A Project on
Consumer Behavior
Presented to
INDIABULLS MART
Submitted by
Vikas Sharma
1
I here by declare that the project report entitled
A Project on
Consumer Behavior
2
Vikas Sharma
Internal Examiner
External Examiner
3
This is to certify that the project report entitled
Vikas Sharma
has worked under my supervision and guidance and that no part of this report has
been submitted for the award of any other degree, Diploma, fellowship or other
similar titles or prizes and that the work has not been published in any journal or
Magazine.
4
ACKNOWLEDGEMENT
No work can be accomplished without the guidance and help of the staff
of India Bulls Mart. We are extremely grateful to Mr. Vikash kashyap for
their constant support and benevolent help.
We owe a great deal of gratitude of our teachers & friends who provided
us their experiences, suggestion and insight knowledge at various stages
in this project.
Students 44
Services 82
Housewives 45
Businessmen 38
5
Executive Summary
The data collection method was primary Data Collection. The survey was
conducted by designing a schedule as the research instrument. Schedule
was use to meet the exploratory as well as the descriptive nature of the
research. The sample people include the people of the city of Indore,
Sample size being 200. The sample was segmented on the basis of
occupation, the segments were:
6
Table of Content
• Acknowledgement
• Executive Summary
a) Research Objective
b) Research Design
c) Research Process
Annexure 51-55
a) Questionnaire
b) Bibliography
7
8
RETAIL SCENARIO IN INDIA
India tops the AT Kearney's annual Global Retail Development Index (GRDI) for the
third consecutive year, maintaining its position as the most attractive market for retail
investment.
The Indian retail market, which is the fifth largest retail destination globally, according
to industry estimates is estimated to grow from the US$ 330 billion in 2007 to US$ 427
billion by 2010 and US$ 637 billion by 2015. Simultaneously, modern retail is likely to
increase its share in the total retail market to 22 per cent by 2010.
Continuing the robust growth of the organized retail in India, according to the Credit
Rating and Information Services of India, the industry raked in US$ 25.44 billion
turnover in 2007-08 as against US$ 16.99 billion in 2006-07, a whopping growth rate
of 49.73 per cent.
India has one of the largest numbers of retail outlets in the world. Of the 12 million
retail outlets present in the country, nearly 5 million sell food and related products.
Thought the market has been dominated by unorganized players, the entry of
domestic and international organized players is set to change the scenario.
Organized retail segment has been growing at a blistering pace, exceeding all
previous estimates. According to a study by Deloitte Haskins and Sells, organized
retail has increased its share from 5 per cent of total retail sales in 2006 to 8 per cent
in 2007. The fastest growing segments have been the wholesale cash and carry
stores (150 per cent) followed by supermarkets (100 per cent) and hypermarkets (75-
80 per cent). Further, it estimates the organized segment to account for 25 per cent of
the total sales by 2011.
Retail space
Driven by changing lifestyles, strong income growth and favorable demographic
patterns, Indian retail is expanding at a rapid pace. Mall space, from a meager one
million square feet in 2002, is expected to touch 40 million square feet by end-2007
and an estimated 60 million square feet by end-2008, says Jones Lang LaSalle's third
annual Retailer Sentiment Survey-Asia.
Alongside, Indian cities are witnessing a paradigm shift from traditional forms of
retailing into a modern organized sector. A report by Images Retail estimates the
number of operational malls to more than double to over 412 with 205 million square
feet by 2010 and further 715 malls by 2015, on the back of major retail developments
even in tier II and tier III cities in India.
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Luxury retail
With consumers for luxury goods more in numbers than adult population of several
countries, the Indian luxury retail market is estimated to leap-frog from around US$ 3.5
billion to US$ 30 billion by 2015, according to a survey done by AT Kearney. India's
luxury market, estimated to be the 12th largest in the world, has been growing at the
rate of 25 per cent per annum.
Already Indians splurge US$ 2.9 billion on luxury assets, spend another US$ 953
million on luxury services and top it by buying luxury goods worth US$ 377 million.
And with a rapidly expanding population of high net worth individuals, India could
emerge as the next hub for luxury goods consumption.
Kids' retail
When it comes to Indian children, retailers are busy bonding -- and branding:
Leading the kids' retail revolution is the apparel business, which accounts for almost
80 per cent of the revenue, with kids' clothing in India following international fashion
trends. According to research firm KSA Technopak, the branded segment comprises
US$ 701.7 million of the total kids' apparel market-size of over US$ 3 billion. Industry
experts say kids' retailing will touch annual growth of 30-35 per cent.
10
Discount Malls
Even as the organized retail market is starting to take off, there has been a
concomitant surge in branded discount outlets in India. Top realtors and local retail
chains are developing malls in regional boroughs, specifically to sell premium branded
goods. At least 50 such malls are to come up in the next two years across the country
positioned in the middle-to-the-premium end of the market.
For example, Royal Palms are developing Orchard Road Mall in the western suburbs
of Mumbai. Similarly, Akruti Nirman, which is planning to brand its discount malls in
Kanjurmag, Ghatkopar, Mumbai and Thane as 'City world', has decided to develop
similar malls in Tier II and Tier III cities. Some of the other prominent discount retailers
include Pantaloon Retail (India) Ltd's Brand Factory, Arvind Mills Ltd's Mega mart and
Provogue (India) Ltd's Promart among others.
E-tailing
The increase in the PC and internet penetration along with the growing preference of
Indian consumers to shop online has given a tremendous boost to e-tailing-the online
version of retail shopping. An estimated 10 per cent of the total e-commerce market is
accounted by e-tailing.
With todays, net-savvy Indians making online purchases like never before, both the
number and variety of products sold online have grown exponentially. According to the
Indian Marketing Research Bureau (IMRB) and Internet and Mobile Association of
India (IAMAI), the e-tail market is estimated to grow by 30 per cent to US$ 273.02
million in 2007-08, from US$ 210.01 million in 2006-07.
In fact, there has been a continuous rise in the number of people accessing the
internet. According to online research and advisory firm JuxtConsult's 'India Online
2008', there are over 49 million internet users in India. Significantly, internet
penetration (as a percentage of population) has grown to 12 per cent, up 3 per cent
from last year's 9 per cent.
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Retail Franchising
Along with e-tailing another perceptible trend in the growth of organized retail market
has been the concept of retail franchising. According to industry estimates, retail
franchising has been growing at the rate of 60 per cent in the last three years and is
set to grow two-fold in the next five years.
A number of companies have been taking this route driven mainly by the need to meet
the increasing consumer expectations of quality, ambience and brand experience. In
addition, this route also helps the big retailer players to rapidly foray into the tier II and
III towns and rural areas.
Rural retail
Led by the rising purchasing power, changing consumption patterns, increased access
to information and communication technology and improving infrastructure, rural retail
market is estimated to cross US$ 45.32 billion mark by 2010 and US$ 60.43 billion by
2015, says a study by CII and YES BANK.
Consequently, Corporate India is already firming up concrete plans to tap the rural
retail market, which is growing at double the rate of urban markets, with innovative
schemes and human resource policies. And with 87 per cent of rural markets not
having access to any sort of organized marketing and distribution, this segment has
tremendous potential for growth.
12
International Retailers
With international brands like Tommy Hilfiger, Esprit and Puma (that have entered the
country) growing well over 100 per cent, many others are also planning to foray into
the Indian retail market. India's vast middle class with its expanding purchasing power
and its almost untapped retail industry are key attractions for global retail giants
wanting to enter newer markets.
The world's largest retailer, Wal-Mart, has tied-up with Sunil Mittal's Bharti
Enterprises to enter Indian retail market.
Microsoft's first shop-in-shop pilot has been launched with the Tata Group
subsidiary Infiniti Retail's multi-brand consumer durables retail format, Croma.
The Walt Disney Company, consumer product retailing arm of global animation
giant, will soon add 135 new stores to its existing 15 stores.
World's leading coffee chain, Starbucks' enters India through a tie-up with the
country's leading multiplex operator PVR Limited.
Apple Inc has entered into an exclusive marketing and distribution deal with
Reliance Retail through "iStore by Reliance Digital".
The UK-based international coffee chain, Costa Coffee, plans to double the
number of retail outlets by the end of 2008.
British retailer Marks & Spencer's has tied with Reliance Retail and plans to
open at least 50 new stores in India over the next five years, with an initial
investment of up to US$ 58 million.
Some of the international players that have already entered India include McDonald's,
Pizza Hut, Dominos, Levis, Lee, Nike, Adidas, TGIF, Benetton, Swarovski, Sony,
Sharp, Kodak, Medicine Shoppe among others.
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INDIABULLS MART
IndiaBulls Group is one of the top 15 business houses in country with business
interests in Real Estate, Infrastructure, Financial Services, Retail, Multiplex and Power
sector. IndiaBulls Group companies are listed in Indian and overseas markets and
have a market capitalization of over USD 7 billion. The Net worth of the Group
exceeds USD 2 billion. IndiaBulls Group companies enjoy highest ratings from
CRISIL, a subsidiary of Standard and Poor’s. IndiaBulls has been conferred the status
of a “Business Super brand” by The Brand Council, Super brands India.
IndiaBulls Financial Services Limited, the parent company from which IndiaBulls Real
Estate and IndiaBulls Securities were emerged, is India’s leading Non-Banking
Finance Companies (NBFC) which is primarily into extending retail and commercial
loans and distribution of third party products. IBFSL is amongst 68 companies
constituting MSCI - Morgan Stanley India Index. IBFSL is also part of CLSA’s model
portfolio of 30 Best Companies in Asia. The lending business of IBFSL is rapidly
growing with loan assets of Rs. 104,410 million as of 31 March, 2008.
IndiaBulls Real Estate Limited is India’s third largest property company with
development projects spread across residential projects, commercial offices, hotels,
malls, and Special Economic Zones (SEZ) infrastructure development. IBREL
partnered with Farallon Capital Management LLC of USA to bring the first FDI into real
estate. IBREL is also developing over 50000 residential apartments pan India & has
over 10000 acres of land bank.
IndiaBulls Securities Limited is India’s leading capital markets company with over
250 branches in more than 110 cities. ISL possesses state of the art trading platform,
best broking practices and is the pioneer in trading product innovations. CRISIL has
assigned the highest rating CRISIL BQ – 1 to ISL. This is an opinion on the quality of
operations and service offered by ISL. The grading is expressed on a five point scale
BQ-1 to BQ-5, with BQ-1 being the highest.
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IndiaBulls Retail
IndiaBulls Retail is one of the fastest growing retailers having broad national brand
presence with 47 stores located in 7 cities. Founded in 2007, IndiaBulls Retail
operates 9 Lifestyle stores under IndiaBulls Mega store, 36 super mart stores under
IndiaBulls Mart and upcoming cash & carries stores under IndiaBulls Wholesale.
IndiaBulls Retail is committed to provide customers with Best quality products at
lowest possible price, Par Excellence customer service and shopping convenience
never seen before.
By FY09, IndiaBulls Retail plans to increase Mega stores to 35, Marts to 100 and
Wholesale stores to 25 across India.
IndiaBulls Marts are neighborhood stores selling groceries and other daily need
products in Mumbai, Pune, Nagpur, Ahmedabad, Jaipur and Indore. Currently, 35
such stores are operational covering an area of 130,000 sqft.
IndiaBulls Wholesale offers over 18,000 articles at the best wholesale prices for
Hotels, Restaurants, Caterers, Food and Non-food Traders, Institutional buyers and
professionals
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Consumer behavior
17
DEFINITION
Two major psychological disciplines come into play when observing and trying to
explain Consumer Behavior.
The first is cognitive psychology. Cognitive psychology is the study of all knowledge
related (mental) behaviors. The Attention, Perception, Memory\Comprehension and
Decision making are the various aspects of cognitive psychology that play an
important role in Consumer Behavior.
The second psychological discipline that has theories to explain certain phenomenon
of Consumer Behavior is Social Psychology is “the study of the manner in which the
personality, attitudes, motivations, and behaviors of the individual influence and are
influence by social groups.” The affect and social influences by reference groups are
two important topics studied in social psychology that has an important impact on
Consumer Behavior.
1. Personal
2. Cultural
3. Social
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The marketer must be aware of these factors in orders to develop an appropriate MM
for its target market.
PERSONAL
Particular person has her\her uniqueness in demographic factors Sex, Race, Age etc.
For example young people purchase things for different reasons than older people.
CULTURAL
Culture refers to the set of values, ideas, and attitudes that are accepted by a
homogenous group of people and transmitted to the next generation. Culture also
determines
SOCIAL
Consumer refers to the set of values, ideas and attitudes that are accepted by opinion
leaders, person’s family, reference groups, social, class and culture.
19
20
Research Methodology
Research methodology is a way to systematically solve the research problem. The
logic behind the method used, in context of research, is explained; so that research
results are capable of being evaluated either by the researcher himself or by others.
People undertake research in order to find things in a systematic way, thereby
increasing their knowledge. The research project involves an explanation of the
methods used to collect information, argue why the results are meaningful and explain
any limitations that are associated with them.
Research Objective
The questionnaire in this project was design which fulfilled our objective getting
the information about the preferences of the customers.
The objective of the study is to find the behavior of consumer towards their
preference to purchase the item/product on the basis of following factors:
• Company
• Advertisement.
• What attracts them to decide to purchase?
• Service levels
• Product range and availability.
• Number of times they have visited.
To identify the factors that influences the buyers to buy & non-buyers
to buy from local players.
To understand the most motivating factor for the people when they adopt
a particular store
To understand different marketing strategy adopted by the
unorganized Retailer to fight with Organized Retailer.
21
Research process
Hypothesis testing
Research Design
Research Design for India Bulls Mart is planned structure and strategy of investigation
conceived so as to obtain answers to research, questions or objectives and also to
control variances. The research design can be understood as mentioned under-
22
Sampling Design
Definition of Population
Sampling Unit
The sampling unit has been taken as individual as well as group activities. This
is because shopping ones personal belonging and generally people done it in group
.and mostly decision has been taken on individual basis in apparels category, and
group decision for home products. Mostly decision is taken by getting influence
through our peer group or by celebrities.
Sampling Plan
The sampling procedure used during the survey was stratified random
sampling, which is a probability sampling, done from different strata decided.
Sample Size
This survey has been conducted among 200 peoples .They has been
categorized as under:-
Students 44
Services 82
Housewives 45
Businessmen 38
23
Sample Segmentation
Sample
Customers who are Customers who are Customers who are Customers who are
students Working class Housewives Businessman
Customer
who goes to
buy from Customer
organized who don’t go
Subcategories retail to buy from
Organized
Retail
24
25
Graphical Analysis
Q.1.How often do you shop. (Tick)
Frequency of shopping
CHI square 33
Degree of freedom 2
Asymp.sig .ooo
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 66.67
Total response
a) Once aweek
19%
b) Fortnightly (15
51% days)
30% c) Monthly
Interpretation:-
According to graph Out of 200 respondents 51% i.e 103 of customers visit once a week
to store.
26
Q2.From where you prefer to shop:
Preference of shopping
CHI square 24.5
Degree of freedom 1
Asymp.sig .ooo
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 100
Total response
(b) unorganized
67% retail
store(traditional
market)
Interpretation:-
27
According to graph Out of 200 respondents 67% i.e 135 people prefer to shop
from organized retail store.
Q3. If you buy from organized retail from where do you buy:
Place of shopping
CHI square 46.08
Degree of freedom 3
Asymp.sig .ooo
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 50
Total response
28
Interpretation:-
According to graph Out of 200 respondent 36% i.e. 72 people like to shop from
Reliance fresh followed by IndiaBulls Mart i.e 66 .
Total response
19% 17%
1. Friends
2. Family
22% 3. Alone
4. Husband/wife
42%
Interpretation:-
29
According to graph, Out of 200 respondents 42% i.e 85 people shop along with
their family member.
Q6. Are you happy with the change in retail trend, i.e., from
vendors to organized retail;
(a) A gree
21%
(b) D is agree
9%
70%
(c ) N either
agrees nor
dis agrees
30
Interpretation:-
According to graph, 70% i.e 141people are happy with the change in retail.
Total response
31
Interpretation:-
Status symbol
CHI square 25.01
Degree of freedom 2
Asymp.sig .ooo
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 66.67
Total response
(a) Agree
25%
(b) Disagree
49%
26% (c) Neither
agrees nor
disagrees
32
Interpretation:-
According to graph, 49% i.e.98 people think that shopping from organized retail
is a sign of status symbol.
Total response
22%
(a) Agree
(b) Disagree
8%
(c) Neither agrees
70% nor disagrees
33
Interpretation:-
According to graph, 70% i.e 50 IndiaBulls customer are loyal to the store.
34
Total response
a) Grocery
1%
24% 0% (b) Fruit and
vegetable
(c) Persona care
75%
(d) Home care
Interpretation:-
35
Total response
(a) Agree
26%
43% (b) Disagree
Interpretation:-
According to graph, 43% i.e 30 IndiaBulls customers thinks that home delivery
service affects their purchase decision.
Drawbacks
CHI square 16.72
Degree of freedom 3
Asymp.sig .ooo
36
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 17.5
Total response
21%
(a) Time
46% (b) Quality
(c) Quantity
14%
(d) Damage
19%
Interpretation:-
According to graph, 46% i.e 32 Indiabulls customers think that time is the
biggest drawback of Indiabulls home delivery service.
Q.13 Have you ever availed home delivery service of the store?
37
0 cell (.0%) have expected frequencies less than 5
.with the minimum expected cell frequency 35
Total response
27%
(a) Agree
(b) Disagree
73%
Interpretation:-
38
.with the minimum expected cell frequency 35
Total response
26%
(a) Agree
(b) Disagree
74%
Interpretation:-
Q15. Rate the following variables on the basis of how you prefer
to shop.
(1 is the least important and 5 is the most important)
I II III IV V
Near to home 2 1 36 38 101
4
One stop shop 1 2 41 56 72
0 1
Price 7 8 25 66 94
39
Variety 4 1 30 58 96
2
Home delivery 3 1 55 49 36
2 8
Display 2 3 58 49 38
4 1
Credit Facility 1 1 45 64 56
9 6
Return\Exchang 1 1 40 56 74
e 6 4
Parking Facility 2 2 25 59 70
0 6
In store Help 1 2 45 61 55
4 5
Behavior of staff 1 1 40 66 73
0 1
Quality of 5 3 23 66 103
product
Offers available 1 1 35 65 66
at store 8 6
100
80 I
II
60
III
40 IV
V
20
0
Return\Exchange
Behavior of staff
Parking Facility
Home delievery
Offers available
Credit Facility
In store Help
Near to home
Quality of
Display
Variety
Price
One stop shop
product
at store
40
Interpretation:-
I - First
II - Second
III - Third
IV - Fourth
V - Fifth
According to the Graph for big number of People Quality of affect their purchase
decision followed by the Near to Home store, Variety and price affect their decision
most while Home delivery ,Display and Credit facilities have lesser affect on their
purchasing decision.
41
I II III IV V
I prefer to shop from the nearby 53 75 24 30 18
outlet
I feel proud of buying what my 25 53 63 37 22
parents having been buying
I explore several stores before I 25 48 65 30 32
shop
Traditional markets offer best 39 32 58 32 39
price deals.
I always make a shopping list 38 76 39 25 22
before I shop
I make my budget then buy. 45 55 36 38 26
42
I
V
II
IV
III
10
20
30
40
50
60
70
80
-
-
-
-
-
I prefer to shop from the nearby
outlet
Interpretation:-
First
Fifth
Third
I explore several stores before I
Fourth
Second
shop
43
suggest what to buy
V
IV
before Purchasing. While a most of the people don’t mind to go far for Shopping.
According to the Graph large nuber of people agrees with the statement that they
prefer to buy from nearby store and people agree with that they make shopping list
44
STRENGHTS
45
WEAKNESS
46
OPPORTUNITIES
THREATS
47
1. Price war with competitors.
2. Emergence of Super kirana stores.
3. Competitors have superior access to channel of distribution.
4. Competitors have new innovative products and services.
5. Threat from international biggies.
6. High threats from mom and pop stores.
48
49
FINDINGS
Customers/consumer mostly prefers to buy on the weekly basis due to its
convenience.
Customer / consumer mostly prefer to shop with family and they give second
preference shopping alone.
It is considered that the services provided by the organized retailer are good
and they are happy with it.
Now a days people prefer purchase from Organised Retail rather than
Unorganised retail market due to availability of many factility to them under a
single roof.
Today costumer like to puchase from the near by outlet they don’t like to go far .
Today consumer are more Quality conscious rather than pice and offers
available at the stores.
People consider the home delivery is good when needed and provided they are
not dependent on home delivery of products.
Generally people make a list of shopping item which they want to shop from the
market with predefined Budget amount
Most of the customer from where they buy is loyal towards their store.
Through our survey we find that 49% customers are agree that their buying
decision affect by home delivery.
Through our survey we found 75% customers have availed home delivery at
once or twice or generally take.
74% customers are agree that the merchandise available at the store is
sufficient.
36% customers prefer to buy from reliance fresh due to its services and
convenience
50
RECOMMENDATIONS
IndiaBulls Mart Should starts the bundle marketing to attract the more
percentage of customers.
IndiaBulls Mart should have their own recreation and refreshment facility like
popcorn shop.
IndiaBulls Mart should provide training and development programmes for all
employees.
51
52
Questionnaire
Dear respondent,
The project aims to study the retail trends of the city and
comparison between various retail (FHPC format) stores.
Gender: M/F
Age: ____
Occupation: ________________________________________________
Area of stay: _______________________________________________
Family members (No.):______
Q3. If you buy from organized retail from where do you buy:
(a) Reliance Fresh
(B) IndiaBulls Mart
(C) Apart
(D) Others
Q.4.What is the approximate monthly expenditure (Amount –
Rs.) on following-
a. Food and Grocery _______
b. Personal care/Fitness _______
c. Entertainment _______
d. Consumer durables _______
e. stationery_______
Q.5.With whom you generally prefer to purchase (Tick)-
1. Friends ____
2. Family ____
3. Alone ____
4. Husband/wife ____
53
Q6. Are you happy with the change in retail trend, i.e., from
vendors to organized retail;
(a) Agree
(b) Disagree
(c) Neither agrees nor disagrees
(a) Agree
(b) Disagree
(c) Neither agrees nor disagrees
54
(d) Damage
Q.13 Have you ever availed home delivery service of the store?
(a) Agree
(b) Disagree
If agree,
Satisfactory
Dissatisfactory
Average
Q15. Rate the following variables on the basis of how you prefer
to shop.
(1 is the least important and 5 is the most important)
Near to home 1 2 3 4 5
One stop shop 1 2 3 4 5
Price 1 2 3 4 5
Variety 1 2 3 4 5
Home delivery 1 2 3 4 5
Display 1 2 3 4 5
Credit facility 1 2 3 4 5
Return/Exchange 1 2 3 4 5
Parking facility 1 2 3 4 5
In store help 1 2 3 4 5
Behavior of staff 1 2 3 4 5
Quality of product 1 2 3 4 5
Offers available 1 23 4 5
55
Q16 Read the following statements and indicate your response
on the scale mentioned
1 2 3 4
5
Strongly Agree Neutral Disagree Strongly
Agree Disagree
56
10 Big stores generally charge high prices 1 2
3 4 5
57
References
• www.indianretailforum.com
• www.thehindu.com
58
• www.keynoteresearch.com
• www.ey.com
• www.tradingeconomics.com
• www.authorstream.com
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