Pacific Mall New

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INTRODUCTION


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PRESENT INDIAN RETAIL SCENARIO

Indian retail sector has become one of the most powerful and fast growing markets in the

world.

Establishments involved in retail trade claimed the highest percentage both in the rural (39.28

percent) and urban (45 percent) areas.

According to the Department of Commerce, annual U.S. retail store sales exceed $4 trillion-

representing one-third of the total economy.

Retail is India's largest industry. It accounts for over 10 per cent of the India's GDP and around 8

per cent of the employment. Retail sector is one of India's fastest growing sectors with a 5 per

cent compounded annual growth rate. India's huge middle class base and its untapped retailindustry are key attractions for global retail giants planning to enter newer markets. Driven by

changing lifestyles, strong income growth and favourable demographic patterns, Indian retail is

expected to grow 25 per cent annually. It is expected that retail in India could be worth US$ 175-

200 billion by 2016.

INTRODUCTION TO SHOPPING

Shopping is the process whereby consumers directly buy goods, services etc. from a seller

interactively in real-time without an intermediary service over the internet.

Online shopping is the process of buying goods and services from merchants who sell on the

Internet.

Books, clothing, household appliances, toys, hardware, software, and health insurance are

just some of the hundreds of products consumers can buy.

Many people choose to conduct shopping online because of the convenience

people.

Mall shoppers are serious about their shopping

Shoppers have problems more frequently in malls than in individual stores


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Where should a Mall focus in order to drive satisfaction and loyalty?

The four attributes of mall satisfaction and loyalty

The study found that there are four distinct attributes of the Shopping Mall experience

that drive shopper satisfaction and grow shopper loyalty.

4 The Shopping Mall: A Study on Customer Experience

• Discovery. Does the mall offer a diversity of stores and restaurants, with unique

products and interesting special events? Is it attractive, inviting and environmentally

conscious?

• Comfort. Is the mall clean, well maintained and safe? Are washrooms numerous, easy

to find and sanitary?

• Navigation. How simple is it to find the mall from the street or highway? Once inside, is

the mall layout easy to navigate with clear signage?

• Accessibility. Is parking ample and conveniently located?

Though there are several factors that influence consumers to shop through malls, but there

are mainly four factors which influence consumer decision after reading literature in the

field on consumer attitudes towards shopping and these factors are discussed below in brief.

Cultural factors

Social factors

Personal factors

Psychological factors

The retail industry is divided into organized and unorganized sectors. As the corporate – the

Piramals, the Tatas, the Rahejas, ITC, S.Kumar‘s, RPG Enterprises, and mega retailers-

Crosswords, Shopper‘s Stop, and

Pantaloons race to revolutionize the retailing sector, retail as an industry in India is coming alive.


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Retail sales in India amounted to about Rs.7400 billion in 2002, expanded at an average annual

rate of 7% during 1999-2002. With the upturn in economic growth during 2003, retail sales are

also expected to expand at a higher pace of nearly 10%. Across the country, retail sales in real

terms are predicted to rise more rapidly than consumer expenditure during 2003-08. The forecast

growth in real retail sales during 2003- 2008 is 8.3% per year, compared with 7.1% for consumer

expenditure. Modernization of the Indian retail sector will be reflected in rapid growth in sales of

supermarkets, departmental stores and hypermarts. Sales from theselarge-format stores are to

expand at growth rates ranging from 24% to 49% per year during 2003-2008, according to a

latest report by Euromonitor International, a leading provider of global consumer-

market intelligence.

A.T. Kearney Inc. places India 6th on a Global Retail Development Index. The country has the

highest per capita outlets in the world - 5.5 outlets per 1000 population. Around 7% of the

population in India is engaged in retailing, as compared to 20% in the USA.

In a developing country like India, a large chunk of consumer expenditure is on basic necessities,

especially food-related items. Hence, it is not surprising that food, beverages and tobacco

accounted for as much as 71% of retail sales in 2002. The share of food related items had,

however, declined over the review period, down from 73% in 1999. This is not unexpected,

because with income growth, Indians, like consumers elsewhere, have started spending more on

non- food items compared with food products. Sales through supermarkets and department stores

are small compared with overall retail sales. Nevertheless, their sales have grown much more

rapidly, at almost a triple rate (about 30% per year during the review period). This high

acceleration in sales through modern retail formats is expected to continue during the next few

years, with the rapid growth in numbers of such outlets due to consumer demand and business

potential.

The factors responsible for the development of the retail sector in India can be broadly

Summarized as follows:


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•Rising incomes and improvements in infrastructure are enlarging consumer markets and

accelerating the convergence of consumer tastes.

Looking at income classification, the National Council of Applied Economic Research (NCAER)

classified approximately 50% of the Indian population as low income in 1994- 95; this is

expected to decline to 17.8% by 2006-07.

•Liberalization of the Indian economy which has led to the opening up of the market for

consumer goods has helped the MNC brands like Kellogg, Unilever, Nestle, etc. to make

significant inroads into the vast consumer market by offering a wide range of choices to the

Indian consumers.

•Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc.

•The internet revolution is making the Indian consumer more accessible to the growing

influences of domestic and foreign retail chains. Reach of satellite T.V. channels is helping in

creating awareness about global products for local markets. About 47% of India‘s population is

under the age of 20; and this will increase to 55% by 2015. This young population, which

is technology-savvy, watch more than 50 TV satellite channels, and display the highest

propensity to spend, will immensely contribute to the growth of the retail sector in the country.

As India continues to get strongly integrated with the world economy riding thewaves of

globalization, the retail sector is bound to take big leaps in the years to come.

• Retailers direct procure the products & ser vices in bulk through manufacturers, so they

eliminate the middleman and save the cost. They offer the product & services on the discount

prices or on a wholesaler rate to the consumer.


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The Indian retail sector is estimated to have a market size of about $ 180 billion; but the

organized sector represents only 3% share of this market. Most of the organized retailing in the

country has just started recently, and has been concentrated mainly in the metro cities. India is

the last large Asian economy to liberalize its retail sector. In Thailand, more than 40% of all

consumer goods are sold through the super markets and departmental stores. A similar

phenomenon has swept through all other Asian countries. Organized retailing in India has a huge

scope because of the whole urban and rural and the growing consciousness of the consumer

about product quality and services.

A study conducted by Fitch, expects the organized retail industry to continue to grow rapidly,

especially through increased levels of penetration in larger towns

and metros and also as it begins to spread to smaller cities and B class towns. Fuelling this

growth is the growth in development of the retail-specific properties and malls. According to the

estimates available with Fitch, close to 25mn sq. ft. of retail space is being developed and will be

available for occupation over the next 36-48months. Fitch expects organized retail to

capture 15%-20% market share by 2010. A McKinsey report on India says organized retailing


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would increase the efficiency and productivity of entire gamut of economic activities, and would

help in achieving higher GDP growth. At 6%, the share of employment of retail in India is low,

even when compared to Brazil (14%), and Poland (12%).

EVOLUTION AND TRENDS IN ORGANIZED RETAILING FORMATS AND RETAIL

OUTLETS

Historical Indian retail market consisted of weekly markets, village fairs and mela‘s and the 19th

century gave birth to the retail outlets which took the form of convenience stores, Mom and Pop

stores/ kirana stores. This helped the consumers on to stick to a particular store for their day to

day requirements and also avail the credit purchasing facility. And in the 1980‘s people have

seen the new formats like supermarket, departmental stores and discount stores entering into the

Indian retail space. In less than a decade hypermarkets have gained all the applause of the retail

market and stood above all the other formats by bringing in the concept of ―one stop shopping.‖

This stood as an opening door for the new generation of the retail industry. And very soon the

malls became the trend setters in the new millennium.

This has coined the term of ‗shoppertainment‘ (shopping and entertainment) which can be

attributed to the changing life styles of the people.

Hypermarket: It is the largest format in Indian retail so far is a one stop shop for the modern

Indian shopper.

Merchandise: food grocery to clothing to spots goods to books to stationery.

Space occupied: 50000 Square feet and above.

SKUs: 20000-30000.

Example: PETER ENGLAND retail‘s Big Bazaar, RPG‘s Spencer‘s (Giant), Pacific Mall.

Supermarket: A subdued version of a hypermarket.


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Merchandise: Almost similar to that of a hypermarket but in relatively smaller proposition.

Space occupied: 5000 Sq. ft. or more.

SKUs: Around 10000.

Example: Nilgiris, Apna Bazaar, Trinethra/more.

Convenience store: A subdued version of a supermarket.

Merchandise: Groceries are predominantly sold.

Space occupied: Around 500 Sq. ft. to 3000 Sq. ft.

Example: stores located at the corners of the streets, Reliance Retail‘s fresh.

Department store: A retail establishment which specializes in selling a wide range of products

without a single prominent merchandise line and is usually a part of a retail chain.

Merchandise: Apparel, household accessories, cosmetics, gifts etc.

Space occupied: Around 10000 Sq. ft. – 30000 Sq. ft.

Example: Landmark Group‘s LifeStyle, Trent India Ltd.‘s Westside.

Discount store: Standard merchandise sold at lower prices with lower margins and higher

volumes.

Merchandise: A variety of perishable/ non perishable goods.

Example: Viswapriya Group‘s Subiksha, Piramal‘s TruMart.

Specialty store: It consists of a narrow product line with deep assortment.

Merchandise: Depends on the stores

Example: Bata store deals only with footwear, RPG‘s Music World, Crossword.


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MBO‟s: Multi Brand outlets, also known as Category Killers. These usually do well in busy

market places and Metros.

Merchandise: Offers several brads across a single product category.

Kirana stores: The smallest retail formats which are the highest in number (15 million approx.)

in India.

Merchandise: Mostly food and groceries.

Space occupied: 50 sq ft and even smaller ones exist.

Malls: The largest form of organized retailing today located mainly in metro cities, in proximity

to urban outskirts.

Merchandise: They lend an ideal shopping experience with an amalgamation of product, service

and entertainment, all under a common roof.

Space occupied: Ranges from 60,000 sq ft to 7, 00,000 sq ft.


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In the above graph it shows that the in India the fastest growing retail segment is food and

grocery because in India people spend more on eating. Then dressing because India is now

turning to modern age and the people of modern age like to dress well and look well.


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In the above graph it shows that the there are many formats of retailing in India but the specialty

store and supermarket is fastest growing formats in India.

Key part of the general corporate strategy

A marketing strategy is most effective when it is an integral component of corporate strategy,

defining how the organization will successfully engage customers, prospects, and competitors in

the market arena. It is partially derived from broader corporate strategies, corporate missions,

and corporate goals. As the customer constitutes the source of a company's revenue, marketing

strategy is closely linked with sales. A key component of marketing strategy is often to keep

marketing in line with a company's overarching mission statement.


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Basic theory:

1) Target Audience

2) Proposition/Key Element

3)

Implementation

The Organized Retail Pie of Daily need items:


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Fact and Figures:

Even though India has well over 5 million retail outlets of all sizes and styles (ornon-styles), the

country sorely lacks anything that can resemble a retailing industry in the modern sense of the

term. This presents international retailing specialists with a great opportunity.

It was only in the year 2000 that the global management consultancy put a figure that: Rs.

400,000 crore (1 crore = 10 million) which will increase more than Rs. 800,000 crore by the year

2007 – an annual increase of 20 per cent. .

·As much as 96 per cent of the 5 million-plus outlets are smaller than 500 square feet in area.

This means that India per capita retailing space is about 2 square feet (compared to 16 square

feet in the United States). India's per capita retailing space is thus the lowest in the world

(source: KSA Technopak (I) Pvt Ltd, the India operation of the US-based Kurt Salmon

Associates).

·Just over 8 per cent of India's population is engaged in retailing (compared to 20 per cent in the

United States). There is no data on this sector's contribution to the GDP.

·From a size of only Rs.20, 000 crore, the organized retail industry will grow more than Rs.

160,000 crore by 2007. The TOTAL retail market, however, as indicated above will grow 20 per

cent annually from Rs. 400,000 crore in 2000 to Rs. 800,000 crore by 2005.

·Given the size, and the geographical, cultural and socio-economic diversity of India, there is no

role model for Indian suppliers and retailers to adapt or expand in the Indian context.

·The first challenge facing the organized retail industry in India is: competition from the

unorganized sector. Traditional retailing has established in India for some centuries. It is a low

cost structure, mostly owner-operated, has negligible real estate and labor costs and little or no

taxes to pay. Consumer familiarity that runs from generation to generation is one big advantage

for the traditional retailing sector.

·In contrast, players in the organized sector have big expenses to meet, and yet have to keep

prices low enough to be able to compete with the traditional sector. High costs for the organized

sector arises from: higher laborcosts, social security to employees, high quality real estate, much


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bigger premises, comfort facilities such as air-conditioning, back-up power supply, taxes etc.

Organized retailing also has to cope with the middle class psychology that the bigger and

brighter sales outlet is, the more expensive it will be.

The above should not be seen as a gloomy foreboding from global retail operators. International

retail majors such as Benetton, Dairy Farm and Levis have already entered the market. Lifestyles

in India are changing and the concept of "value for money" is picking up.

·India's first true shopping mall – complete with food courts, recreation facilities and large car

parking space – was inaugurated as early as in 1999 in Mumbai. (This mall is called

"Crossroads").

·Local companies and local-foreign joint ventures are expected to more advantageously position

than the purely foreign ones in the fledgling organized India's retailing industry. The foreign

Retail players has knowledge & experience about Retail ,at the same, local players has

knowledge about Indian culture &society setup.

·These drawbacks present opportunity to international and/or professionally managed Indian

corporations to pioneer a modern retailing industry in India and benefit from it.

·The prospects are very encouraging. The first steps towards sophisticated retailing are being

taken, and "Crossroads" is the best example of this awakening. More such malls have been

planned in the according to that retail industry is one of other big cities of India.

·An FDI Confidence Index survey done the most attractive sectors for FDI (foreign direct

investment) in India and foreign retail chains would make an impact circa 2003.

•Indian organized retail is new and in the experimental stage so the players should be deeper

pocket to absorb the sock of loss in retail.


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MAJOR INDIAN RETAILERS

The low-intensity entry of the diversified Mahindra Group into retail is unique because it plans

to focus on lifestyle products. The Mahindra group is the fourth large Indian business group to

enter the business of retail after Reliance Industries Ltd, the Aditya Birla Group, and Bharti

Enterprises Ltd. The other three groups are focusing either on perishables and groceries, or a

range of products, or both.

RPG Retail-Formats: Music World, Books & Beyond, Spencer‘s Hyper, Spencer‘s Super,

Daily & Fresh

The Tata Group-Formats: Westside, Star India Bazaar, Steel junction, Landmark, and Titan

Industries with World of Titans showrooms, Tanishq outlets, Chroma.

K Raheja Corp Group-Formats: Shoppers‘ Stop, Crossword, Hyper City, in orbit

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

brand stores.

Pyramid Retail-Formats: Pyramid Megastore, TruMart

Nilgiri‟s-Formats: Nilgiri's‘ supermarket chain

Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain.

Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain

Vishal Retail Group-Formats: Pacific Mall

BPCL-Formats: In & Out


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Reliance Retail-Formats: Reliance Fresh

Reliance ADAG Retail-Format: Reliance World

Shoprite Holdings-Formats: Shoprite Hyper

FDI in retail

Government has relaxed regulatory controls on foreign direct investment (FDI) considerably in

recent years, while retailing currently remainsclosed to FDI. However, the Indian government

has indicated in 2005 that liberalization of direct investment in retailing is under active

consideration. It has allowed 51% FDI in "single brand" retail.

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

consumer retailing. Indian companies know Indian markets better, 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.

India can become a giant in a short time span in food processing and textiles, for which we have

the potential because Indian agricultural production is the lowest cost in the world, and textile

labor is the cheapest internationally.

Allowing FDI in retail trade, especially in groceries and garments marketing, is one sure way of

doing it. Food processing and textiles will grow very substantially from the linkage effects of a

modernized; globalize retail trade that only FDI can ensure. The employment generation for

Indian youth would also be enormous. Indian retail trade is of enormous size ($180 billion),nearly 10 per cent of GDP, employing 21 million persons, which is about 7 per cent of the labor

force. It is six times bigger than Thailand and five times larger than South Korea and Taiwan.

China's retail trade is 8 per cent of GDP and 6 per cent of employment.


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But the trade in India is fragmented, unorganized, networked, and individually small. The 12

million kirana shops are mostly family or 'ma-pa' owned, with little capital for expansion or

credit to receive or to extend to consumers.

About 96 per cent of these shops have 500 sq. ft or less of space with limited stock or choice to

offer. During all these years, instead of shedding tears for indigenous trade and resisting FDI,

had the government declared it an industry, it would done the trade a world of good. Now it is

being said that allowing FDI in retail trade would destroy this commerce! Will it?

A study by the Associated Chambers of Commerce of Industry of India, New Delhi,

concluded that at least for the next ten years that will not

happen. Thereafter, the present fragmented system may get phased out or evolved into

more integrated networked units.

Modern retailing is designed not only to provide consumers with a wide variety of products

under one roof, but also of assured home delivery and information feedback between consumers

and producers. A modern retail outlet will also make it easy to buy on credit and provide for

servicing and repair of products sold.

With IT application, the modern retail store can cut transaction costs such as due to inventory,

delivery and handling. That is precisely how the US based Wal-Mart grew to be a giant because

it reduced its distribution costs to 3 per cent of sales compared to 4.5 per cent of others.

With MIT Professor Sanjay Sharma's epochal innovation of RFID (radio frequency

identification), which will do away with cash registers and clerks who are required to operate

it, Wal-Mart will further reduce its costs.

India is today the only major economy that still does not permit FDI in retail trade. In China, 35

of the world's top 70 retailers have already entered and set up business. They have helped boost


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exports. Wal-Mart alone exported in 2002 about $12 billion worth of goods. These retailers

source their goods from inside China. India is targeting for its GDP to grow by 8 to 10 per cent

per year. This requires raising the rate of investment as well as generating demand for the

increased goods and services produced. Exports are one way of generating that demand.

Encouraging private consumption expenditure is another way.

These retail giant houses can bring their better managerial practices and IT- friendly techniques

to cut wastage and set up integrated supply chains to gradually replace the presented

disorganized and fragmented retail market.

According to McKinsey, India wastes nearly Rs. 50,000 crore in the food chain itself. These

international retail outlets can help develop the food

processing industry, which requires $28 billion of modern technology and infrastructure.

FDI in retail trade has forced the wholesalers and food processors to improve, raised exports, and

triggered growth by outsourcing supplies domestically. The availability of standardized products

has also boosted tourism in these countries.


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Opportunity Challenges and emerging trends for Organized retail in India

Opportunity

Population: India‘s population estimated at 1,055 million is expected to grow by 1.7 % year by

year. Growing urbanization is key trend in the country, with rural population growth average

17.9 % and urban growth at 30.7% for the period 1991 to 2001. Today (12 Mar 2007 at 10.03)

the population of India is 1,110,480,374.

MUKESH KUMAR, I.T.S, PGDM (2006-2008)

Right now the population of Key static with regard to population growth ant the urban and rural

split is set out bellow

Source: Technical Group on Population Projections, Registrar General of India (RGI) 1996


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Figure no.-2

·In the period between 1996-2016, population in the:

1.Age group 15-59 will increase from 519 to 800 million

2.Age group < 15 yrs will decline from 353-350 million

3.Age group > 60 yrs will increase from 62.3 to 112.9 million

Challenges of Retailing in India

Retailing as an industry in India has still a long way to go. To become a truly flourishing

industry, retailing needs to cross the following hurdles:

•Automatic approval is not allowed for foreign investment in retail.

•Regulations restricting real estate purchases, and cumbersome local laws.

•Taxation, which favors small retail businesses.

•Absence of developed supply chain and integrated IT management.

•Lack of trained work force.

•Low skill level for retailing management.

•Intrinsic complexity of retailing – rapid price changes, constant threat of product Obsolescence

and low margins.

•The credit facility given by the unorganized retail which is not available to Organized store

•Traditional pattern of buying of consumer

•Credit facility given by kirana store

•Family relationship with kirana store/Lalagi

•Psychological behavior to enter big size


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•Check impulsive buyer

•Absence of model

•Limited floor space, Park space, Display space

•Time factor

•Home delivery

The retailers in India have to learn both the art and science of retailing by closely following how

retailers in other parts of the world are organizing, managing, and coping up with new challenges

in an ever-changing marketplace. Indian retailers must use innovative retail formats to enhance

shopping experience, and try to understand the regional variations in consumer attitudes to

retailing. Retail marketing efforts have to improve in the country - advertising, promotions, and

campaigns to attract customers; building loyalty by identifying regular shoppers and offering

benefits to them; efficiently managing high-value customers; and monitoring customer needs

constantly, are some of the aspects which Indian retailers need to focus upon on a more pro-

active basis.

Despite the presence of the basic ingredients required for growth of the retail industry in India, it

still faces substantial hurdles that will retard and inhibit its growth in the future. One of the key

impediments is the lack of FDI status. This has largely limited capital investments in supply

chain infrastructure, which is a key for development and growth of food retailing and has also

constrained access toworld-class retail practices. Multiplicity and complexity of taxes, lack of

proper infrastructure and relatively high cost of real estate are the other impediments to the

growth of retailing. While the industry and the government are trying to remove many of these

hurdles, some of the roadblocks will remain and will continue to affect the smooth growth of this

industry. Fitch believes that while the market share of organized retail will grow and become

significant in the next decade, this growth would, however, not be at the same rapid pace as in

other emerging markets. Organized retailing in India is gaining wider acceptance. The


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development of the organized retail sector, during the last decade, has begun to change the face

of retailing, especially, in the major metros of the country. Experiences in the developed and

developing countries prove that performance of organized retail is strongly linked to the

performance of the economy as a whole. This is mainly on account of the reach and penetration

of this business and its scientific approach in dealing with customers and their needs. In spite of

the positive prospects of this industry, Indian retailing faces some major hurdles (see Table 1),

which have stymied its growth. Early signs of organized retail were visible even in the 1970s

when Nilgiris (food), Viveks (consumer durables) and Nallis (sarees) started their operations.

However, as a result of the roadblocks, the industry remained in a rudimentary stage. While these

retailers gave the necessary ambience to customers, little effort was made to introduce world-

class customer care practices and improve operating efficiencies. Moreover, most of these

modern developments were restricted to south India, which is still regarded as a ‗Mecca of

Indian Retail‘.


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Emerging Trends in Retailing

Retailing in India is at a nascent stage of is evolution, but within a small period of time certain

trends are clearly emerging which are in line with the global experiences. Organized retailing is

witnessing a wave of players entering the industry. And, these players are experimenting with

various retail formats. Yet, Indian retailing has still not been able to come up with many

successful formats that can be scaled up and applied across India. Some of the notable exceptions

have been garment retailers like Madura Garments & Raymond who was scaled their exclusive

showroom format across the country. The Indian economy is highly regulated and the most

significant regulation is the restriction of foreign ownership.

Trends in Retailing

New retail forms and combinations continually emerge. Bank branches and ATM counters have

opened in supermarkets. Gas stations include food stores that make more profit than the gas

operation. Bookstores feature coffee shops.

Even old retail forms are reappearing: In 1992 Shawna and Randy Heniger introduced peddler‘s

carts in the Mall of America. Today three-fourths of the nation‘s major malls have carts selling

everything from casual wear to condoms.

Successful carts average $30,000 to $40,000 a month in sales and can easily top $70,000 in

December. With an average start-up cost of only $3,000, pushcarts help budding entrepreneurs

test their retailing dreams without a major cashinvestment. They provide a way for malls to bring

in more mom-and-pop retailers, showcase seasonal merchandise, and prospect for permanent

tenants.

1. New retail forms are facing a shorter life span. They are rapidly copied and quickly lose their

novelty.

2.The electronic age has significantly increased the growth of non store retailing consumers

receive sales offers in the mail and over television, computers, and telephones, to which they can

immediately respond by calling a toll-free number or via computer.


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3.Competition today is increasingly intertype, or between different types of store outlets.

Discount stores, catalog showrooms, and department stores all compete for the same consumers.

The competition between chain superstores and smaller independently owned stores has become

particularly heated. Because of their bulk buying power, chains get more favorable terms than

independents, and the chains‘ large square footage allows them to put in cafes and bathrooms.

4.In many locations, the arrival of a superstore has forced nearby independents out of business.

In the book selling business, the arrival of a Barnes & Noble superstore or

5.Borders Books and Music usually puts smaller bookstores out of business. Yet the news is not

all bad for smaller companies. Many small independent retailers thrive by knowing their

customers better and providing them with more personal service.

6.Today‘s retailers are moving toward one of two poles, operating either as mass merchandisers

or as specialty retailers. Superpower retailers are emerging. Through their superior information

systems and buying power, these giant retailers are able to offer strong price savings. These

retailers are using sophisticated marketing information and logistical systems to deliver good

service and immense volumes of product at appealing prices to masses of consumers.

7.In the process, they are crowding out smaller manufacturers, who become dependent on one

large retailer and are therefore extremely vulnerable, and smaller retailers, who simply do not

have the budget of the buying power to compete.

8.Many retailers are even telling the most powerful manufacturers what to make; how to price

and promote; when and how to ship; and even how to reorganize and improve production and

management. Manufacturers have little choice: They stand to lose 10 to 30 percent of the market

if they refuse.

9.Marketing channels are increasingly becoming professionally managed and programmed.

Retail organizations are increasingly designing and launching new store formats targeted to

different lifestyle groups. They are not sticking to one format, such as department stores, but are

moving into a mix of retail formats.

10.Technology is becoming critical as a competitive tool. Retailers are using computers to

produce better forecasts, control inventory costs, order electronically from suppliers, send e-


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mail between stores, and even sell to customers within stores. They are adopting checkout

scanning systems, electronic funds transfer, and improved merchandise-handling systems.

11.Retailers with unique formats and strong brand positioning are increasingly moving into other

countries. McDonald‘s, The Limited, Gap, and Toys ―R‖ U.S. have become globally prominent

as a result of their great marketing prowess. Many more Indian retailers are actively pursuing

overseas markets to boost profits.

12.There has been a marked rise in establishments that provide a place for people to congregate,

such as coffeehouses, tea shops, juice bars, bookshops, and brew pubs.

EMERGING TRENDS:

1.Forward integration / alternate channels: In bid to close the distance between the company

and the end consumer by cutting down the distribution channel, some manufacturers of consumer

goods are establishing company owned stores and service formats and exploring the store in

store concept to enhance margins and increase customer value.

2.Sourcing: The CPG industry is following the It outsourcing trend. Indian subsidiaries of global

CPG players have proved them self in term of quality and production capabilities. This had led

several international companies to source from India. For example Hindustan lever the

subsidiary of Unilever exports a wide range of products like soap, detergents, oral care and skin

care products to other Unilever subsidiaries. A new export Oriented unit is being set up by

Hindustan lever in Pune, to cater to the need of this business. Unilever is also setting up a global

sourcing office in India to buy products and raw material from low cost location for its

subsidiaries across the world. India is moving towards embracing global patent and trademark

standard that will facilitate outsourcing by CPG companies.

With quotas in textiles sector also being relaxed, global retailers are increasingly focusing their

sourcing efforts (both apparel and non apparel) from India. Wal-Mart has announced it will


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increase it an annual sourcing from India from USD5 billion. This trend is likely to be followed

by most big retailers.

3.Rapid expansion and format migration: After making years of investment in customer

acquisition, setting up of systems / process and consequent operational loose, many leading

retailers have passed their ―learning‖ phase and are getting in to the consolidation/aggressive

rollout phase. Today few of them are making modest money out of the business. This provides

confidence to the investors to infuse much needed capital in the businesses and will lead the

further expansion and format migration. For example the department store chain, Shoppers Stop,

will soon have its Initial Public Offer (IPO) and use all the fund raised, for rapid expansion in

existing format and roll out of grocery stores. Other leading retailers such as Tent (West side)

and Landmark Group (life style) are also considering new formats in home improvement and

hypermarkets.


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Retail as an Employment Generator

T he retail sector can generate huge employment opportunities, and can lead to job-led economic

growth. In most major economies, ‗services‘ form the largest sector for creating employment. US

alone have over 12% of its

employable workforce engaged in the retail sector. The retail sector in India employs nearly 21

million people, accounting for roughly 6.7% of the total employment. However, employment in

organized retailing is still very low, because of the small share of organized retail business in the

total Indian retail trade. The share of organized retailing in India, at around 3%, is abysmally

low,

compared to 80% in the USA, 40% in Thailand, or 20% in China, thus leaving the huge market

potential largely

Untapped. A modern retail/retail services sector has the potential of creating over 2 million new

(direct) jobs within the next 6 years in the country (assuming only 8- 10% share of organized

retailing), according to Arvind Singhal, CMD, KSA Technopak. Retail can create as many new

jobs as the BPO/ITeS sector in India. A strong retailfront-end can also provide the necessary

fillip to agriculture & food processing, handicrafts, and small & medium manufacturing

enterprises, creating millions of new jobs indirectly. Through its strong linkages with sectors like

tourism and hospitality, retail has the potential of creating jobs in these sectors also. Though the

Planning Commission has identified retail as a prospective employment generator, in order to

strengthen the multiplier effect of the growth in organized retailing upon the overall employment

situation, a pro-active governmental support mechanism needs to evolve for nurturing the sector.

Issues like FDI in retail, allocation ofgovernment-controlled land on more favorable terms,

strong political and bureaucratic leadership, etc., need to be addressed adequately. Big corporate

houses are coming in retail with huge investment plan, in coming future due to the reason ofcompetition Retail has required more talented & skilled business people.


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COMPANY PROFILE

PACIFIC MALL

Driven by the zeal to make a mark in the commercial sector of the country, Pacific India a

privately owned and operated group of companies is conducting endeavors and operations with a

remarkable degree of dynamism since past 3 decades. The group is steadily emerging as thenotable realty and infrastructure developer providing distinctive and specialized services in Real

Estate, Hospitality and Education sector.

Adhering strictly to its corporate philosophy of trust, quality and commitment, Pacific India has

established a credible position for itself in the highly competitive field of infrastructure

development. The idea has always been to delight people of India by renovating their style of

living by introducing the elements of ‗Art of Leisure‘ through a series of mega projects in the

country. The group‘s esteemed client list widens the spectrum of its existence and marketreputation in the industry.

With more than 50 multi crore projects in all its domains like retail, residential, education &

hospitality the matchless domain expertise of the conglomerate has been proven time and again.


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The group‘s different successful projects are produced by the great minds and expertise of the

people associated with it.

Optimally utilizing its state of the art resources in each of the project Pacific India has always

managed to please clients by giving them maximum worth of their money. Delivering out of the

box and innovative infrastructural and architectural solutions whether it is the field of real estate,

education, hospitality, etc. is the undying motto of the group that wants to set new benchmarks

of quality.

The group comes out with profitable solutions for every client and design by incorporating state

of the art resources in each project. Pacific India promises to deliver magnificent, out of the box

architecture in the form of construction, educational developments, hospitality and real estate

time and again to keep up with their own set standards.

Mission & Values

Mission

To create a horizontally diversified entity in a manner that it is a function of national growth

in Infrastructure

Maintain sustainable profits through excellence in products delivered to our customers

To deliver exceptional real estate solutions to our customers through our passion

and commitment to real estate

To contribute to society by way of providing world class educational facilities and by

providing free education to the poor and the underprivileged

To contribute to national growth by providing low cost housing to the poor and

the underprivileged

Vision

To create an organization with a future shift that will continually adapt and change to the

changing realties of the Global and Indian economy

To be the premier real estate investment and operating company in our markets as recognized by


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our customers, our people and the investment community

To be the forerunner of new business trends and opportunities in the domains of retail,

hospitality and entertainment evolving in the Indian market as part of its Globalization process

To be a leader in the domain of world-class affordable housing and education in India

Values

The morally passable and ethically right philosophy infused with trust, quality and commitment

has helped the group to carve a niche for itself in the construction and real estate industry.

Following are the core values that Pacific India follows without fail:

Integrity

TeamworkHonesty

Efficient Quality Deliverables

Customer Oriented Approach

Personalized Service


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THEORETICAL BACKGROUND

Unique Customer Perception (UCP)

Marketing is a domain which is dynamic i.e. involves change, an important phenomenon not to

be overlooked. We have come across a term ―Unique Selling Proposition‖ (USP) which

companies feel as a constant factor. Every organization is an open system of management which

means change is inevitable and is associated with environmental factors. Companies need to

focus not only on USP of their products but also on the ―Unique Customer Perception‖ (UCP) of

the final end users.

The prop of marketing is based on the need identification and the USP's are prepared based on

the identified needs. If the needs are wrongly identified then even the USP's which are unique to

the product would not serve the purpose. USP identifies a product/service from its competitors

while UCP is the perception or picture a customer develops from all types of promotional inputs

from the company about their product or service. It is often seen that some brands do extremely

well compared to other brands having the same resources. The reason for the brands not to do

well is probably the communications which does not reflect the customer‘s perception. So it is

not the USP but UCP that plays an important role .This has lead to the concept - ―Customer

Perception is the Rule and not Customer Satisfaction‖.

Remember that a customer always buys a product or service with a lot of expectations which he

has derived from the promotional inputs of the company or other sources including word of

mouth. So a customer would be satisfied when Performance is equal to Expectation while would

not be satisfied when Performance does not match with Expectations. Now this expectation is

what has been derived from perception.

Perception is not good or bad, right or wrong, it is just the way someone judges an experience

based on their value system of what they believe should happen. Since people are unique, each of

their perceptions are unique .On the other hand each situation is a "point of contact" with an


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REVIEW OF LITERATURE


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REVIEW OF LITERATURE

The objective of the study according to the researcher is to understand the conceptual framework of Retail

Marketing and to have a complete knowledge of these trends in relation to the Indian market.

Barry Burman and Joel Evans(2006) have offered a different kind of approach to the present

system of retailing. The author has concentrated on understanding and analyzing the detailed market

from different dimensions. The authors have noticed that the non-traditional retailing especially Web

Stores, or Electronic Retail Channels are becoming more profitable and popular because of changing

tastes and styles of buyers, because of liking of the new and emerging trend of Electronic medium.

Internet has influenced not only in terms of technology but Internet has become a social medium of

communication, which is responsible for development of E-Retailing which has drastically influenced

the strategies of retail management. This has changed the perception, competitive strategies,

distribution systems and promotional strategies that are adopted by the retailers.

Wiley Periodicals (2005) Research examining the effects of store environment on shoppers has

found that a number of atmospheric cues have significant effects on shoppers‘ cognitive,

affective, and behavioral responses. To date, retail atmospheric cues have been studied in

isolation, instead of simultaneously, like they occur in the retail setting. This study examines

the interactive effects of two atmospheric cues — retail density and music tempo — and their

impact on shopper responses within a real shopping environment. Based on the schema

incongruity model, it is found that shopper hedonic and utilitarian evaluations of the

shopping experience are highest under conditions of slow music/high density and fast

music/low density.

Julie Baker (2009) While a few researchers have started to chip away at the notion that retail density

is always negative, extant studies do not empirically address the question of why some shoppers

respond negatively to a specific level of density while others respond positively. We examine this

issue by drawing upon field theory (Lewis 1939) to shed light on how shoppers vary in terms of

deeper motives(McClelland 1953) to seek control or intimacy with others in retail mall settings, and

whether these motives influence shopping orientations. Shopping orientation is then hypothesized to

affect perceptions of crowding, and, in turn, subsequent affective responses to the mall shopping

experience. Moreover, we examine whether individual differences (gender and age) can help retailers

segment those with different shopping orientations and the motives that influence these orientations.


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We found that task and social shopping orientations were influenced by deeper motives for control

and intimacy. The causal relationships between shopping motive, shopping orientation, and

consumers‘ affective responses of stress and excitement were also discovered.

Christophe Teller, Charles Dennis The effect of olfactory stimuli on consumer behaviour has

received little attention in marketing and retailing literature compared to other atmospheric cues.

Researchers report ambiguous findings and shortcomings of measurement approaches. Based on a

critical literature review, a field experiment in a regional shopping mall investigates the effectiveness

of ambient scent. Before-and-after surveys of randomly selected shoppers in experimental and control

groups were conducted and different experimental designs simulated. Those designs not controlling

either extraneous variables or attitudinal differences between the control and experimental group

reveals positive effect on factors operationalizing mall perception and consumers ‗emotions. The

design controlling both sources of bias indicates no impact of ambient scent on the dependent

variables. None of the behavioral variables were affected in any case. This paper questions prior

findings on the effectiveness of ambient scent in a shopping-mall environment and calls for more

rigor in investigating the effectiveness of atmospheric stimuli in general.

Sucheta Ahlawat This is the first field study to investigate the influence of pleasant music on the

under-researched consumer response variables of prior shopping experience, store visit frequency,

and return patronage intentions in a variety of retail and service settings. Results from correlation and

regression analysis showed significant relationships in the expected directions. This study‘s findings

extend the theoretical understanding of consumer responses to pleasant atmospheric music in retail

and service environments. Managerial implications are provided to help retail and service managers

encourage consumers to make return visits to the store or service organization. Recommendations are

also provided for future research.

Peter H. Bloch, Scott A. Dawson although large enclosed shopping malls represent significant

institutions in modem Western culture, consumers‘ activities within malls have been surprisingly

under researched. In the present study, consumers‘ interrelationships with malls as consumption sites

are explored using the concept of a habitat drawn from the ecological sciences. An empirical study of

consumer activity within multiple mall habitats is then discussed. Specifically, this research explores

differences in mall habitat activity patterns and identifies mall related shopping orientations that are

useful in explaining these differences.

Richard Michon, L.W. Turley The authors investigate the moderating effects of ambient odors on

shoppers‘ emotions, perceptions of the retail environment, and perceptions of product quality under

various levels of retail density. The context for the experiment is a real-life field location — in a

community shopping mall. The pleasing ambient scents are hypothesized to positively moderate


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shoppers‘ perceptions of their environment. A multi group invariant structural equation model that

accounts for different retail density levels shows that the relationship between ambient odors and mall

perception adopts an inverted U shape. Ambient odors positively influence shoppers‘ perceptions

only under the medium retail density condition. Incongruity theory informs the interaction effect

between the two atmospheric variables. A moderate incongruity level is more likely to trigger a

favorable evaluation of the situation (the shopping experience), object (the products sold), or the

person.

Kirk L. Wakefield Competition between malls and newer forms of shopping centers has led mall

developers and management to consider alterative methods to build excitement with customers. In

this study, we examine the relationship bet Hen three factors (tenant variety, mall environment and

.shopping involvement} on shoppers' excitement and desire to stay at a mall. Results show that the

three factors have a differential influence on excitement and desire to stay, which in tum are found to

influence patronage intentions and out shopping.

Nicholls, Li, Kranendonk and Roslow (2002) investigated changes in the shopping behaviour of

today‘s mall patrons as opposed to those in the early 1990s. Although not many differences were

found between the demographics of the respondents in the earlier and later periods, they discovered

significant differences in shopping patterns and purchase behaviours. The findings also reveal that

situational variables are more likely to have impact on shoppers‘ purchase decisions today than they

did before.

Lather and Kaur (2006) in their paper, studied various malls and established the

relationship between the shoppers behavior and various attributes / indicators of stores in

malls. They observed that most of the customers do not look at the pricing alone. They are

looking for a sense of belongingness, a brand of quality and innovation they can trust. Small

retailers no longer remain the primary source for the basic monthly shopping basket. The

consumer normally gets better prices, quality selection and convenience for these purchases

at organized retail chains and shopping malls. Their results also suggested that if proper

window displays and other proper methods of presentation of merchandising are done, the

retailers are able to attract more shoppers.


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Research Gap:

The studies which were done by students earlier covered their aspects and their objectives but

they were not able to touch some important aspects which are essential for study thereby keeping

these aspects in mind, for the benefit of the government and the society there is need for this

research.


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OBJECTIVES OF THE

STUDY


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OBJECTIVES

To identify what constitutes CSE

To identify the variables influencing CSE in a Mall.


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RESEARCH

METHODOLOGY


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RESEARCH METHODOLOGY

For the purpose of the study both primary and secondary data will be collected. Primary data will

be collected through questionnaires and interviews etc. Separate questionnaires will be designed

for organized and unorganized retailers of the state. A separate questionnaire will be made to

know the opinion of the consumers regarding their experiences with organized and unorganized

sector in the state. To analyze government policies and strategies, interviews of various officers,

ministers of government machinery that are associated directly or indirectly with the sector will

be conducted sources of secondary data like government gazettes, government publications,

recent notifications, website of government and ministries will also be used in the process.

Sample:

In order to assess present state of retail sector in Dehradun visits will be made to big bazaar,

hyper marts and super marts that form the organized retail sector in the state. As they are

presently available in Dehradun, a sample size of 100 from the entire Dehradun of such big malls

will be taken in view their availability. There are a large number of families that run kirana stores

in the state which come under the unorganized retail sector in the study. Concidering their

availability in huge number it would be appropriate to apply large sampling techniques. Sample

will be taken from Dehradun while surveying the organized and unorganized retail outlets,

consumers.

Consumers using these stores in each area will also be contacted to know about their perception

and preferences


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Statistical Tool to be employed:

From the structured data suitable information will be extracted, analyzed, tabulated and inferred

with the help of various tools. According to the requirement various statistical tools like

sampling techniques(t test, f test etc) chi square test etc will be applied to determine the

significance of observed data.

Location of the study:

The study would be conducted in Dehradun.

Classification of Study:

Three retail outlets and two kirana stores in Dehradun will be randomly selected for this study.

Visiting customers from each outlet will be personally interviewed with the help of especially

structured questionnaire.

Research Instrument and Method:

The survey was conducted on customers with the help of M.B.A. students who were specially

trained for the purpose. A well structured questionnaire was developed for conducting the study.

The questionnaire was divided into two parts. First part was designed to obtain demographic

information about the respondents‘ age, income, literacy level and gender. Second part contained

closed-ended questions relating to rating of retail outlets on various parameters.

Analysis of Data:

Customers‘ perception towards different aspects of retail outlets and kirana stores were

compared using Analysis of Variance (ANOVA). Before going in for analysis, the Likert Scale

attributes were assigned weights as under:


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1 Strongly Disagree

2 Disagree

3 Neither Agree nor disagree

4 Agree

5 Strongly Agree

The results obtained through data analysis have been discussed in the paper.

Research Design: Descriptive Research

Sampling Technique: Convenience Sampling (Mall intercept)

Sampling Unit: People living in Dehradun visiting Pacific mall

Sample Size: 100 respondents

Data Collection Method: Questionnaire/Schedule

Data Analysis Tools: MS Excel Spreadsheet and SPSS 20


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DATA ANALYSIS AND

INTERPRETATION


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DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS FOR ORGANIZED RETAIL OUTLETS

1. You are satisfied with the Value of products at organized Retailed outlets

NValid 50

Missing 0Mean 4.0400Std. Deviation 1.30868

You are satisfied with the Value of products at organized Retailed outlets

Frequency

Percent ValidPercent

CumulativePercent

Valid

Strongly Disagree 5 10.0 10.0 10.0

Disagree 3 6.0 6.0 16.0

Neither Agree nor

Disagree

2 4.0 4.0 20.0

Agree 15 30.0 30.0 50.0

Strongly Agree 25 50.0 50.0 100.0

Total 50 100.0 100.0

Interpretation

10% of the respondents strongly disagree with the statement that they are satisfied with the valueof products at organized retail outlets, 6% disagree, 4% neither agree nor disagree, 30% agreeand remaining 50% strongly agree with the same.


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2. You are satisfied with the quality of products at organized Retailed outlets

NValid 50

Missing 0Mean 4.0200

Std. Deviation 1.44970

You are satisfied with the quality of products at organized Retailed outlets

Frequency


CumulativePercent

Valid


Disagree 4 8.0 8.0 20.0

Neither Agree norDisagree

3 6.0 6.0 26.0

Agree 7 14.0 14.0 40.0Strongly Agree 30 60.0 60.0 100.0

Total 50 100.0 100.0

Interpretation

12% of the respondents strongly disagree with the statement that they are satisfied with thequality of products at organized Retailed outlets, 8% disagree, 6% neither agree nor disagree,14% agree and remaining 60% strongly agree with the same.


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3. You are satisfied with the staff of organized Retailed outlets

NValid 50



You are satisfied with the staff of organized Retailed outlets

Frequency


CumulativePercent

Valid


Disagree 5 10.0 10.0 30.0


7 14.0 14.0 44.0


Total 50 100.0 100.0

Interpretation

20% of the respondents strongly disagree with the statement that they are satisfied with the staffof organized Retailed outlets, 10% disagree, 14% neither agree nor disagree, 16% agree andremaining 40% strongly agree with the same.


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4. You are satisfied with the price of products at organized Retailed outlets

NValid 50



You are satisfied with the price of products at organized Retailed outlets

Frequency


CumulativePercent

Valid


Disagree 8 16.0 16.0 30.0


2 4.0 4.0 34.0


Total 50 100.0 100.0

Interpretation

14% of the respondents strongly disagree with the statement that they are satisfied with the priceof products at organized Retailed outlets, 16% disagree, 4% neither agree nor disagree, 36%agree and remaining 30% strongly agree with the same.


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5. You are satisfied with the cleanliness provided at organized Retailed outlets

NValid 50

Missing 0

Mean 3.8800Std. Deviation 1.42342

You are satisfied with the cleanliness provided at organized Retailed outlets

Frequency


CumulativePercent

Valid


Disagree 4 8.0 8.0 20.0

Neither Agree nor

Disagree

5 10.0 10.0 30.0

Agree 10 20.0 20.0 50.0

Strongly Agree 25 50.0 50.0 100.0

Total 50 100.0 100.0

Interpretation

12% of the respondents strongly disagree with the statement that they are satisfied with thecleanliness provided at organized Retailed outlets, 8% disagree, 10% neither agree nor disagree,20% agree and remaining 50% strongly agree with the same.


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6. You are satisfied with the offers provided by organized Retailed outlets

NValid 50



You are satisfied with the offers provided by organized Retailed outlets

Frequency


CumulativePercent

Valid


Disagree 4 8.0 8.0 10.0


5 10.0 10.0 20.0


Total 50 100.0 100.0

Interpretation

2% of the respondents strongly disagree with the statement that they are satisfied with the offers provided by organized Retailed outlets, 8% disagree, 10% neither agree nor disagree, 32% agreeand remaining 48% strongly agree with the same.


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7. You are satisfied with daily Grocery stores of organized Retailed outlets

NValid 50



You are satisfied with daily Grocery stores of organized Retailed outlets

Frequency


CumulativePercent

Valid


Disagree 8 16.0 16.0 40.0


2 4.0 4.0 44.0


Total 50 100.0 100.0

Interpretation

24% of the respondents strongly disagree with the statement that they are satisfied with dailyGrocery stores of organized Retailed outlets, 16% disagree, 4% neither agree nor disagree, 26%agree and remaining 30% strongly agree with the same.


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9. You are satisfied with behavior of employees at organized Retailed outlets

NValid 50

Missing 0


You are satisfied with behavior of employees at organized Retailed outlets

Frequency


CumulativePercent

Valid


Disagree 8 16.0 16.0 30.0

Neither Agree nor

Disagree

2 4.0 4.0 34.0

Agree 18 36.0 36.0 70.0

Strongly Agree 15 30.0 30.0 100.0

Total 50 100.0 100.0

Interpretation

14% of the respondents strongly disagree with the statement that they are satisfied with behaviorof employees at organized Retailed outlets, 16% disagree, 4% neither agree nor disagree, 36%agree and remaining 30% strongly agree with the same.


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DATA ANALYSIS FOR UNORGANIZED RETAIL OUTLETS

10. You are satisfied with the Value of products at unorganized Retailed outlets

NValid 50

Missing 0Mean 2.7200Std. Deviation 1.64180

You are satisfied with the Value of products at unorganized Retailed outlets

Frequency


CumulativePercent

Valid


Disagree 5 10.0 10.0 50.0

Neither Agree norDisagree 4 8.0 8.0 58.0

Agree 11 22.0 22.0 80.0

Strongly Agree 10 20.0 20.0 100.0

Total 50 100.0 100.0

Interpretation

40% of the respondents strongly disagree with the statement that they are satisfied with theValue of products at unorganized Retailed outlets, 10% disagree, 8% neither agree nor disagree,22% agree and remaining 20% strongly agree with the same.


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11. You are satisfied with the quality of products at unorganized Retailed outlets

NValid 50

Missing 0


You are satisfied with the quality of products at unorganized Retailed outlets

Frequency


CumulativePercent

Valid


Disagree 6 12.0 12.0 60.0

Neither Agree nor

Disagree

5 10.0 10.0 70.0

Agree 14 28.0 28.0 98.0

Strongly Agree 1 2.0 2.0 100.0

Total 50 100.0 100.0

Interpretation

48% of the respondents strongly disagree with the statement that they are satisfied with thequality of products at unorganized Retailed outlets, 12% disagree, 10% neither agree nordisagree, 28% agree and remaining 2% strongly agree with the same.


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12. You are satisfied with the staff of unorganized Retailed outlets

NValid 50



You are satisfied with the staff of unorganized Retailed outlets

Frequency


CumulativePercent

Valid


Disagree 2 4.0 4.0 34.0


4 8.0 8.0 42.0


Total 50 100.0 100.0

Interpretation

30% of the respondents strongly disagree with the statement that they are satisfied with the staffof unorganized Retailed outlets, 4% disagree, 8% neither agree nor disagree, 26% agree andremaining 32% strongly agree with the same.


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13. You are satisfied with the price of products at unorganized Retailed outlets

NValid 50



You are satisfied with the price of products at unorganized Retailed outlets

Frequency


CumulativePercent

Valid


Disagree 10 20.0 20.0 60.0


4 8.0 8.0 68.0


Total 50 100.0 100.0

Interpretation

40% of the respondents strongly disagree with the statement that they are satisfied with the priceof products at unorganized Retailed outlets, 20% disagree, 8% neither agree nor disagree, 12%agree and remaining 20% strongly agree with the same.


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14. You are satisfied with the cleanliness provided at unorganized Retailed outlets

NValid 50



You are satisfied with the cleanliness provided at unorganized Retailed outlets

Frequency


CumulativePercent

Valid


Disagree 15 30.0 30.0 50.0


16 32.0 32.0 82.0


Total 50 100.0 100.0

Interpretation

20% of the respondents strongly disagree with the statement that they are satisfied with thecleanliness provided at unorganized Retailed outlets, 30% disagree, 32% neither agree nordisagree, 8% agree and remaining 10% strongly agree with the same.


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15. You are satisfied with the offers provided by unorganized Retailed outlets

NValid 50



You are satisfied with the offers provided by unorganized Retailed outlets

Frequency


CumulativePercent

Valid


Disagree 11 22.0 22.0 50.0


5 10.0 10.0 60.0


Total 50 100.0 100.0

Interpretation

28% of the respondents strongly disagree with the statement that they are satisfied with the offers provided by unorganized Retailed outlets, 22% disagree, 10% neither agree nor disagree, 22%agree and remaining 18% strongly agree with the same.


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16. You are satisfied with daily Grocery stores of unorganized Retailed outlets

NValid 50



You are satisfied with daily Grocery stores of unorganized Retailed outlets

Frequency


CumulativePercent

Valid


Disagree 5 10.0 10.0 22.0


4 8.0 8.0 30.0


Total 50 100.0 100.0

Interpretation

12% of the respondents strongly disagree with the statement that they are satisfied with dailyGrocery stores of unorganized Retailed outlets, 10% disagree, 8% neither agree nor disagree,18% agree and remaining 52% strongly agree with the same.


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17. You are satisfied with medical stores of unorganized Retailed outlets

NValid 50



You are satisfied with medical stores of unorganized Retailed outlets

Frequency


CumulativePercent

Valid


Disagree 15 30.0 30.0 62.0


4 8.0 8.0 70.0


Total 50 100.0 100.0

Interpretation

32% of the respondents strongly disagree with the statement that they are satisfied with medicalstores of unorganized Retailed outlets, 30% disagree, 8% neither agree nor disagree, 10% agreeand remaining 20% strongly agree with the same.


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18. You are satisfied with behavior of employees at unorganized Retailed outlets

NValid 50



You are satisfied with behavior of employees at unorganized Retailed outlets

Frequency


CumulativePercent

Valid


Disagree 10 20.0 20.0 50.0


5 10.0 10.0 60.0


Total 50 100.0 100.0

Interpretation

30% of the respondents strongly disagree with the statement that they are satisfied with behaviorof employees at unorganized Retailed outlets, 20% disagree, 10% neither agree nor disagree, 8%agree and remaining 32% strongly agree with the same.


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ANALYSIS OF HYPOTHESIS

Setting up Hypothesis:

H0 – There is no significant difference between satisfaction level of organized retail outlets and

unorganized retail outlets.

H1 – There is significant difference between satisfaction level of organized retail outlets and


Average Mean of Customer satisfaction of Organized retail outlets

Attribute

No.

Attribute Mean

Score

Std.

Deviation

1 You are satisfied with the Value of products at organizedRetailed outlets

4.0400 1.30868

2 You are satisfied with the quality of products at organizedRetailed outlets

4.0200 1.44970

3 You are satisfied with the staff of organized Retailedoutlets

3.4600 1.58062

4 You are satisfied with the price of products at organizedRetailed outlets

3.5200 1.43200

5 You are satisfied with the cleanliness provided atorganized Retailed outlets

3.8800 1.42342

6 You are satisfied with the offers provided by organized

Retailed outlets

4.1600 1.03726

7 You are satisfied with daily Grocery stores of organizedRetailed outlets

3.2200 1.60725

8 You are satisfied with medical stores of organizedRetailed outlets

2.7200 1.56544

9 You are satisfied with behavior of employees at organizedRetailed outlets

3.5200 1.43200

Total 32.54 12.83637

Average (Total/9) 3.61 1.42626


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Average Mean of Customer satisfaction of Unorganized retail outlets:

Attribute

No.

Attribute Mean

Score

Std.

Deviation1 You are satisfied with the Value of products at

unorganized Retailed outlets2.7200 1.64180

2 You are satisfied with the quality of products atunorganized Retailed outlets

2.2400 1.36367

3 You are satisfied with the staff of unorganized Retailedoutlets

3.2600 1.66366

4 You are satisfied with the price of products atunorganized Retailed outlets

2.5200 1.59387

5 You are satisfied with the cleanliness provided atunorganized Retailed outlets

2.5800 1.19676

6 You are satisfied with the offers provided by unorganizedRetailed outlets

2.8000 1.51186

7 You are satisfied with daily Grocery stores of unorganizedRetailed outlets

3.8800 1.45181

8 You are satisfied with medical stores of unorganizedRetailed outlets

2.5600 1.52744

9 You are satisfied with behavior of employees atunorganized Retailed outlets

2.9200 1.67624

Total 25.48 13.62711

Average (Total/9) 2.83 1.51


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Unpaired t test results

P value and statistical significance:

The two-tailed P value equals 0.0092

By conventional criteria, this difference is considered to be very statistically

significant.

Confidence interval:

The mean of Organized retail outlets minus Unorganized retail outlets equals 0.7800000

95% confidence interval of this difference: From 0.1970717 to 1.3629283

Intermediate values used in calculations:

t = 2.6554

df = 98

standard error of difference = 0.294

Review your data:

Group Organized retail outlets Unorganized retail outlets

Mean 3.6100000 2.8300000

SD 1.4262600 1.5100000

SEM 0.2017036 0.2135462

N 50 50

Result:

H0 is rejected and H1 is accepted.

Therefore There is significant difference between satisfaction level of organized retail outlets and



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FINDINGS OF THE STUDY


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FINDINGS OF THE STUDY

10% of the respondents strongly disagree with the statement that they are satisfied with

the value of products at organized retail outlets, 6% disagree, 4% neither agree nor

disagree, 30% agree and remaining 50% strongly agree with the same.


the quality of products at organized Retailed outlets, 8% disagree, 6% neither agree nor



the staff of organized Retailed outlets, 10% disagree, 14% neither agree nor disagree,

16% agree and remaining 40% strongly agree with the same.


the price of products at organized Retailed outlets, 16% disagree, 4% neither agree nor



the cleanliness provided at organized Retailed outlets, 8% disagree, 10% neither agree

nor disagree, 20% agree and remaining 50% strongly agree with the same.

2% of the respondents strongly disagree with the statement that they are satisfied with the

offers provided by organized Retailed outlets, 8% disagree, 10% neither agree nor



daily Grocery stores of organized Retailed outlets, 16% disagree, 4% neither agree nor



medical stores of organized Retailed outlets, 28% disagree, 2% neither agree nor



behavior of employees at organized Retailed outlets, 16% disagree, 4% neither agree nor



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the Value of products at unorganized Retailed outlets, 10% disagree, 8% neither agree



the quality of products at unorganized Retailed outlets, 12% disagree, 10% neither agree



the staff of unorganized Retailed outlets, 4% disagree, 8% neither agree nor disagree,

26% agree and remaining 32% strongly agree with the same.


the price of products at unorganized Retailed outlets, 20% disagree, 8% neither agree nor



the cleanliness provided at unorganized Retailed outlets, 30% disagree, 32% neither

agree nor disagree, 8% agree and remaining 10% strongly agree with the same.


the offers provided by unorganized Retailed outlets, 22% disagree, 10% neither agree nor



daily Grocery stores of unorganized Retailed outlets, 10% disagree, 8% neither agree nor



medical stores of unorganized Retailed outlets, 30% disagree, 8% neither agree nor



behavior of employees at unorganized Retailed outlets, 20% disagree, 10% neither agree



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CONCLUSION


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CONCLUSION

Liberalization of the economy in the nineties and the entry of large players in the retail business

have brought the retail industry into spotlight. Big

players and national retail chains are changing the rules of the game, in spite of their meager

share in the overall retail trade. Organized retailing though still in an embryonic stage has huge

growth potential.

To meet the challenges of organized retailing that is luring customers away from the unorganized

sector, the unorganized sector is getting organized. Because of preference of middle class for

these stores is going to increase day by day. The organized retail chains, display all the products

and the most attractive product catches the customer attention. Gone are the days of - customer

loyalty with increasing number of products of similar quality hitting the market? The customers

of the 21st century would expect to pick his/her own products form an array of choices rather

than asking the local kirana wallas to deliver a list of monthly groceries. Thus, the way of

distribution of products has gained importance in the past decade.

The first challenge facing the organized retail industry in India is: competition from the

unorganized sector. Traditional retailing has established in India for some centuries. It is a low

cost structure, mostly owner-operated, has negligible real estate and labor costs and little or no

taxes to pay. Consumer familiarity that runs from generation to generation is one big advantage

for the traditional retailing sector. That is the basic reason now organized sector facing more

challenges from unorganized sector but this research report is also concluding that preference ofmiddle class for organized retail is going to increase rapidly but it is little bit slow in daily use

items but the day is not so for when middle class people frequently purchase daily need items

maximum from organized retail shop.


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In contrast, players in the organized sector have big expenses to meet, and yet have to keep

prices low enough to be able to compete with the traditional sector. High costs for the organized

sector arises from: higher labor costs, social security to employees, high quality real estate, much

bigger premises, comfort facilities


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SUGGESTIONS


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