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A COMPREHENSIVE PROJECT REPORT On “Study on changing consumer preference towards organized retailing from un- organized retailing to Ahmedabad City” IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF Master of Business Administration Second Year SUBMITTED TO GANDHINAGAR INSTITUTE OF TECHNOLOGY (MBA DEPARTMENT) AFFILIATED TO GUJARAT TECHNOLOGICAL UNIVERSITY AHMEDABAD UNDER THE GUIDANCE OF MR. NEHAL SHAH Assistant Professor, GIT

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Page 1: consumer preference towards organized retail to unorganized retail

A

COMPREHENSIVE PROJECT REPORT

On

“Study on changing consumer

preference towards organized

retailing from un-organized retailing

to Ahmedabad City”

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

Master of Business Administration

Second Year

SUBMITTED TO

GANDHINAGAR INSTITUTE OF TECHNOLOGY

(MBA DEPARTMENT)AFFILIATED TO GUJARAT TECHNOLOGICAL UNIVERSITY

AHMEDABAD

UNDER THE GUIDANCE OF

MR. NEHAL SHAH

Assistant Professor, GIT

SUBMITTED BY

TWINKLE V. KANDE: - 127150592012

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KARTIK H. KOSHTI: - 127150592015

YEAR 2013-2014

DECLARATION

We, Twinkle Kande and Kartik Koshti, hereby

declare that the report for comprehensive project

entitled “Study on changing consumer

preference towards organized retailing from

un-organized retailing to Ahmadabad City” is a

result of our own work and our indebtedness to other

work publications, references have been duly

acknowledged.

Place : - Motibhoyan

Date :-

Twinkle V. Kande

(En. No.:-127150592012)

Kartik H. Koshti

(En. No.:-127150592015)

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INSTITUTE’S CERTIFICATE

“Certified that this comprehensive project

titled ““Study on changing consumer preference

towards organized retailing from un-organized

retailing to Ahmadabad City” is the bonafide work

of Mr. Twinkle V. Kande (Enrollment No.

127150592012) and Mr. Kartik H. Koshti (Enrollment

No. 127150592015), who carried out the research

under my supervision, I also certify further, that to

the best of my knowledge the work reported herein

does not form part of any other project report or

dissertation on the basis of which a degree or award

was conferred on an earlier occasion on this or any

other candidate.

Internal Guide : Counter signed by:

Mr. Nehal Shah Mr. Milan Shah

Asst. Prof., GIT Head of Dept. GIT

Twinkle V. Kande

(En. No:-127150592012)

Kartik H. Koshti

(En. No:-127150592015)

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GANDHINAGAR INSTITUTE OF

TECHNOLOGY

(Management Department)

Gujarat Technological University

Ahmadabad

2013-14

PREFACE

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4

ACKNOLEDGEMENT

Only due to the blessings of “GOD” and “OUR PARENTS”, we have been

successful to handle this project. It is a pleasure to recognize the many

individuals who helped us in all phases of the project. Without their help, we

would not have finished this project, or even started it. Achievement of a goal

is not a one person’s job. It is obtained by guidance & co-operation of others.

Our sincere thanks to Dr. N. M. Bhatt, Director of Gandhinagar Institute of

Technology, Gandhinagar and Mr. Milan S. Shah, HOD-MBA for his moral

support and constant encouragement without which it was not possible for us

to complete the project work successfully.

We take this opportunity to express our sincere gratitude to all the faculty

members of Department of Management, Gandhinagar Institute of

Technology, at Gandhinagar whose advice and supervision had helped in the

completion of the project work. We are also very thankful to Mr. Nehal Shah

(Internal Guide), Asst. Prof. at Gandhinagar Institute of Technology,

Gandhinagar for guiding us in completing our project successfully.

Place: Motibhoyan

Date:

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Twinkle V. Kande

(En. No:-127150592012)

Kartik H. Koshti

(En. No:-127150592015)

TABLE OF CONTENTS

SR. NO. PARTICULAR PAGE NO.

Declaration

Certificate of Institute

Preface

Acknowledgements

Executive Summary

Part 1 GENERAL INFORMATION

1. Overview of Indian Retail Industry

2. Major players of Retail Industry in India

3. Type of retail industry in India

4. Growth Indian retailing industry

PART 2 PRIMARY STUDY

4. Introduction of Study

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4.1 Literature Review

4.2 Background of the Study

4.3 Objectives of the Study

5. Research Methodology

5.1 Research Design

5.2 Sources of Data

5.3 Data Collection Method

5.4 Population

5.5 Sampling Method

5.6 Sampling Frame

5.7 Date Collection Instruments

Annexure

Questionnaire for

Bibliography & References

Remarks

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LIST OF FIGURES

SR. NO. PARTICULAR PAGE NO.

1. Different categories of organising retail sector

2.

3.

4.

5.

6.

7.

8.

9.

10.

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LIST OF TABLES

SR. NO. PARTICULAR PAGE NO.

1. Global retail scenario of all the world

2. Major players of retailing industry in India

3. Top 10 Retailers Worldwide

4. Summary of research methodology

5.

6.

7.

8.

9.

10.

11.

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PART – I

GENERAL INFORMATIO

N

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Chapter 1:-

OVERVIEW OF INDIAN RETAIL

INDUSTRY

The word "Retail" originates from a French-Italian word "retailer"

meaning “someone who cuts off or shreds a small piece from something”.

Retailing includes activities of marketing and selling products or services to

end consumers for their own household or personal use. Retailer is a Person or

Agent or Company or Organization who is instrumental in reaching the Goods

or Merchandise or Services to the End User or Ultimate Consumer.

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What is retailing?

Retailing is a distribution channel function, where one organisation

buys products from supplying firms or manufactures products themselves,

and then sells these directly to consumers.

In majority of retail situations, the organisation, from whom a

consumer buys, is a reseller of products obtained from others, and not the

product manufacturer. However, some manufacturers do operate their own

retail outlets in a corporate channel arrangement.

Retailers offer many benefits to suppliers and customers as resellers.

Consumers, for instance, are able to purchase small quantities of an assortment

of products at a reasonably affordable price. Similarly, suppliers get an

opportunity to reach their target market, build product demand through retail

promotions, and provide consumer feedback to the product marketer.

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Most Indian shopping happens in open markets or numerous small

grocery and retail shops. Shoppers typically wait outside the shop, ask for

what they want, and cannot pick or examine a product from the shelf. Access

to the shelf or product storage area is limited. Once the shopper requests the

food staple or household product they are looking for, the shopkeeper goes to

the container or shelf or to the back of the store, brings it out and offers it for

sale to the shopper. Often the shopkeeper may substitute the product, claiming

that it is similar or equivalent to the product the consumer is asking for.

The product typically has no price label in these small retail shops;

although some products do have a manufactured suggested retail price

(MSRP) pre-printed on the packaging. The shopkeeper prices the food staple

and household products arbitrarily, and two consumers may pay different

prices for the same product on the same day. Price is sometimes negotiated

between the shopper and shopkeeper. The shoppers do not have time to

examine the product label, and do not have a choice to make an informed

decision between competitive products.

India's retail and logistics industry, organized and unorganized in

combination, employs about 40 million Indians (3.3% of Indian population).

The typical Indian retail shops are very small. Over 14 million outlets operate

in the country and only 4% of them being larger than 500 sq. ft. (46 m2) in

size. India has about 11 shop outlets for every 1000 people.

Vast majority of the unorganized retail shops in India employ family

members, do not have the scale to procure or transport products at high

volume wholesale level, have limited to no quality control or fake-versus-

authentic product screening technology and have no training on safe and

hygienic storage, packaging or logistics. The unorganized retail shops source

their products from a chain of middlemen who mark up the product as it

moves from farmer or producer to the consumer. The unorganized retail shops

typically offer no after-sales support or service. Finally, most transactions at

unorganized retail shops are done with cash, with all sales being final.

Until the 1990s, regulations prevented innovation and entrepreneurship

in Indian retailing. Some retails faced complying with over thirty regulations

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such as "signboard licenses" and "anti-hoarding measures" before they could

open doors. There are taxes for moving goods to states, from states, and even

within states in some cases. Farmers and producers had to go through

middlemen monopolies. The logistics and infrastructure was very poor, with

losses exceeding 30 percent.

Through the 1990s, India introduced widespread free market reforms,

including some related to retail. In between 2000 to 2010, consumers in select

Indian cities have gradually begun to experience the quality, choice,

convenience and benefits of organized retail industry.

Major retail sector in India

There are many sectors in retail industry in India and there are established in

various company at specific sectors.

1. Food and grocery:

Food Bazaar

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Aditya Birla Retail Ltd

Trinethra Super Market Ltd

Reliance Retail

2. Fashion and accessories

Pantaloons

Shoppers Stop

3. Koutons:

4. Footwear

Reebok

Bata

5. Khadim’s:

6. Home and office improvement

Godrej Lifespace

Home Stop

Home Town

7. Electronics

eZone:

Viveks:

8. Catering services

Yum! Restaurants:

McDonald’s

Café Coffee Day

9. Telecom

The Mobile Store:

MobileNXT:

10. Pharmaceuticals

Apollo Pharmacy

MedPlus:

11. Beauty and wellness

Reliance Wellness

Himalaya Drugs

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12. Jewellery

Gitanjali:

Tanishq:

Reliance Jewels

13. Timewear

Citizen:

Titan

Books, music and gifts

14. Crossword

15. Entertainment

How does the retail sector consumer think?

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Trends in the Retail industry

→ Emergence of organized retail:

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Real estate development in the country, for example, the construction of

mega malls and shopping malls, is augmenting the growth of the

organized retail business

→ Spending capacity of youth of India:

India has a large youth population, which is a conducive environment to

growth of this sector.

→ Raising incomes and purchasing power:

The per capita income in India has doubled between 2000- 01 and 2009-

10 resulting in improved purchasing power.

→ Changing mind set of customers:

The customer mind set is gradually shifting from low price to better

convenience, high value and a better shopping experience

→ Easy customer credit:

Emergence of concepts such as quick and easy loans, EMIs, loan

through credit cards, has made purchasing possible for Indian

consumers, for products such as consumer durables

→ Higher brand consciousness:

There is high brand consciousness among the youth; 60% of India‘s

population is below the age of 30 leading to popularization of brands

and products

Global Retail Scenario

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→ Retailing has played a major role in the global economy. In developed

markets, retailing is one of the most prominent industries. In 2008, the US

retail sector contributed 31% to the GDP at current market prices. In

developed economies, organized retail has a 75-80% share in total retail as

compared with developing economies, where un-organized retail has a

dominant share.

(Table no. 1 = Global retail scenario of all the world)1

Sr. No. Company name Country Banner sales 2007E (in us$ million)

No. of outlets,

1 WALMART US 395305 7331

2 CARREFOUR FRANCE 142229 13419

3 TESCO UK 103573 3750

4 METRO GROUP GERMANY 102942 2541

5 SEVEN & I(ii) JAPAN 84375 22590

6 KROGER US 73633 3672

7 AEON (i) JAPAN 73416 14803

8 TARGET US 71125 1591

9 SCHWARZ GERMANY 70969 8575

10 COSTCO US 69704 518

→ Global retail sales was estimated to be around US$ 12 trillion in 20072; however, in 2008, the slowdown in the global economy, especially in the US, and credit crunch, decreased consumer spending. On a global level, the economy performed robustly till 2007, but the US crisis spread over to Europe in early 2008, and its impact was felt in the Asia-Pacific region by mid-2008.

→ India has the highest number of retail outlets in the world at over 13 million retail outlets, and the average size of one store is 50-100 square feet. It also has the highest number of outlets (11,903) per million inhabitants. The per capita retail space in India is among the lowest in the world, though the per capita retail store is the highest. Majority of these stores are located in rural areas.

Retail formats in India:

1

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Hyper marts/supermarkets: large self-servicing outlets offering products

from a variety of categories.

Mom-and-pop stores: they are family owned business catering to small

sections; they are individually handled retail outlets and have a personal touch.

Departmental stores: are general retail merchandisers offering quality

products and services.

Convenience stores: are located in residential areas with slightly higher prices

goods due to the convenience offered.

Shopping malls: the biggest form of retail in India, malls offers customers a

mix of all types of products and services including entertainment and food

under a single roof.

E-trailers: are retailers providing online buying and selling of products and

services.

Discount stores: these are factory outlets that give discount on the MRP.

Vending: it is a relatively new entry, in the retail sector. Here beverages,

snacks and other small items can be bought via vending machine.

Category killers: small specialty stores that offer a variety of categories. They

are known as category killers as they focus on specific categories, such as

electronics and sporting goods. This is also known as Multi Brand Outlets or

MBO's.

Specialty stores: are retail chains dealing in specific categories and provide

deep assortment Mumbai's Crossword Book Store and RPG's Music World are

a couple of example.

Chapter: - 2

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Major players of retailing industry in India 2

There are various major players in India retailing industry and there are location at various cities in India

Ownership Brand Name Outlet type Location

RPG Spencers Supermarkets Across all major cities

Hypermarkets

DFL (Joint venture with DSP Merrill Lynch and Rahejas)

Food World Supermarkets Chennai, Bangalore and Hyderabad

Pantaloon Food Bazaar Supermarket Across all major cities

Big Bazaar Hypermarket

Nilgiri’s Franchisee Pvt. Ltd

Nilgiri’s Supermarkets Chennai, Bangalore, Pondicherry and tier two towns in Tamil Nadu

The Trinethra Group Trinethra Supermarkets Major cities in Andhra Pradesh and Tamil Nadu

Fabmall India Pvt Ltd Fabmall Supermarkets Bangalore and Chennai

Franchisee ownership model regulated by cooperative

Margin Free Discount stores Major cities in Kerala, Tamil Nadu and Karnataka

Food Express India Ltd Monday to Sunday, Jumbo

Supermarkets Hypermarkets

Bangalore

Home Stores Pvt. Ltd. Sabka Bazaar Discount stores Delhi and adjoining areas

Pyramid Retail Ltd. Trumart Supermarkets Maharashtra-

2 International Journal of Multidisciplinary Research Vol.2 Issue 1, January 2012, ISSN 2231 5780 , Data has been compiled from the website of different companies

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Mumbai

Trent (Tata Group) Star India Bazaar Hypermarkets Ahmedabad, Mumbai

Spar- India Ltd. Spar Supermarkets Mumbai

Namdhari’s Group Namdhari’s Fresh Supermarkets Bangalore, Delhi

Adani Group Adanis Supermarkets Gujarat

Department of Food and Public Distribution (Govt. of India Coop.)

Super Bazaar Supermarkets Delhi

Department of Food and Public Distribution (Govt. of India Coop.)

Kendriya Bhandar Supermarkets Delhi

Vishal Mega Mart Food Mart Hyper Market Across all major cities

Reliance India Ltd. Reliance Fresh Discount Stores Across all major cities

Rei Agro Ltd. 6Ten Discount Stores North India

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Chapter: - 3

Kind of Indian retail industry

The Indian retail industry is divided into organized and unorganized

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

business is being run by unorganized retailers like the traditional family run

stores and corner stores. The organized retail however is at a very nascent

stage, though attempts are being made to increase its proportion bringing in a

huge opportunity for prospective new players.

There are two types of Retailing:

Organized Retailing

Unorganized Retailing

→ Organized Retailing

Organized retailing refers to trading activities undertaken by licensed retailers,

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

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

owned large retail businesses.

→ Unorganized Retailing

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

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

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

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

"unorganized retail" or traditional retail.

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Difference between Organized Retailing & Unorganized Retailing

Organized Retailing Unorganized Retailing

Organized retailing refers to trading

activities undertaken by licensed retailers,

that is, those who are registered for sales

tax, income tax, etc

Unorganized retailing, on the other hand,

refers to the traditional formats of low-cost

retailing

There are include the corporate-backed

hypermarkets and retail chains, and also the

privately owned large retail businesses.

There are include the local kirana shops,

owner-manned general stores, chemists,

footwear shops, apparel shops, paan and

beedi (local betel leaf and tobacco) shops,

hand-cart hawkers, pavement vendors, etc

Multi storied malls and huge complexes

that offer a large variety of products in

terms of quality, value for money and

makes shopping a memorable experience.

Low cost retailing. These are highly

competitive outlets, with negligible rental

costs (unregistered kiosks or traditional

property), cheap workers (work is shared by

members of family) and low taxes and

overheads. 

The ownership and management rest with

two or more person.

The ownership and management rest with

one person only

The organized stores are not having number

of options to cut their costs

The unorganized stores are having number

of options to cut their costs

The customers are want to change in

many shopping malls.

This is one of the good reasons which

the customer doesn't want to change

their old loyal kirana shop.

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ORGANISED RETAILING

Organized retailing comprises mainly of modern retailing with busy shopping

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

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

memorable experience.

Organized retailing refers to trading activities undertaken by licensed

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

include the corporate-backed hypermarkets and retail chains, and also the

privately owned large retail businesses.

According to AT Kearney report for the year 2011, organized retail

accounts for 7 per cent of India's roughly US$ 435 billion retail market and is

expected to reach 20 per cent by 2020.Food accounts for 70 per cent of under-

penetrated by organized retail. Organized retail has a 31 per cent share in

clothing and apparel and continues to see growth in this sector. The home

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segment shows promise, growing 20 to 30 per cent per year. India's more

urban consumer mind-set means this sector is poised for growth. Indian retail,

but it remains.

Organized retailing refers to trading activities undertaken by licensed

retailers, i.e. those who are registered for sales tax, income tax, etc. These

include the corporate backed hypermarkets and retail chains and also the

privately owned large retail businesses.

(Table no. 2 = Top 10 Retailers Worldwide)3

Rank Retailer Home country

1 Wal-mart store ,inc. USA

2 Carrefoer Group France

3 The Home Depot, Inc. USA

4 The Kroger co. USA

5 Royal Ahold Netherlands

6 Metro AG Germany

7 Target corporation USA

8 Alertson`s, inc. USA

9 Sear,roebuck and co. USA

10 Kmart corporation USA

3

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Different categories of organizing retail

sector 4

4

10

5

10

15

20

25

30

35

40

45

5045.6

37.8

18.9

12.610.6

10.4 9.1 6.94.1 2.8 2.6 0.8

Orgnasing Retailing

Watches Footwear Clothing, textiles, & fashion accessories

Books, music, gifts Health & beauty care services Consumer durables, home appliances

Furnishings, furniture home & office, utensils Catering services Entertainment

Jewellery Pharma other

different retail sector

perc

enta

ge

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CHALLENGES TO RETAIL DEVELOPMENT

IN INDIA

Organized retail in India is little over a decade old. It is largely an urban

phenomenon and the pace of growth is still slow. Some of the reasons for this

slow growth are: -

→ The Kiranas Continue

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

from the unorganized sector. Traditionally retailing has established in India for

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.

On the other hand, organized sector have big expenses to meet and yet have to

keep prices low enough to compete with the traditional sector.

→ Retail not being recogning as an industry in India

Lack of recognition as an industry hampers the availability of finance to the

existing and new players. This affects growth and expansion plans.

→ The High cost of Real estate

Real estate prices in some cities in India are amongst the highest in the world. The

lease or rent of property is one of the major areas of expenditure; a high lease

rental reduces the profitability of a project.

→ High Stamp duties

In addition to the high cost of real estate the sector also faces very high stamp

duties on transfer of property, which varies from state to state (12.5% in

Gujarat and 8% in Delhi). The problem is compounded by problems of clear

titles to ownership, while at the same time land use conversion is time

consuming and complex as is the legal process for settling of property

disputes.

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→ Lack of adequate infrastructure –

Poor roads and the lack of a cold chain infrastructure hampers the

development of food and grocery retail in India. The existing supermarkets

and foods retailers have to invest a substantial amount of money and time in

building a cold chain network.

→ Multiple and complex taxation system –

The sales tax rates vary from state to state, while organized players have to

face a multiple point control and system there is considerable sales tax evasion

by small stores. In many locations, retailers have to face a multi-point octroi

with the introduction of value Added Tax (VAT) in 2005, certain anomalies in

the existing sales tax system causing disruption in the supply chain are likely

to get corrected over a period of time.

→ There is price war between different retail organizations. Each and every one

is saying to provide goods at low cost and offers various promotional schemes.

In such a case it is difficult to keep one’s customers with oneself.

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OPPORTUNITIES TO RETAIL

DEVELOPMENT IN INDIA

Retail marketing gets various opportunities to grow up in the Indian

market. Not only retailing but Manufacturers as well as suppliers, and buyers

have various opportunities, some of which are mentioned below

→ What is in store

Organized retail provides brands much needed visibility and platform for

customer interaction. It also helps in launching of new product or product

variant and in market penetration. It has wider product range and more

frequent, speedier deliveries.

→ Urbanization

Increased urbanization has shifted consumers to one place and thus a single

retail can catch more customers.

→ Nuclear family

As the time passed away joint families came in a new form i.e. nuclear family.

Again the income level of these nuclear families increases because both

members started earning. This results into increased power of purchase and

lack of time. Now they want everything under one roof. This brought the

concept of organized retailing.

→ Plastic revolution

Increased use of credit cards is in favour of retail marketing. It creates

requirement even when it is not necessary.

→ Jo Dikata Hai Woh Bikta Hai

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Organized retail stores put stress on proper infrastructure like well-maintained

building, air conditioning, trained employees, electronic machine, parking

facilities and proper display of goods category wise. Here customers feel

comfort, joy and entertainment. Purchasing becomes joy for him. Self-

selection saves time and gives more opportunities and satisfaction. Fix cost

removes the threat of misleading. They avail various discounts and

promotional schemes presented by the manufacturers. They also get product of

different varieties and of proper quality.

→ Employment

Retail marketing is one of the largest employments generating industry. It

provides employment to skilled, semi-skilled as well as to unskilled persons.

Thus it helps in the socio- economic development of the society.

→ Price war

Increase in the no of retail outlets increases competition among these retailers.

To attract customers they give various promotional schemes as various

discounts, buy one get one free, another product with any particular product,

festival special, etc.

→ Contract farming

The retail marketers directly purchase from farmers and reducing middlemen,

thus provide proper cost to farmers and also set proper price for consumers.

They also make contract with farmers to get proper amount of crops and

vegetables.

→ Reduces supply chain management

The big players of retail marketing and the manufacturing companies directly

come in contact thus reducing many intermediary chains. Manufacturers also

give many promotional schemes for their product that is beneficial for

consumers.

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UNORGANISED RETAILING

Traditional or Unorganized retail outlets are normally street markets,

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

with one person only. This sector accounts for two thirds of the market and

requires low skilled labor. These are highly competitive outlets, with

negligible rental costs (unregistered kiosks or traditional property), cheap

workers (work is shared by members of family) and low taxes and overheads. 

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Indian retail is dominated by a large number of small retailers

consisting of the local kirana shops, owner-manned general stores, chemists,

footwear shops, apparel shops, paan and beedi(local betel leaf and tobacco)

shops, hand-cart hawkers, pavement vendors, etc. which together make up the

so-called “unorganized retail" or traditional retail. The last few years have

witnessed the entry of a number of organized retailers opening stores in

various modern formats in metros and other important cities. Unorganized

retailers normally do not pay taxes and most of them are not even registered

for sales tax, VAT, or income tax.

 Unorganized retailing, on the other hand, refers to the traditional

formats of low-cost retailing, for example, hand cart and pavement vendors, &

mobile vendors,  the local kirana shops, owner manned general stores, paan/

beedi  shops, convenience stores, hardware shop at the corner of your street

selling everything from bathroom fittings to paints and small construction

tools; or the slightly more organized medical store and a host of other small

retail businesses in apparel, electronics, food etc.

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The reasons might be obtain by unorganised retailing:-

→ In smaller towns and urban areas, there are many families who are traditionally

using these kirana shops/ ‘mom and pop’ stores offering a wide range of

merchandise mix. Generally these kirana shops are the family business of

these small retailers which they are running for more than one generation.

→ These kirana shops are having their own efficient management system and

with this they are efficiently fulfilling the needs of the customer. This is one of

the good reasons why the customer doesn't want to change their old loyal

kirana shop.

→ A large number of working class in India is working as daily wage basis, at the

end of the day when they get their wage, they come to this small retail shop to

purchase wheat flour, rice etc. for their supper. For them this the only place to

have those food items because purchase quantity is so small that no big retail

store would entertain this.

→ Similarly there is another consumer class who are the seasonal worker. During

their unemployment period they use to purchase from this kirana store in credit

and when they get their salary they clear their dues. Now this type of credit

facility is not available in corporate retail store, so this kirana stores are the

only place for them to fulfill their needs.

→ Another reason might be the proximity of the store. It is the convenience store

for the customer. In every corner the street an unorganized retail shop can be

found that is hardly a walking distance from the customer's house. Many times

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customers prefer to shop from the nearby kirana shop rather than to drive a

long distance organized retail stores.

→ This unorganized stores are having number of options to cut their costs. They

incur little to no real-estate costs because they generally operate from their

residences.

Chapter: - 4

Growth of Indian Retail industry

→ An increasing number of people in India are turning to the services sector for

employment due to the relative low compensation offered by the traditional

agriculture and manufacturing sectors.

→ The organized retail market is growing at 3.5 percent annually while growth of

unorganized retail sector is pegged at 6 percent.

→ The Retail Business in India is currently at the point of inflection. Rapid

change with investments to the tune of US $ 25 billion is being planned by

several Indian and multinational companies in the next 5 years.

→ It is a huge industry in terms of size and according to management consulting

firm Techno Park Advisors Pvt. Ltd., it is valued at about US $ 350 billion.

Organized retail is expected to garner about 16-18 percent of the total retail

market (US $ 65-75 billion) in the next 5 years.

→ According to the tenth report of GRDI of AT Kearney, India is having a very

favourable retail environment and it is placed at 4th spot in the GRDI.

→ The main reasons behind that is the 9% real GDP growth in 2010, forecasted

yearly growth of 8.7% through 2016, high saving and investment rate and

increased consumer spending.

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→ According to report, organized retail accounts for 7% of India’s roughly $435

billion retail market and is expected to reach 20% by 2020. Food accounts for

70% of Indian retail, but it remains under penetrated by organized retail.

Organized retail has a 31% share in clothing and apparel and continues to see

growth in this sector.

→ A report by Boston Consulting Group has revealed that the country’s

organized retail is estimated at US $ 28 billion with around 7% penetration.

→ It is projected to become a US $ 260 billion business over the net decade with

around 21% penetration.

→ The analysts believe that the sector is likely to show significant growth of over

9% over the next ten years and also see rapid development in organized retail

format with proportion likely to reach more respectable 25%by 2018.

→ The BMI India Report for the first quarter of 2012 released forecasts that total

retail sales with growth from US $ 422.09 billion in 2011 to US $ 825.46

billion by 2015.

→ The report highlights strongly underlying economic growth, population

expansion, increasing disposable income and rapid emergence of organized

retail infrastructure as major factors behind the forecast growth.

→ According to department of Industry Policy and Promotion Cumulative, FDI

inflows in single brand retail trading stood at US$ 44.45 million during April

2000 to September 2011.

→ Indian retail sector is wearing new clothes and with a three year compounded

annual growth rate of 46-64%, retail is the fastest growing sector in the Indian

economy.

→ The sector is the second largest employer after agriculture, employing more

than 35 million people with wholesale trade generating an additional

employment to 5.5 million crore. The enormous growth of retail industry has

created a huge demand for real estate. Property developers are creating retail

real estate at an aggressive pace.

→ According to report titled “India Organized Retail Market 2010”, published by

Knight Frank, during 2010- 12,around 55 million square feet of retail space

will be ready in Mumbai, NCR, Bangalore, Kolkata, Chennai, Hyderabad and

Pune.

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→ Besides between 2010 and 2012 the organized retail real estate will be grown

from existing 41 million square feet to 95 million square feet.

→ The total no. of shopping mall is expected to expand at CAGR of 18.9% by

2015.

→ Hypermarket, currently accounting for 14% of mall space is expected to

witness high growth.

→ Industry experts predict that the next phase of growth in the retail sector will

emerge from the rural market.

→ By 2012, the rural retail market is projected to have a total of more than 50%

market share.

→ India's retail market is expected to be worth about US$ 410 billion, with 5 per

cent of sales through organised retail, meaning that the opportunity in India

remains immense.

→ Retail should continue to grow rapidly—up to US$ 535 billion in 2013, with

10 per cent coming from organised retail, reflecting a fast-growing middle

class, demanding higher quality shopping environments and stronger brands,

according to the report ‘Expanding Opportunities for Global

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PART – 2

PRIMARY STDUY

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Chapter 4:-

INTRODUCTION OF THE

STUDY

Literature Review

Background of the Study

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Objectives of the Study

4.1 :- Literature Reviews

→ According to Dholakia (1999), i the rationale for shopping is making physical

visits to a shopping site. It is considered as a household task as well as a form

of recreation, relaxation and entertainment. Shopping is also considered to

have the most positive attribute of being a leisure activity along with work

(Dholakia, 1999).

→ Sinha & Banerjee (2004) ii studied the drivers of store choice in various

product categories, in the context of evolving retail industry in India and found

that the distinct store features as perceived by respondents with true

motivations of various consumers in patronizing various stores. Study suggests

that consumers of Indian unorganized retail market do not require the service

paraphernalia offered by many retailers. Store environment plays a vital role

for store patronage and repeat purchases which includes convenience, value

for money products, etc.

→ Backstrom & Johansson (2006) iii studied factors that influence consumers'

in-store experiences. In-store experiences are constituted by traditional values

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such as the behavior of the personnel, a satisfactory selection of products,

price and a layout that facilitates the store visit.

→ Terblanche & Boshoff (2006) iv suggested that retailers will have to accept

that it is not only what they are marketing but also how it is done. The personal

(face-to-face) interaction between retail staff and shoppers is of critical

importance.

→ Kalhan (2007) v studies the impact of organized retail on unorganized retail

shops. Major findings reveal that 70 % of unorganized retailers reported

falling sales. This fall in sales is due to superior shopping environment,

convenience, availability of variety, ambience of shop, and availability of

parking space and perception of quality of products sold in organized retail

setup.

→ Goswami (2008) vi studied the shopping experiences in kirana stores and in

modern stores. The major findings suggest Kirana stores to improve or to

enrich shopping experiences. Kiranas also have to stay alert, try to upgrade

and have to improve on service quality while concentrating on innovation and

efficiency.

→ Das & Kumar (2009) vii studied the impact of sales promotion on consumers

shopping experiences. A major finding reveals that keeping product

satisfaction constant, sales can be improved by enhancing shopping experience

which includes convenience of shopping, ease of locating products, easy check

in and checkouts, customer friendly sales people and customer friendly

policies. Secondly finding reveals that purchase decision for the same product

under same promotion at different stores may vary because difference in

shopping experiences provided by different stores. Further this study shows

that promotion plays a limited role on consumers buying behavior where only

small percentage of people are attracted to such sales promotion and wait for

it. Study lastly emphasizes on the importance of shopping experience (ease of

shopping, parking space, convenience etc.) for positively impacting consumer

buying behavior.

→ Goswami & Mishra (2009) viii seek to understand whether Indian consumers

are likely to move from traditional Kirana stores to large organized retailers

while shopping for groceries. The research finding reveals that customer

patronage to grocery stores was found to be positively related to location,

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helpful, trustworthy salespeople, and home shopping, cleanliness, and offers,

quality and negatively related to travel convenience. Kiranas do well on

location but poorly on cleanliness, offers, quality, and helpful trustworthy

salespeople. The converse is true for organized retailers. Study also finds that

Kiranas have major disadvantages on all customer perception scores except

location. These scores being less important determinants of patronage

compared with location, in the short run kiranas may not be ousted out of

customers' flavor. However, in the long run if they do not work on these other

factors, they would face oblivion. Kiranas need to upgrade their facilities to be

able to compete with the organized retailers to provide consumers better

shopping experiences, whereas organized retailers which are expected to

improve their location scores rapidly in the near future will grow rapidly.

→ Inside store (2009) ix studied the shopping experiences at traditional Indian

retail stores. Major findings reveal that 70% of purchases are made at the point

of purchase, so store environment can impact the 70% of purchases which is

one of the important constituent of shopping experience in unorganized retail

setup.

→ Mittal and Parashar (2010) x explained that irrespective of area, people prefer

grocery stores to be nearby, product assortment is important for grocery.

Ghosh & Srivastava (2010) in his research found that service quality has

become vital for service firms to pay attention due to increased competition.

→ Sivaraman (2010) xianalyzed customer attitude toward unorganized retailers

on the attributes of store image, range of products, brand choices, price, store

ambience, credit availability, shop proximity and complements. However there

were no perceived difference on product freshness and customer care. This

study clearly point out that the unorganized retailers are facing stiff

competition from the organized retailers. This has reduced their sales, profit,

and employment considerably. The operational cost, consumer credit also

increased due to the presence of organized retailers.

→ Kumar (2011) xiistudied on the strategies of unorganized retailers with

reference to consumer durables and found that a product strategy which means

merchandise is the most important factor followed by price, distribution and

promotion.

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→ Kushwaha (2011) xiii compared the perception of consumers in organized and

unorganized retail market and found that factors like cleanliness, distance,

price, quality, safety and space for shopping are the determinant factors for

unorganized retail.

→ Purohit and Kavita (2013) according to their studies that the traditional

retailers are not very much clear about the consequences of the modern

retailing the traditional retailers are neutral or undecided, modern retailing will

cut the profit margin of the traditional retailers; the modern retailing will lead

healthy competition in the market, modern retailing will reduce the sales

volume of the traditional retailers and traditional retailers should improve

customer care services in the era of modern retailing.

→ Shaoni Shabnam (2013): It is important to highlight that in organized retail,

the status of employment is much better than that in unorganized retail. Hence

it is definitely desirable that more and more labor gets absorbed in this sector

of retail. In the current context, the labor employed in unorganized retail

stands unfit for finding employment in organized retail. If appropriate training

and skills could be imparted to them, it is possibly feasible to offer better

forms of employment to them in the organized retail sector. The status of

employment is much better than that in unorganized retail. Hence it is

definitely desirable that more and more labor gets absorbed in this sector of

retail. In the current context, the labor employed in unorganized retail stands

unfit for finding employment in organized retail. If appropriate training and

skills could be imparted to them, it is possibly feasible to offer better forms of

employment to them in the organized retail sector.

→ Meeta Punjabi (2013): According to their study they suggest that the

development efforts in this area are based on three grounds: First, farmers

associated with the modern value chains earn higher returns than selling to the

traditional markets. Second, the modern supply chains have specific quality

requirements which are easier to meet by the large and medium farmers and

the small farmers tend to get left out of these markets. Third, there are several

successful examples of linking small farmers to these modern value chains

with effort from government agencies, NGOs and development agencies. This

knowledge presents strong grounds for a closer look at the emerging sector in

India.

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→ Mathew Joseph (2013): Unorganized retailers in the vicinity of organized

retailers experienced a decline in their volume of business and profit in the

initial years after the entry of large organized retailers. The adverse impact on

sales and profit weakens over time. There was no evidence of a decline in

overall employment in the unorganized sector as a result of the entry of

organized retailers. There is some decline in employment in the North and

West regions which, however, also weakens over time. The rate of closure of

unorganized retail shops in gross terms is found to be 4.2% per annum which

is much lower than the international rate of closure of small businesses. The

rate of closure on account of competition from organized retail is lower still at

1.7% per annum. There is competitive response from traditional retailers

through improved business practices and technology up gradation. A majority

of unorganized retailers is keen to stay in the business and compete, while also

wanting the next generation to continue likewise. Small retailers have been

extending more credit to attract and retain customers.

4.2 :- BACKGROUND OF THE STUDY

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

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

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

initially the retail industry in India was mostly unorganized, however with the

change of taste and preferences of consumers, the Industry is getting more

popular these days and getting organized as well. The Indian Retail Industry is

expected to grow from US$330 billion in 2007 to US$640 billion by 2015.

According to the 10th Annual Global Retail Development Index

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

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

Retail Market accounts for 22% of country’s GDP and it contributes to 8% of

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the total employment. The total retail spending is estimated to double in the

next five years. Of this, organized retail –currently growing at a CAGR of

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

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

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

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

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

industry in near future.

Indian Retail Industry

India’s Retailing Boom has acquired further momentum, dynamism

and vibrancy with international players experimenting in the Indian market

and the country’s existing giants taking bold innovative steps to woo the

consumer. At the same time, the early entrants are redefining their strategies to

stay competitive and suit the new market landscape.

The next few years are liking to witness rapid growth in the organized

retailing sector with several leading international players establishing their

presence in India by adjusting their formats to suit local tastes and buying

behaviour while regional players have stepped up their defences and are

striving to gain edge over global players by using their knowledge of local

markets. Clearly the next wave of the retail boom is upon us. Retailing is one

of the pillars of the economy in India. Over the past few years, the retail sale in

India is hovering around 33-35% of GDP as compare to 20% in the US.

The Indian retail industry is the fifth largest in the world. Comprising

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

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

initially, the retail industry in India was mostly unorganized, however with the

tastes and preferences of the consumers, the industry is getting more popular

these days and getting organized as well. Now with growing market demand,

the industry is expected to grow at pace of 25-30% annually.

The Indian retail industry is currently growing at a great pace and is

expected to go up to US $ 833 billion by the year 2013. In the last four years

consumer spending in India has climbed up to 75%. In India though, organized

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retail accounts for app. 5-6% of total retail revenues, however, with a young

population, increasing disposable income, changing life styles and a robust

economy India is set to emerge as one of the fastest growing organized retail

markets in the world.

Retailing is one of the biggest sectors and it is witnessing revolution in

India. The new entrant in retailing in India signifies the beginning of retail

revolution. India's retail market is expected to grow tremendously in next few

years. According to AT Kearney, The Windows of Opportunity shows that

Retailing in India was at opening stage in 1995 and now it is in peaking stage

in 2006. The origins of retailing in India can be traced back to the emergence

of Kirana stores and mom-and-pop stores. These stores used to cater to the

local people. Eventually the government supported the rural retail and many

indigenous franchise stores came up with the help of Khadi & Village

Industries Commission. The economy began to open up in the 1980s resulting

in the change of retailing. The first few companies to come up with retail

chains were in textile sector, for example, Bombay Dyeing, S Kumar's,

Raymond’s, etc. Later Titan launched retail showrooms in the organized retail

sector. With the passage of time new entrants moved on from manufacturing to

pure retailing.

Retail outlets such as Food world in FMCG, Planet M and Music world

in Music, Crossword in books entered the market before 1995. Shopping malls

emerged in the urban areas giving a world-class experience to the customers.

Eventually hypermarkets and supermarkets emerged. The evolution of the

sector includes the continuous improvement in the supply chain management,

distribution channels, technology, back-end operations, etc. this would finally

lead to more of consolidation, mergers and acquisitions and huge investments.

India's retail market is expected to grow tremendously in next few years. India

shows US$330 billion retail market that is expected to grow 10% a year, with

modern retailing just beginning.

In India, the most of the retail sector is unorganized. The main

challenge facing the organized sector is the competition from unorganized

sector. Unorganized retailing has been there in India for centuries. The main

advantage in unorganized retailing is consumer familiarity that runs from

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generation to generation. It is a low cost structure; they are mostly operated by

owners, have very low real estate and labor costs and have low taxes to pay.

Organized retail business in India is very small but has tremendous scope.

Customer Attribute affecting choice of format

Challenges Faced by the Retail Industry:

→ International Standards:

Even though India has well over 5 million retail outlets of different sizes and

styles, it still has a long way to go before it can truly have a retail industry at

par with International standards. This is where Indian companies and

International brands have a huge role to play.

→ Inefficient supply chain management :

Indian retailing is still dominated by the unorganized sector and there is still a

lack of efficient supply chain management. India must concentrate on

improving the supply chain management, which in turn would bring down

inventory cost, which can then be passed on to the consumer in the form of

low pricing.

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→ Lack of Retail space :

Most of the retail outlets in India have outlets that are less than 500 square feet

in area. This is very small by International Standards.

→ Cultural Diversity :

India's huge size and socio economic and cultural diversity means there is no

established model or consumption pattern throughout the country.

Manufacturers and retailers will have to devise strategies for different sectors

and segments which by itself would be challenging.

→ Real estate issues :

The enormous growth of the retail industry has created a huge demand for real

estate. Property developers are creating retail real estate at an aggressive pace.

With over 1,000 hypermarkets and 3,000 supermarkets projected to come up

by 2011, India will need additional retail space of 700,000,000 sq. ft.

(65,000,000 m2) as compared to today.

→ Human resource problems :

Trained manpower shortage is a challenge facing the organized retail sector in

India. The Indian retailers have difficulty in finding trained person and also

have to pay more in order to retain them. This again brings down the Indian

retailers profit levels.

→ Frauds in Retail:

It is one of the primary challenges the companies would have to face. Frauds,

including vendor frauds, thefts, shoplifting and inaccuracy in supervision and

administration are the challenges that are difficult to handle. This is so even

after the use of security techniques, such as CCTVs and POS systems. As the

size of the sector would increase, this would increase the number of thefts,

frauds and discrepancies in the system.

→ Challenges with Infrastructure and Logistics:

The lack of proper infrastructure and distribution channels in the country

results in inefficient processes. This is a major hindrance for retailers as a non-

efficient distribution channel is very difficult to handle and can result in huge

losses. Infrastructure does not have a strong base in India. Urbanization and

globalization are compelling companies to develop infrastructure facilities.

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Transportation, including railway systems, has to be more efficient. Highways

have to meet global standards. Airport capacities and power supply have to be

enhanced. Warehouse facilities and timely distribution are other areas of

challenge. To fully utilize India's potential in retail sector, these major

obstacles have to be removed.

SWOT Analysis of Retail Sector:

1. Strengths:

Major contribution to GDP

High Growth Rate:

High Potential:

High Employment Generator:

2. Weaknesses (limitation):

Lack of Competitors

Highly Unorganized

Low Productivity

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Shortage of Talented Professionals

No Industry‘ status,

3. Opportunities (benefits):

Healthy Competition will be boosted and there will be a check on the

prices (inflation).

Create transparency in the system.

Intermediaries and mandi system will be evicted, hence directly

benefiting the farmers and producers.

Quality Control and Control over Leakage and Wastage.

Heavy flow of capital will help in building up the infrastructure for

the growing population.

There will be sustainable development and many other economic

issues will be focused upon.

4. Threats:

Current Independent Stores will be compelled to close

Big players can knock-out competition.

India does not need foreign retailers.

Remember East India Company it entered India as trader and then

took over politically.

The government hasn‘t able to build consensus.

In view of the above analysis, if we try to balance opportunities and prospects

attached to the given economic reforms, it will definitely cause good to Indian

economy and consequently to public at large, if once implemented. Thus the

period for which we delay these reforms will be loss for government only, since

majority of the public is in favour of reforms. All the above mentioned

drawbacks are mostly politically created. With the implementation of this policy

all stakeholders will benefit whether it is consumer through quality products at

low price, farmers through more transparency in trading or Indian corporates

with 49% profit share remaining with Indian companies only.

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4.3 :- OBJECTIVE OF THE STUDY

The following are the objectives of the Study:-

Indian retailers are providing creditworthiness to their customers and also

providing good relation to their customers while the organized retailers are

good space for visiting and parking.

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To study the strategy using by Organized and Unorganized sector to survive in

this competitive market.

To present the future constraints of retail sector in Ahmedabad city.

The aim of the study is to identify the factors affecting consumer preference

related to shopping at organized retail store and unorganized retail stores.

To identify the reason for people select unorganized retailing for shopping

(local market).

To know about the selling technique through which the consumer are attracted

towards the organized retail’s (shopping malls) products & services.

To know about the situation for present retailing industry in Ahmedabad city.

To find out Does Festival season’s advertising has any impact in the minds of

consumers.

To understand the nature of merchandise budgeting and unit planning.

To understand the concept of relationship marketing and how does it apply to

the Organized retail and unorganized retail sector.

To find out, what attributes consumers are looking for in retailing product,

Significance of Study

The following are the Significances of the Study:-

→ This study report will help to Retailing Companies in improving their selling

strategy

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→ The report contains the suggestions and findings of the product of the

company which will help them to improve their quality of the product.

→ The study work did on the basis of the retailer viewpoints which will help the

company to understand the customer needs, requirement, perception and many

more things.

→ The report’s conclusion and suggestion will help the companies to understand

the coverage of the market with the use of sales strategy and also provide the

idea to the company in findings the necessary field where the product is highly

demanding.

→ This report will help to the society or in commercial sector who wants to go

for research work in future on Retailing industry.

Aspect that put consumers off

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Chapter: - 5

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Research methodology

Research design

Sampling Procedure

Sample location

Sampling Method

Sample Size

Data collection

Data collection instrument

5.1 Research design

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Research design is a one kind of framework or blueprint upon which whole

process going on. In this we have to clearly define that which method of the

research we have to follow. It may be based on the judgment or situational

objectives.

A research design specifies that method and procedures for conducting a

particular study. The researcher should specify the approach be intends to use

with respect to the proposed study broadly speaking research can be groped in

to three categories.

i. Exploratory (ambiguous problem),

ii. Descriptive (aware of problem),

iii. Explanatory (clearly defined problem).

Exploratory Research Design

An exploratory research design focuses on the discovery of ideas and is

generally based on secondary data.

Descriptive Research Design

A descriptive study is undertaken when the researcher want to know

the characteristics of certain group such as age, sex, income, education

level etc.

Explanatory Research Design

A casual researcher is under taken when the researcher is interested

knowing a cause and effect relationship between two or more variables.

5.2 Sampling Procedure

For collecting the data from the population I have used simple random

sampling method to get the sample from the population. This enables us to

make the study easy and create fewer disturbances, and study work can be

completed in the less time.

5.3 Sample location

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I am choosing different areas of Ahmedabad city for the research to be carried

out.

5.4 Sampling Method

Any organization whether big or small, private or public need different types

of information are to know its popularity. I have gathered secondary data and

primary data and collected information from the combination of these two

data.

Secondary data:-

Secondary data consist of information that already exists

somewhere, having been collected for another purpose. I have

gathered secondary data from website of different operators,

different magazines, newspapers and libraries.

Primary data:-

I have taken great care while collecting primary data to answer that

it is relevant, accurate, current and unbiased. I have taken a sample

of 200 people. I have visited them personally to get data.

5.5 Sample Size:

Sample size is to be taken to make the study easy in a shorter Time, period in

less and effective timing two hundred questionnaires are to be taken for

gathering the Information from the population of the Ahmedabad. The sample

size taken in this study is 384 and the data are gathered through questionnaire.

5.6 Data collection

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Data collection is one of the important tasks in research on the basis of

collected data analysis is done upon which Take effective decision. For

collecting the data various types of Instruments are used like, questionnaire,

telephone interview, Mail interview, here in this study we are using

questionnaire.

Types of data used in data collection

Primary data

Preparing a Questionnaire is collecting the primary source of data & it

was collected by interviewing the investors. These are the data which

are not collected before by any of the competent person. This are the

data collected by the researcher himself for the study purpose

Secondary data

These are the data which already exist. For having the detailed study

about this topic, it is necessary to have some of the secondary

information, which is collected from the following:-

Books.

Magazines & Journals.

Websites.

Newspapers,

Ebscohost, etc.

In this study I have used Questionnaire for the primary data collection

and for secondary data collection I have used internet, magazines, reference

books and articles which are necessary for my project completion

5.7 Data collection instrument

To come at the particular result we have to collect the data from the

respondents through various ways. In this report work I have used the

questionnaire to collect the data from the respondents.

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Research Type Quantitative Research

Research Design Descriptive Single cross sectional Conclusive

Research

Primary data source: Primary Retailers in Ahmedabad city

Secondary Sources: Reference Material, Books & e-Books, e-Magazine

& Newspapers, Websites

Data Collection Method Survey Method, personal visit, E- mail,

Population 400

Sampling Method Convenient non probability sampling

Sampling location Ahmedabad.

Sample size 384

Data Collection Instrument Structured Questionnaire

SUMMRY OF RESEARCH

METHODOLOGY

Table: - Table shows the summary of Research Methodology

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Objective behind the questionnaire:

Indentify the factors that affect the choice of format viz. organized/Unorganized

Retail.

The perception and attitude towards both formats.

The type of goods the customers prefer to purchase from each format.

Findings that help unorganized and unorganized retail gain its key strength and

weakness.

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Questionnaire

We are pursuing MBA at Gandhinagar Institute of Technology, approved by AICTE

and affiliated with Gujarat Technological University, Ahmedabad. As a part of our

comprehensive project Study, we have prepared a brief questionnaire. We are solicit your

help for the same. We assure you that the information provided by you will be used for

academic purposes only and will not be divulged to anybody.

Thanking you for your valuable time.

: Twinkle Kande , Kartik Koshti

Title: A Questionnaire on Study on changing consumer preference towards organized

retailing from un-organized retailing to Ahmedabad City

1. Are you a localite (based out of Ahmedabad) or are you from other place and

working here?

[ ] Based in Ahmedabad [ ] From other place

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

[ ] Organized Retail [ ] Unorganized Retail [ ] Depends/Not Fixed

3. How did you make your most recent purchase?

[ ] Online

  [ ] By phone

[ ] By mail/catalogue

[ ] In-person/in-store

[ ] Through a dealer

[ ] Other (please specify) ……………………………….

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4. How would you rate organized retailing in term of?

Excellent Very good Average Fair Poor

Courtesy and Service:

Store Cleanliness:

Selection and Variety:

Produce Quality/Freshness:

Meat Quality/Freshness:

Dairy Quality/Freshness:

Bakery Quality/Freshness:

Regular Prices:

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

[ ] D-Mart [ ] Big Bazar [ ] Food Bazar

[ ] Spinach [ ] Reliance Fresh [ ] Star Bazar

[ ] Apna Bazar [ ] Le Marche [ ] Subhiksha

[ ] Sarkari Bhandar [ ] Shoprite [ ] Foodland Garments

[ ] Shoppers Stop [ ] Lifestyle [ ] Globus

[ ] Hyper city [ ] National Handloom [ ] other

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

[Organized Retail: - o.r. Unorganized Retail: - U.R.]

Daily Weekly Bimonthly Monthly O.R. U.R.

Vegetables

Grocery(Dal Rice, Wheat)

FMCG(Biscuit, Detergent ,soaps)

Oil

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62

Garments/Clothes

Utensils

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

[ ] Price is less [ ] Near house [ ] Everything at one place

[ ] Good Service [ ] Good Quality [ ] Ambience

[ ] Long Relationship [ ] Good Offers [ ] Large Variety

[ ] Aspiration [ ] Self Service [ ] Faster(take less time)

[ ] Overall experience

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

(1-poor, 5-best)

Parameter 1 2 3 4 5 1 2 3 4 5

Price

Quality

Variety

Location

Service

Everything at one place

Offers

Relationship

Ambience

Home Delivery

Faster

9. What is your gender?

[ ] Male [ ] Female

10. What is your age?

[ ] 18 as under[ ] 19-35[ ] 36-50[ ] 50 or more

Organized Retail Un Organized Retail

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63

11. What is your annual household income?

 [ ] Under 25000 pm. [ ] 25000-50000 [ ] 50000-75000 [ ] 75000-100000 [ ] 100000 or More

12. Kindly tell any other experience or factors you feel makes your Organized Retail to Un Organized Retail

13. Do you plan to continue to buy organized/unorganized retail?

[ ] Yes [ ] No

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64

Websites:

1. http://www.dnb.co.in/IndianRetailIndustry/issues.asp

2. http://digitalcommons.kennesaw.edu/cgi/viewcontent.cgi?

article=1098&context=jekem

3. http://web.yonsei.ac.kr/dslab/Journal/Journal%20of%20International

%20Consumer%20Marketing%20%202011.pdf

4. http://www.abesit.in/pdfs/a-study-of-diversity-in-retail-purchases-

behaviour-in-food-prof-manish-kumar.pdf

5. http://www.iosrjournals.org/iosr-jbm/papers/Vol8-issue3/A0830105.pdf

6. http://indianresearchjournals.com/pdf/IJMFSMR/2013/June/7.pdf

7. http://www.abhinavjournal.com/images/Commerce_

%26_Management/Aug12/7.pdf

References:-

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v Kalhan, A. (2007). Impact of Malls on Small Shops and Hawkers. Economic Political

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vi Goswami, P. (2008). Would Kiranas in Urban India Survive the Modern Trade Onslaught?

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Research, 8(3), 44-67.

vii Das, G. & Kumar, R. V. (2009). Impact of Sales Promotion on Buyers Behaviour: An

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viii Goswami, P., Mridula, S. Mishra, (2009). Would Indian consumers move from kirana

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ix Inside store (2009). Unplanned Buying at Traditional Retail in India. A Research Report

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x Mittal, K. C., Arora, M. and Parashar, A. (2011). An Empirical Study on factors affecting

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xi Sivaraman. P. (2010). The future of unorganized retailing in Kanya kumari district. Asian

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13

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comparative study of organized and unorganized retail industry. Research Journal of

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