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Retail outlet preference of customers at Monday to Sunday store

A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE AWARD OF MBA DEGREE OF BANGALORE UNIVERSITY.

Submitted By Ms. Naveena.K.P Reg.No-05XQCM6051

UNDER THE GUIDANCE OF

Dr. K. V. Prabhakar M P Birla Institute of management Bangalore

M.P.BIRLA INSTITUTE OF MANAGEMENT ASSOCIATE BHARTIYA VIDYA BHAVAN. BANGALORE-560001

2005-2007

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DECLARATION

I hereby declare that this dissertation entitled Rerail outlet preference of customers at Monday to Sunday store is the result of my own research work carried out under the guidance and supervision of Dr. K V Prabhakar, M P Birla Institute of Management Bangalore. I also declare that this dissertation has not been submitted earlier to any Institute/organization for the award of any degree or diploma.

Place: Bangalore Date: Naveena.K P

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CERTIFICATE

I hereby certify that this dissertation entitled Retail outlet preference of customers at Monday to Sunday store is the result of research work carried out by Ms. Naveena.K P under the guidance of Dr. K V Prabhakar , M P Birla Institute of Management, Bangalore.

Place: Bangalore Date: (Dr N S Malavalli) Principal

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CERTIFICATE

I hereby certify that this dissertation entitled Retail outlet preference of customers at Monday to Sunday store Bangalore is an offshoot of the research work carried out by Ms. Naveena.K P under my guidance and supervision.

Place: Bangalore Date: (Dr. K V Prabhakar)

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ACKNOWLEDGEMENT

I would like to express my sincere gratitude to my research guide Dr K V Prabhakar Adjunct Faculty, M.P.Birla Institute of Management, Bangalore for her constant encouragement and guidance in the course of the research investigation. Further, I would also like to thank all the faculty members of MPBIM who have helped me in completing my project. I have gained a lot of knowledge throughout the course of carrying out this project. I would like to sincerely thank my Parents and all my Friends who have helped me in completing this project by providing me with the psychological and academic support.

Naveena.K P

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EXECUTIVE SUMMMARY

The Indian retailing industry was traditionally dominated by small kirana stores. However with globalization, organized retailing has become the buzz word in India. Though organized retailing occupies a minuscule share of the retail industry, it is characterized by intense competition and multi channel delivery systems. The research that forms the basis of this dissertation was carried out at Monday to Sunday, a hypermarket based in Bangalore. The core business of Monday to Sunday is retailing. The main objective of this project is to understand the retail outlet preference of at Monday to Sunday store. It also helps to understand the reasons why customers visit a particular store. The research also involves analyzing the data to determine the most preferred store among customers and the significance of each stores, reason as in why customers prefer a particular store. It also helps to improve services and products in line with that of competitors. The research sought to make a comparative analysis of different retail stores in Bangalore, and made appropriate recommendations for an effective brand preference by customers. The areas where Monday to Sunday has an edge over its competitors have been identified based on the analysis done on the responses to the questionnaire. Appropriate recommendations have been made to help Monday to Sunday improve further in various areas.

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SIGNIFICANCE OF RETAILING IN THE CURRENT MARKETING SCENARIO

Introduction
India represents an economic opportunity on a massive scale, both as a global base and as a domestic market. Indian Retail sector consists of small family-owned stores, located in residential areas, with a shop floor of less than 500 square feet. At present the organized sector accounts for only 2 to 4% of the total market although this is expected to rise by 20 to 25% on YOY basis. Retail growth in the coming five years is expected to be stronger than GDP growth, driven by changing lifestyles and by strong income growth, which in turn will be supported by favorable demographic patterns and the extent to which organized retailers succeed in reaching lower down the income scale to reach potential consumers towards the bottom of the consumer pyramid. Growing consumer credit will also help in boosting consumer demand. The structure of retailing will also develop rapidly. Shopping malls are becoming increasingly common in large cities, and announced development plans project at least 150 new shopping malls by 2008. The number of department stores is growing much faster than overall retail, at an annual 24%. Supermarkets have been taking an increasing share of general food and grocery trade over the last two decades. However, distribution continues to improve, but it still remains a major inefficiency. Poor quality of infrastructure, coupled with poor quality of the distribution sector, results in logistics costs that are very high as a proportion of GDP, and inventories, which have to be maintained at an unusually high level. Distribution and marketing is a huge cost in Indian consumer markets. It's a lot easier to cut manufacturing costs than it is to cut distribution and marketing costs.

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Also, government has relaxed regulatory controls on foreign direct investment (FDI) considerably in recent years, while retailing currently remains closed to FDI. However, the Indian government has indicated in 2005 that liberalization of direct investment in retailing is under active consideration. It has allowed 51% FDI in "single brand" retail. The next cycle of change in Indian consumer markets will be the arrival of foreign players in consumer retailing. Although FDI remains highly restricted in retailing, most companies believe that will not be for long. Indian companies know Indian markets better, but foreign players will come in and challenge the locals by sheer cash power, the power to drive down prices. That will be the coming struggle The Indian retailing industry was traditionally dominated by small kirana stores. However with globalization, organized retailing has become the buzz word in India. Though organized retailing occupies a minuscule share of the retail industry, it is characterized by intense competition and multi channel delivery systems. Retailing consists of those business activities involved in the sales of goods and services to consumers for their personal, family or household use. The field of retailing is both fascinating and complex. It has enormous impact on the economy, in distribution, and its relationship with companies that see goods and services to retailers for their resale or use. Retailing is the final stage in the distribution process, it does not necessary have to include a retailer. Manufacturers, importers, non-profit firms, and wholesalers, and other organization are also considered as retailers when they sell goods and/or services to final consumers. Competition in the retailing scene has intensified manifold for the past few decades, generally as a consequence of new technologies, more sophisticated management practices and industry consolidation. These trends have been especially pronounced in the food industry. There has been a significant amount of studies that examine the issues of retail chain channel management and retail marketing strategies to tackle the fierce competition in existing retail channels in food industry. As in all other industries, the ultimate decider of the eventual success of an alternative retail channel is the CONSUMER.
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Consumers refer to individuals who buy products and services for themselves or on behalf on their households. They are invariably either users of these products or services or responsible for the welfare and well being of those who are. Since consumers are extremely crucial for retailers, an understanding of consumer behavior is an essential prerequisite of successful retail marketing strategy and one of the most fundamental principles of in exerting influence on consumer patronage decision process. Without customer focus, marketing planning can easily be dominated by the actions of competitors or internal influences. The success of a retailer depends on how well he/she selects, identifies and understands his customers. The feasibility of new retail channels is also highly dependent on retailers ability to select the type of consumer segments to reach (mass markets, market segment, or multiple segments), to identify the characteristics and needs of the specific target market and understanding how consumers make decisions. According to Peter McGoldrick, the most successful examples of innovation and evolution in retail formats are retailers that respond accurately and profitably to previously unsatisfied needs.

TYPES OF RETAIL OUTLETS:

The emergence of new sectors has been accompanied by changes in existing formats as well as the beginning of new formats: Hyper marts, typically 8,000 sq.ft and more Large supermarkets, typically 3,500-5,000 sq. ft. Mini supermarkets, typically 1,000-2,000 sq. ft. Convenience stores, typically 750-1,000sq. ft. Discount/shopping list grocery

Indian retailing industry has seen phenomenal growth in the last five years (2001-2006). Organized retailing has finally emerged from the shadows of unorganized retailing and is contributing significantly to the growth of Indian retail sector. RNCOS India Retail Sector Analysis (2006MP BIRLA INSTITUTE OF MANAGEMENT

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2007) report helps clients to analyze the opportunities and factors critical to the success of retail industry in India Modern retail in India could be worth US$ 175-200 billion by 2016. With the economy booming, competition in the marketplace is fierce. According to 'Retail in India Getting Organized to Drive Growth', a report by AT Kearney and the Confederation of Indian Industry, retail is one of India's fastest growing industries with a 5 per cent compounded annual growth rate and expected revenues of US$ 320 billion in 2007. Rising incomes, increasing consumerism in urban areas and an upswing in rural consumption will fuel this growth to around 7-8 per cent. KSA-Techno park, a retail consulting and research agency, predicts that by 2010, organized retailing in India will cross the US$ 21.5-billion mark from the current size of US$ 7.5 billion

EVOLUTION OF FOOD RETAIL CHAIN IN INDIA

Food Chains were viewed as shopping destination for rich and affluent which is no longer true. Super markets are fast expanding in developing countries. Among developing countries, Latin American countries are the pioneers in establishing supermarkets. Evolution of super markets and fast food chains is a recent phenomenon in India. Various demand and supply side factors have contributed towards this growth.

Supply Side: Liberalization of the economy in 1990s led to boom in consumer goods industry with reductions in custom duties and shift from quota to tariff based system Entry barriers on multinationals were largely removed -Kelloggs, Heinz, Tropicana, etc. have entered the Indian food industry Development of sophisticated supply chain & logistics Growth in food processing & packaging industry

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Demand Side Increase in the income levels of middle & higher income groups in the 1990s together with the reduction in poverty levels Changing consumer lifestyles-increasing time value, nuclear families Increasing level of quality awareness Advent of cable television and overseas travel Food dominates the shopping basket in India. The US$ 6.1 billion Indian foods industry, which forms 44 per cent of the entire FMCG sales, is growing at 9 per cent and has set the growth agenda for modern trade formats. Since nearly 60 per cent of the average Indian grocery basket comprises non-branded items, the branded food industry is homing in on converting Indian consumers to branded food. Food industry contributes to about 18 % of Indias manufacturing Output and around 5 % of total industrial investment. The estimated turnover of this highly heterogeneous food and beverage industry exceeds Rs570 bn. Niche segments comprising packaged and branded food products have recently witnessed rapid growth accompanied by intense competition .As much as, 52 % of Indian household budget is spent on food items and the share of processed food products entering the market is expected to rise rapidly.

The food industry also assumes significance owing to Indias Sizable agrarian economy, which accounts for over 35% of GDP and Employs around 65 per cent of the population. Nevertheless, the extent of Food processing (share of processed food in total raw food available in the Country) is way below international standards is very low. For instance, only 0.6 % of fruits and vegetables and about 50 % of milk production is currently processed

There are a large variety of retailers operating in the food retailing sector. This is not surprising considering the enormous size of the market for food. However, traditional types of

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retailers, who operate small single outlet businesses mainly using family labour, dominate this sector. In comparison, supermarkets account for a minuscule proportion of food sales

FOOD AND GROCERIES TO SEE STRONG COMPETITION

The three nameplate entries into organized retail - Reliance Retail, the Aditya Birla Group and Bharti Retail (through a 50:50 joint venture (JV) for supply chain and a wholly-owned front-end) with Wal-Mart Stores Inc have all chosen the food and groceries category as their debut sector. This is due to the easy scalability of network and operations and the substantial opportunity in this space. This segment has the lowest penetration of organized retail (estimated at 1%), and therefore the highest supply chain inefficiencies. It is also less susceptible to cyclical fluctuations as it follows the basic, more stable demands of consumers. These three retailers have all chosen the "small box" format for their preliminary entry into the sector, using this to establish their supply chain network. Having established themselves in this sector, these new entrants have plans to enter the hypermarket format as well. Existing retailers, including Subhiksha (discount supermarket), Piramyd (Trumart), Godrej (Nature Fresh), RPG Retail (Spencer's Daily, based in the south), Nilgiris (supermarket, based in the south) and Pantaloon Retail (India) Ltd (Big Bazaar and Food Bazaar), have all announced large investments over the next few years. However, increased competition in this field is unlikely to have a major effect on broad-level operating metrics of existing retailers in the immediate-term, given the low penetration of organized retail. That said, in larger cities where penetration levels are higher, losses at the store level could result from growing competition and higher operating costs. However, given the substantial opportunities available in the Tier II and Tier III cities, the full effect of competition will only be felt in the medium- to long-term. Retailers will find it necessary to have at least a limited presence in larger cities despite higher costs, primarily for strategic and brand purposes.

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Over the medium term, hypermarkets will have more competition. The Indian market is large enough to support around four to five major players, though survival will depend on retailers' ability to deliver tangible value to the customer and their supply chain efficiencies. Maintaining lean

operating levels will become increasingly critical, and are required to manage margins. The longer term could also see a scenario of margins shrinking as growth rates slow.

Retailing in India: Key Trends and Problems

The Indian retail industry was traditionally dominated by small family run kirana stores. Between the nineties and now, the environment of retailing has gradually changed. The disposable income of consumers has gradually increased and the consumer perception of value has changed over the period. The Urban Land Ceiling Act has been amended enabling easier access to land and there has been considerable activity in terms of creation of retail-oriented space across India. According to a CII estimate there are over 200 retail mall projects under construction or under active planning stage spanning over 25 cities. This may translate into over 250 million square feet of new retail space in the market within the next 2 years. These key trends indicate that retailing has emerged as one of the lucrative sectors in the Indian industry. The retail market in India, at present (year 2005), is estimated to be around Rs.800, 000 Crores. But only a miniscule proportion of this market is organized. Organized retailing is, generally, defined as a professional service-oriented set-up characterized by professional management and a strong customer focus. The spread of organized retailing has been a predominantly urban phenomenon and it is likely to remain so in the near future. The organized retail market is essentially concentrated in the cities of Mumbai, Delhi, Calcutta, Chennai and Bangalore. The market in these cities is growing and the
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organized retail is concentrating primarily on these markets. The retailers are using various strategies like value for money, experience, variety, quality and convenience.

The organized retail has made considerable headway in products like food, groceries, clothing, books and music. The apparel and the consumer durables sector are also lucrative, in that, these sectors also have a large market in the urban areas.

The key challenges to retailers in the present scenario include: High real estate costs. Low margins, in India retail margins are amongst the lowest across all categories. Logistics and supply chain management pose a challenge because of the lack of adequate Infrastructure. Restrictions on FDI in retail sector.

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GROWTH OF SHOPPING MALLS IN INDIA

Shopping malls have existed in India since several decades but were designed and built to house several shops in a single facility. These malls also known as Shopping Arcades offered only rows of shops, most of which were small stores that promised bargains for their various wares. These Shopping Arcades tried to maximize on their store space and did not offer any areas for recreation and entertainment. The present day malls are a creation of the past few years post 2000. They are designed professionally using a lot of international experience and combine shopping with a lot of brand building, recreation, food and entertainment. Malls also have a large format store that serves as their anchor for shopping and a prominent restaurant that anchors the food needs of visitors. Most malls also feature a multiplex cinema that offers entertainment to the visitors of the mall. Finally the mall has large atria and open spaces to allow visitors and families to hang-out. Malls throughout the country are getting bigger as they are now being positioned as a one-stop-shop for shopping, entertainment, leisure and eating-out needs rather than a place only for shopping for fashion products The new shopping malls that have been expanding their footprint across Indian cities are well designed, built on international formats of retailing and integrated with entertainment and restaurants to provide a complete family experience. Over 300 malls are expected to be built over the next two years and most Indian cities with over a million population will be exposed to this modern method of retailing.

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THE organized retail sector is expected to grow at a higher rate than GDP growth in the next five years driven by changing lifestyles, strong income growth and favorable demographic patterns The structure of retailing is developing rapidly with shopping malls becoming increasingly common in large cities, and development plans being projected at 150 new shopping malls by 2008. The annual growth of department stores has been estimated at 24 per cent, which is faster than overall retail; and supermarkets have taken an increased share of general food and grocery trade over the last two decades. Disposable incomes remain concentrated in urban areas, `well-off' and affluent classes and the growing number of double-income households. However, the sheer size and potential of the rural segment has been underestimated. The Indian market is evolving dynamically and there is hidden consumption power in the low-income rural areas that offers considerable opportunities for organized retailers in the kind of rural territories that many companies have failed to address. The retail growth therein is expected to be double-digit if infrastructure allows the consumer companies to reach new markets at reasonable costs. As the market is changing fast with growth in disposable incomes, the Indian consumer is emerging to be more trend-conscious with the development of modern urban lifestyles. Specialized retailers in segments such as consumer durables and white goods, books, music, lifestyle goods, household furnishings, furniture, healthcare & beauty, etc are developing rapidly and Indian retailing is undergoing a slow but deep-rooted shift away from total reliance on countless small family-run stores towards larger, more formal retail outlets. However, for foreign retailers willing to do business in India, concerns such as cost of retail space, FDI controls, `unorganized ' sector competition, shortage of urban retail space need to be addressed. It adds that the food and beverages segment is an emerging growth area. Similarly, the gems and jewellery market is a key emerging area with significant potential. While Indians continue to shop with unbranded jewellery stores, the organized sector is offering branded solutions to the demand for quality and value, as consumers move away from traditional retail settings reliant on family retailers.
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Gemstones and jewellery represents the most significant segment of Indian retailing, accounting for a high proportion of total retail spend, and also representing a growing global retailing operation as Indian retail chains begin to expand into high-value markets in the West Asia, Europe and the US.

However, the distribution network in India needs to be strengthened. The large geographical spread is a problem and so are the logistics of connecting various regions. The issue is about having the necessary infrastructure and organizational support to reach and tap this market. Consumer companies are faced with various roadblocks with respect to distribution such as large geographic area, infrastructural constraints, distributor costs, fragmented market, lack of national distribution networks and lack of distribution hubs.

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GROWTH OF SHOPPING MALLS IN BANGALORE

If you enjoy shopping, you will enjoy Bangalore. If you enjoyed Bangalore, you will like shopping here. Bangalore has become a shopper's paradise. With popular shopping malls, as well as little shops (tucked away behind the big malls) stocking up some really trendy stuff. From the airconditioned ambience of super stores to the bustling by-lanes, Bangalore has something to offer every kind of shopper. You could find some of the biggest brands in the world. The streets are clogged with heavy traffic (both cars and people). Shops sporting foreign names sell imported goods here. These shopping malls sell everything from electronic watches to music systems. Bangalore is famous for the shopping malls which have some of the finest and biggest showrooms in India. Bangalore has a bunch of nicknames and one of them is Shoppers Paradise. From A/c shopping Malls to street side bargain shopping- the city has it all. Super Markets like Big Bazaar, FabMall, are big hits with the young and the old alike. Disposable incomes remain concentrated in urban areas, `well-off' and affluent classes and the growing number of double-income households. The growth of shopping malls in Bangalore is on a high reach with more and more people adopting the mall culture. People like the concept of malls, which provide consumers with all the products available under one roof thereby not going to different places to buy different products. These days all supermarkets provide all products including vegetables, groceries, ready to eat etc under one roof making consumers life easy and comfortable. With Bangalore adopting a fast life, this concept of shopping malls is being accepted by most of the people, thereby resulting in the increase of shopping malls in Bangalore.

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COMPANY PROFILE
Monday to Sunday is a chain of super stores, which operates in Bangalore. Its unique selling proposition is freshness. The outlets encompass the whole gamut of food products, frozen, chilled, fresh, packaged, canned and dry. The store offers to its customers the widest selection of fresh fruit, vegetables, meats and frozen products, under regulated temperature and hygiene. The stores have an offering of over 20,000 products across fresh food, processed food, groceries, liquor, home care and personal care categories. The stores have invested in a 100% power back up for all its equipment as well as air conditioning and is therefore successful in providing a completely temperature-controlled environment for all food stuffs, ensuring their freshness and longevity. For example, the fresh vegetables and fruits are displayed and stored in chillers, ensuring freshness through the day. Similarly, the fresh homemade ice creams and meats are stored in freezers that have 100% power backup, so icicles do not form on the meat as it thaws and resets. This prevents any build up of bacteria. Since its inception Monday to Sunday has created strong brand loyalty with a segment of discerning customers within Bangalore. We have and continue to set benchmarks in food retailing in this market. Monday-to-Sunday convenience store chain is run by Food Express Store India Limited. The Hyper Market, which is designed on similar lines that of international shopping malls like Wal Mart, is a single-point food store covering primarily food items including packaged foods, processed items, groceries, vegetable/fruits, bakery products, confectioneries, savories along with a range of beverages as well as alcohol. In addition, it will also stock non-food items like apparels, sports goods, bed and linen to name a few in the near future.

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The unique selling proposition of the Hyper Market is the price and range. It also stands apart in terms of ambience, technology and convenience. Part of the Bhartia Group that owns Jubilant Organosys Ltd., Food Express Store acquired Amalgam Foods and Beverages to set up its maiden store at Indiranagar. The Bangalore-based venture which started off as a convenience store four years ago has since then set up two supermarkets in the city at Koramangala and JP Nagar. Besides the Hyper Market, the company is aggressively looking at expanding in its formats supermarkets and convenience stores in Bangalore. The outlet expansion will also increase head count manifold to service the burgeoning retail sector. Currently, Monday-to-Sunday has a 50-member workforce for back-end operations and 200 at the front end. The robust back-end team is aimed to handle the expansion plans of the company and garner the required experience in handling the rapid rise of customer inflow. The strengths of Monday-to-Sunday rest on business, people, environment and integrity and the company is investing in both manpower and technology to be competitive. Jubilant Corporations business interest in food and retail segment is represented through Dominos Pizza and Monday to Sunday. The brand equity enjoyed by these companies is formidable and is based on the value Jubilant has built over the years of operating in this segment. As pioneers in these businesses we have an all-India network of outlets for Dominos (company-owned) . These are built on strong fundamentals, which include the supply chain management and a strong team manning these outlets. These fundamentals have enabled us to consistently offer fresh and quality products, standardized across the country for each business. Jubilant Corporation, with the promise of Caring, Sharing, Growing, is a conglomerate of four businesses - namely Life Science Products & Specialty Chemicals, Oil & Gas (Exploration & Production), Food and Services. Jubilant symbolizes positivity, dynamism, triumph and joy, all of which guide and shape the corporation's collective experiences and efforts. Jubilant will always care for human needs, share its
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expertise to provide a better life and help upgrade the stakeholders standard of living and the corporation's sustainable growth by dynamiting the value chain within the Corporation. Jubilant vision is to be amongst the top 10 most admired companies to work for. We want to maintain and acquire the first or second leadership position in our chosen area of business in India and to establish it globally. They Endeavour to create new opportunities for growth in our strategic businesses which give a 10 points higher rate of return than the cost of capital. Jubilant values guide to achieve our vision in our chosen areas of business, which comprise the following:

Life Science Products and Specialty Chemicals

Jubilant Organosys Jubilant Biosys Jubilant Chemsys Jubilant Clinsys PSI & PSI Supply Trigen Laboratories Clinsys

OIL & GAS (E&P)

Jubilant Enpro Food Domino's Pizza Monday To Sunday

Services

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Jubilant Enpro

Vision, Promise and Values Jubilants Values determine their business path. Combined with Promise and Vision, these values have determined what they have achieved and they continue to guide their future.

Jubilants Values Teamwork

They carefully select, train and develop people to be creative, empower them to take decisions, so that they respond to all customers with agility, confidence and teamwork.

Efficiency

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Jubilant stretches itself to be cost effective and efficient in all aspects of operations and focuses on flawless delivery to create and provide the best value to customers. Know-how

By sharing our knowledge and learning from each other and from the markets they serve, Jubilant continues to surprise customers with innovative solutions.

Delivery

With utmost care for the environment and safety, Jubilant always strives to excel in the quality of processes, products and services.

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Business Path

Jubilants Promise

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Jubilants Vision

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REVIEW OF THE LITERATURE

The purpose of literature review is to identify the problem statement, understand the secondary data that has been gathered in this field of study. Methodology of literature review encompasses different facets of information sources concerning to services in food retail.

Different sources used in order to collect the information or data are Magazines and journals The internet Marketing journals, Advertising journals Publications Articles

The articles were analyzed and used in the research for better understanding of the topic. Some of the research findings #01 Research title: visual merchandising: eyeing for purchase at MTR retail outlet, Bangalore. Findings and recommendations

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Some important findings of the study are: The ambience of the store is a very important element in Visual Merchandising as it influences consumers in purchase decision. Visual merchandising will lead to impulse purchase buyer of the product. Visual Merchandising enhances the pleasure of shopping experience. MTR new retail look has been rated Good.

An important offshoot of our research investigations is that the MTR retail outlet is doing well, but there are some areas in the store where the company can improve as such certain recommendations have been given in order to bring about improvement in the MTR store.

#02 research title: Distribution Channels and retailers satisfaction level at Annapurna traders.

Findings and recommendations From the research it is concluded that the distribution channel of the Britannia play a vital role in success & survival of the brand. Britannia Industries Limited should adopt right distribution process for products & also through the proper intermediaries. Company can concentrate on factors like appointment of the dealers/ distributors, their remuneration method, terms of payment etc. Britannia is market leader. Parle is the main competitor for Britannia. Concentration has to be given on the glucose Biscuit Tiger brand. The premium segment (varieties) of Britannia is doing very well. Margin, brand image, credit facility, advertisement will help retailers to push the products. Retailers also want some offers from the Company to push the products fast in the market.

Conclusion Most of the researchers have concluded that services provided, merchandising and ambience are very important in the retail outlets.

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PROBLEM STATEMENT
The crux of the problem lies in understanding whether customers prefer to shop at the usual kirana stores or are they satisfied buying at retail outlets. Also the problem is to understand, why customers prefer to shop at a particular retail outlet as compared to various other competitors in the same field.

RESEARCH OBJECTIVES

To examine the store preference of customers at Monday to Sunday as compared to

competitors. To capture the perceptions of consumers towards this store (Monday to Sunday). To improve services and products in line with that of competitors. To capture the perceptions of consumers towards visual merchandising. To make a comparative analysis of different retail stores in Bangalore. To make appropriate recommendations for an effective improvement in store performance.
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RESEARCH METHODOLOGY
This research investigation is company-specific and highly qualitative in nature. Primary data is collected using the structured questionnaire, and also through personal interaction with the customers at the stores and personal observation. Secondary data is collected from various sources which include articles published in magazines, internet, company brochures and publications.

The data is collected by contacting the 100 consumers personally at Monday to Sunday outlet in Bangalore city. Collected data is tabulated using tables, charts and graphs, and inferences are drawn accordingly.

SAMPLING TECHNIQUE:
The sampling technique used for this research is simple random sampling. Questionnaires are administered to 100 customers selected on convenience basis in the absence of any data base about the customers. That is irrespective of whether the customers purchased at Monday to Sunday on a regular basis or not, but the questionnaire is given to people who made a purchase at the outlet.

SAMPLE SIZE
The chosen sample size is 100.The sample is derived from the respondents within Bangalore city at the Monday to Sunday retail outlet.

RESEARCH LIMITATIONS

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This research investigation is company-specific and is limited one geographical area; also restricted to a limited sample size, problem of generalization is, therefore, obvious. Time and resource constraints Results are purely based on primary information The analysis and interpretation is made under the assumption that data are accurate

DATA ANALYSIS & INFERENCES

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Table showing whether customers prefer shopping at retail outlet or local stores

Serial No. 1 2

Response Yes No

Percentage 87 13
Source: Field Investigation

Graph showing whether customers prefer shopping at retail outlet or local stores

Graph showing whether customers prefer shopping at retail outlet or local stores
100 90 80 70 60 50 40 30 20 10 0

Series1

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Analysis and inference: It is observed that most customers prefer shopping at retail outlets as compared to local stores. It is the wide availability of products that attract customers to retail outlets. Other reasons include service, merchandise, and ambience. The retailers should concentrate more on these facilities to attract more customers.

Table showing age group of respondents

Serial No. 1 2 3 4

Age group of respondents Less than or equal to 20 Between 20 and 30 Between 30 and 40 Above 40
Source: Field Investigation

Percentage of respondents 8 70 12 10

Chart showing age group of respondents

Chart showing age group

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Analysis and inference From the above table, it is evident that most of the customers who visit Monday to Sunday are aged between 20 and 30. 70 percent of the respondents fell in this category. About 12 percent of the respondents were aged between 30 and 40, 8 percent below 20 and only 10 percent of them were aged above 40. The retailers should concentrate more on older age groups so as to increase the sales. Table showing gender of the respondents. Serial No. 1 2 Gender of the respondents Male Female
Source: Field Investigation

Percentage 65 35

Chart showing gender of respondents

Gender split
70 60 50 40 Series1 30 20 10 0 Male Female

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Analysis and inference Gender indicates proportion of Male and Female customers who have visited Monday to Sunday. It has been well documented that males and females can differ in traits, attitudes, and activities that can affect consumer behavior and choices. Hence the gender details of the respondents were collected, which has been shown in the diagram. From the statistics we can find that 65 percent of the respondents were males and the remaining were females. It can be concluded that majority of men visit Monday to Sunday. Chart showing the frequency of customer visiting Monday to Sunday Serial No. 1 2 3 4 Frequency Daily Weekly Fortnight Monthly
Source: Field Investigation

Percentage 10 43 17 30

Chart showing frequency of customers visiting Monday to Sunday

Graph showing frequency of customer visit

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Analysis and interpretation

Analysis and Inference Most of the customers visit Monday to Sunday on a weekly basis. 30 percent of the customers visit monthly and 17 percent visit once a fortnight. Only 10 percent visit daily. The store can arrange for weekly special offers to retain the existing customers as the frequency of customer visits are on weekly basis.

Table showing the time span since the respondent has been a customer of Monday to Sunday.

Serial No. 1 2 3 4

Time span A Month 6 months 1 year More than a year

Percentage 27 22 11 40

Source: Field Investigation

Chart showing the time span since the respondent has been a customer of Monday to Sunday.

Chart showing time span since the respondant has become customers

1 month 40 20 More than a year 0 6 months

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Analysis and inference Out of the 100 respondents, 40 percent of them have been customers of Monday to Sunday for more than a year. This shows that the majority of the respondents have been a customer of Monday to Sunday for a long time. The company should focus on retaining the new customers.

Table showing the reasons why customers visit Monday to Sunday. Serial No. 1 2 3 4 5 Reasons Availability of products Ambience Store layout Service Merchandise Percentage 67 5 24 16 4

Source: Field Investigation Chart showing the reasons why customers visit Monday to Sunday

Chart showing the reasons why customers visit Monday to Sunday

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Analysis and Inference It is seen from the graph that most of the customers visit Monday to Sunday because of availability of products. Store layout is another criterion for visiting Monday to Sunday. Other reasons include service, merchandise and ambience. Service has to be taken care of, as retailers should treat each customer as king.

Table showing the reasons for customer loyalty Reasons Percentage

Serial No. 1 2 3 4 Convenience Availability of products Experience Service 45 53 8 9

Source: Field Investigation

Chart showing the reasons for customer loyalty

Chart showing the reasons for customer loyalty
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Analysis and Inference Out of the 100 respondents, 53 percent responded that the reason for customer loyalty is due to availability of products. About 45 percent said that the store is very convenient for shopping and the rest prefer for experience and service.

Table showing the various retail outlet visited by customers. Serial No. 1 2 3 4 5 6 7 Stores Monday to Sunday Food World Fab Mall Big Bazaar Nilgiris Subiksha Spencers
Source: Field Investigation

Percentage 19 58 56 63 20 15 13

Chart showing the various retail outlet visited by customers.

Graph showing the various retail outlet visited by customers

70 60 50 40

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Analysis and Inference It is seen from the graph that 63 percent of the respondent visit Big Bazaar. So the most visited store is Big Bazaar. The reasons why customers visit Big Bazaar is due to the wide availability of products and merchandise. The other stores should concentrate more on improving these features. Table showing the reasons why customers visit other stores. Serial No. 1 2 3 4 5 6 7 8 Reasons Accessibility Just for change Facilities are better Better and varied products Prices are less Better Service Better Ambience Convenient Source: Field Investigation Chart showing the reasons why customers visit other stores. Percentage 1 31 17 28 25 13 12 5

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Graph showing the reasons why customers visit other stores

accessibility Just for a change Facilities are better Better and varied products Prices are less Better service Better ambience convenience

Analysis and Inference The reasons why customers visit other stores is due to better and varied products, followed by the difference in prices. Retailers should focus on providing the stores with varied products and price discounts to attract more customers. Table showing whether customers would substitute a product which is not in stock

Serial No. 1 2 3

Response Agree Disagree Neither agree nor disagree

Source: Field Investigation

Percentage 39 43 18

Chart showing whether customers would substitute a product which is not in stock

Graph showing whether customer would substitute a product which is not in stock

50 40 30

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Analysis and inference It is seen that customers disagree to substitute a product which is not in stock which shows that they are product- specific. The retailers should focus on providing the stores with enough products so that their customers dont get drained away and competitors win on that.

Table showing the stores which provide best value for money Serial No. 1 2 3 4 5 6 7 Stores Monday to Sunday Food World Fab Mall Big Bazaar Nilgiris Subiksha Spencers
Source: Field Investigation

Percentage 9 35 20 47 6 5 1

Chart showing the stores which provide best value for money

Chart showing the stores which provide best value MP BIRLA INSTITUTE OF MANAGEMENT for money

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Analysis and Inference It is observed that Big Bazaar provides the best value for money as compared to other stores. Big Bazaar provides huge discounts which attract more customers. Other stores should also provide discount which will help in increasing store traffic. Table showing the stores which have products in stock

Serial No. 1 2 3 4 5 6 7

Stores Monday to Sunday Food World Fab Mall Big Bazaar Nilgiris Subiksha Spencers

Percentage 17 30 28 39 6 3 3

Source: Field Investigation

Chart showing the stores which have products in stock

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Graph showing the stores which has products in stock

Monday to Sunday Food World Fab Mall Big Bazaar Nilgiris Subhikska Spencers

Analysis and Inference It is observed that Big Bazaar has most number of items in stock. Customers prefer shopping at stores which provide all the products in stock as they dont want to visit other stores for different products. Table showing the stores which have the best quality merchandise

Serial No. 1 2 3 4 5 6 7

Stores Monday to Sunday Food World Fab Mall Big Bazaar Nilgiris Subiksha Spencers
Source: Field Investigation

Percentage 10 41 16 31 17 2 3

Chart showing the stores which the best quality merchandise

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Graph showing the stores having the best quality merchandise

Monday to Sunday Food World Fab Mall Big Bazaar Nilgiris Subhikska Spencers

Analysis and Inference Food World has the best quality merchandise as compared to other stores. Merchandise is a very important factor in retail and best quality merchandise can actually improve the store performance. Retailers should focus on improving merchandise. Table showing the stores which has the most convenient store layout for shopping

Serial No. 1 2 3 4 5 6 7

Stores Monday to Sunday Food World Fab Mall Big Bazaar Nilgiris Subiksha Spencers
Source: Field Investigation

Percentage 71 24 8 13 2 1 2

Chart showing the stores which has the most convenient store layout for shopping
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Graph showing the store which has the most convenient store layout for shopping

Monday to Sunday Food World Fab Mall Big Bazaar Nilgiris Subhikska Spencers

Analysis and Inference Among all the other stores, Monday to Sunday has the most convenient store layout for shopping. Customers feel extremely convenient shopping at this store as the store is very spacious and provides easy access to reach out for products. Table showing the stores which has widest selection of products

Serial No. 1 2 3 4 5 6 7
Source: Field Investigation

Stores Monday to Sunday Food World Fab Mall Big Bazaar Nilgiris Subiksha Spencers

Percentage 12 34 20 44 14 1 2

Chart showing the stores which has widest selection of products

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Graph showing the stores having widest selection of products

Monday to Sunday Food World Fab Mall Big Bazaar Nilgiris Subhikska Spencers

Analysis and interpretation Big Bazaar has the widest selection of products as compared to other stores. Customers prefer shopping at this store as there is a wide choice among products. It is the wide selection of products which attracts customers to a particular store

Table showing the stores which has convenient parking for customers

Serial No. 1 2 3 4 5 6 7

Stores Monday to Sunday Food World Fab Mall Big Bazaar Nilgiris Subiksha Spencers

Percentage 20 17 11 53 2 1 2

Source: Field Investigation

Chart showing the stores which has convenient parking for customers
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Graph showing the stores which has convenient parking

Monday to Sunday Food World Fab Mall Big Bazaar Nilgiris Subhikska Spencers

Analysis and Inference It is observed that Big Bazaar provides convenient parking for customers. Customers find it extremely convenient to shop at outlets that provide enough parking facilities. Table showing the stores which provide services to customers Serial No. 1 2 3 4 5 6 7
Source: Field Investigation

Stores Monday to Sunday Food World Fab Mall Big Bazaar Nilgiris Subiksha Spencers

Percentage 5 24 24 35 16 1 1

Chart showing the stores which provide services to customers

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Analysis and Inference Big Bazaar employees provide the best services to customers and most people prefer shopping at this store.

Table showing whether the store is equipped with all products and services Serial No. 1 2 Response Yes No
Source: Field Investigation

Percentage 67 13

Graph showing whether the store is equipped with all products and services

Graph showing whether the store is equipped with all products and services
80 70 60 50

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Analysis and Inference From the graph it is observed that 67% of the customers are satisfied with the kind of products and services at Monday to Sunday.Whereas the other 13 percent of the customers said that that want more products than the existing ones. Table showing whether customers have complaint anything at Monday to Sunday Serial No. 1 2 Response Yes No Source: Field Investigation Percentage 9 91

Graph showing whether customers have complaint anything at Monday to Sunday

Graph showing whether customers have complaint anything at Monday to Sunday

100 80 60

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Analysis and Inference

Majority of the respondents said that they have never complaints anything at Monday to Sunday. A few respondents did complain and the complaint was handled by the store manager quickly.

Table showing the home delivery system at Monday to Sunday

Serial No. 1 2 3 4

Response Satisfied completely Satisfied to some extent Not satisfied Not availed the service

Percentage 2 4 6 88

Source: Field Investigation Graph showing the home delivery system at Monday to Sunday

MP BIRLA INSTITUTE OF MANAGEMENT Chart showing the home delevery system at Monday to Sunday
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Analysis and Inference It is observed that most people have not availed themselves of the home delivery system at Monday to Sunday. And among the people who availed this service; a few of them seams to be satisfied and others seams to be not satisfied with the service as there is delay in the service rendered. Each store should provide this service as it is very convenient for customers.

MAJOR RESEARCH FINDINGS

From the research done and the subsequent analysis of the customer responses to the questionnaire, we have arrived at the following conclusions: 1. Most customers prefer to shop at retail outlets like Monday to Sunday, instead of the traditional kirana stores. 2. Monday to Sunday has got a very convenient store lay out for shopping, which provides delight to its customers. 3. The stores are located in the most convenient locations for the customers. It is the availability of products at Monday to Sunday, which excites the customer the most.

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As part of the research, we have also arrived at the following conclusions as to why the customers prefer other retail outlets in certain areas. Stores like Big Bazaar provide schemes like every day- low- pricing, which attracts the customers. Stores like Big Bazaar also provide a wide range of products and product lines, which attract more customers towards it. Other retail outlets provide better parking facilities. This is an area where Monday to Sunday loses out.

RECOMMENDATIONS
The store should focus on providing better customer service. Needs to provide faster replenishment of vegetables during weekends. The store should be equipped with more product lines. More discounts should be provided. The quality of the merchandise has to be improved. Effective stock of various products has to be maintained. The store should at all times be filled with fresh fragrance, in order to take care of the stink emitted by the meat section. Care should be taken to provide effective parking facilities.
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The ambience of the store should be improved Retailers should focus on attracting the older age group people to shop at the stores The store should concentrate on venturing into new locations by opening more stores. Should include products relating to apparels and accessories. The billing process should be carried at a faster rate. As the customers have complained about buying expired products, the company should refrain from selling them. The waiting time in the queue should be reduced by keeping all the counters open.

In the sum, we recommend the adoption of strategic marketing by the Monday to Sunday Store in order to reap good yield from its retailing operations. What is needed is strategizing the retailing operations. We give below the inputs of strategic marketing which can profitably be considered while strategizing the retailing operations:

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ANNEXURE

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It is our firm belief and conviction that the aforesaid recommendations, if they are not pigeonholed, will go a long way to attract new customers, retain the existing customers and get back lost customers, eventually leading to high store outlet preference and heavy customer traffic at the store.

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1. Bibliography: (a) Books: 1. 'Retailing' by Roger Cox and Paul Brittain. Pearson Education Publications, Fifth Edition, 2006 2. 'Retail Management--A Strategic Approach' by Barry Berman and Joel R Evans, Pearson Education Publications, Ninth Edition, 2006 3. 'Retailing in India' Edited, ICFAI Publications, 2006 4. 'Retailing: General' by Standard & Poor's Surveys 2002 5. ' Retailing Specialty' by Standard & Poor's Survey 2002 6. 'Selection of Retail Locations' by Richard L Nelson, F W Dodge Publications, New York, 2000 7. 'Retailing on the Move: An Era of Change' by Thelma Snuggs, Black Collegian Publications 2000 8. 'Marketing: Real People, Real Choices' by Michael R Solomon and Elnora W Staurt, Pearson Education Publications, Third Edition, 2006 (Chapter on Retailing) 9.' 'Marketing' By Evans and Burman, Wiley Eastern Publications (Bizantra) 2006 (Chapter on Retailing)

(b) Journals & Magazines Journal of Retailing Journal of Marketing Retail Biz Journal of Marketing Research Harvard Business Review Marketing Mastermind Strategist (Business Standard) Brand Equity (Economic Times) Catalyst (Business Line) Business World Fortune
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Websites used:
www.jubilantcorp.com www.google.com www.questionpro.com

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2. QUESTIONNAIRE: RETAIL OUTLET PREFERENCE OF CUSTOMERS AT MONDAY TO SUNDAY STORE

I am a student of M P Birla Institute of Management, Bangalore pursuing MBA Degree Program. As a part of MBA Curriculum, I am conducting research on the preference of customers towards retail outlet. I request you kindly to give your responses to the questions listed below. I assure you that your responses will be kept strictly confidential and they will be used only for academic purpose. Ms. K P Naveena. Q1. Do prefer shopping a shopping mall? a. Yes. B, No Q2. Why do you shop in a shopping mall, compared to other retail outlets? Please specify the benefits of shopping in a shopping mall. Q3. Do you shop at Monday to Sunday Mall? Q4. If yes, how did you come to know about this mall? a. Through friends; b. Through advertisements. c. Through family members; d. Through colleagues; e. Through opinion leaders. f. Others (Please specify) Q5. How often do you visit Monday to Sunday? a. Daily b. Once a week c. Once a fortnight d. Once a month

Q6. For how long have you been the customer of Monday to Sunday? a. Month b. 6 Months c. Year d. More than a year Q7. What is unique about Monday to Sunday? a. Availability of products Merchandise. B. Ambience c. Store Layout d. Service e.

Q8.What is your perception about Monday to Sunday in terms of: a, Availability of appropriate products; b. Prices
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c. Product variety; d. Product assortment; e. Range of products in a particular product category f. Visual merchandize g. Ambience h. Food court i. Rest room facilities h. Customer service Q9. When thinking about Monday to Sunday, what is the first thing which comes to your mind? Q10.Which stores do you visit other more frequently? a. Food World b. Fabmall c. Big Bazaar d. Nilgiris e. Subiksha f. Monday to Sunday g. Spencers Q11. What makes you a regular customer? a. Convenient b. Availability of products D. Experience E. Service

Q12. Why do you visit the other stores apart from Monday to Sunday store? a. Just for a change b .The facilities over there are better. c. They have better and varied products. d. The prices of the products as compared to stores are less. e. Better service. f. Better ambience. Q13. If a product is out of stock, I would substitute rather than go to another store to get it. a. Strongly agree b. Agree c. Neither agree nor disagree d, Disagree e. Strongly disagree

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Q8.Considering the following stores, which store:

Monday to Sunday Food World Fabmall Big Bazaar Nilgiris Spencer Subiksha

a. Consistently provides the best value for your money b. Is most likely to have what you want in stock c. Has the best quality merchandise d. Has the most convenient store layout for shopping e. Widest selection of products f. Provides plenty of convenient parking for customers g. Employees provide prompt services to customers

Q15.

How do you feel about customer complaints management in Monday to Sunday store? a. Very effective b. Not very effective c. Requires improvement Did you complain about anything at Monday to Sunday Store? a. Yes; b. No If your response is yes, please describe briefly about the nature of your complaint?

Q16. Q17.

Q18. How quickly your complaint has been responded? a. Almost instantaneously; b. one hour c. two hours d. three hours e. beyond three hours Q19. Are you satisfied with the home delivery system of Monday to Sunday store? a. Satisfied completely b. Satisfied to some extent
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c. Not satisfied Q20. Please give your recommendations for enhancing the utilitarian aspects of Monday to Sunday store THANK YOU

3. DIRECTIONS FOR FURTHER RESEARCH The following areas have been identified (carrying considerable research potential) for further research: Customer Perceptions/Expectations of Services Provided by the Store Customer Satisfaction Survey by using the Multi-Attribute Analysis Brand Image Study of the Store Taxonomy of Visual Merchandizing at the Store A Diagnostic Study of Supply Chain Management at the Store Mapping Retail Stores Personality

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