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Concentration, dedication and application are necessary but not sufficient to achieve any
goal. These must be awarded by guidance, assistance and co-operation of some person to
make it enable.
Many people have given their valuable time and ideas to enable me to complete the
research and the report. I am deeply indebted to all for their ideas and assistance, while
bearing the entire responsibility for weakness in the report.
I am highly obliged to MR. NIKHIL RANJAN (STORE MANAGER) and MRS. RITA
CHATTERJI (ASSISTANT STORE MANAGER), MAX LIFESTYLE, LUCKNOW
for providing me an opportunity to undergo this project report.
I am also indebted to MR. RAZAUR RAHMAN & ALL FACULTY MEMBERS of
SRMCEM, LKO who have been a constant source of inspiration and provided guidance
to me at every point of time.
My gratitude to all those, who RESPONDED TO MY QUESTIONNAIRE in a well
defined manner and helped me acquiring knowledge.
Lastly, I thanks all those, who have directly or indirectly, helped me in this project..

ABHISHEK PANDEY
PGDM- I YEAR


2

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I, ABHISHEK PANDEY, student of POST GRADUATE DIPLOMA IN MANAGEMENT
hereby declare that the project report entitled A DETAIL STUDY OF CONSUMER
BEHAVIOUR AND BUYING BEHAVIOVR OF CUSTOMERS IN MAX STORE OF
LUCKNOW CITY has been compiled by me on the basis of my project report and has not been
submitted any where in any manner.

It is a report, which is based on various interviews, surveys that is conducted during my
project report period in LUCKNOW as a student of P.G.D.M. from SHRI
RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW.



ABHISHEK PANDEY
PGDM- I YEAR





3


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This study is a modest effect at understanding the consumer behavior especially in
retail store in Lucknow. Analysis to Lucknow people perception of retail store (survey only
retail channel in Zee mall). The survey was constituted in visiting of Zee Mall Customers
were interviewed by means of carefully prepared questionnaire to study and understand
customer behaviour in depth. I study also the consumer decision making in retail store in
Indian city and what effect consumer decision-making in retail store.










4
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The sea of change can pull customers in many directions. It is our responsibility to light the way
and take care of them before the competition does.
RETAILING Means Re-tailing to the customers so that they comeback
Retailing consists of all activities involved in selling goods and services to consumers for their
personal, family, or household use. It covers sales of goods ranging from automobiles to apparel
and food products, and services ranging from hair cutting to air travel and computer education.
Sales of goods to intermediaries who resell to retailers or sales to manufacturers are not
considered a retail activity.
The retail sector in India is highly fragmented with organized retail contributing to only 2% of
total retail sales. The retail sector in developed countries was also highly fragmented at the
beginning of the last century but emergence of large chains like Wall Mart, Sears, and
McDonalds led to rapid growth of organized retail and growing consolidation of the retail
industry in the developed countries.
Organized retail is growing rapidly and we see the emergence of large organized retail chains like
Shoppers Stop, Lifestyle, and Westside. We also find retail malls mushrooming all over the
country. The opportunities in retail industry in India will increase since Indian retailing is on the
threshold of a major change.
The study of retailing is very important to MBA students interested in employment opportunities
with large retail chains.


5
The remarkable world of Retail









6
Retail, according to Concise Oxford English Dictionary, is "the sale of
goods to the public for use or consumption rather than for resale."
World over, the retail segment has performed exceptionally since its
inception in the 20th century. Sample these facts:
Retail is currently the biggest industry in the world with sales of
$7.2 trillion
Every 10th billionaire in the world is a retailer.
25 of the top 50 Fortune 500 companies are in retail.
The Indian retail story couldn't have been more different. India has
approx 12 million retail stores, more than rest of the world put together.
But the per capita square feet area under retail is just 2 sq.ft or 0.2 sq.
meters with fragmented keerana stores being the predominant players.
Retailing in I ndia has remained in the unorganized sector and largely
untouched by corporate.
The first decade of modern retail in India has been characterized by a shift
from traditional channels to new formats including department stores,
hypermarkets, supermarkets and specialty stores across a range of
categories.
Modern retail formats have mushroomed in metros and mini-metros, in

Retailing
including all
activities
involved in
selling goods or
services directly
to the final
consumers for
personal, non
business use
Any organisation
selling to final
consumers-
whether it is a
manufacture,
whole seller, or
retailer is
doing retailing.
Consumers today
can shop for
goods & services
in a wide variety
of retail Org.
The best- known
type of retail is
the Department
store.


7
the last few years modern retail has also established its presence in the second rung cities. Thus,
exposing the residents of these cities to shopping options, they have never experienced before. It
has been forecasted that the share of modern retail will increase from 2 per cent currently, to about
15-20 per cent over the next decade.
To begin with, retailers today will have to support the large retail infrastructure in terms of
Malls and Superstores that are being created.
The challenge for leading retailers shall therefore shift from diverting demand to creating
demand.
With all the modern stores offering convenience in terms of an assortment of products, ambience,
service and innovative products, the paradigm shall shift from competing with the kirana stores to
an in-house demand creation. Relevant experiences from consumer goods companies, which have
successfully crafted an explosion in demand in their sectors, through innovation, consumer driven
strategies, will be head runner.
Times are changing. With the GDP at an all time high and income levels shooting through the
roof, the average Indian consumer has never had it so good. The propensity to consume has
reached peaks that had never been scaled before. Credit cards are flashed with disdain and
shopping baskets are getting bigger all the time. Here are some factors that indicate the potential
of retail in India:


8
At 271 million, one of the largest consuming base in the world, forming 27% of the total
population.
A high spending community below 45 years comprises 81 percent of the population.
A young population with 54% population below 25 years
Increased literacy from 44% in 1965 to 70% in 2003
Increase in working women from 1.3 million in 1961 to 4.8 million in 1998.
Increase in media penetration to 38-million cable household and 80-million TV household
in 2001
The first decade of modern retail in India has been characterized by a shift from traditional kirana
shops to new formats including department stores, hypermarkets, supermarkets and specialty
stores across a range of categories. Modern retail formats have mushroomed in metros and mini-
metros. In the last few years, modern retail has also established its presence in the second-rung
cities, exposing residents to shopping options like never before. However, even as modern
retailers garner share from traditional channels, there is a larger role they would be required to
play in boosting consumption levels.
Figures suggest that the total turnover of the sector is around Rs 10 lakh crores, of which 4 per
cent is contributed by the organised sector.
During the last decade, India's middle- and high-income segment notched up an impressive 105
per cent growth. This segment has been triggering the demand for consumer goods. Increased
awareness, free access to information and choice in competing products and services are making


9
customers redefine the retail business. They are on the lookout for convenience, speed, efficiency
and a wide range of products. Retailers need to explore different channels of retailing to cater to
customers' needs.
The days of brick-and-mortar's limited potential are fading and retailers need to tap the immense
opportunities that other channels offer.
Driven by increasingly intense competition in an increasingly global marketplace, retailers must
seek new ways of capturing the hearts and minds of consumers. The traditional levers of price,
selection and location although still important are no longer sufficient as bases for
competitive differentiation. Retailers should be focused on improving the end-to-end shopping
experience, boosting sales and winning customer loyalty by connecting to the shopper in every
possible way.
Multichannel retailing is all about giving the customer a choice of which shopping channel he or
she wishes to purchase products through. The most popular shopping channels include the stores,
Internet and catalogues and telemarkets (including mobile shopping).
Retailers must provide a seamless multichannel experience for their customers. For this, they
become the most valuable consumers within a retailer's customer base.




10
Multichannel retailing needs to be adopted:
Grow market share
I ncrease customer base
Offer convenience
Achieve cost reductions through economies of scale, supply chain efficiencies, and
logistics
Improve customer analytics
Open new revenue streams by cross-sell & sell ups
Reduce cycle time between order and delivery
Lower fulfillment cost & Improve demand planning
However, going multichannel, the retailer should not ignore the critical part: the customer.
Customers have become more sophisticated and expect a retailer to recognize them.











11
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Tradi t i onal Rural Retai l Fai rs
Tradi t i onal Fami l y Run Conveni ence Stores

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Tradi ti onal rural retai l fai rs are a ver y bi g at t ract i on t o f orei gn t ouri st s. We
have t he Pushkar f ai r i n Raj ast han whi ch bri ngs i n a l ot of revenue bot h f rom
domest i c buyers and buyers f rom abroad. In t he Pushkar f ai r l i ve st ock l i ke
camel s, hor ses, cows, goat s, and sheep are sol d as wel l as bought . A range of
exot i c i t ems are al so avai l abl e. The t radi ti onal i tems here are handmade
j ewel r y and ot her col orf ul memorabi l i a of Raj ast han.

Tradi ti onal rural retai l fai rs i n Indi a deal i n a good number of handcraft s
i tems whi ch are ment i oned bel ow:
Hand pai nt ed wooden chest drawers
Wooden wal l bracket s
Embossed wooden t abl e


12
Hand pai nt ed chai r s i n chowki
Wooden cor ner st and
Wooden Hand pai nt ed t abl e
Embossed wooden chai rs
Brown wooden st ool
Camel bone Jewel r y
Met al j ewel r y
Snake char mer puppet s
Handmade candl es
The Suraj Kund mel a i s al so a huge gal ore of Indi an tradi ti onal i tems. Thi s
f ai r i s hel d at Har yana whi ch i s 8 ki l omet ers f rom Sout h Del hi . The f ai r has
been hel d f or t he l ast 20 years. The f ai r deal s i n i t ems cat egori zed as
Indi an arts
Handi craf t s
Heri t age
Cul t ure and t radi t i on
Tradi ti onal rural retai l fai rs have a typi cal rural set up l i ke:
Hut s of mud
That ched pl at f orms


13
l amps of wood
St ri ng cot s
Pl ai nness ground
The smal l t hat ched st ores are a vi brant di spl ay of handcr af t i t ems. The f ocus
ever y year i s on a part i cul ar St at e f or i nst ance, i n 2006 i t was Maharasht ra. The
ot her group of i tems representi ng t he Indi an Subcont i nent avai l abl e t here
are:
Cl assi cal
Tri bal art
Fol k art
As such Tradi ti onal Rural Retai l fai rs i nvol ve credi t wort hy art i sans and
weavers of over 350 i n number and t hey are sel ect ed f rom across t he count r y.
Al ong wi t h t he count y' s ri ch cul t ural heri tage bei ng showcased, t he f ai r i s
open t o f orei gn tradi ti onal goods as wel l . The more rej uvenat i ng si de of t hese
f ai rs woul d be l i st ed as under:
Indi an Sweet s Snacks
Indi an fol k musi c
Cl assi cal dance
Bengal t i ger show


14
El ephant ri des
Ti ger show and ri des
Gi raf f e t ri cks
Bal l oon and Cl ay i t ems
Pai nt i ng
Games
Theref ore, tradi ti onal rural retai l fai rs are a never endi ng occupat i on and t he
key t o i t l i es i n t he ori gi nal i t y and at t ract i veness of t he i t ems.

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Tradi ti onal fami l y run conveni ence stores are t oo wel l est abl i shed i n Indi a
t han t o be wi ped out and besi des t her e i s uni queness i n t he t radi t i onal i t ems
t hat represent t he sub-cont i nent . The retai l stores i n Indi a are essent i al l y
domi nat ed by t he unorgani zed sect or or t radi t i onal st ores. Inf act t he t radi t i onal
st ores have t aken up 98 percent of t he Indi an ret ai l market . Now st ores run by
f ami l i es are pri mar i l y f ood based and t he set up i s as Ki r ana or t he ' corner
grocer' st ores. Basi cal l y t hey provi de hi gh servi ce wi t h l ow pri ces. If t he st ores
are not f ood based t hen t he t ype of ret ai l i t ems avai l abl e are l ocal i n nat ure.



15
The t radi t i onal f ami l y run conveni ence st ores can t ake pri de i n t he f act t hat t he
Ki rana i s t he most common out l et forms f or t he consumers. The t ough
compet i t i on f or conveni ence st ores ar e comi ng f rom organi zed ret ai l st ores
deal i ng i n f ood i t ems, l i ke:

Apna Bazaar
Cant een st ores
Food Worl d
Subhi ksha
Food Bazaar
Conveni ence Stores are open for l ong hours and i s one of t he format s of
t he Indi an ret ai l st ores t hat cat er t o basi c needs of t he consumer. A good
exampl e of such woul d be Conveni o. These st ores are f ound i n bot h
resi dent i al as wel l as commerci al mar ket s. The food product s of
t radi t i onal f ami l y r un conveni ence st ores are compri sed of branded as
wel l as non-branded i t ems. The benef i t s of f ami l y run conveni ence st ores
i s t hat t hey gi ve i mport ance t o:
Personal t ouch
Faci l i t i es of credi t


16
Qui ck home del i ver y

Non-f ood based st ock compri ses of mul t i pl e and vari et i es of l ocal brands.
The f ut ure of such st ores as t hey f ace compet i t i on f rom organi zed sect or,
woul d depend on t he f ol l owi ng part i cul ars:
Pl ace and capaci t y
Di l i gent area cover age
Di sci pl i ned work schedul e
Managi ng t urnover
Revenue f rom asset s
Cust omer servi ce and sat i sf act i on
The tradi ti onal fami l y run conveni ence stores serves t he purpose of t he
housewi ves who def i ni t el y want s t o avoi d t ravel i ng l ong di st ances t o purchase
dai l y needs. The conveni ence f act or i n t er ms of i t ems, among peopl e i n general
can be hi ghl i ght ed as bel ow:
Groceri es
Frui t s
Drug St ore
Necessar y st at i oner y


17
As such t radi t i onal f ami l y run conveni ence st ores are here t o st ay and cannot
be oversi zed by t he organi zed ret ai l sect or besi des, i t represent s t he vari et y of
Indi a

Indian retail industry

Indi a ret ai l i ndust r y i s t he l argest i ndust r y i n Indi a, wi t h an empl oyment of
around 8% and cont ri but i ng t o over 10% of t he count r y' s GDP. Ret ai l i ndust r y
i n Indi a i s expect ed t o ri se 25% yearl y bei ng dri ven by st rong i ncome growt h,
changi ng l i f est yl es, and f avorabl e demographi c pat t erns.

It i s expect ed t hat by 2016 modern retai l i ndustry i n Indi a wi l l be wort h US$
175- 200 bi l l i on. I ndi a ret ai l i ndust r y i s one of t he f ast est growi ng i ndust ri es
wi t h revenue expect ed i n 2007 t o amount US$ 320 bi l l i on and i s i ncreasi ng at a
rat e of 5% yearl y. A f urt her i ncrease of 7-8% i s expect ed i n t he i ndust r y of
ret ai l i n Indi a by growt h i n consumer i sm i n urban areas, ri si ng i ncomes, and a
st eep ri se i n rural consumpt i on. It has f urt her been predi ct ed t hat t he ret ai l i ng
i ndust r y i n Indi a wi l l amount t o US$ 21. 5 bi l l i on by 2010 f rom t he current si ze
of US$ 7. 5 bi l l i on.



18
Shoppi ng i n Indi a have wi t nessed a r evol ut i on wi t h t he change i n t he consumer
buyi ng behavi or and t he whol e f ormat of shoppi ng al so al t eri ng. Indust r y of
ret ai l i n Indi a whi ch have become modern can be seen f rom t he f act t hat t here
are mul t i - st ored mal l s, huge shoppi ng cent ers, and sprawl i ng compl exes whi ch
off er f ood, shoppi ng, and ent ert ai nment al l under t he same roof .

Indi a ret ai l i ndust ry i s expandi ng i t sel f most aggressi vel y, as a resul t a great
demand f or real est at e i s bei ng creat ed. Indi an retai l ers pref erred means of
expansi on i s t o expand t o ot her regi ons and t o i ncrease t he number of t hei r
out l et s i n a ci t y. It i s expect ed t hat by 2010, Indi a may have 600 new shoppi ng
cent ers.

In t he Indi an ret ai l i ng i ndust r y, f ood i s t he most domi nat i ng sect or and i s
growi ng at a rat e of 9% annual l y. The branded f ood i ndust r y i s t r yi ng t o ent er
t he Indi a ret ai l i ndust r y and convert I ndi an consumers t o branded f ood. Si nce at
present 60% of t he Indi an grocer y basket consi st s of non- branded i t ems.

Indi a ret ai l i ndust ry i s progressi ng wel l and for t hi s t o cont i nue ret ai l ers as
wel l as t he Indi an government wi l l have t o make a combi ned ef f ort .







19

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Indi an organi zed ret ai l market i s growi ng at a fast pace due t o t he boom i n t he
Indi a retai l i ndustry. In 2005, t he r et ai l i ndust r y i n Indi a amount ed t o Rs
10, 000 bi l l i on account i ng f or about 10% t o t he country' s GDP. The organi zed
ret ai l market i n Indi a out of t hi s t ot al market account ed f or Rs 350 bi l l i on
whi ch i s about 3. 5% of t he t ot al revenues.

Ret ai l market i n t he Indi an organi zed sect or i s expect ed t o cross Rs 1000
bi l l i on by 2010. Tr adi t i onal l y t he ret ai l i ndust r y i n Indi a was l ar gel y
unorgani zed, compri si ng of drug st or es, medi um, and smal l grocer y st ores.
Most of t he organi zed ret ai l i ng i n Indi a have st art ed recent l y and i s
concent rat i ng mai nl y i n met ropol i t an ci t i es.

The growt h i n t he Indi an organi zed r et ai l market i s mai nl y due t o t he change i n
t he consumers behavi or. Thi s change has come i n t he consumer due t o i ncr eased
i ncome, changi ng l i f est yl es, and pat t erns of demography whi ch are f avorabl e.
Now t he consumer want s t o shop at a pl ace where he can get food,
ent ert ai nment , and shoppi ng al l under one roof . Thi s has gi ven Indi an organi zed
ret ai l market a maj or boost .



20
Ret ai l market i n t he organi zed sect or i n Indi a i s growi ng can be seen f rom t he
f act t hat 1500 supermarket s, 325 depart ment al st ores, and 300 new mal l s ar e
bei ng bui l t . Many Indi an compani es are ent eri ng t he Indi an retai l market
whi ch i s gi vi ng Indi an organi zed ret ai l market a boost . One such company i s
t he Rel i ance Indust ri es Li mi t ed. It pl ans t o i nvest US$ 6 bi l l i on i n t he Indi an
ret ai l market by openi ng 1000 hyper market s and 1500 super market s.

Pant al oons i s anot her Indi an company whi ch pl ans t o i ncrease i t s ret ai l space t o
30 mi l l i on square f eet wi t h an i nvest ment of US$ 1 bi l l i on. Bhart i Tel ecoms an
Indi an company i s i n t al ks wi t h Tesco a gl obal gi ant for a 750 mi l l i on j oi nt
vent ure. A number of gl obal ret ai l gi ant s such as Wal mart , Carref our, and
Met ro AG are al so pl anni ng t o set up shop i n Indi a. Indi an organi zed ret ai l
mar ket wi l l def i ni t el y grow as a resul t of al l t hi s i nvest ment s.

Indi an organi zed ret ai l market i s i ncreasi ng and for t hi s growt h t o cont i nue t he
Indi an ret ai l ers as wel l as government must make a combi ned eff ort .








21
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Retail has played a major role world over in increasing productivity across a wide range of
consumer goods and services .The impact can be best seen in countries like U.S.A., U.K., Mexico,
Thailand and more recently China. Economies of countries like Singapore, Malaysia, Hong Kong,
Sri Lanka and Dubai are also heavily assisted by the retail sector.
Retail is the second-largest industry in the United States both in number of establishments and
number of employees. It is also one of the largest world wide. The retail industry employs more
than 22 million Americans and generates more than $3 trillion in retail sale annually.
Retailing is a U.S. $7 trillion sector. Wal-Mart is the worlds largest retailer. Already the worlds
largest employer with over l million associates, Wal-Mart displaced oil giant Exxon Mobil as the
worlds largest company when it posted $219 billion in sales for fiscal 2001. Wal-Mart has
become the most successful retail brand in the world due its ability to leverage size, market clout,
and efficiency to create market dominance. Wal-Mart heads Fortune magazine list of top 500
companies in the world. Forbes Annual List of Billionaires has the largest number (45/497) from
the retail business.








22









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22
Rank Retailer Home Country
1. Wal-Mart Stores, Inc. U.S.A.
2. Carrefour Group France
3. The Kroger Co. U.S.A.
4. The Home Depot. Inc. U.S.A.
5. Metro Germany
(Source: STORES / Deloitte Touch Tomahastsu)


23

The factors responsible for the development of the retail sector in India can be broadly
summarized as follows:
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
500Io of the Indian population as low income in 1994-95; this is expected to decline to
17 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 Kellogs, 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 LV. channels is
helping in creating awareness about global products for local markets. About 47% of
Indias population is under the age of 20; and this will increase to 55h 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.


24
As India continues to get strongly integrated with the world economy riding the waves of
globalization, the retail sector is bound to take big leaps in the years to come. The Indian retail
sector is estimated to have a market size of about $ 180 billion; but the organised sector represents
only 2% share of this market. Most of the organised 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 vast market
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 2Smn
sq. ft. of retail space is being developed and will be available for occupation over the next 36-48
months. Fitch expects organized retail to capture l5%- 20% market share by 2010. A McKinsey
report on India says organised retailing 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 (l4%), and Poland (12%).





25
K
KKe
eey
yy S
SSt
ttr
rra
aat
tte
eeg
ggi
iic
cc F
FFa
aac
cct
tto
oor
rrs
ss i
iin
nn R
RRe
eet
tta
aai
iil
lli
iin
nng
gg
The key to success is identifying a superior value-promise and who is in a better position to do it
than retailers? Retailers are the closest to the point of purchase and have access to a wealth of
information on consumer shopping behaviour. Retailers have some unique advantages for
managing brands such as continuous and actionable dialogue with consumers, control over brand
presentation at point-of-sale, control over shopping environment, display location/adjacencies,
and signage. And they have used this advantage with tremendous success.
T
TTh
hhe
ee 3
33 s
sst
tta
aag
gge
ees
ss o
oof
ff e
eev
vvo
ool
llu
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tti
iio
oon
nn o
oof
ff t
tth
hhe
ee t
ttr
rra
aad
dde
ee c
cch
hha
aan
nnn
nne
eel
ll a
aar
rre
ee s
ssh
hho
oow
wwn
nn
i
iin
nn t
tth
hhe
ee e
eex
xxh
hhi
iib
bbi
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bbe
eel
llo
oow
ww :
::


Extended Limited Direct


Manufacture

Depo/CNF

Distributor

Retailer

Shopper


Manufacture


Depo/CNF

Retailer


Shopper


Manufacture
/ Retailer






Shopper



26
As seen, the role of the intermediary is being diminished gradually, which has obvious
implication of backlash of the trade channel upwards towards the suppliers. This is more severe in
countries such as India, where the channel economics in favour of the middlemen is still strong
enough given the fragmentation of the retail sector. Therefore when FoodWorld, the largest grocer
in
India has a direct supply contract with over 20% of its key suppliers, it gives rise to conflict of
interest with the distribution infrastructure that suppliers have painstakingly built over the years.
Thus companies like HLL have evolved a distinct distribution channel altogether (called Modern
Trade) to service the needs of such large grocers. Even the mom and pop stores (known as kirana
shops) are affected due to this unfair back-end advantage extended by the suppiier to its leading
accounts (the emerging supermarket chains).
The strategies adopted by the retailer to compete with branded goods are illustrated by the
following diagram. Branding the store and following a private label strategy is the key strategy
which helps the retailer to compete with branded products.











27
F
FFO
OOR
RRM
MMA
AAL
LL R
RRE
EET
TTA
AAI
IIL
LLI
IIN
NNG
GG S
SSE
EEC
CCT
TTO
OOR
RR

1. Typically large retailers
2. Greater enforcement of taxation mechanisms
3. High level of labor usage monitoring

7
Weekly Markets
Village Fairs
Melas
Convenience Stores
Mom and
Pop/Kiranas
PDS Outlets
Khadi Stores
Cooperatives
Exclusive Brand
Outlets
Hyper/Super Markets
Department Stores
Shopping Malls
Traditional/Pervasive
Reach
Government
Supported
Historic/Rural
Reach
Modern Formats/
International
Evolution of Indian retail
Source of
Entertainment
Neighborhood
Stores/Convenience
Availability/ Low
Costs /
Distribution
Shopping
Experience/Efficiency







28
C
CCA
AAT
TTE
EEG
GGO
OOR
RRI
IIE
EES
SS O
OOF
FF I
IIN
NND
DDI
IIA
AAN
NN R
RRE
EET
TTA
AAI
IIL
LL
1. Corporate Houses
Tatas: Tata Trent
RPG group: Food World, Health and Glow, etc
ITC: Wills Life Style
Rahejas(ShoppersStop), Hiranandani(Haiko), DLF(DT cinemas) etc.
2. Dedicated brand outlets
Nike, Reebok, Zodiac etc
3. Multi-brand outlets
Vijay Sales, Viveks etc
4. Manufacturers/ Exporters
Pantaloons, Bata, Weekender

C
CCl
lla
aas
sss
ssi
iif
ffy
yyi
iin
nng
gg I
IIn
nnd
ddi
iia
aan
nn r
rre
eet
tta
aai
iil
ll

(A)Modern Format retailers
1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (S Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated


29




(B)Traditional Format Retailers
1) Kiranas: Traditional Mom and Pop Stores
2) Kiosks
3) Street Markets
4) Exclusive /Multiple Brand Outlets



30

(C)Large Indian retailers
I. Hypermarket
1) Big Bazaar
2) Giants
3) Shoprite
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
4) Shoppers Stop


31
5) Trent
III Entertainment
1) Fame Adlabs
2) Fun Republic
3) Inox
4) PVR

















32
T
TTh
hhe
ee I
IIn
nnd
ddi
iia
aan
nn r
rre
eet
tta
aai
iil
ll s
sse
eec
cct
tto
oor
rr c
cca
aan
nn b
bbe
ee b
bbr
rro
ooa
aad
ddl
lly
yy c
ccl
lla
aas
sss
ssi
iif
ffi
iie
eed
dd i
iin
nnt
tto
oo

a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector Traditional types of
retailers, who operate small single-outlet businesses mainly using family labour, dominate this
sector In comparison, super markets account for a small proportion of food sales in India However
the growth rate of super market sales has being significant in recent years because greater
numbers of higher income Indians prefer to shop at super markets due to higher standards of
hygiene and attractive ambience.
b) HEALTH & BEAUTY PRODUCTS
With growth in income levels, Indians have started spending more on health and beauty products
.Here also small, single-outlet retailers dominate the market .However in recent years, a few retail
chains specializing in these products have come into the market. Although these retail chains
account for only a small share of the total market their business is expected to grow significantly
in the future due to the growing quality consciousness of buyers for these products

C) CLOTHING & FOOTWEAR

Numerous clothing and footwear shops in shopping centers and markets operate all over India
Traditional outlets stock a limited range of cheap and popular items; in contrast, modern clothing
and footwear stores have modern products and attractive displays to lure customers. However,
with rapid urbanization, and changing patterns of consumer tastes and preferences, it is unlikely
that the traditional outlets will survive the test of time.


33

D) HOME FURNITURE & HOUSEHOLD GOODS

Small retailers again dominate this sector. Despite the large size of this market, very few large and
modern retailers have established specialized stores for these products. However there is
considerable potential for the entry or expansion of specialized retail chains in the country.
E) DURABLE GOODS

The Indian durable goods sector has seen the entry of a large number of foreign companies during
the post liberalization period. A greater variety of consumer electronic items and household
appliances became available to the Indian customer. Intense competition among companies to sell
their brands provided a strong impetus to the growth for retailers doing business in this sector.
F) LEISURE & PERSONAL GOODS

Increasing household incomes due to better economic opportunities have encouraged consumer
expenditure on leisure and personal goods in the country. There are specialized retailers for each
category of products (books, music products, etc.) in this sector. Another prominent feature of this
sector is popularity of franchising agreements between established manufacturers and retailers.






34
Benefit to customer through retailer sector
There has been a significant change in retail trading over the years, from small
kiranawalas in the vicinity to big super markets; a transition is happening from the
traditional retail sector to organized retailing. The unorganized sector still holds a dominant
position in this industry. The organized segment holds just about 1.2% of the current US$
245 billion retail market, which is expected to reach about US $ 385 billion by the middle of
this decade.
With consumers looking at convenience with multiplicity of choice under one roof and
expectations evolving over time, consumer demand is truly the driving force for organized
retailing in the country. Food and beverages form the main chunk of the retail market. They
are followed by apparel and footwear. The Indian textile industry, the backbone of the
apparel segment, has a large share of the Indian economy, accounting for over 20% of
industrial production as well as providing direct and indirect employment to around 65
million people.
Despite the retail store density in India with regard to population being the largest, it is
estimated that over 90% of the stores are less than 500 sq. ft in size. Industry estimates put
the number of retail outlets at 12 million. This is clearly indicative of small-shop ownership
crowding the unorganized segment of retailing. While this fragmented market structure does
pose significant challenges for organized retailing, potential does exist if modern


35
information and supply chain management systems are to support the development of
convenience shops that match customer expectations.
Today trend is the development of integrated retail cum Entertainment centers or
shopping malls. An increasing number of retailers are focusing on malls now as opposed to
stand-alone developments. While the number of shopping malls has seen a massive surge in
the recent past in the metros and their suburbs, the latest trend in this sector is the increasing
focus on providing leisure activities such as multiplexes, facilities for kids' entertainment,
eateries etc. within the mall premises. Customer less the time consumes and more
entertainment with his family in malls because they within shopping mall number of retail
shop and variety of products and selected the product they want. Good environment in mall.
Less crowed and These are enclosed, air-conditioned, multi-level malls of at least
100,00 sq ft. Critical to these malls is the concept of the anchor, the key outlet or store
around which other outlets cluster. The most popular Indian anchors include Shoppers' Stop,
Globus, Pantaloon, Lifestyle and hypermarkets like Big Bazaar and Giant. Cinemas also
often anchor malls. Driven by the lucrative tax breaks, the old single screen theatres are
being divided into three-five smaller screens, as was done in the US, years ago. Example for
wave and PVR.


36

L
LLa
aan
nnd
ddm
mma
aar
rrk
kk G
GGr
rro
oou
uup
pp

The Landmark Gr oup, f ounded i n 1973 wi t h a si ngl e st ore i n Bahrai n has grown
i nt o one of t he l argest ret ai l congl omer at es i n t he Mi ddl e East and i s expandi ng
rapi dl y i n Indi a. It current l y operat es over 750 st or es across t he regi on wi t h a
ret ai l presence i n Chi na as wel l . In addi t i on t o i t s ret ai l sect or, t he Group has
al so di ver si f i ed i nt o l ei sure, f ood, hot el s and el ect r oni cs and has cr eat ed a
comprehensi ve i nf rast ruct ure i ncl udi ng i t s own l ogi st i cs and di st ri but i on
di vi si on, t o suppor t i t s ret ai l operat i ons and ot her busi nesses.

K
KKe
eey
yy F
FFa
aac
cct
tts
ss
35 Years of retail experience.
Turnover in excess of US$2.5bn.
Total retail space over 10 million sq ft.
Retail Presence across 12 countries: Bahrain, China, India, Jordan, Kingdom of Saudi
Arabia, Kuwait, Oman, Qatar, Spain, UAE, Pakistan & Egypt.
Operates over 825 stores.
Employs 24,000 personnel.










37

C
CCo
oor
rre
ee V
VVa
aal
llu
uue
ees
ss o
oof
ff L
LLa
aan
nnd
ddm
mma
aar
rrk
kk G
GGr
rro
oou
uup
pp

1.
Passi on for excel l ence We are commi t t ed t o set t i ng i ndust r y benchmarks
be i t our product or pract i ces. Our doct ri ne i s t o st ri ve and mai nt ai n t he l ead i n
what ever we do, wi t h st ri ct adherence t o qual i t y and del i veri ng val ue f or
money.
2. Integri ty i n everythi ng we do - Our busi ness i s dri ven by t rust , st rong
et hi cs and mut ual respect .
3. Empoweri ng peopl e to stri ve and del i ver Our core st rengt h i s our
empl oyees. We bel i eve i n gi vi ng our personnel t he opport uni t y and
responsi bi l i t y t hat are i nt egral t o t hei r prof essi onal devel opment and our
Groups success.
4. Adapti ng to changi ng market and cust omer needs We keep oursel ves
abreast wi t h i ndust r y t rends and dynami c consumer pref erences. Our off eri ngs
keep evol vi ng t o address changi ng and di scerni ng consumer needs.











38

L
LLo
ooo
ook
kk G
GGo
ooo
ood
dd F
FFe
ee e
ee l
ll G
GGo
oo o
ood
dd
Max a val ue ret ai l st ore f or t he f ami l y was l aunched i n May 2004 i n t he
UAE.
Wi t h st ores t hat t ypi cal l y measure bet ween 25, 000 t o 30, 000 sq. f t , Max
ret ai l s i t s own l abel cl ot hi ng f or men, women and chi l dren as wel l as
f oot wear and home ware.
A pi oneer i n t he Mi ddl e East of t he gl obal t rend of del i veri ng qual i t y and
val ue at ver y at t ract i ve pri ces, Max i s bei ng i ncreasi ngl y recogni zed as a
key pl ayer i n t he val ue ret ai l f or mat .
Wi t h 75 st ores acr oss UAE, Saudi Ar abi a, Jordan, Kuwai t , Bahrai n, Qat ar,
Oman & Indi a, Max pl ans t o expand i t s net work i n more pot ent i al mar ket s
wi t hi n t he Mi ddl e East , Tur key and I ndi a t o bui l d a si gni f i cant presence
f or t he brand by t arget i ng t o have 100 st ores by 2009.
A good shoppi ng experi ence and great val ue i s an assurance t hat
t ransl at es i nt o maki ng cust omers Look good. Feel good wi t h Max.
K
KKe
eey
yy F
FFa
aac
cct
tts
ss
Established in 2004.
75 stores spread across 8 countries.
The Largest Value Fashion Chain in the Middle East
Products designed and developed exclusively for Max, by a large team of
in-house designers and buyers.


39
KIDSWEAR DEPARTMENT

INFANTS SECTION: -

BOYS (SIZES) PREPACK GIRLS (SIZES) PREPACK

6-12 MONTHS 3 6-12 MONTHS 3

12-18 MONTHS 3 12-18 MONTHS 3

18-24 MONTHS 3 18-24 MONTHS 3

TOTAL 9 9

BOYS SECTION: -

SUB SECTION 1-8 YEARS PREPACK 8-14 YEARS PREPACK

SIZES SIZES

2-3 YEARS 3 8-9 YEARS 3

3-4 YEARS 3 9-10 YEARS 3

5-6 YEARS 3 11-12 YEARS 3

7-8 YEARS 3 13-14 YEARS 3

TOTAL 12 12

GIRLS SECTION: -

SUB SECTION 1-8 YEARS PREPACK 8-14 YEARS PREPACK

SIZES SIZES

2-3 YEARS 3 8-9 YEARS 3

3-4 YEARS 3 9-10 YEARS 3

5-6 YEARS 3 11-12 YEARS 3

7-8 YEARS 3 13-14 YEARS 3

TOTAL 12 12



40

INFANTS GIRLS

TUNIC
V-NECK
R- NECK
COLLER
FRONT OPEN


SKIRT
CAPRI
SHIRT

2-8 BOYS

T-SHIRT
DENIM JEANS
TROUSERS
CARGO
PAINTS
CAPRI
COTTON WOVEN
KNITTED
DENIM

2-8 GIRLS

TUNIC
SKIRTS
T-SHIRT
HALTER NECK
POT
SEGDE
HALF SLEAVES
CUT SLEAVES
SLEAVELESS
HOODED SKIRT
SPORTS CAPRI
LEGINGS
LEGINGS
FULL LEGINGS
LONG TOPS
MINI SKIRTS
CALF LENGTH SKIRT


41
DENIM
JEANS
CAPRI


STYLES: - KNIT TOP, KNIT BOTTOM, WOVEN TOP, WOVEN BOTTOM, SPEGDEE, HALTER
NECK TOP, DRESS, TUNIC, DENIM, CAPRI, DONGRIE, 3 PIECE PACK (SPORTS, SLEAVELESS,
HALF SLEAVES), 2 PIECE PACK (NIGT WEAR, SKIRTS).


ETHNIC

FUSION

KURTI
ROUND NECK
V-NECK
HALTER NECK
MATKA NECK
CUT NECK
SQUARE NECK
CUT SLEAVES
STEPS KURTI
SKIRT
STRAIGHT SKIRTS
CRUSH SKIRTS
CRUSH ANKLE SKIRTS

FABRICS: - ACOBA, COTTON, GORGET, SHIFFON, LINEN, VISCOS.

SIZES PREPACK

XS 1
S 2
M 2
L 2


TRADITIONAL

KURTI
SHORT LENGTH KURTI
HE KURTA
LONG KURTA


42

DUPATTA
COTTON
SHIFFON

SALWAR
PATIALA
NORMAL
CHOORIDAR

SIZES PREPACK
S 2
M 3
L 3
XL 2
XXL 1

ETHNIC WEAR BASICS: -

KURTA
SALWAR
CHOORIDAR
PATIALA
DUPATTA
PANTS
BASICS SLIPS


HOMES

TABLE MAT
TABLE RUNNER
TABLE COVER
DUBLE BED SHEET
SINGLE BED SHEET
DOUBLE BED COVER
SINGLE BED COVER
NAPPKIN
TOWEL
BATH MATS
CUSHION COVERS






43
WESTERN WEAR


CORE
KNIT TOP
WOVEN TOP
KNIT BOTTOM
WOVEN BOTTOM
SKIRTS
YOUNG
KNIT TOP
WOVEN TOP
KNIT BOTTOM
WOVEN BOTTOM
DENIM BOTTOM
JACKET
SHORTS
SKIRTS
SPORTY
JACKET
KNIT TOP
WOVEN TOP
KNIT BOTTOM
WOVEN BOTTOM
DENIM
DENIM FULL LENGTH
CAPRI
NIGHT WEAR
GOWNS
SLEEPWEAR















44
MENSWEAR

CASUAL DENIM
BOOT CUT
REGULAR FIT
SLIMFIT
CASUAL NON- DENIM
KNITTED TOP- FULL SLEAVES
KNITTED TOP- HALF SLEAVES
KNITTED TOP- SLEAVE LESS
WOVEN TOP- FULL SLEAVES
WOVEN TOP- HALF SLEAVES
WOVEN TOP- SLEAVE LESS
WOVEN TOP- H/S BASIC
WOVEN TOP- F/S BASIC
FORMAL
WOVEN BOTTOM- FLAT FRONT
WOVEN BOTTOM- PLEATED
WOVEN TOP- FULL SLEAVES
WOVEN TOP- HALF SLEAVES
INNER WEAR
TRUNK VALUE PACK
WEST VALUE PACK
Y FRONT VALUE PACK
SEMI FORMAL
WOVEN BOTTOM- FLAT FRONT
WOVEN BOTTOM- PLEATED
WOVEN TOP- FULL SLEAVES
WOVEN TOP- HALF SLEAVES
SPORTS WEAR
KNITTED TOP- FULL SLEAVES
KNITTED TOP- HALF SLEAVES
KNITTED TOP- SLEAVELESS
JACKET
KNITTED TRACK BOTTOM
WOVEN TRACK BOTTOM
WOVEN TRACK SHORTS
KNIT TRACK SHORTS
SIZES- SHIRTS T-SHIRTS DENIM REGULAR FIT SLIM FIT

39 to 44 S to XL 28 to 36 28 to 36 28 to 38





45
FOOTWEAR

MENS FOOTWEAR

CASUAL SHOES
FORMAL SHOES
CASUAL LACE UPS
FORMAL LACE UPS
CASUAL SLIP UPS
CASUAL SLIP ONES
CASUAL SANDALS
FORMAL SANDALS
SPORT SHOES


LADIES FOOTWEAR

H-HEAL SANDAL
M-HEAL SANDAL
WEDGE HEAL SANDAL
FLAT SANDAL
CASUAL SANDAL
SPORTS SANDAL
COMFORT SANDAL
FORMAL SANDAL
EVA SANDAL

KIDS FOOTWEAR

KIDS BOYS
KIDS GIRLS
INFANT BOYS
INFANT GIRLS
BOTIES









46
STORE OPENING
1. Check the lock before unlock.
2. unlock the door at 9:30 am.
3. Switch on optimum lights on floor.
4. Security in place with complete uniform.
5. Adequate housekeeping staff sould be in store.
6. Select the housekeeping workdone, cleaning, moppng.
7. Switch on A.C. at 10:00 am.
8. Switch on the music.
9. Trials rooms are empty and clean before 10:30 am.
10. Floats issued in tills and dedicated cashier by 10:25 am.
11. Ensure that staff is complete uniform by 10:30 am.
12. Merchandise well present on the floor.
STORE CLOSING
1. All the tills closed.
2. Switch off sensomatic, E.D.C. machine, music at till point.
3. Recycling of Security ags and hangers.
4. Merchandise well present on the floor.
5. Trial rooms are empty.
6. Switch off A.C.
7. Switch off all lights.
8. Lock Managers room.
9. Lock I.T. room.
10. Switch off Sensomatic on both floors and at entrance.
11. Security in place with complete uniform at back door.
12. Manager signature.
13. Security signature.


47
DUTIES &RESPONSIBILITIES OF STORE MANAGER

Duties & Responsibilities

Sal es Forecast i ng & Budget
Personnel Recrui t ment , sel ect i on, t r ai ni ng, mot i vat i on and eval uat i on
Merchandi se Di spl ay, Invent or y Management and merchandi se reorders
Handl i ng st ore recei pt s, prepari ng bank t ransact i ons, openi ng and cl osi ng
st ore
Revi ewi ng cust omer compl ai nt s
Revi ewi ng comput er dat a f orms
Revi ew of overal l operat i ons and report s t o t op management .



DEPARTMENT MANAGERS DETAIL CHECKLIST


Cl eani ng and Dust i ng
Fl oor cl eaned and Mopped
Fi xt ure (Cl ean, Al i gnment & Breakage)
St ock Repl eni shment
Al l st yl e di spl ayed on f l oor.
Si ze cubi ng on al l mer chandi se


48
Pri ce t i cket s on al l merchandi se
Securi t y t ag on al l mer chandi se
Merchandi se wel l present ed
Shel f Tal kers (Cl ean and Properl y di spl ayed)
Ensure i roni ng of Merchandi se i s i n process.
Tri al rooms cl ean
Cash Count ers Cl ean (Merchandi se, hangers & t ags)
Dai l y sal es regi st er updat i on
Dai l y groomi ng check
Ensure t hat t he adequat e manpower on t he f l oor on hourl y basi s
St af f shoul d t r y and at t end each and ever y cust omer, greet i ng i s ver y
i mport ant
Ensure t hat st af f i s regul arl y i nt eract i ng wi t h t he cust omer by gi vi ng
except i onal servi ce f or cust omer del i ght at al l t i me
Ensure t he presence of one manager at any gi ven t i me on each f l oor
Ti me and agai n check t hat t he vi l l i ng check out i s f ast enough as per t he
st andard nor ms
Ensure t hat t he l unch breaks shoul d st art by 1: 00 pm and f i ni shed by max
4: 00 pm


49
Ensure t he presence of al l st aff on t he f l oor i n peak hours bet ween 5: 00
pm t o 9: 30 pm
Ti me and agai n check on wal k-i ns, average bi l l si ze, sal es on hour l y basi s
an accordi ngl y
Encourage t he st af f f or f urt her i mprovement
Ensure your morni ng shi f t st af f and weekl y of f f or t he next day i s
conveyed t o al l st aff .
Mai nt ai n DMs l og book on dai l y basi s & acknowl edge by SM, ASM on
dai l y basi s


CRE DETAIL CHECKLIST

Cl eani ng and dust i ng of shel ves, browsers, ar ms & back bars.
Check at 10: 30 am f l oor cl ean & mopped
Fi xt ure (Cl ean & Al i gnment )
Have a wal k on t he f l oor af t er 10: 30 am and check t he repl eni shment
requi re
St ock repl eni shment f or new l i nes & broken si zes on t he f l oor
Remove br oken si zes f rom t he f l oor i f i t i s not avai l abl e i n back


50
Ensure t hat al l st yl e di spl ayed on f l oor
Pri ce t i cket s on al l merchandi se
St art si ze cubi ng on al l merchandi se
Securi t y t ags on al l merchandi se
Merchandi se wel l present ed
St art i roni ng of merchandi se at 10: 00am t i l l 4: 00 pm
Tri al s rooms (cl ean, t okens and manned) by 10: 30 am
Tr y and at t end each and ever y cust omer , greet i ng i s ver y i mport ant .



Distribution Of Target In Departments


Let,
Store target =Rs 50,00,000
Department Target =Rs. 9,50,000
Department Target in % =19%

One Month = 8 weekends and 23 week days

One Weekend Target = Rs 9,50,000/23 = Rs 41304

Total weekend target = Rs 41304*8 = Rs 3,30,434

Total weekday target = Rs 9,50,000- Rs 3,30,434 = Rs 6,19,566

One weekday target = Rs 6,19,566/23 = Rs 26,937

CRE target (Monthly) = Rs 9,50,000/5 = Rs 1,90,000


51

One Weekend Target = Rs 41304
One Weekday Target = Rs 26937





























52






















DIPSTICK PARAMETERS



Enabl e ret ai l ers t o f i nd out about t he heal t h of
speci f i c area of operat i on i n an i nst ant .

Customer Transactions


53

Cust omer Conver si on Rat i o
Ret urn To Net Sal es
Transact i ons Per Hour
Sal es Per Transact i on
Hourl y Cust omer Traff i c




Stocks

Average Sel l i ng Pri ce
Average St ock Pri ce
St ock Turnover/ Invent or y Tur nover Rat e
Percent age I nvent or y Cost s
Gross Margi n Ret urn on Invent or y
Markdown Goods Percent age
Shri nkage t o Net Sal es





Space

Occupancy Cost Per Square Foot Sel l i ng Space
Sal es Per Square Foot
St ock Per Square Foot
Percent age of Sel l i ng Space



54
Employees

Net Sal es Per Ful l Ti me Empl oyee
Labour Product i vi t y
Gross Margi n Per Ful l Ti me Empl oyee

Customer Conversi on Rati o

Cust omer Conver si on Rat i o
= Number Of Transact i ons x 100

Cust omer Tr aff i c
-Ref l ect s Ret ai l ers abi l i t y t o t urn a pot ent i al cust omer i nt o a buyer
-Low f i gure means t hat promot i onal act i vi t i es are not bei ng convert ed i nt o sal es
or t hat t he overal l sal es ef f ort needs t o be assessed af resh
-Aut omat i c count i ng mechani sms or peri odi c sur veys of cust omer t r af f i c

Returns to Net Sal es

Ret urns t o Net Sal es
= Tot al Ret urns x 100

Net Sal es


-Indi cat i on of Cust omer sat i sfact i on
-Increase i n val ue i s an earl y warni ng i ndi cat i on
-Qual i t y of merchandi se i s a suspect




55
Transactions Per Hour

Transact i ons Per Hour = Number Of Transact i ons

Number of Hours

-Hourl y vari at i ons i n sal es act i vi t i es i s i mport ant f or set t i ng st ore hours and
st af f schedul es
-Cash regi st ers wi l l gi ve t he t i me of sal e

Sales Per Transaction

Sal es Per Transact i on
= Net Sal es

Number Of Transact i ons


-Ref l ect s Ret ai l ers abi l i t y t o t urn a pot ent i al cust omer i nt o a buyer
-Low f i gure means t hat promot i onal act i vi t i es are not bei ng convert ed i nt o sal es
or t hat t he overal l sal es ef f ort needs t o be assessed af resh
-Aut omat i c count i ng mechani sms or peri odi c sur veys of cust omer t r af f i c


Hourly Customer Traffic

Hourl y Cust omer Traff i c
= Cust omer Traf f i c In

Number of Hours


56

-Can be appl i ed t o an ent i re st ore or a si ngl e depar t ment t o schedul e hours and
est abl i sh st af f l evel s
-Used t o t rack cust omer t raf f i c

Average Selling Price

Average Sel l i ng Pri ce
Tot al Val ues of Good Sol d

Tot al Quant i t y Sol d

Average Stock Price
Average St ock Pri ce
= Tot al Val ues of Goods i n St ock

Tot al Quant i t y i n St ock

-Turni ng st ocks ar ound ef f i ci ent l y yi el ds bet t er prof i t s
-If dai l y sal es account f or 2% sal es i t wi l l t ake 50 days t o sel l st ock and i n 365
days t he t ur naround of t he st ock i s 365/ 50 i . e 7. 3 t i mes



Stock Turnover / Inventory Rate Turnover

St ock Turnover / I nvent or y Rat e Tur nover
= Net Sal es

Average Ret ai l Val ue of Invent or y


57

-Indi cat es how of t en t he i nvent or y i s sol d and repl aced i n a gi ven peri od of
t i me
-When t hi s rat i o decl i nes t here i s a possi bi l i t y t hat t he i nvent or y i s excessi ve


Percentage Inventory Carryi ng Costs

Percent age I nvent or y Carr yi ng Cost s
= Invent or y Carr yi ng cost s x 100

Net Sal es

-Import ant measure as t here i s a ri se i n i nvent or y carr yi ng cost s due t o hi gher
i nt erest rat es
-Import ant t o r educe st ock obsol escence and prevent bl ockage of worki ng
capi t al
-Ret ai l ers use t hi s measure t o t rack t he percent age of t hei r net sal es represent ed
by t he f i xed cost s of mai nt ai ni ng i nvent or y.





Gross Margi n Return on Inventory

Gross Margi n Ret urn on Invent or y
= Gross Margi n

Average Val ue of Invent or y



58
-GMROI compares t he margi n on sal es wi t h t he ori gi nal cost val ue of
mer chandi se t o yi el d a ret urn on merchandi se i nvest ment
-Pref erabl y t he i nvent or y i s t o be val ued at cost rat her t han ret ai l val ue as i t
gi ves a bet t er i ndi cat i on of i nvest ment


Markdown Goods percentage

Markdown Goods percent age

= Net Sal es at Markdown

Tot al Net Sal es


-If t he rat i o i ncreases, t he ret ai l er may need t o t ake a cl oser l ook at
mer chandi si ng pract i ces, especi al l y pri ci ng
-Markdowns may be sympt oms of ot her probl ems l i ke or buyi ng, advert i si ng or
st ore l ayout .





Shri nkage to Net Sal es

Shri nkage t o Net Sal es
= Act ual Invent or y Book Invent or y x 100

Net Sal es



59
-Percent age of net sal es l ost due t o shri nkage
-Does not i ndi cat e cause of shri nkage but t he magni t ude of t he probl em.



Occupancy Cost Per Square Foot Sel li ng Space

Occupancy Cost Per Square Foot Sel l i ng Space
= Occupancy Cost

Square Feet of Sel l i ng Space

-Transl at es i nt o occupancy cost per uni t of sel l i ng space
-In ot her words t he amount t hat needs t o be generat ed by t hat uni t of space t o
j ust i f y occupancy cost s
-For mul t i -uni t ret ai l er i t i s a usef ul t ool t o compare t he perf ormance of uni t s at
di ff erent l ocat i ons.

Sales Per Square Foot

Sal es Per Square Foot
= Net Sal es

Square Feet of Sel l i ng Space


-Used t o compare di ff erent depart ment s or st ores usi ng a common st andard
-Import ant t ool t o deci de al t ernat e uses of t he space





60
Percentage of Selling Space

Percent age of Sel l i ng Space

= Sel l i ng Space x 100


Tot al Space
-Eff i ci ency of space ut i l i t y
-Rat i o vari es wi t h merchandi se and can be used t o compare di f f erent
depart ment s or st ores.


Net Sales Per Full Time Employee

Net Sal es Per Ful l Ti me Empl oyee
= Net Sal es

Tot al Ful l Ti me Empl oyees


-Average Sal es generat ed by each f ul l t i me empl oyee
-Can be used t o set perf ormance t arget s.







Labour Productivi ty


61

Labour Product i vi t y
= Tot al Labour Cost s x 100

Net Sal es

-Tracks l abour cost s i ncurred t o achi eve a gi ven sal es vol ume
-Can be appl i ed purel y t o sal es empl oyees


Gross Margi n Per Ful l Ti me Empl oyee

Gross Margi n Per Ful l Ti me Empl oyee
= Gross Margi n

Tot al Ful l Ti me Empl oyees

-Gross prof i t generat ed per empl oyee, used t o gauge perf ormance of sal es
empl oyees
-Not t he onl y measure but a st art i ng t ool .











62



THE STORE LAYOUT
The store design and layout tells a customer what the store is all about. It is a very strong tool in
the hands of the retailer for communicating and creating the image of the store in the minds of the
customers.

For a retailer store layout is:
The primary considerations that the retailer takes into account while choosing the look for his
store are his target audience, their needs, and buying habits and the merchandise that he is going
to sell. Creating a store image is like giving a personality to the store

For the consumer:
A store needs to be simple to navigate; it must appeal to his sensory perceptions and must create a
sense of belonging, a sense of relationship, a sense of security or assurance and a sense of
pleasure in the shopping experience

Finally it is the physical attribute of the store which affects the customers sensory perceptions,
and makes him relate to the store in a particular manner.
The store layout can be classified into
Grid
Race track
Free form.


63

Grid layout: It is most commonly used in a supermarkets and discount stores. It Is a
preferred layout in many retail stores that adopt self service.

Race track layout: This layout is popularly found in department stores. The display is in the form
of the race track or a loop with a major aisle running through the store. It links the various
departments or the sections inside the store.

Free form l ayout: In a f reef orm, merchandi se i s arranged i n an asymmet ri cal
manner. It al l ows f or f ree movement and i s of t en used i n ret ai l out l et s t o
encourage peopl e t o browse and shop.


MAX STORE LAYOUT
























Kids wear Department
Foot wear Department
Western wear
Department
Ethnic wear
and home
Department
Accessories
Department
Menswear
Department
Cash
Till
Baggage
Counter
700 ft
2

2350 ft
2

1502 ft
2

2315 ft
2

1805 ft
2

2234 ft
2

1 2 3
4
Pantry


64







Consumer Behavior and Marketing Strategy
The st udy of consumers hel ps f i r ms and organi zat i ons i mprove t hei r mar ket i ng
st rat egi es by under st andi ng i ssues such as how
The psychol ogy of how consumers t hi nk, f eel , reason, and sel ect bet ween
di ff erent al t ernat i ves (e. g. , brands, pr oduct s);
The t he psychol ogy of how t he consumer i s i nf l uenced by hi s or her
envi ronment (e. g. , cul t ure, f ami l y, si gns, medi a);
The behavi or of consumers whi l e shoppi ng or maki ng ot her mar ket i ng
deci si ons;
Li mi t at i ons i n consumer knowl edge or i nf or mat i on processi ng abi l i t i es
i nf l uence deci si ons and market i ng out come;
How consumer mot i vat i on and deci si on st rat egi es di f f er bet ween product s
t hat di f f er i n t hei r l evel of i mport ance or i nt er est t hat t hey ent ai l f or t he
consumer; and
How mar ket ers can adapt and i mpr ove t hei r market i ng campai gns and
mar ket i ng st rat egi es t o more ef f ect i vel y r each t he consumer .
Underst andi ng t hese i ssues hel ps us adapt our st rat egi es by t aki ng t he consumer
i nt o consi derat i on. For exampl e, by underst andi ng t hat a number of di fferent
messages compet e f or our pot ent i al cust omers at t ent i on, we l earn t hat t o be
eff ect i ve, advert i sement s must usual l y be repeat ed ext ensi vel y. We al so l earn
t hat consumers wi l l somet i mes be per suaded more by l ogi cal argument s, but at


65
ot her t i mes wi l l be persuaded mor e by emot i onal or symbol i c appeal s. By
underst andi ng t he consumer, we wi l l be abl e t o make a more i nf ormed deci si on
as t o whi ch st rat egy t o empl oy.



One "of f i ci al " defi ni t i on of consumer behavi or i s "The st udy of i ndi vi dual s,
groups, or or gani zat i ons and t he processes t hey use t o sel ect , secure, use, and
di spose of product s, servi ces, exper i ences, or i deas t o sat i sf y needs and t he
i mpact s t hat t hese processes have on t he consumer and soci et y. " Al t hough i t i s
not necessar y t o memori ze t hi s def i ni t i on, i t bri ngs up some usef ul poi nt s:
Behavi or occurs ei t her f or t he i ndi vi dual , or i n t he cont ext of a group
(e. g. , f ri ends i nf l uence what ki nds of cl ot hes a per son wear s) or an
organi zat i on (peopl e on t he j ob make deci si ons as t o whi ch product s t he
f i rm shoul d use).
Consumer behavi or i nvol ves t he use and di sposal of product s as wel l as
t he st udy of how t hey are purchased. Product use i s of t en of great i nt erest
t o t he market er, because t hi s may i nf l uence how a product i s best
posi t i oned or how we can encourage i ncreased consumpt i on. Si nce many
envi ronment al probl ems resul t f rom product di sposal (e. g. , mot or oi l
bei ng sent i nt o sewage syst ems t o save t he recycl i ng f ee, or gar bage
pi l i ng up at l andf i l l s) t hi s i s al so an area of i nt erest .
Consumer behavi or i nvol ves ser vi ces and i deas as wel l as t angi bl e
product s.
The i mpact of consumer behavi or on soci et y i s al so of rel evance. For
exampl e, aggressi ve market i ng of hi gh f at f oods, or aggressi ve market i ng


66
of easy credi t , may have seri ous repercussi ons f or t he nat i onal heal t h and
economy.


There are f our mai n appl i cat i ons of consumer behavi or:
The most obvi ous i s f or market i ng st rat egyi . e. , f or maki ng bet t er
mar ket i ng campai gns. For exampl e, by underst andi ng t hat consumers are
more recept i ve t o f ood advert i si ng when t hey are hungr y, we l ear n t o
schedul e snack advert i sement s l at e i n t he af t ernoon. By underst andi ng
t hat new product s are usual l y i ni t i al l y adopt ed by a f ew consumers and
onl y spread l at er, and t hen onl y gradual l y, t o t he r est of t he popul at i on,
we l earn t hat (1) compani es t hat i nt roduce new product s must be wel l
f i nanced so t hat t hey can st ay af l oat unt i l t hei r pr oduct s become a
commerci al success and (2) i t i s i mport ant t o pl ease i ni t i al cust omer s,
si nce t hey wi l l i n t urn i nf l uence many subsequent cust omers br and
choi ces.
A second appl i cat i on i s publ i c pol i cy. In t he 1980s, Accut ane, a near
mi r acl e cure f or acne, was i nt roduced. Unf ort unat el y, Accut ane resul t ed
i n severe bi rt h def ect s i f t aken by pr egnant women. Al t hough physi ci ans
were i nst ruct ed t o warn t hei r f emal e pat i ent s of t hi s, a number st i l l
became pregnant whi l e t aki ng t he drug. To get consumer s at t ent i on, t he
Federal Drug Admi ni st rat i on (FDA) t ook t he st ep of requi ri ng t hat ver y
graphi c pi ct ures of def ormed babi es be shown on t he medi ci ne cont ai ners.
Soci al market i ng i nvol ves get t i ng i deas across t o consumers rat her t han
sel l i ng somet hi ng. Mart y Fi shbei n, a market i ng pr of essor, went on


67
sabbat i cal t o work f or t he Cent ers f or Di sease Cont r ol t r yi ng t o reduce t he
i nci dence of t ransmi ssi on of di seases t hrough i l l egal drug use. The best
sol ut i on, obvi ousl y, woul d be i f we coul d get i l l egal drug users t o st op.
Thi s, however, was deemed t o be i nf easi bl e. It was al so det er mi ned t hat
t he pract i ce of shari ng needl es was t oo i ngrai ned i n t he drug cul t ure t o be
st opped. As a resul t , usi ng knowl edge of consumer at t i t udes, Dr. Fi shbei n
creat ed a campai gn t hat encouraged t he cl eani ng of needl es i n bl each
bef ore shari ng t hem, a goal t hat was bel i eved t o be mor e real i st i c.
As a f i nal benef i t, st udyi ng consumer behavi or shoul d make us bet t er
consumers. Common sense suggest s, f or exampl e, t hat i f you buy a 64
l i qui d ounce bot t l e of l aundr y det er gent , you shoul d pay l ess per ounce
t han i f you bought t wo 32 ounce bot t l es. In pract i ce, however, you of t en
pay a si ze premi um by buyi ng t he l arger quant i t y. In ot her words, i n t hi s
case, knowi ng t hi s f act wi l l sensi t i ze you t o t he need t o check t he uni t
cost l abel s t o det ermi ne i f you are real l y get t i ng a bargai n.
There are several uni t s i n t he market t hat can be anal yzed. Our mai n t hr ust i n
t hi s course i s t he consumer. However, we wi l l al so need t o anal yze our own
f i rms st rengt hs and weaknesses and t hose of compet i ng f i rms. Suppose, f or
exampl e, t hat we make a pr oduct ai med at ol der consumer s, a gr owi ng segment .
A compet i ng f i rm t hat t arget s babi es, a shri nki ng market , i s l i kel y t o consi der
reposi t i oni ng t oward our market . To assess a compet i ng f i rms pot ent i al t hreat ,
we need t o exami ne i t s asset s ( e. g. , t echnol ogy, pat ent s, market knowl edge,
awareness of i t s br ands) agai nst pressures i t f aces f rom t he market . Fi nal l y, we
need t o assess condi t i ons (t he market i ng envi ronment ). For exampl e, al t hough
we may have devel oped a product t hat of f ers great appeal f or consumers, a
recessi on may cut demand dramat i cal l y.



68
Segmentation
Segment ation is import ant i n consumer anal ysis because understandi ng the
consumer wi l l allow us segment the market more meaningfull y.
Segment ation basi cal l y i nvolves dividing consumers into groups such that
members of a group (1) are as si mi l ar as possi bl e to members of t hat same
group but (2) di ffer as much as possibl e from members other segment s.
This enabl es us then to "t reat " each segment di fferent l ye. g. , by:
Providing different products (e. g. , some consumers li ke cola t ast e,
whil e others prefer l i me)

Offering di fferent pri ces (some consumers wi l l t ake the cheapest
product avail abl e, whi le ot hers will pay for desi red features)
Di st ributi ng t he product s where they are l ikel y t o be bought by t he
t argeted segment .
Culture
Culture is part of t he ext ernal influences that i mpact t he consumer. That is,
culture represents i nfluences that are i mposed on t he consumer by other
i ndivi dual s.
The definiti on of culture i s "That compl ex whole whi ch includes
knowledge, bel i ef, art , morals, custom, and any ot her capabi lit i es and
habit s acquired by man person as a member of soci ety. "


69
Culture has several i mport ant charact eristi cs:
(1) Culture i s comprehensi ve. (2) Cul ture is l earned rat her than being
somet hi ng we are born wit h. (3) Cult ure is mani fest ed wi t hin boundari es of
accept abl e behavi or. (4) Conscious awareness of cult ural st andards is
l i mi t ed. (5) Cultures fall somewhere on a conti nuum bet ween st atic and
dynami c dependi ng on how quickl y t hey accept change.
Di fferent perspect ives exist i n di fferent cult ures on several issues; e.g. :
Monochroni c cultures tend to value precise scheduling and doing one
t hi ng at a ti me; i n pol ychroni c cult ures, in cont rast , prompt ness is
valued l ess, and mul t ipl e t asks may be performed si mul t aneousl y.
(See t ext for more det ail ).
Space i s perceived di fferent l y. Ameri cans wi ll feel crowded where
peopl e from more densel y populat ed count ri es wil l be comfort abl e.
Symbol s di ffer in meani ng. For exampl e, whi l e whit e symbols puri t y
i n the U. S. , i t i s a symbol of deat h i n China. Colors t hat are
consi dered mascul ine and femi ni ne al so di ffer by cult ure.
In terms of etiquet te, some cul tures have more ri gid proce dures t han
others. In some count ries, for exampl e, t here are expl icit st andards as
t o how a gi ft should be presented. In some cul tures, gi ft s should be
present ed in privat e to avoi d embarrassing the recipi ent ; i n others,
t he gi ft shoul d be made publi cl y t o ensure t hat no percept ion of secret
bribery could be made.
The Uni t ed St at es has undergone some changes i n i ts predomi nant cult ure
over t he l ast several decades. Agai n, however, i t should be kept in mi nd


70
t hat there are great vari at ions wit hi n the cult ure . For exampl e, on t he
average, Ameri cans have become l ess mat eri al isti c and have sought more
l eisure; on the ot her hand, t he percent age of peopl e working extremel y
l ong hours has also i ncreased. The text discusses changes in values i n more
detail .
Demographics and Social Stratification
Demographi cs are cl earl y t i ed to subcul ture and segment ation. Here,
however, we shi ft our focus from anal yzi ng speci fic subcult ures to tryi ng
t o underst and t he i mpl i cat ions for an enti re popul at ion of i ts makeup.
Several i ssues are useful in the struct ure of a popul ation. For exampl e, in
some rapidl y growi ng count ri es, a l arge percent age of t he popul ation is
concent rat ed among younger generati ons. In count ri es such as Korea,
China, and Tai wan, this has hel ped sti mul at e economi c growth, whil e in
cert ain poorer count ri es, it puts pressures on soci et y t o accommodat e an
i ncreasing number of peopl e on a fi xed amount of l and. Other count ri es
such as Japan and Germany, i n cont rast , experience problems wi th a
"grayi ng" soci et y, where f ewer non-reti red peopl e are around to support an
i ncreasing number of agi ng seniors. Because Germany act uall y hovers
around negat ive popul ati on growth, the German government has i ssued
l arge fi nanci al i ncent ives, in t he forms of subsi di es, for women who ha ve
children. In the Unit ed Stat es, popul ation growth occurs bot h through
bi rths and i mmi grat ion. Since the number of bi rths i s not growi ng,
probl ems occur for fi rms t hat are dependent on popul ation growth (e. g.,
Gerber, a manufact urer of baby food).


71
Family Decision Making
The Fami l y Li fe Cycl e. Individuals and fami l i es t end to go through a "life
cycl e. " The si mpl e l i fe cycl e goes from

chi ld/ t eenager ---> young si ngl e ---> young couple
*
---> full nest

---> empt y nest ---> wi dow(er).
*
For purposes of t hi s di scussion, a "coupl e" may ei ther be married or
merel y i nvol ve living t oget her. The breakup of a non-mari t al relati onship
i nvolving cohabi tat ion is si mi l arl y consi dered equi val ent to a divorce.
In real l i fe, t hi s si tuat ion i s, of course, a bit more compl i cat ed. For
exampl e, many coupl es undergo divorce. Then we have the scenari o:
ful l nest ---> singl e parent
Family Decision Making: Individual members of fami l i es oft en serve
di fferent rol es in deci sions t hat ul ti mat el y draw on shared fami l y
resources. Some i ndivi dual s are information gat herers/ holders , who seek
out informat i on about products of rel evance. The decision maker(s) have
t he power to det ermi ne issues such as:
o whether t o buy;
o whi ch product t o buy (pi ck-up or passenger car?) ;
o whi ch brand to buy;


72
o where to buy i t ; and
o when t o buy.


Group Influences
Humans are inherent l y soci al animal s, and individuals greatl y i nfl uence
each other.
A useful framework of anal ysi s of group infl uence on the indivi dual is the
so cal led ref erence groupthe t erm comes about because an indivi dual
uses a rel evant group as a standard of reference agai nst whi ch onesel f is
compared. Reference groups come i n several di fferent forms. The
aspi rational ref erence group refers to those others against whom one
woul d li ke t o compare onesel f. For exampl e, many fi rms use at hl et es as
spokespeopl e, and t hese represent what many people would i deall y l ike to
be. Associati ve reference groups i nclude people who more real isti cal l y
represent the indi vi duals current equals or near-equalse. g. , coworkers,
neighbors, or members of churches, cl ubs, and organizations. Finally, t he
dissociati ve reference group incl udes peopl e t hat the individual would not
l ike t o be l ike. For exampl e, the st ore li teral l y named The Gap came about
because many younger people want ed to act ivel y dissoci at e from parents
and ot her ol der and "uncool " peopl e. The Qual it y Paperback Book
speci fi call y suggests in it s advertising t hat its members are "a breed apart "
from convent ional readers of popular books.


73

Diffusion of Innovation
The di ffusion of i nnovati on refers to the t endency of new products,
pract ices, or ideas to spread among peopl e. Usual l y, when new product s or
i deas come about , t hey are onl y adopted by a smal l group of people
i ni ti al l y; l at er, many i nnovations spread to other peopl e. The bel l shaped
curve frequentl y i llust rat es the rat e of adoption of a new product .
Cumul ati ve adopti ons are refl ect ed by t he S-shaped curve. The sat urat ion
point i s the maxi mum proport ion of consumers l ikely t o adopt a product . In
t he case of refrigerat ors in the U. S. , t he saturation l evel is nearly one
hundred percent of househol ds; it wel l below that for vi deo games t hat ,
even when spread out t o a l arge part of the popul at ion, wil l be of interest
t o far from everyone.

Some cul tures t end to adopt new product s more qui ckl y t han ot hers, based
on several fact ors:
o Modernity: The ext ent t o whi ch the cult ure i s recept ive to new
t hi ngs. In some count ri es, such as Brit ai n and Saudi Arabi a,
t radit ion is greatly val uedthus, new products oft en dont fare
t oo well . The Unit ed St at es, i n contrast , t ends to value progress.
o Homophil y: The more si mi l ar to each other that members of a
culture are, the more l i kel y an i nnovat ion is t o spreadpeople
are more l ikel y t o i mi t at e si mi l ar than di fferent model s. The t wo
most rapidl y adopti ng count ri es in t he World are t he U. S. and


74
Japan. Whil e the U. S. i nt erest ingl y scores very l ow, Japan
scores high.
o Physi cal distance: The great er t he di st ance bet ween peopl e, t he
l ess l i kel y i nnovat i on i s t o spread.
o Opi ni on l eadershi p: The more opi ni on l eaders ar e val ued and
respect ed, t he mor e l i kel y an i nnovat i on i s t o spread. The st yl e of
opi ni on l eaders moderat es t hi s i nf l uence, however. In l ess
i nnovat i ve count ri es, opi ni on l eaders t end t o be more conservat i ve,
i . e. , t o ref l ect t he l ocal nor ms of resi st ance.

Perception
Background. Our percept i on i s an approxi mat i on of real i t y. Our brai n
at t empt s t o make sense out of t he st i mul i t o whi ch we are exposed. Thi s works
wel l , f or exampl e, when we "see" a f ri end t hree hundred f eet away at hi s or her
correct hei ght ; however, our percept i on i s somet i mes "of f "f or exampl e,
cert ai n shapes of i ce cream cont ai ners l ook l i ke t hey cont ai n more t han
rect angul ar ones wi t h t he same vol ume.
Factors i n percpetion. Several sequent i al f act ors i nf l uence our percept i on.
Exposure i nvol ves t he ext ent t o whi ch we encount er a st i mul us. For exampl e,
we are exposed t o numerous commer ci al messages whi l e dr i vi ng on t he
f reeway: bi l l boar ds, radi o advert i sement s, bumper -st i ckers on cars, and si gns
and banner s pl aced at shoppi ng mal l s t hat we pass. Most of t hi s exposure i s
randomwe dont pl an t o seek i t out . However, i f we are shoppi ng f or a car,
we may del i berat el y seek out advert i sement s and "t une i n" when deal er
advert i sement s come on t he radi o.


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Learning and Memory
Background. Learni ng i nvol ves "a change i n t he cont ent or organi zat i on of
l ong t er m memor y and/ or behavi or. " The f i rst part of t he def i ni t i on f ocuses on
what we know (and can t hus put t o use) whi l e t he second f ocuses on concret e
behavi or. For exampl e, many peopl e wi l l avoi d f oods t hat t hey consumed
short l y bef ore becomi ng i l l . Lear ni ng i s not al l knowl edge based. For exampl e,
we may exper i ence t he sal es peopl e i n one st ore bei ng ni cer t o us t han t hose i n
t he ot her. We t hus may devel op a pr ef erence f or t he one st ore over t he o t her;
however, i f pressed, we may not be abl e t o gi ve a consci ous expl anat i on as t o
t he reason f or our pref erence.
Motivation, Personality, and Emotion
Perspectives on Consumer Behavior and Motivation. We consi dered
several perspect i ves on behavi or as a way t o underst and what mot i vat es t he
consumer. Each of t hese perspect i ves suggest s di f f erent t hi ngs as t o what t he
mar ket er shoul d do and what can (and cannot ) be cont rol l ed. Not e t hat each
perspect i ve t ends t o cont ai n a "grai n" of t rut h and t hat one shoul d not be t oo
dogmat i c i n emphasi zi ng one over t he ot hers.

Maslows Hierarchy of Needs. The l at e Abraham Masl ow suggest ed
t he i nt ui t i vel y appeal i ng not i on t hat humans must sat i sf y t he most basi c
obj ect i ves bef ore t hey can move ont o "hi gher l evel " ones. Thus, an i ndi vi dual
must sat i sf y physi ol ogi cal needs (such as f ood and l i qui d) bef ore he or she wi l l


76
be abl e t o expend energy on l ess f undament al obj ect i ves such as saf et y. Onl y
when basi c obj ect i ves have been met wi l l a person move on t o seek such
obj ect i ves as l ove and bel ongi ng, and onl y a smal l mi nori t y of peopl e make i t
as f ar as seeki ng sel f -act ual i zat i on.
Masl ows Hi erarchy i s usef ul i n underst andi ng di f f erent needs of consumers
across t he Worl d. However, one must be caref ul not t o t ake i t t oo l i t eral l y,
si nce peopl e may occasi onal l y "swi ng" bet ween needs. For exampl e, a homel ess
person who cur rent l y does not have shel t er may seek t hat out even t hough he or
she i s hungr y.
Propert i es of mot i vat i on. Mot i vat i on i s descri bed t hrough several propert i es:
Moti vation is composed of energy and direction. A person may or may
not have enough mot i vat i on t o engage i n a gi ven act i vi t y. For exampl e, a
person may be mot i vat ed enough t o go and shop f or f ood, but not enough
t o engage i n a comprehensi ve exerci se program.
Moti ves may be overt, hi dden, and multi pl e. Some mot i vat i ons are
publ i cl y expr essed (e. g. , t he desi re t o buy an energy eff i ci ent house),
whi l e ot her s (e. g. , t he desi re t o l ook weal t hy by buyi ng a f ancy car) are
not . Indi vi dual s may al so hol d mul t i pl e mot i vat i ons (e. g. , buy a car and
save money f or ret i rement ) whi ch may conf l i ct .
Many motivati ons are dri ven by the desire for tension reduction
(e. g. , el i mi nat e t hi rst or hunger).
Moti vations can be dri ven by both i nternal and external factors.
That i s, a person may want a pai nt i ng ei t her because he or she l i kes i t
(i nt ernal mot i vat i on) or because t hi s wi l l gi ve her st at us among t he
art i st i c el i t e (ext er nal ).


77
Moti vations may have either a posi ti ve or negative valence--people
may ei t her be mot i vat ed t o achi eve somet hi ng (e. g. , get a promot i on at
work) or avoi d somet hi ng ( e. g. , bei ng hospi t al i zed wi t hout havi ng
adequat e i nsurance).
Consumers are moti vated to achi eve goal s. Achi evi ng t hese goal s may
requi re sust ai ned act i vi t y over t i me ( e. g. , exerci si ng ever y day f or mont hs
or years) as opposed t o j ust t aki ng some act i on once.
Consumers mai ntai n a balance between the desires for stabi lity and
vari ety. Most consumers want some vari et y (e. g. , t hey do not want t o eat
t he same meal ever y day) , but al so want a cert ai n st abi l i t y (t hey do not
want t o t r y an ent i rel y new f ood ever y day).
Moti vation refl ects i ndi vidual differences. Di ff erent consumers ar e
mot i vat ed t o achi eve di f f erent t hi ngs, and i t may be di f f i cul t t o i nf er
mot i vat i ons f rom l ooki ng at act ual behavi or wi t hout underst andi ng t hese
di ff erences i n desi red out comes.

Self-Concept, Situational Influences, and Lifestyle
The self-concept. The consumer f aces several possi bl e sel ves. The act ual
sel f ref l ect s how t he i ndi vi dual act ual l y i s, al t hough t he consumer may not be
aware of t hat real i t y (e. g. , many anorexi c consumers who are dange rousl y t hi n
bel i eve t hat t hey are i n f act f at ). In cont rast , t he i deal sel f ref l ect s a sel f that a
person woul d l i ke t o have, but does not i n f act have. For exampl e, a couch
pot at o may want t o be a Worl d f amous at hl et e, but may have no act ual at hl et i c
abi l i t y. The pri vat e sel f i s one t hat i s not i nt ent i onal l y exposed t o ot hers. For
exampl e, a pol i ce off i cer may l i ke and l i st en t o rap musi c i n pri vat e, but proj ect
a publ i c sel f -i mage of a count r y musi c ent husi ast , pl ayi ng count r y songs at


78
work where pol i ce off i cers are port r ayed as heroes. The key here i s t o keep i n
mi nd whi ch ki nd of sel f we are t r yi ng t o reach i n promot i onal messages. If we
appeal t o t he hi dden sel f , f or exampl e, we must be caref ul t o make our appeal s
subt l e and hi nt , i f appropri at e, on how t he i ndi vi dual s conf i dent i al i t y and
pri vacy can be enhanced.
Indi vi dual s wi l l oft en seek t o augment and enhance t hei r sel f concept s, and i t
may be possi bl e t o market product s t hat hel p achi eve t hi s goal . For exampl e, a
successf ul at t orney may want t o wear (i n pol i t i cal l y correct t er ms) cowchi l d
boot s and a cowchi l d hat t o br i ng home an i mage as a ranch ent husi ast .
Lifestyles. Sel f -concept of t en t ransl at es i nt o a persons l i f est yl e, or t he way
t hat he or she l i ves hi s or her l i f e. For exampl e, a person may be ver y
mat eri al i st i c, pref erri ng t o wear f l ashy cl ot hes and dri ve expensi ve car s, or
pref er i nst ead a si mpl er l i f e wi t h f ewer vi si bl e st at us symbol s. At t empt s have
been made t o cl assi f y consumers i nt o vari ous segment s based on t hei r
l i f est yl es. The Val ues and Li f est yl e ( VALS) Proj ect , devel oped by t he St anf ord
Research Inst i t ut e (SRI), at t empt s t o cl assi f y peopl e based on a combi nat i on of
val ues and resources. Thus, f or exampl e, bot h "Achi evers" and "St ri vers" want
publ i c recogni t i on, but onl y t he Achi eve rs have t he resources t o bri ng t hi s
about . A gl obal anal ogue i s t he Gl obal Scan.

Si tuational i nfluences. Speci f i c ci rcumst ances of t en i nf l uence consumer
behavi or. For exampl e, consumers i n a rush are l i kel y t o t ake t he most
conveni ent product avai l abl e. Consumers whose at t ent i on i s demanded
el sewhere are l i kel y t o di sregard commer ci al messages. Consumer s shoppi ng f or
a speci al occasi on (e. g. , a weddi ng) may buy di f f erent product s.


79


Consumer Decision Making
Defi nitions. Consumer decision making comes about as an at tempt to solve
consumer probl ems. A probl em refers to "a di screpancy bet ween a desired
st at e and an ideal st at e which is suffi ci ent t o arouse and act ivat e a deci sion
process. " Thus, probl ems can be major (e.g. , a consumer has been fi red and
i s wi thout a job) or mi nor (e. g. , the consumer l acks an eraser necessary t o
t ake an exam t he next day), and the broader and more ambi guous a probl em
i s, the more pot enti al sol uti ons are generall y avail abl e (see cl ass sli des f or
exampl es).
Consumer Problem Recogni tion. Consumers oft en not e problems by
compari ng t hei r current , or act ual , si tuat ion, expli citl y or i mpl i ci tl y, t o
some desi red si tuation. In terms of t he "bi g pi ct ure, " what is compared
may be t he totali t y of ones l i fest yl e. Once a discrepancy i s found, a
determi nati on is found as to whether this is l arge enough to warrant act ion,
i n whi ch case a search for sol uti ons i s ini ti at ed.
Probl ems come i n several di fferent t ypes. A probl em may be an acti ve one
(e. g. , you have a headache and would l ike as qui ck a solut ion as possi bl e)
or inacti ve-- you are not aware that your si tuati on i s a problem (e. g. , a
consumer i s not aware that he or she coul d have more energy wi th a new
vit ami n). Probl ems may be acknowl edged (e. g. , a consumer i s aware that
his or her car does not accel erat e wel l enough or unacknowl edged (e. g. , a
consumer wi l l not acknowl edge that he or she consumes too much al cohol ).


80
Fi nall y, needs can be rel at ivel y specifi c (generic), as i n the need for
enjoyment (which can be sat isfi ed many di fferent ways), or speci fi c, as in
t he need for professi onal at ti re to wear at a new job.
Several di fferent met hods can be used to det ect consumer probl ems, whi ch
are di scussed on pp. 508-509 i n t he t ext .
Creating probl ems for consumers i s a way t o increase sal es, al bei t a
quest ionabl y et hical one. One way t o creat e new probl ems, and resul tant
needs, i s t o create a new ideal st ate. Thi s i s oft en done quit e arbi t rari l y i n
t he fashion industry, as ski rt l engt hs and the appropriat e numbe r of buttons
on a suit oft en change arbi t raril y up and down. It may al so be possi bl e to
create di ssat isfacti on wit h current st ates --e. g. , a firm may publi ci ze current
cri me st at isti cs t o increase the sales of handguns and al arms. Many
vocational t rai ning schools adverti se that better careers than t he
consumers current one are avail abl e upon graduati on (a promi se on whi ch,
by t he way, t hey may not deli ver in the end).
There are t wo mai n approaches to search. Int ernal searches are based on
what consumers al r eady know. Thus, it may be i mport ant for cert ai n fi rms
t o advert ise to consumers before t hey actuall y need the product. For
exampl e, one bail bond company adverti sed it s existence to peopl e "in case
you ever find yoursel f in jai l . " As another exampl e, i f you deci de to go out
for fast food, you may not consul t any di rectories, but inst ead search your
memory for fast food rest aurant s conveni entl y l ocat ed. A probl em i s t hat
some excell ent ones whi ch are not remembered, or have never been heard
of, are not considered. External searches get peopl e t o eit her speak to
others (gett ing informat i on by word of mout h) or use ot her sources (such


81
as adverti sements now sought out or yel l ow page l istings). Because t he
yel l ow pages are often the fi rst pl ace t o whi ch people t urn, t his medium i s
able to charge very l arge advert ising rates.
Consumers oft en do not consider al l al ternati ves. Some are not known (t he
"unawareness" set ), some were once known but are not readi l y accessi ble
i n memory (t he "inert " set ), others are rul ed out as unsat isfactory (the
"inept " set --e.g. , Gl ad bags att empt s t o get "bargain bags" i nto that set ),
and those t hat are considered represent t he "evoked" set , from whi ch one
al ternati ve is li kel y t o be purchased.
The amount of effort a consumer puts i nt o searchi ng depends on a number
of fact ors such as t he market (how many compet itors are there, and how
great are di fferences bet ween brands expected t o be?), product
charact eristi cs (how i mport ant is this product? How compl ex i s t he
product? How obvi ous ar e i ndi cat ions of quali t y?), consumer
charact eristi cs (how int erest ed is a consumer, general l y, i n anal yzing
product charact eri st ics and maki ng t he best possibl e deal?), and situati onal
charact eristi cs (as previousl y di scussed).
Two int erest ing issues in decisions are vari ety seeki ng (where consumers
seek to t ry new brands not because t hese brands are expected to be "bet t er"
i n any way, but rat her because the consumer want s a "change of pace," and
"i mpulse" purchases. Impulse purchases are, generall y speaking,
unpl anned, but represent a somewhat fuzzy group. For exampl e, a shopper
may pl an to buy veget abl es but onl y decide i n the store to actual l y buy
broccoli and corn. Al t ernati vel y, a person may buy an i tem which is


82
current l y on sal e, or one that he or she remembers that i s needed only once
i nside t he st ore (remember t he Wal -Mart arti cle).
Several di fferent st rat egi es for influencing consumer decision making are
discussed in the text on pp. 537-541.
Consumer Outlet Selection
Retail evolution and consumer choice. For many product s, consumer s
f requent l y have numer ous choi ces as t o where t hey are goi ng t o act ual l y obt ai n
t he product . Al t hough we are used t o t hi nki ng of buyi ng aut omobi l es onl y f rom
deal ershi ps, f or exampl e, i t i s t oday possi bl e t o buy t hem t hr ough brokers or
f l eet sal es organi zat i ons t hat may bot h (1) of f er a l ower pri ce and/ or (2)
provi de t he hel p of a neut ral t hi rd part y whi ch does not have a vest ed i nt erest
i n t he sal es of one make over t he ot her.
In general , t he evol ut i on of di versi t y i n t he ret ai l scene has provi ded consumer s
wi t h more choi ce. In t he ol d days, most consumers had access onl y t o "general "
st ores f or most product s. Gradual l y, i n urban envi r onment s, speci al t y and
di scount st ores evol ved. Today, a consumer may gener al l y choose t o buy most
product s ei t her at a rel at i vel y hi gh pri ce, f requent l y wi t h a si gni f i cant amount
of servi ce, i n a speci al t y st ore, or wi t h l ower servi ce i n a di scount st ore. A
speci al case of t he di scount st ore i s t he cat egory ki l l er--a st ore t hat t ends t o
speci al i ze i n some l i mi t ed area ( e. g. , el ect roni cs), l acki ng t he breadt h of a
t radi t i onal di scount st ore of t en undercut t i ng t he t radi t i onal di scount st or e on
pri ce (whi ch t hey are abl e t o do because of t he bargai ni ng power t hat r esul t s
f rom hi gh buyi ng vol umes of a narrow assor t ment of merchandi se f rom t he
same manuf act urer ).


83
"At home" shopping and electronic commerce. Duri ng t he l ast
several decades, t he i nci dence of "at home" shoppi ng has i ncreased. The gr owt h
of cat al og sal es can be t raced t o advances i n comput er t echnol ogy and
subsequent l i st avai l abi l i t y (as we di scussed i n t he sect i on of di rect mar ket i ng
segment at i on met hods). A more recent devel opment i s I nt ernet based market i ng.
Al t hough sal es are modest i n t hi s domai n at t he moment , i t i s t oo earl y t o j udge
t he t ot al pot ent i al of t hi s medi um. Al t hough many of t he concerns t hat
consumers hol d about comput er cri me t end t o be exaggerat ed and/ or l argel y
unwarrant ed, publ i c f ears are a maj or hol dback. Anot her pr obl em i s t he
demographi cs of comput er and Int er net use--t he maj or i t y of U. S. consumer s,
and cert ai nl y t he great maj ori t y of resi dent s of even hi ghl y i ndust ri al i zed
count ri es, are not regul ar Int ernet users. Cert ai n product s speci fi cal l y ai med at
heavy Int ernet users (e. g. , records, sof t ware) and pr oduct s/ servi ces t hat requi re
a hi gh l evel of cust omi zat i on (e. g. , ai rl i ne t i cket s) may f i nd good opport uni t i es.
An i nt erest i ng pr obl em wi t h Int ernet commerce, whi ch may wel l have spi l l over
eff ect s out si de t he real m of t he Net , i s t he rel at i ve ease wi t h whi ch co nsumer s
may compare pr i ces of di f f erent ret ai l ers, resul t i ng i n i nt ense pri ce
compet i t i on. Not e t hat recent l egi sl at i on has l i mi t ed t axat i on of Int ernet sal es
i n t he U. S. , i n a sense at t empt i ng t o "j ump st art " t hi s i nnovat i on.
Store posi ti oni ng. Posi t i oni ng of ret ai l st ores i s essent i al . In general , st ores
whi ch excel on a si gni f i cant di mensi on seem t o perf orm bet t er --f or exampl e,
Nordst roms excel s t hrough i t s i nt ense cust omer servi ce, whi l e Wal -Mart excel s
t hrough i t s ef f i ci ency and l ow pri ces. (In a course on market i ng st rat egy or
ret ai l i ng, you wi l l probabl y di scuss t he i ssue of t he i mport ance of bal anced
market s--i t i s heal t hi er i f diff erent f i rms have di ff erent st rat egi es, so t hat
ever yone wi l l not be compet i ng i nt ensel y on t he same vari abl es ). St ores whi ch
f al l somewhere i n bet ween--e. g. , Sears--t end t o do l ess wel l si nce t hey get


84
"st uck i n t he mi ddl e" and have t o compet e agai nst bot h. Obvi ousl y, t here i s a
l i mi t t o how st rongl y you can move t oward one ext reme. For exampl e, i f
Nordst rom were t o doubl e i t s pri ces and even doubl e i t s servi ce, t hat posi t i on
woul d be unt enabl e, and cert ai n ext r eme di scount st ores t hat of f er l ower pri ces
t han Wal - Mart t end not t o be successf ul because t hey are ul t i mat el y not
sat i sf act or y t o consumers.
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Does consumers' sel ect i on of ret ai l out l et s depend on t he brands avai l abl e or i s
i t t he ret ai l out l et f i rst and t he brand next ? Market ers need t o do i n -dept h
research on t he vari ous aspect s t hat l i nk brand and ret ai l st rat egy.

DECISION-MAKI NG wi t h regard t o ret ai l out l et sel ect i on i s ver y si mi l ar t o
consumer deci si on- maki ng on brands where t he consumer goes t hrough a
process st art i ng f rom i dent i f yi ng needs t o post -purchase i ssues. There are a f ew
i nt erest i ng and i mport ant di mensi ons associ at ed wi t h consumer behavi our and
ret ai l out l et sel ect i on.
When Ti t an and Ti mex wat ches were ret ai l ed t hrough excl usi ve shops,


85
consumers want i ng l ower -end wat ches probabl y f el t t hat a t ypi c al Ti t an
showroom was t oo el i t i st , whi ch coul d have had a negat i ve i mpact .
cat egori es? Whi l e buyi ng a TV or a washi ng machi ne, woul d consumers vi si t an
excl usi ve showroom of BPL, Oni da or Sony, or woul d t hey vi si t a mul t i -brand
out l et ?


of consumers choosi ng out l et s? What i s t he sequence i n whi ch consumer s are
l i kel y t o go about t hei r deci si ons? Wi l l t hey sel ect t he brand or t he cat egor y
f i rst bef ore choosi ng t he out l et ?
di ff erent f rom a nei ghbourhood grocer y shop i n t he mi nds of consumers? What
ki nd of percept i on are consumer s l i kel y t o have wi t h r egard t o shoppi ng f rom
an onl i ne out l et such as Fabmart vi s --vi s a bri ck- and- mort ar out l et l i ke
Fount ai nhead or Landmark?
ret ai l ers have been carr yi ng manuf act urers' brands. But i n recent t i mes (at l east
t o a si gni f i cant ext ent i n t he f oods cat egor y), super mar ket s such as FoodWorl d
have st ar t ed car r yi ng ret ai l or st ore brands. Ni l gi ri ' s i s anot her exampl e i n t he
Sout h whi ch car ri es i t s own brands of chocol at es, bi s cui t s and ot her
commodi t i es.




86
Market ers need i n-dept h knowl edge about t he vari ous di mensi ons whi ch l i nk
ret ai l i ng and consumer behavi our. There i s research r equi red t o handl e ret ai l
deci si ons i n a compet i t i ve cont ext . McDonal d' s f ound t hat a maj or chunk of i t s
consumers deci de t o eat a f ew mi nut es bef ore t hey make t he purchase deci si ons
and hence i t i s bui l di ng smal l out l et s i n l arge super market s such as Wal - Mart
and Home Depot . I t i s provi di ng pl ay areas t o ensure a number of f ami l i es vi si t
i t s out l et s wi t h chi l dren. A f ew compani es al so operat e t hrough ki osks i n
ai rport s, mal l s and hi gh-t raf f i c areas. Sungl ass Hut i s a brand whi ch oper at es
ki osks at vari ous pl aces whi ch di spl ays about 1, 000 di f ferent model s al ong wi t h
t hei r pri ces. Consumers coul d pl ace an order t hrough t hese ki osks and t he
product i s home-del i vered.

Retail outlet selection and brand selection

There are t hree f undament al pat t erns, whi ch a consumer can f ol l ow and t hey
coul d be:


87
(I) Brand fi rst , ret ai l out l et second
(i i ) Ret ai l out l et fi rst , brand second
(i i i ) Brand and ret ai l out l et si mul t aneousl y.
A consumer want i ng t o buy a car may col l ect i nf ormat i on on brands and
purchase i t f rom a ret ai l out l et based on hi s percept i on of pri ce off ered or af t er -
sal es servi ce provi ded by t he out l et ( t ypi cal l y, search f or i nf ormat i on on brands
i s f ol l owed by ret ai l out l et sel ect i on i n durabl es). In cer t ai n product cat egori es,
especi al l y where `cat egor y ki l l ers' exi st , consumer s may t hi nk of t he ret ai l
out l et i ni t i al l y and t hen t he brands (t el evi si on, ref ri ger at or and audi o product s
ret ai l ed t hrough out l et s l i ke Vi vek and Co. i n t he Sout h, coul d be an exampl e).

One more di mensi on may be t o compare brands i n t he evoked set at ret ai l
out l et s whi ch al so exi st i n an evoked set of t hei r own. Thi s i s hi ghl y possi bl e,
especi al l y i n t he Indi an cont ext where deal ers devel op a soci al rel at i onshi p
wi t h consumers, especi al l y i n semi - urban and rural areas. Pri mar y research
coul d be used t o di scover t he speci f i c sequence i nvol ved i n a si t uat i on of t hi s
ki nd. A `brand f i rst ' di mensi on may need f eat ure -based advert i si ng and a `ret ai l
out l et f i rst ' di mensi on may requi re a set of poi nt -of -purchase (POP) mat eri al s
and speci al t rai ni ng t o sal es personnel t o recogni se t he needs of consumer s.
Furt her, i f i t i s known t hat a number of consumers may be ori ent ed t o vi si t t hei r
f avouri t e ret ai l er (bef ore obt ai ni ng i nf ormat i on on brands) i n a geographi cal
area, t here woul d have t o be more emphasi s on regi onal / l ocal adver t i si ng whi ch
hi ghl i ght s t he ret ai l shop rat her t han r egul ar brand-based nat i onal advert i si ng.
Strategi es and sequences


88
Ret ai l out l et f i rst and brand second: When a number of consumers f ol l ow t hi s
sequence of deci si on- maki ng, di spl ay of poi nt -of -purchase mat eri al and
bui l di ng t he i mage of t he out l et becomes i mport ant . The manuf act urer of t he
brand may have t o ensure t hat t he brand (and t he vari ant s demanded) wi l l be
avai l abl e at t he key out l et s i n a l ocal i t y. Poi nt -of -purchase mat eri al s whi ch are
t o be used at t he r et ai l out l et may requi re pri mar y research - shoul d vi sual s be
used, shoul d product f eat ures be used, shoul d t he POP mat eri al be i n t he
regi onal l anguage. There may al so be a need t o moni t or compet i t i on f rom ot her
ret ai l out l et s t o ensure t hat consumers are kept sat i sf i ed i n t er ms of servi ce,
pri ce, promot i onal deal s and ambi ence. Thi s i s especi al l y appl i cabl e t o dur abl es
ret ai l i ng i n Indi a (i n ci t i es). Ret ai l ers at t empt t o i ncrease consumer t raf fi c by
provi di ng a number of `add-ons' .
Brand f i rst and out l et second: The brand was probabl y t hought of by t he
consumers because (i ) t he consumers may not have devel oped a rel at i onshi p
wi t h any ret ai l er whi ch i s st r ong enough t o get i nt o t he `evoked ret ai l set ' or
(i i ) t he brand has got i nt o t he evoked set because of advert i si ng or posi t i ve
word of mout h. Local advert i si ng wi t h t he ment i on of brand names whi ch have
al ready got i nt o t he evoked set woul d enabl e consumers t o be `pul l ed' t o t he
out l et .
Pri mar y research may be requi red t o i dent i f y t he brands i n t he evoked set . Thi s
f eedback may have t o be pr ovi ded by t he manuf act urers of a brand t o ret ai l ers
i n vari ous regi ons (especi al l y i f i t i s a brand wi t h a maj or chunk of t he market
and one whi ch i s nat i onal l y advert i sed). Even mul t i nat i onal out l et s coul d make
use of t hi s approach and ment i on t he brands i n t he evoked set (i n a gi ven
geographi cal area) . Thi s i s l i kel y t o i mprove t raf f i c t o t he out l et . Besi des, t he
evoked set coul d al so change f rom t i me t o t i me dependi ng on t he st rat egi es of
brands.


89
About t wo decades ago, brands l i ke Sol i dai re, Dyanor a and Crown may have
been t op-of -t he- mi nd (i n a speci f i c geographi cal area) but sl owl y gave way t o
ot her brands - t hese changes shoul d be capt ured (how of t en t hi s happens, why,
and t he di f f erences bet ween mar ket s) t o f ormul at e ret ai l st rat egi es. The l ocal
advert i si ng coul d be di f f erent f rom t he nat i onal adver t i si ng f or t he brand. A
brand may be advert i sed on f eat ures nat i onal l y but t he ret ai l out l et i n may
pref er t o hi ghl i ght t he eff ect i ve af t er -sal es servi ce associ at ed wi t h t he brand as
t hi s may be a pri ori t y of consumers. The combi nat i on of `push -pul l ' st rat egy i s
shown i n t he t abl e.
The i nt erest gener at ed i n t he brand woul d have t o be backed by good pr e -sal e
servi ces at t he out l et .

Brand and ret ai l out l et si mul t aneousl y: When consumer s t hi nk of t he brand and
ret ai l out l et t oget her, i t means t hat t hey have a cert ai n pref erence f or t he out l et
and woul d l i ke t o check t he evoked set of brands t here. The mar ket er woul d
have t o carr y out pri mar y r esearch t o f i nd out speci f i c market s where
consumers have a ver y posi t i ve rel at i onshi p wi t h ret ai l ers. Thi s i s i mport ant
because of t he i nf l uence of ret ai l ers over t he purchase behavi our of consumers
i n t he Indi an cont ext .
It may al so be wort hwhi l e t o check i f t he evoked brands are carri ed by t he
ret ai l ers who have a posi t i ve rel at i onshi p wi t h t he t ar get segment s. Thi s i s t o
ensure t hat t he ret ai l er s who have a f avourabl e percept i on among t he t arget
segment carr y t he desi red brands. Fai l i ng t hi s, consumers may t urn t o a
di ff erent ret ai l er, whi ch woul d be t o t he di sadvant age of a ret ai l er who has
al ready won t he conf i dence of consumers. Ret ai l sal es p ersonnel al so become


90
i mport ant i n t hi s si t uat i on. The prospect i ve consumers are "carri ed over" t o t he
purchase st age by t he st ore personnel and hence t here shoul d be i ncent i ve
programmes f or t he st ore personnel .
If a company such as BPL or Vi deocon i s dea l i ng wi t h a number of brands/ sub-
brands, i t has t o ensure t he avai l abi l i t y of speci f i c brands whi ch may i nt erest
t he consumers. If t he ret ai l out l et i s a l arge one deal i ng wi t h a number of
brands (l i ke Vi vek), a shop-i n-shop arrangement may be pref erabl e. Thi s model
put s t he brand i n f ocus and rei nf orces t he posi t i ve associ at i on a consumer may
have about i t . A consi derabl e amount of pre -sal e servi ce woul d have t o back up
t he shop-i n-shop concept .
The shop-i n-shop concept creat es an aura of excl usi vi t y. Consumers t end t o
have hi gher expect at i ons about t he pre -sal e ser vi ce and t he at t ent i on gi ven t o
t hem. A l ar ge st ore al so i s l i kel y t o st ock several brands and hence al l brands i n

t he evoked set woul d have t o compet e wi t h each ot her t o pr ogress f rom t he
evoked set t o choi ce set . Large out l et s may al so have a bui l t -i n provi si on f or a
l ower pri ce (because of vol umes) and hence may be i n a bet t er posi t i on t o
cl i nch t he deal wi t h consumers who may si mul t aneousl y consi der bot h t he brand
and t he ret ai l out l et .


T
TTH
HHE
EE S
SST
TTR
RRI
IIK
KKI
IIN
NNG
GG N
NNE
EEW
WW F
FFA
AAC
CCE
EE O
OOF
FF L
LLU
UUC
CCK
KKN
NNO
OOW
WW

Who says great retail is only for the metros? Check out Lucknow where residents are


91
shopping like never before.This city in Utterpradesh has the state's largest shopping mall. It also
holds the distinction of being one of India's cleanest cities.
It is Utterpradesh capital with a population nudging 30 lakh as of 2001. This is LUCKNOW,
which is now experiencing a retail revolution of sorts.Lucknow believes the general feeling that
the retail revolution as we know occurs only in the metros. A walk along the main Hagaratganj,
Aminabad, Gomtinagar Lines areas is like walking through a large shopping mall. Here, you'll
find every brand, all kinds of products in every shape, shade and size and all types of food! You'll
also find four of Lucknow's supermarkets here. All these are changing the way Lucknow shops.
Two of the largest supermarkets in LUCKNOW are Saharaganj location Hagaratganj run by the
Sahara group and wave location in gomti nagar, Fun Republic Family Entertainment
Centre,Location: Near Eldeco Greens, Gomti Nagar.Total area: 18,000 sq mtrs/ 4.5 hectares of
prime land.Project deadline: March 2006.
With a total of 74 shops, this is part of the Zee Groups master plan of 25 all-India malls. Touted
as Lucknows biggest mall, not just in terms of size but owing to the names it is planning to bring
into the city, the project is reportedly 95 per cent sold-out. Ladhanis Taj Multiplex,Location:
Near Hoteltaj Residency, Gomti Nagar.Total area: 20,000 sq ft.Project deadline: March 2006.
Fortunas City Malllocation: Near Cms Gomti Nagar.Total Area: 70,000 Sq Ft.Project deadline:
By 2007.
Singapore mall,gomti nagar( work in progress) . Both offer valuable lessons in how organised
retail in smaller towns can succeed. Despite dramatic changes in the retail scene, Lucknows
retailers feel the need for a shift in mindset, habits, more modern restaurants and theatres to drive


92
lifestyle changes. And this is already happening. Here we profile three leading retailers from
Lucknow. Barista, the fast-growing espresso chain. At present two mall heart of Lucknow
Saharaganj or Wave I analysis to Luck now people perception of retail store (survey only retail
channel in Sahara gang, wave). The survey was constituted in visiting of Sahara gang and wave
Customers were interviewed by means of carefully prepared questionnaire to study and
understand customers psychology in depth.




























93































94







S
SSe
eel
lle
eec
cct
tti
iio
oon
nn o
oof
ff t
tth
hhe
ee T
TTo
oop
ppi
iic
cc

First of all our research topic was selected. The topic being A DETAIL STUDY OF
CONSUMER BEHAVIOUR IN LIFESTYLE INTERNATIONAL Pvt. Ltd. MAX RETAIL
DIVISION AT LUCKNOW



O
OOb
bbj
jje
eec
cct
tti
iiv
vve
ee o
oof
ff r
rre
ees
sse
eea
aar
rrc
cch
hh

To know the perception of customers towards the purchasing.
To know the buying behavior of customers in retail store.


95
To know the strategy of retail store for attracting customers
To know the satisfaction level of customers.





Extensive literature Survey
The yearly Journals and manuals & project reports provide by our institute were studied.
Lots of valuable information regarding real estate industry was collected through Internet
and necessary information regarding company through website of the organization.

S
SSa
aam
mmp
ppl
lli
iin
nng
gg D
DDe
ees
ssi
iig
ggn
nn
Sampling unit Respondents of Fun Mall
Size of sample 100 respondents
Sample Method Random Sampling
Types of questionnaire Close ended



96



T
TTy
yyp
ppe
ee o
oof
ff D
DDa
aat
tta
aa
Data type collected for analysis is PRIMARY i.e. data has been observed and recorded by
the researchers for the first time to their knowledge.
Data collected through journals, newspapers & internet is SECONDARY type.



M
MMe
eet
tth
hho
ood
dd o
oof
ff d
dda
aat
tta
aa c
cco
ool
lll
lle
eec
cct
tti
iio
oon
nn

This study is a research which utilizes interrogation and observation method for data
collection. Secondary data was obtained from intensive analysis & observation. The
primary data are those, which are collected afresh and for the first time, and thus happen to
be original in character. The secondary data, on the other hand, are those which have
already been collected by some one else and which have already been passed through the


97
statistical process. Method employed to collect data is Questionnaire. This is a simple
survey conducted by filling in questionnaire from the people who visit malls.


C
CCo
ool
lll
lle
eec
cct
tti
iio
oon
nn o
oof
ff t
tth
hhe
ee P
PPr
rri
iim
mma
aar
rry
yy d
dda
aat
tta
aa

As this study is of descriptive type, the primary data has been collected through
Questionnaire.


O
OOb
bbs
sse
eer
rrv
vva
aat
tti
iio
oon
nn m
mme
eet
tth
hho
ood
dd

Under the Observation method, the information is sought by way of direct observation
without asking from the respondent. The main advantage of this method is that subjective
bias is eliminated, if observation is done accurately.

A
AAn
nna
aal
lly
yys
ssi
iis
ss o
oof
ff D
DDa
aat
tta
aa



98
Data collected through questionnaire is being processed .This processed data is represented
by means of suitable graphs & diagrams.

W
WWH
HHI
II C
CCH
HH T
TTY
YYP
PPE
EE O
OOF
FF P
PPL
LLA
AAC
CCE
EE D
DDO
OO Y
YYO
OOU
UU V
VVI
II S
SSI
II T
TT F
FFR
RRE
EEQ
QQU
UUE
EEN
NNT
TTL
LLY
YY F
FFO
OOR
RR Y
YYO
OOU
UUR
RR
S
SSH
HHO
OOP
PPP
PPI
II N
NNG
GG N
NNE
EEE
EED
DDS
SS ?
??:
::


a) SHOPPING MALL [ 80 RESPONDENTS]
b) UPSTREET MARKET [ 8 RESPONDENTS]
c) LOCAL MARKET [ 12 RESPONDENTS]























80%
8%
12%
Respondents
A B C


99
On the basis of above respondents the graph shows that maximum respondents
i.e. 80 out of 100 are agree that they frequently visit shopping mall for their
shopping needs.
I t means maximum no of customer are preferred Shopping Malls for purchasing.

Y
YYO
OOU
UU P
PPR
RRE
EEF
FFE
EER
RR T
TTO
OO G
GGO
OO I
II N
NN S
SST
TTO
OOR
RRE
EE W
WWI
II T
TTH
HH:
::

a. FAMILY [52 RESPONDENTS]
b. SPOUSE [12 RESPONDENTS]
c. FRIENDS [ 36 RESPONDENTS]
d. OTHERS [ 0 RESPONDENTS]



52%
12%
36%
0%
Respondents
FAMILY SPOUSE FRIENDS OTHERS


100
On the basis of above respondents the graph shows that maximum respondents
i.e. 52 out of 100 are preferred to go in store with their family.
I t means maximum no of customers are family conscious for visiting retail store.





F FR RO OM M W WH HE ER RE E W WO OU UL LD D Y YO OU U P PR RE EF FE ER R T TO O B BU UY Y P PR RO OD DU UC CT TS S: :

a) SINGLE BRANDED STORE [ 24 RESPONDENTS ]
b) MULTI BRANDED STORE [ 60 RESPONDENTS ]
c) FACTORY OUTLET [ 4 RESPONDENTS ]
d) LOCAL BIG RETAIL OUTLET [ 12 RESPONDENTS ]



24%
60%
4% 12%
Respondents
SINGLE BRAND STORE MULTI BRAND STORE
FACTORY OUTLET LOCAL BIG RETAIL OUTLET


101
On the basis of above respondents the graph shows that maximum respondents
i.e. 60 out of 100 are preferred multi branded store for shopping.
I t means maximum no of customers are time conscious and desire for many brand
under one roof.

H
HHO
OOW
WW O
OOF
FFT
TTE
EEN
NN D
DDO
OO Y
YYO
OOU
UU A
AAS
SSK
KK F
FFO
OOR
RR A
AAS
SSS
SSI
II S
SST
TTE
EEN
NNC
CCE
EE F
FFR
RRO
OOM
MM S
SST
TTO
OOR
RRE
EE S
SST
TTA
AAF
FFF
FF I
II N
NN
S
SSE
EEL
LLE
EEC
CCT
TTI
II N
NNG
GG Y
YYO
OOU
UUR
RR P
PPU
UUR
RRC
CCH
HHA
AAS
SSE
EE?
??

a) ALMOST ALWAYS [ 12 RESPONDENTS ]
b) FREQUENTLY [ 16 RESPONDENTS ]
c) SOMETIMES [ 60 RESPONDENTS]
d) NEVER [ 12 RESPONDENTS ]



12%
16%
60%
12%
Respondents
ALMOST ALWAYS FREQUENTLY SOMETIMES NEVER


102

On the basis of above respondents the graph shows that maximum respondents
i.e. 60 out of 100 wanted sometime assistance from store staffs.
I t means maximum no of customers do not compromise with their choice.



W
WWH
HHA
AAT
TT D
DDO
OO Y
YYO
OOU
UU L
LLO
OOO
OOK
KK F
FFO
OOR
RR I
II N
NN A
AA P
PPR
RRO
OOD
DDU
UUC
CCT
TT D
DDU
UUR
RRI
II N
NNG
GG Y
YYO
OOU
UUR
RR P
PPU
UUR
RRC
CCH
HHA
AAS
SSE
EE:
::

a) FASHION [ 12 RESPONDENTS ]
b) COMFORT [ 16 RESPONDENTS ]
c) PRICE [ 60 RESPONDENTS ]
d) COLOURS AVAILABLE [ 12 RESPONDENTS ]



12%
16%
60%
12%
Respondents
FASHION COMFORT PRICE COLOUR


103

On the basis of above respondents the graph shows that maximum respondents
i.e. 60 out of 100 preferred price during their purchasing.
I t means maximum no of customers are price conscious so maximum customers
belongs to middle class.

W
WWH
HHE
EEN
NN D
DDO
OO Y
YYO
OOU
UU P
PPR
RRE
EEF
FFE
EER
RR T
TTO
OO S
SSH
HHO
OOP
PP M
MMO
OOS
SST
TT I
II N
NN S
SST
TTO
OOR
RRE
EE:
::

a) DURING SALE [ 18 RESPONDENTS ]
b) DURING FRESH SEASON STOCK [ 54 RESPONDENTS]
c) DURING DISCOUNT [ 24 RESPONDENTS ]

d) WHEN REQUIRED [ 4 RESPONDENTS]






18%
54%
24%
4%
Sales
DURING SALE DURING FRESH SEASON STOCK DURING DISCOUNT WHEN REQUIRED


104
On the basis of above respondents the graph shows that maximum
respondents i.e. 60 out of 100 are prefer shopping during fresh season stock.
I t means maximum no of customers did not compromise quality with discount and
offers.

W
WWH
HHA
AAT
TT I
II N
NNF
FFL
LLU
UUE
EEN
NNC
CCE
EES
SS Y
YYO
OOU
UUR
RR B
BBU
UUY
YYI
II N
NNG
GG S
SSE
EEL
LLE
EEC
CCT
TTI
II O
OON
NNS
SS:
::





A) RANGE

B) PRICE

C) SIZE

D) FASHION

E) BRAND

1
st
OPTION

30

20

30

8

10

2
nd
OPTION

22

32

25

10

13

3
rd
OPTION

20 18 15 14 33
4
th
OPTION

16 17 19 32 16
5
th
OPTION 12 13 11 36 28


105








On the basis of above respondents the graph shows that maximum respondents
are attracted towards the Store due to this ranking-
FASHION BRAND PRICE RANGE, SIZE
I t means maximum no of customers are prefer to the Malls for FASHI ON








0
5
10
15
20
25
30
35
40
RANGE PRICE SIZE FASHION BRAND
Option 1
Option 2
Option 3
Option 4
Option 5


106

H
HHO
OOW
WW F
FFR
RRE
EEQ
QQU
UUE
EEN
NNT
TTL
LLY
YY Y
YYO
OOU
UU V
VVI
II S
SSI
II T
TT T
TTH
HHE
EE S
SST
TTO
OOR
RRE
EE:
::


a) <1 MONTH [ 60 RESPONDENTS ]
b) 1-3 MONTH [ 28 RESPONDENTS ]
c) 1-6 MONTH [ 4 RESPONDENTS ]
d) 1 YEAR [ 8 RESPONDENTS ]




107





On the basis of above respondents the graph shows that maximum respondents
i.e. 60 out of 100 are visited the store with in one month.
I t means maximum no of customers are visiting the store monthly.

W
WWH
HHA
AAT
TT I
II S
SS A
AAV
VVE
EER
RRA
AAG
GGE
EE M
MMO
OON
NNE
EEY
YY Y
YYO
OOU
UU S
SSP
PPE
EEN
NND
DD O
OON
NN S
SSH
HHO
OOP
PPI
II N
NNG
GG?
??

a) <=999 [ 20 RESPONDENTS ]
b) 1000-1999 [ 52 RESPONDENTS ]
c) 2000-2999 [16 RESPONDENTS ]
d) >3000 [ 12 RESPONDENTS ]

60%
28%
4%
8%
Respondents
< 1 MONTH 1-3 MONTH 1-6 MONTH 1 YEAR


108


On the basis of above respondents the graph shows that maximum respondents
i.e. 52 out of 100 are spend Rs 1000-1999 on shopping.
I t means maximum no of customers prefer middle class shopping.

:
::H
HHO
OOW
WW D
DDO
OO Y
YYO
OOU
UU R
RRA
AAT
TTE
EE T
TTH
HHE
EE P
PPR
RRI
II C
CCI
II N
NNG
GG O
OOF
FF P
PPR
RRO
OOD
DDU
UUC
CCT
TT A
AAT
TT M
MMA
AAX
XX?
??

a) EXPENSIVE [ 10 RESPONDENTS ]
b) COMPETITIVE [ 16 RESPONDENTS ]
c) AFFORDABLE [ 34 RESPONDENTS ]
d) REASONABLE [ 40 RESPONDENTS ]
20%
52%
16%
12%
Respondents
<= 999 1000-1999 2000-2999 >3000


109


On the basis of above respondents the graph shows that maximum respondents
i.e. 40 out of 10 are agree that price of products are reasonable.
I t means maximum no of customers are agree that price of products are equal to the
other market rate.

H
HHO
OOW
WW D
DDI
II D
DD Y
YYO
OOU
UU C
CCO
OOM
MME
EE T
TTO
OO K
KKN
NNO
OOW
WW A
AAB
BBO
OOU
UUT
TT M
MMA
AAX
XX?
??

a) NEWSPAPER [ 12 RESPONDENTS]
b) RADIO ADVERTISEMENT [ 12 RESPONDENTS]
c) LEAFLET [ 20 RESPONDENTS]
d) SMS [ 6 RESPONDENTS]
10%
16%
34%
40%
Respondnets
EXPENSIVE COMPETITIVE AFFORDABLE REASONABLE


110
e) WORLD OF MOUTH [ 46 RESPONDENTS]
f) OTHERS [ 4 RESPONDENTS]


On the basis of above respondents the graph shows that maximum respondents
i.e. 46 out of 100 are know about max store by reference group.
I t means maximum no of customers are know about the max store by other people
reference.

W
WWH
HHA
AAT
TT M
MMO
OOR
RRE
EE F
FFA
AAC
CCI
II L
LLI
II T
TTY
YY W
WWO
OOU
UUL
LLD
DD Y
YYO
OOU
UU L
LLI
II K
KKE
EE T
TTO
OO G
GGE
EET
TT A
AAT
TT M
MMA
AAX
XX?
??

a) MEMBERSHIP CARD [ 16 RESPONDENTS]
b) DISCOUNT MAILERS [ 32 RESPONDENTS]
c) FREE PARKING OFFERS [ 24 RESPONDENTS]
d) LUCKY DRAW OFFER [ 28 RESPONDENTS]
12%
12%
20%
6%
46%
4%
Respondents
NEWSPAPER RADIO ADVERTISEMENT LEAFLET SMS WORLD OF MOUTH OTHERS


111




On the basis of above respondents the graph shows that maximum respondents
i.e. 32 out of 100 want discount mailers facility.
I t means maximum no of customers want every information at their door step.

W
WWH
HHI
II C
CCH
HH C
CCA
AAT
TTE
EEG
GGO
OOR
RRY
YY O
OOF
FF P
PPR
RRO
OOD
DDU
UUC
CCT
TT D
DDO
OO Y
YYO
OOU
UU B
BBU
UUY
YY M
MMO
OOS
SST
TT A
AAT
TT M
MMA
AAX
XX?
??

a) MENS WEAR [ 12 RESPONDENTS ]
b) WOMENS WEAR [ 36 RESPONDENTS ]
c) ETHNIC WEAR [ 20 RESPONDENTS ]
d) KIDS WEAR [ 12 RESPONDENTS ]
16%
32%
24%
28%
Respondents
MEMBERSHIP CARD
DISCOUNT MAILERS
FREE PARKING OFFERS
LUCKY DRAW OFFER


112
e) FOOTWEAR [ 4 RESPONDENTS ]
f) ACCESSORIES [16 RESPONDENTS]


On the basis of above respondents the graph shows that maximum respondents
i.e. 36 out of 100 are purchasing maximum from womens wear.
Customers prefer shopping according to-
WOMENS WEAR ETHENIC MENS, KIDS WEAR
FOOTWEAR ACCESSORIES

W
WWH
HHE
EEN
NN Y
YYO
OOU
UU T
TTH
HHI
II N
NNK
KK O
OOF
FF S
SSH
HHO
OOP
PPP
PPI
II N
NNG
GG W
WWH
HHI
II C
CCH
HH S
SST
TTO
OOR
RRE
EE C
CCO
OOM
MME
EES
SS I
II N
NN
Y
YYO
OOU
UUR
RR M
MMI
II N
NND
DD F
FFI
II R
RRS
SST
TT-
--
A) PANTALOONS [ 16 RESPONDENTS ]
B) GLOBUS [ 30 RESPONDENTS ]
12%
36%
20%
12%
4%
16%
Respondents
MEN'S WEAR
WOMEN'S WEAR
ETHNIC WEAR
KIDS WEAR
FOOT WEAR
ACCESSORIES


113
C) MAX [ 44 RESPONDENTS ]
D) WESTSIDE [ 10 RESPONDENTS ]



On the basis of above respondents the graph shows that maximum respondents
i.e. 44 out of 100 prefer MAX for shopping.
I t means max retail targeting to the middle class customers.

A
AAG
GGE
EE W
WWI
II S
SSE
EE D
DDI
II S
SST
TTR
RRI
II B
BBU
UUT
TTI
II O
OON
NN
A) <20 [ 12 RESPONDENTS ]
B) 20-29 [ 45 RESPONDENTS ]
C) 30-39 [25 RESPONDENTS ]
D) >40 [18 RESPONDENTS]
16%
30%
44%
10%
Respondents
PANTALOONS
GLOBUS
MAX
WESTSIDE


114




On the basis of above respondents the graph shows that maximum respondents
i.e. 45 out of 100 are young age people.
I t means maximum no of customers belongs to young age group.

G
GGE
EEN
NND
DDE
EER
RR W
WWI
II S
SSE
EE D
DDI
II S
SST
TTR
RRI
II B
BBU
UUT
TTI
II O
OON
NN
E) MALE [ 58 RESPONDENTS ]
F) FEMALE [ 42 RESPONDENTS ]

12%
45%
25%
18%
Respondents
< 20
20-29
30-39
>40


115



On the basis of above respondents the graph shows that maximum respondents
i.e. 58 out of 100 are males.
I t means maximum no of customers are male in malls due to family responsibility.

N
NNO
OO.
.. O
OOF
FF F
FFA
AAM
MMI
II L
LLY
YY M
MME
EEM
MMB
BBE
EER
RR W
WWI
II S
SSE
EE D
DDI
II S
SST
TTR
RRI
II B
BBU
UUT
TTI
II O
OON
NN
A) <=2 [ 08 RESPONDENTS ]
B) 3-4 [ 54 RESPONDENTS ]
C) >4 [ 38 RESPONDENTS ]

58%
42%
Respondents
MALE
FEMALE


116



On the basis of above respondents the graph shows that maximum respondents
i.e. 54 out of 100 having 3-4 members in their family.
I t means maximum no of customers having nucleur family.

E
EED
DDU
UUC
CCA
AAT
TTI
II O
OON
NN W
WWI
II S
SSE
EE D
DDI
II S
SST
TTR
RRI
II B
BBU
UUT
TTI
II O
OON
NN
A) HIGH SCHOOL [ 08 RESPONDENTS]
B) LESS THAN GRADUATION [ 12 RESPONDENTS ]
B) GRADUATION [ 32 RESPONDENTS ]
8%
54%
38%
Respondents
<=2
3 to 4
>4


117
C) POST GRADUATION [ 32 RESPONDENTS ]
D) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]



On the basis of above respondents the graph shows that maximum respondents
i.e. 32 out of 100 are graduates and 32 out of 100 are post graduate.
I t means maximum no of customers are educated and aware about retail store.

O
OOC
CCC
CCU
UUP
PPA
AAT
TTI
II O
OON
NN W
WWI
II S
SSE
EE D
DDI
II S
SST
TTR
RRI
II B
BBU
UUT
TTI
II O
OON
NN
A) STUDENT [ 33 RESPONDENTS ]
B) GOV. SERVICE [ 8 RESPONDENTS ]
C) PVT. EMPLOYEE [ 40 RESPONDENTS ]
D) SELF EMPLOYEE [ 12 RESPONDENTS ]
8%
12%
32%
32%
16%
Respondents
HIGH SCHOOL
LESS THAN GRADUATION
GRADUATION
POST GRADUATION
PROFESSIONAL QUALIFICATON


118
E) HOUSE WIFE [ 07 RESPONDENTS]






On the basis of above respondents the graph shows that maximum respondents
i.e. 40 out of 100 are Pvt. Employee.
I t means maximum no of customers are self dependent.

I
II N
NNC
CCO
OOM
MME
EE W
WWI
II S
SSE
EE D
DDI
II S
SST
TTR
RRI
II B
BBU
UUT
TTI
II O
OON
NN
A) LESS THAN Rs 20,000 [ 28 RESPONDENTS ]
B) BETWEEN Rs 30,000 TO 40,000 [ 48 RESPONDENTS ]
C) BETWEEN Rs 40,001 TO 50,000 [ 20 RESPONDENTS ]
D) MORE THAN Rs 50,000 [ 12 RESPONDENTS ]
33%
8%
40%
12%
7%
Respondents
STUDENTS
GOV. SERVICE
PVT. EMPLOYEE
SELF EMPLOYEE
HOUSE WIFE


119







On the basis of above respondents the graph shows that maximum respondents
i.e. 48 out of 100 are having monthly income between Rs 30,000 to 40,000.
I t means maximum no of customers are belonging to upper middle class.













Respndents
LESS THAN Rs. 20,000
BETWEEN Rs. 30,000 T0 40,000
BETWEEN Rs. 40,000 TO 50,000
MORE THAN Rs. 50,000


120















1. Maximum no of middle class customers come to max for shopping.
2. Max retail targeting to the middle class customers.
3. Maximum no of customers belongs to young age group.
4. Maximum no of customers are male in malls due to family responsibility.


121
5. I t means maximum no of customers having nucleur family.
6. Maximum no of customers are educated and aware about retail store.
7. Maximum no of customers are self dependent.
8. Maximum no of customers are belonging to upper middle class.
9. Maximum no of customer are preferred Shopping Malls for purchasing.
10. Maximum no of customers are family conscious for visiting retail store.
11. Maximum no of customers are time conscious and desire for many brand under
one roof.
12. Maximum no of customers do not compromise with their choice.
13. Maximum no of customers are price conscious so maximum customers belongs to
middle class.
14. Maximum no of customers did not compromise quality with discount and offers.
15. Maximum respondents are attracted towards the Store due to this ranking-
FASHION BRAND PRICE RANGE, SIZE

16. Maximum no of customers are visiting the store monthly.
17. Maximum no of customers prefer middle class shopping.
18. Maximum no of customers are agree that price of products are equal to the other
market rate.
19. Maximum no of customers are know about the max store by


122
20. Most of the customers know about the MAX retail through other people
reference.















L
LLI
IIM
MMI
IIT
TTA
AAT
TTI
IIO
OON
NNS
SS


Every report has its pros and cons so mine also have some limitations.
They can be pointed as:


123

1) Conclusions are for Lucknow City only.
2) Use of secondary data for analysis.
3) Only Zee Mall was present for collection of data so it was tough to collect
more respondent.
4) Respondents were not keen to give the answers of questionnaire.









C
CCO
OON
NNC
CCL
LLU
UUS
SSI
IIO
OON
NN
The past 4-5 years have seen increasing activity in retailing. And, various business
houses have already planned for few investments in the coming 2-3 years. And
though the retailers will have to face increasingly demanding customers, and


124
intensely competitive rivals, more investments will keep flow in. And the share of
organized sector will grow rapidly. retailing in India is surely poised for a takeoff
and will provide many opportunities both to existing players as well as new
entrants.. The country is witnessing a period of boom in retail trade, mainly on
account of a gradual increase in the disposable incomes of the middle and upper-
middle class households. More and more corporate houses including large real
estate companies are coming into the retail business, directly or indirectly, in the
form of mall and shopping center builders and managers. New formats like super
markets and large discount and department stores have started influencing the
traditional looks of bookstores, furnishing stores and chemist shops. The retail
revolution, apart from bringing in sweeping, positive changes in the quality of life in
the metros and bigger towns, is also bringing in slow changes in lifestyle in the
smaller towns of India. Increase in literacy, exposure to media, greater availability
and penetration of a variety of consumer goods into the interiors of the country,
have all resulted in narrowing down the spending differences between the
consumers of larger metros and those of smaller towns.
Lastly I want to conclude my project in some points-
The customers are attracting towards shopping malls & retail outlets.


125
The shopping malls & retail outlets are targeting to middle class customers
because the purchasing power of this class are rapidly growing as well as
the class is also growing.
The young generation is fashion & show-off conscious so retail outlets are
mainly focused on them.
Most of the family wants to purchase from big showrooms and malls
because there are no bargaining system so the have a trust that there is no
cheating.
The main strength of most of the retail outlets are providing attractive offers
to attract customers.
Big retail stores are running customer loyalty programmes which has
increased profits and no. of customers.









126






R
RRE
EEC
CCO
OOM
MMM
MME
EEN
NND
DDA
AAT
TTI
II O
OON
NNS
SS
My recommendations on the basis of the are:
Grant industry status to retail


127
Retail stores should use an area that is easily approachable.
Invest in supply chain infrastructure
Ease distribution infrastructure creation
It should take steps to convert the footfall in the Retail Stores into sales by offering,
Catchy & Intelligent schemes.
The attitude of sales force must be helping & communication in formal way.
Proper signages should be used in retail store
Exchange Policies of retail store should be properly communicated to customers
during Sale.
Mens Accessories like Sunglasses and Bracelets can be add up in Accessories
section.
To solve the problem of alteration on Sunday, Company can provide the home
delivery of Altered merchandise.
Sizes of the merchandising should be standard.
Sizes of merchandising should be easily visible or one rack can be made for each
size of different style.


B
BBi
iib
bbl
lli
iio
oog
ggr
rra
aap
pph
hhy
yy

BOOKS:-


128

Marketing Management. ----Kotler & Keller
Marketing Management in Indian Perspective
----V. S. Ramaswamy & S. Namakumari
Research methodology ---C.R. Kothari
Quantitative Methods ---B. M. Aggarwal.
Retail management ---Levy & Weitzs

MAGZINES:-
Business worlds
Indian retail
Economics of India
India today


WEBSITES:-


129
www.goggle.com
www.tataretail.com
www.retailindia.net
www.retailyatra.com
www.retailbiz.com
www.aboutus.com
www.businessworld.in














130





















GENERAL QUESTIONNAIR

NAME:- DATE:-//2008 PLACE:-.


1) Which type of place do you visit frequently for your shopping needs?
a) Shopping mall b) Upstreet market


131
c) Local markets

2) You prefer to go in Store with
a) Family b) Spouse
c) Friends d) Others

3) What influences your buying selections?
a) Availability of range b) Reasonable price
c) Availability of size d) Fashion appeal
e) Customer service f) Brand name

4) From where would you prefer to buy products?
a) Single brand store b) Multi brand store
c) Factory outlets d) Local Big Retail Store

5) How often do you ask for assistance from store staff in selecting your purchase?
a) Almost always b) Frequently
c) Sometimes d) Never

6) What do you look for in a product during your purchase?
a) Fashion b) Comfort
c) Price d) Colors Available

7) When do you prefer to shop Most in Store?
a) During Sale b) During Fresh season stock
c) During Discount d) When required

8) How frequently you visit the Store?
a) <1 month b) 1-3 month
c) 1-6 month d) 1 year

9) What is average money you spend on Shopping?
a) <= 999/- b) 1000-1999
c) 2000-2999 d) >3000

(I f not customer of Max leave question 10-13).

10) How do you rate the pricing of product at Max?
a) Expensive b) Competitive
c) Affordable d) Reasonable


11) How did you come to know about Max?
a) Newspaper b) Radio advertisement
c) Leaflet d) SMS
e) Word of Mouth f) others specify

12) What more facility would you like to get at Max?
a) Membership Card b) Discount Mailers


132
c) Free Parking offers d) Lucky draw offer

13) Which Category of Product do you buy most at Max ?
a) Mens wear b) Womens wear c) Ethnic wear
d) Kids wear e) Foot wear f) Accessories

14) When you think of Shopping which Store comes in your mind first-
a) Pantaloons b) Globus
c) MAX d) Westside

15) Any suggestion ..
...
...
...

Age group <20 20-24 25-29 30-34 35-39 >40
Gender Male Female
No of
F
FFa
aam
mmi
iil
ll y
yy
Members
<=2 3-4 >4
Qualificatio
n
High
School
Diploma
Or pre-
graduate
Graduate Post-
graduate
Professiona
l course

Occupation Studen
t
Gov.
Service
Pvt.
Employe
e
Self
Employe
d
House wife Retired
Location Gomti
nagar
Mahanag
ar
Aliganj Hazratga
nj
Indiranaga
r
Niralan
agar
oth
er
Household
Income
(per month)
Less
Than
20,000
30,000-
40,000
40,001-
50,000
More
then
50,000



THANK YOU