5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Once

2-3 times

3-4 times

more than 5times

Once 14%

2-3 times 46%

3-4 times 32%

more than

5 times

8%

1

In this question I tried to find out the frequency of respondents to visit the organizedretail outlets in a month. In this question most of the respondents visit the organized retailoutlets 2-4 times in a month. The exact %age is shown in the above table.


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Q.11 Do you think by shopping at organized FMCG Retail outlets your monthly

Expenditure:

1. Increased 2.Remain same 3.Decreased

0%

5%

10%

15%

20%

25%

30%

35%

40%

Reduced

Remain same

Increased

Reduced 28%

Remain

same

34%

Increase

d

38%

1

In this question the respondents were asked that by purchasing from organized retailoutlets their monthly expenditures increased, decreased or remain same. In this 38% ofthe respondents replied that their total expenditure increased by purchasing from theorganized retail outlets.34% of the respondents replied that their expenditure remainsame. While remaining 28% said that their expenditure were reduced by purchasing fromorganized retail outlets.


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Q.12 What are your reasons for purchasing from these organized FMCG retail

outlets?

When the respondentswere asked to specify thereasons which influencethem to purchase fromthese organized FMCGretail outlets, then 26%of the respondents toldthat they purchased due

to product range.18%purchased due toreasonable price,18% dueto good quality, 14%purchased fromorganized retail outletsbecause it save time,12%liked the discounts &promotional schemes,8% prefer the display ofthe products & remaining

4% liked the enviournment of the organized retail outlets.

Q.13 Are you satisfied with the quality of goods offered by the organized FMCG

Retail outlets from where you generally purchase?

18%

18%

26%

4%

14%

8%

12%

Better Quality

Reasonable

Price

Product Range

Good

Enviournment

Time Saving

Display Of

Products

Discounts&Pro

motional

Schemes


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0%

10%

20%

30%

40%

50%

60%

Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly

DissatisfiedHighly

Satisfied

28%

Satisfied 54%

Neutral 10%

Dissatisfi

ed

8%

Highly

Dissatisfi

ed

0%

1

In this question the respondents were asked that are they satisfied with the quality of thegoods offered by these organized retail outlets. In this it is found that most of therespondents were satisfied with the quality of the goods. In this 54% of the respondentsreplied that they are satisfied with the quality, 28% were highly satisfied,10% neutral, &8% are dissatisfied with the quality provided by organized by FMCG retail outlets.

Q14 Are you satisfied with the range offered by organized FMCG retail outlets from

where you generally purchase?


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36%

48%

14%

2%

0%Highly Satisfied

Satisfied

Neutral

Dissatisfied

HighlyDissatisfied

This question is asked from the respondents in order to find out that what kind of rangeare they offer as well as to check either customers are satisfied or dissatisfied with therange of products offered by organized retail outlet. In this question it was found that48% of the respondents are highly satisfied with the range offered and only 2%respondents were there who were not satisfied with the range of products offered.

Q.15 What do you think the service provided by these organized FMCG outlets in

comparison to other stores are:


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32%

52%

10%

6%0%

Highly Satisfied

Satisfied

Neutral

Dissatisfied

HighlyDissatisfied

When respondents were asked to give feedback on the basis of service provided by theorganized retail outlets then it was found that most of the respondents were satisfied. Inthis 52% of the respondents were highly satisfied while only 6% of the respondents weredissatisfied from the services provided by these retail outlets.

Q.16 What are the problems you faced when you shop from these organized FMCG

Retail Outlets?


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2%4%

34%

6%

54%

Range is notcomplete

Green groceryis not fresh

Home deliveryis not provided

Do not grantcredit

Insufficientbilling counters

This question was asked from the respondents in order to found the problems which theyhad faced while purchasing from the organized retail outlets. In this maximum number ofrespondents said that they faced the problems at billing counters due to long queues.Inthis 54% of the respondents told that billing counters are insufficient while 34% said thatthey need free home delivery, 6% need goods on credit, 4% told that sometimesvegetables were not fresh while remaining 2% said that the range is not complete.

Q.17 In future will you spend more at organized FMCG retail outlets?


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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Definitely No

No

Can't Say

Yes

Definitely Yes

Definitely

No

4%

No 16%

Can't Say 34%

Yes 34%

Definitely

Yes

12%

1

This question is asked from the respondents to find out that in future will they spendmore at organized retail outlets. In this 34% of the respondents told that they will spendmore at organized more at organized retail outlets, 34% were not sure about it,12% saiddefinitely purchase more from organized retail outlets. Only 16% of the respondents saidthat they dont want to spend more at organized retail outlets.

Q.18 Do you think the market share of unorganized retail will:

1. Definitely Increase 2. Increase 3. Remain Same 4. Decrease 5. Definitely


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Decrease

0%16%

15%

47%

22%

DefinitelyIncrease

Increase

Remain Same

Decrease

Definitely

Decreaese

This question was asked from the respondents in order to check their perception aboutunorganized retail outlets in the city. They were asked that what they think market shareof unorganized retail outlets in the city will fall down or will increase. In this most of therespondents replied that market share of unorganized retail will definitely decrease. Inthis 47% of the respondents said that market share of unorganized share will decreasewhile 22% said that it will increase and 15% said that it will remain same. Only 16% ofthe respondents said that it may increase.


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FINDINGS&

SUGGESTIONS


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FINDINGS1. In this study it is found that the customers prefer to purchase fromOrganized FMCG

retail outlets as compareto unorganized retailoutlets.

2. During the study it come to know that customers spend 40%-50% of their monthlybudget at organized FMCGretail outlets.

3. In this study it is found that organized FMCG retail outlets provide better quality,product range AS compare to unorganized retail outlets.

4. In this study it is observed that in future the market share of unorganized retail willreduce, because Customers shifting from unorganized retail outlets toorganized retail

outlets.

5. During study it is observed that these organized retail outlets attracting the middle &upper class customers, the lower class person still prefer to purchase from

the local karyana stores.

6. In this study it is also found that organized FMCG retail outlets lacks in the segment ofGreen Grocery as compare to un organized sector(street hawkers).

SUGGESTIONS


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1. The organized retail outlets should improve the quality ofVegetables & fruits they provide to customers.

2. The organized FMCG retail outlets should provide the freehome delivery facility.

3. The organized FMCG retail outlets should increase the no.of billing counters in their outlets.

4. The organized FMCG retail outlets should also provide thecredit facility to the lower class customers so that theycan increase their market share.

5. The organized FMCG retail outlets should also provide themobile van facility in the areas which are far away fromthe stores.


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CRUX OF THESTUDY


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CONCLUSION

The crux of the study is that most of the customers prefer to purchase from organizedFMCG retail outlets as compare to unorganized FMCG outlets. Also its found that mostof the respondents are satisfied with the quality , price and product range of the goodsprovided by organized retail outlets. In this study it is found that customers want to spendmore at organized retail outlets in comparison to other local Karyana stores. During thestudy its also found that customers were happy from the services provided by organizedFMCG outlets.

This study also revealed that customer prefer the organizedFMCG retailing over unorganized FMCG retailing, due to which the organized FMCG

retiling become a threat to the local karyana stores & street hawkers.


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LIMITATIONS OF

THE STUDY


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LIMITATIONS OF THE STUDY

No study is complete by itself, however good it may be, and every study has somelimitations. The limitations of this study can be summarized below:

1. Due to the constraints of time, the study was confined to Ludhiana city.

2. The sample was taken on the basis of convenience; therefore the shortcomings ofthe convenience sampling may also be present in this study.

3. The sample size chosen for the purpose was only indicative and not exhaustiveowing to time constraints.

4. There were some inherent limitations as far as collection of data is concerned. Therespondents replied may be biased in favor of their centers.


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ANNEXURE


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NAME: _______________________________________

CONTACT NO.: _______________________________

GENDER: Male Female

PROFESSION/OCCUPATION :-

HouseWife Business Doctor Teacher

Private job Engg. Govt. employee Any other

1) Are you aware about the organized Retail Outlets in Ludhiana?

Yes No

2) Which organized FMCG Retail outlets are you aware about ?

Subhiksha Reliance Fresh More

6Ten Vishal Mega Mart V Mart

Spencers

3) Out of these which you have visited?



Spencers

4) Have you bought any FMCG product from these outlets?

Yes No


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5) Out of these organized FMCG Retail Outlets where do you generally purchase from ?



Spencers

6) Where were you shopping before buying from these organized FMCG Retail Outlets

Neighborhood Karyana Store Wholesale Mkt.

Store which is convenient to you Any Other

7) How much of your monthly budget grocery products are you shopping from theseOrganized FMCG Retail Outlet ?

10-20% 20-30% 30-40%

40-50% 50-60% 60-70%

More than 70%

8) Out of the total shopping specify %age expenditure in the following categories atorganized FMCG retail outlets?

0%-15% 15%-30% 30%-45% 45%-60% 60%-75% 75%-100%

Food Products

Confectionery

Detergents

Vegetables & fruits

Soaps &Sanitary products

9) Whats your average one time purchase at FMCG Retail Outlets in Rupees ?

Below 1000 1,000-1500

1,500-2000 2,000-2500


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10) How many time do you visit the organized FMCG Retail Outlets in a month ?

Once 2-3 times 3-5 times more than 5 times

11) Do you think by shopping at organized FMCG Retail Outlets your monthlyexpenditure:

Reduced Remain Same Increased

12) What are your reasons for purchasing from these organized FMCG Retail Outlets ?(mark only 3)

Better Quality

Reasonable price

Product range

Good environment Time Saving Display of products

Discounts and Promotional schemes

13) Are you satisfied with the quality of goods offered by the organized FMCG Retail

Outlets ?

Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

14) Are you satisfied with the range offered by organized FMCG Retail Outlets fromwhere you purchase ?

Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

15) What do you think the service provided by these organized FMCG outlets incomparison to other stores are:

Excellent Good Average Poor Very Poor

16) What are the problems you face when you shop from these organized FMCG retail


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outlets? (specify)

Range is not complete Vegetables/Fruits are not fresh

Home delivery is not provided Do not grant credit

Insufficient Billing Counters

17) In future will you spend more at organized FMCG retail outlets ?

Definitely Yes Probably Yes Cant Say Probably Not Definitely No

18) Do you think the market share of unorganized retail will:

Definitely increase Increase Remain same Decrease Definitely decrease

19) What kind of improvements required in these organized FMCG retail outlets, pleaseMention:

1) _________________________________________________________________

_2) _________________________________________________________________

_3) _________________________________________________________________

_

THANKS A LOT FOR VALUABLE INFORMATION


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BIBLIOGRAPHY

WEBSITES:

www.imagesretailing.comwww.reportbuyer.comwww.reportbuyers.comwww.thirdeyesite.inwww.subhiksha.com

www.google.comwww.futurebazar.com

BOOKS:

C R Kothari Research Methodology

PUBLISHED CATALOUGES OF DIFFERENT ORGANIZED FMCG RETAILOUTLETS IN LUDHIANA.

Documents

Customer Perceptoin Satisfaction Survey of Organized Fmcg Retail Outlets in in India (2) Copy