Manish Rai Research Paper -Revised

8/2/2019 Manish Rai Research Paper -Revised

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A STUDY OF CONSUMER PERCEPTION OF CONSUMER CO-OPERATIVE STORE

A CASE STUDY OF APNA BAZAAR

*Manish Kumar Rai, *Suman Saurabh & **Dr.R.Gopal

Abstract

Consumer's cooperation is a very wide term and includes consumers supply societies,consumers thrift societies, cooperation insurance societies etc. These societies were originallyorganized to restrict unfair trading practices of private retailers and to prevent the consumersfrom exploitation of the various measures taken by the government to hold the price line. Thedevelopment of the consumer cooperative stores has by far attracted the greatest attention.

Today in this cut throat competition in the market between different retail formats whereconsumer is treated as god, and consumer satisfaction is every companys goal.

But due to all this threats being surrounded the consumer cooperative stores which are ownedby the people and dont believe in profit and gives more importance to consumers needs andwants

With the advent of modem market economy the position has radically changed and growingnumber of market functionaries have interposed themselves, adding to the margins at variousstages. The result is that, now there is often a considerable price-spread between the producerand the consumer. Cooperatives of producers on the one hand and the consumers on the other,

offer one of the practical means of reducing this price-spread; Of the various measures taken bythe Government to hold the price line, the development of the consumer cooperatives has by farattracted the greatest attention.

The Objective of this study is to know the reach of consumer cooperatives among consumersand their perception about consumer cooperatives retail store.

Key Words: Consumer cooperative store, Retail, Consumer Behavior.

*Ast. Professor (Business Management), Padmashree Dr D Y Patil University, Navi Mumbai

** Director Business Management, Padmashree Dr D Y Patil University, Navi Mumbai


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Introduction:

The philosophy of co-operation endeavors to empower isolated individuals who areindividually weak, to come together in a democratic manner on the basis of equality to achievethe desired common economic interests. The concept of cooperation emphasizes on the

collective action o individuals to achieve common goal which may not have been possible foron isolated individual. The movement has drawn inspiration from similar endeavors throughoutthe world. Nidhis were a precursor to the Indian cooperatives. In this scheme, the membersused to contribute monthly for a period. They were give loan facility which could be repaid ininstallments. The co-operative movement has gone from strength-to-strength and today Indiahas a strong movement catering to various sectors. (Bala Krishnamurthy, Shweta Dixit &

Rachappa.S)

The whole idea of Co-operative stores started in 1962 to serve people after the crisis of India-China war to provide products at subsidized rates. This model has worked efficiently for morethan four decades.

A consumers' cooperative is a business owned by its customers for their mutual gain. It is aform of free enterprise that is oriented toward service rather than pecuniary profit. Thecustomers or consumers of the goods and/or services the business provides are also theindividuals who have provided the capital required to launch or purchase that enterprise.

A consumers cooperative may be a supermarket, convenience stores, and other businessesowned by independently-owned, and run Co-operative societies, which benefit from joint co-ordination and co-operation in managing their businesses. As mutually-owned businesses, eachmember of a society has a shareholding equal to the sum they paid in when they joined.

The first consumer cooperative store was established in Rochdale, England in 1844, and mostco-ops are modeled after the same, original principles. They are based on open consumermembership, equal voting among members, limited customer services, and shared profitsamong members in the form of rebates generally related to the amounts of their purchases.Consumer cooperatives have gained widespread popularity throughout western and northernEurope, particularly in Denmark, Finland, Iceland, Norway, Sweden, and Great Britain. Co-operatives typically emerge because community residents believe that local retailers' prices aretoo high or service is substandard.

According to the Maharashtra Co-operative Societies Act, 1960 Sec.2 (9) defines a consumerco-operative society as a society, the object of which is:

The procurement, production or processing and the distribution of goods to or, theperformance of other services for its members as also other consumers.

The distribution among its members and customers, of the profit occurring from suchprocurement, production, processing and distribution are in proportion as prescribed by rules orbyelaws of the society.

The consumer cooperatives are playing an important role in providing essential and othercommodities to the consumers at reasonable prices. The consumer cooperatives have continuedto help in strengthening the distributive network of essential commodities and stabilizing priceline to the extent possible for protecting, the interest of the consumers against artificial scarcity,


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overcharging of prices, supply of sub standard goods and the unfair trade practice restored byprivate traders.

The retail market in India is estimated at about US$ 410 billion and constitutes about 60% ofprivate consumption and about 35% of India's GDP. With Indian GDP expected to grow at 7-8

% in the next coming years, the retail market is expected to touch US $860 billion by 2018. Inrecent years, this sector has witnessed a lot of interest from both domestic and global players,who have committed investments worth US $30 billion, which will lead to increase in the shareof modern retail from the current 4.5% to almost 25% of the total retail market by 2018.

Cooperatives entering the organized retail sector have to face different types of challenges:

1. They are weak to attract good manpower; the low cost model does not permit them to becompetitive with the retail majors.2. Their expenditure on advertisement is almost nil so only references to get customers.3. They do not concentrate on packaging and attracting customers

4. They do not have promotional campaigns

None the less, they are known for quality, simplicity, feeling of belongingness andtrustworthiness.

Research Methodology

Definition of the problem

Today India is at the verge of developed country, filled with lot of opportunities and peoplehave a good income level and spending capacity. Due to this the retail scenario changed itsdesign and formed various sectors and formats giving the people various choices to make.

Though the government cooperatives made by the people have remained same. So as India is ayoung populated country there are very few to visit there stores. They should change and

provide a new shopping experience to the customers.

Primary data:

1) InterviewResearcher had interviewed the customers of Apna Bazaar regarding their shopping experience.

2) Field WorkResearcher visited Apna Bazaar mall and collected data.Interview was conducted and researcher collected information about the experience of thecustomers in Apna Bazaar store in Navi Mumbai so the survey was restricted up to NaviMumbai.

The research has been conducted in the APNA BAZAAR storeArea of research- Vashi, Navi Mumbai

Sample Size-:


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Sample Size is very significant part of the research because it shows the representation of allthe customers coming to the stores. It is one of the significant bases of the project on which thewhole research depends

Sample size- 80

Secondary Data:

1) Retailing management author Swapna Pradhan2) Retail Management by V. V. Gopal3) Magazines4) Newspapers5) Website

Literature review-:

Retailing Management by Swapna Pradhan, Second Edition.

Retailing Management (Text and Cases) by Swapna Pradhan has presented RetailingManagement from the Indian perspective. The second edition of the book seeks to expandcoverage in the important topical areas of merchandise management, customer service, retailmarketing communication, and financial planning among others. The focus of this book has

been on explaining the concepts & practices in retailing management, particularly in theIndian/ Asian setting. The author has taken a practical approach to make the treatment soundand interesting. This book has two unique features- the retail snapshot and case studies ofIndian retailers. Retail snapshots have been provided to illustrate concepts and practices andto enhance leaning. The section on cases for study provides with insights into the strategiesadopted by some of the leading Indian retailers.

Retail Management by Chetan Bajaj Third Edition

This comprehensive textbook, tailored to meet the needs of MBA students studying retailmanagement in India, contains detailed analysis of marketing management, marketsegmentation as well as product and brand management strategies. The text is fully supported

by numerous examples and charts and diagrams.

Retail Management by V. V. Gopal First edition Jan 2006

The retail sector in India is highly fragmented with the organized retail contributing to only 2%of the total retail sales. The retail sector in developed countries was also highly fragmented bythe emergence of large chains like Wal-Mart, Sears, and Mc Donalds led to rapid growth oforganized retail and growing consolidation of the retail industry in the developed countries.

Indian Retail Space by Nitin Mehrotra March 2006 Second Edition

This book tries to analyze the Indian Organized retail sector in the light of the emerginglandscape. It tries to capture the organized retail sector characteristics, with an overview of thecurrent status and also depicts the future scenario. It is broadly divided into two parts, the first

part, covering the industry analysis and, the second part, presenting the brief profiles of toprung organized retail companies in India. It adopts a lucid approach by presenting available


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facts to establish trends, the changing competitive landscape and the fierce battle for gainingcritical market share among leading players. A strong correlation of economic growth, coupledwith changing consumer behavior is leading to increased penetration of organized retailing inIndia. It also provides insights into changing buying trends, strong global interest and entry ofleading Indian corporate giants in various formats to join this ongoing retail revolution. This is

an attempt to present facts, along with showcasing the lacunae in the system with regard toavailable infrastructure support, government policies and human resources, required to makeorganized retailing in India a revolution.

Retail Management : strategic Approach by Prentice Hall 4th Edition March 2006

Covers major retailing topics, including consumer behavior, information systems, storelocation, operations, service retailing, the retail audit, retail institutions, franchising, humanresource management, computerizations, and retailing in a changing environment. Its decision-making orientation provides a real-world approach focusing on large and small retailers. It also

provides the latest information from current trade press sources. Many chapters have been

revised to capture the diversity, varied perspectives, and current spirit of retailing. Retaining itsfeatures and strategic organization with coverage of international and ethical issues in practice;this market leader provides a balance between theory and practice, and useful careerinformation. Covers major retailing topics, including consumer behavior

Retail Management by Michael Levy 6th Edition April 2008

It provides a balanced treatment of strategic, "how to," and conceptual material, in a highlyreadable and interesting format. This edition continues its cutting edge coverage on the latesttopics and developments in retailing including globalization; customer relationshipmanagement programs; multi-channel retailing; supply chain management, the use of theInternet to improve operating efficiencies and customer service; and legal, ethical andcooperate social responsibility issues. Retailing Management by Levy and Weitz is the best-selling textbook in the retailing market. Known for its strategic look at retailing and currentcoverage, this new 6th edition continues to be organized around a model of strategic decision-making.

Managing for Higher Retail Success by DMS Retail 6th Edition

There are proven ways of significantly increasing your sales volume, increasing profitabilityand achieving higher customer retention rates. All of this will finally be within your control

after reading and applying the proven principles in Managing for Higher Retail Success.You will no longer be caught in the trapthe trap of focusing on lack of traffic or weather orother things that are beyond your control. This guide will empower you to move forward andsucceed despite many obstacles. You will quickly begin to approach every new day withexcitement and renewed enthusiasm. You will be in control of most of the factors that have realimpact on your results. Managing for Higher Retail Success will show you how to get andstay, in the driver's seat. If you are managing, that is where you have to be. You simply cantlet circumstances throw you off course. You simply cant settle for mediocre results. You are ina competitive industry and you are a winner who wants to achieve great results and lead a greatteam.

Retail Management by Barry Berman Ninth edition


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An Overview of Strategic Retail Management; Situation Analysis; Targeting Customers andGathering Information; Choosing a Store Location; Managing a Retail Business; MerchandiseManagement and Pricing; Communicating with the Customer; Putting it all Together

Retail Store Management by Paul Henry Nystrom sixth edition

It provides a balanced treatment of strategic, "how to," and conceptual material, in a highlyreadable and interesting format. This edition continues its cutting edge coverage on the latesttopics and developments in retailing including globalization; customer relationshipmanagement programs; multi-channel retailing; supply chain management, the use of theInternet to improve operating efficiencies and customer service; and legal, ethical andcooperate social responsibility issues. Retailing Management by Levy and Weitz is the best-selling textbook in the retailing market. Known for its strategic look at retailing and currentcoverage, this new 6th edition continues to be organized around a model of strategic decision-making.

Winning at Store Management by DMS Retail, second edition

Winning at Store Management success manual illustrates how to hire the best and training themfor ultimate success. In addition to hiring the best and training them well, managing your timeand the many changing priorities you have every day is incredibly important. But its verychallenging, isnt it? Not with the skills youll develop with this manual. Youll easily manageevery hour, every day, every week and so on. Youve heard that old saying Plan your workand work your plan? Its so true. Planning and managing your time will make a hugedifference to your success in Retail Management. With this manual, youll even become highlyeffective at long range planning.

Gap Analysis:

After analyzing all the literature available we have found that there is a huge scope for thestudy in the areas of Consumer perception and their loyalty to consumer co-operative store andhenceforth the topic has been chosen and likely to continue in forthcoming papers with otherdimension related to these issues.

Objective of the study

1) To study the consumer perception for the consumer cooperative stores.

2) To study the floor level store operations system of Apna Bazaar.

3) To give recommendations to the consumer co-operative store Apna Bazaar.

Discussion & Results:-

In this study we are trying to find out the store operation overview as well as the floor level

operation at Apna Bazaar hence in this context we have taken qualitative test and we met Mr.


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Mahesh Kambli, CEO of the co-operative retail chain, Apna Bazaar, which sells provisions,food products and medicines, marks fresh food and vegetables segment as the focus area tosustain its growth. The plans are to consolidate on what already exists.

The following question we discussed to understand the overall store operation at Apna Bazaar.

Q) What is the current strength of Apna Bazaar? Any plans to increase the number of outlets?

A) Apna Bazaar has 86 outlets, of which 46 are company owned and the rest are franchisees.The network includes seven department stores, six supermarkets, 26 food stores and fivespecialty chemist stores. We're now planning improvement on whatever we presently run.

Q) Looking ahead, what are the latest plans?

A) We are more in to consolidation than expansion, and to form strategic alliances. We willsoon partner with the Japanese Consumer Co-operative Union (JCCU) in areas of training the

staff force, visual merchandising and setting up a co-operative food brand. The company is alsoforaying into co-branding exercises to offer value to its consumers. We have already introduceda new section - Food and Vegetables, operational in stores at Vashi, Andheri, Charkop, Mulundand Fort. We have started with the Mulund store, and it is the first consumer cooperative storesector in India to have air-conditioned.

Upgrading the skills of our manpower, create vehicle parking facility are also in our agenda.We are focusing on the new generation customers, and talks are on with PlanetM, RPG Groupetc. We may have a tie-up with Citibank on co-branding. Regarding credit card, we are on theverge of signing a MOU with SBI, the details of which cannot be disclosed. As visualmerchandising, a new way for presenting the products will be introduced.

Q) What is the idea behind establishing alliances with the likes of Japanese Consumer Co-operative Union?

A) These alliances will be based on exchanging strengths in areas of training, visualmerchandising and developing co-operative brands. Their expertise can be used for ours storesthat are the value-additions. These brands will be cheaper than the existing ones, and thequality maintained.

Q) How far has the upgrading skill of manpower reached?

A) We have roped in consultants to impart training, done through in-house facilities andaffiliations with the Asoka Mehta Institute of Management and Research. Talks on an exchange

programme of our personnel to JCCU are going on. All the stores have started staff training.

Q) What will be the new focus? Also, which section of the society are you looking at?

A) We have marked the fresh food and vegetables segment as the focus area to sustain growth.They are currently available at four stores, and will extend it to other outlets soon. We arelooking at building an all-round image by targeting the upper middle class segment as well. Weare bringing in initiatives like specialized counters and food courts at its department stores and

super markets. People in their 40s are already coming to us. What we are targeting now is thestill younger generation, the people who possess spending power.


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Q) What has been happening on the Inventory management?

A) To ensure minimum inventory and maximum rotation, the plan is to centralize the supplychain management. While the super markets would be serviced directly by the companies, the

requirements of franchisee outlets would be met by Apna Bazaar to ensure better co-ordination.Back-end automation has already been started in some stores with specific emphasis in areas ofinventory management. The front-end and back-end of six department stores in Mumbai will becomputerized. We have already tied up with Radhakrishna Hospital Services (RKHS) forsupply chain management, who will manage the back-end supply chain management.

Q) What is your annual turnover?

A) We are projecting sales of Rs 165 crore this fiscal year, including the franchiseecontribution of Rs 30-35 crore, down by Rs 10 crore from last year. We have closed down ourexport division to concentrate only on the core activities. The processing unit at Jalgaon is also

closed down. The spices and dal factory at Taloja are being outsourced now. These moves haveaffected the sales. Meanwhile, we have stopped the plans of going online, on the lines ofSangam Direct, the online initiative of HLL. The home delivery concept would not work unlessthere is delivery density. As such, the earlier plan to start a call centre parallel to this is alsohalted.

Q) What has been the response to Apna MetLife Policy?A) Issues regarding Apna Life Policy cannot be disclosed; furthermore IRDA clearance must

be acquired. The response is very good for the policy.

Q) What do you want Apna Bazaar to be known for?A) When it comes to food it has to be Apna Bazaar that must come into one's mind. I will saythe punch line for Apna Bazaar will be - when you think about genuine products, think aboutApna Bazaar.


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Quality

Trust

Others

Price

Price

Quality

Trust

Others

No

Yes

Yes

No

No

Yes

Yes

No

To understand the floor level store operation and to identify customer behavior regardingshopping at Apna Bazaar Consumer co-operative, A survey has been carried out with randomselected respondent through a systematic questionnaire.

SURVEY FINDINGS -: SAMPLE SIZE-:80

Q.1) What makes you to visit the store?

Customers visit the store because the store provides themwith affordable price that is below MRP, which satisfies theirdaily needs. Apna Bazaar follows the EDLP (Everyday Low

price) pricing strategy as the organization doesnt believe inmaking profits.

Q.2) Are you satisfied with the ambience created by the store?

The customers feel the ambience created by the store is notthat appealing likewise that is the product display, aislespace, dull lights, flooring etc.

The products are not displayed on the racks properly as itcreates the problem for the customer. There is very lessspace between the racks, so during over crowed days it

becomes very congested for picking up the product. Thelights are very dull and very poor flooring.

Q.3) Does the Apna bazaar products give guarantee?

The customers agree the products available in the store dogive guarantee because each product goes under testsconducted by the staff as well as the brands , they are

against duplication and adulterated products as the store isnot in greed for profit and they are well known that it canhamper their image in the market. As well as it makesthem unique in the market as compare to other retailformats.


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No

Yes

Yes

No

No

YesYes

No

No

YesYes

No

NoYes

Yes

No

Good

Ambience

Customer

Service

Information

Technology

Security

Security

InformationTechnology

Customer Service

Good Ambience

Q.4) Are you satisfied by the customer service provided by Apna Bazaar?

The customer service provided by Apna Bazaar is satisfactory because

they dont provide after sales service like home delivery or warrantyfor the electronic gadgets .They dont have a specific parkingavailable for the customer for their vehicles. The staff out in AnaBazaar are not well trained they dont give proper attention to thecustomers while queries.

Q.5) Do you feel comfortable with the cash machines during billing transaction?

Apna Bazaar is always over crowded whether it is weekdays or atweekends, so it becomes difficult for the staff to handle the

crowd .During the billing system as do follow the cash machinesystem which is time consuming and not that accurate which makesthe customer to wait for longer duration.

Q.6) Do you require after sales service?

The customer requires after sales service as they buy in bulk forthem to it becomes a necessity. As the electronic gadgets mustalong with warranty and guarantee with proper service for one year.

Q.7) Are you aware about METLIFE Insurance tie-up with Apna Bazaar?

As there is no promotion of the scheme in the store nor the staff makes aneffort to make the customers to know about it. But there are few who our

in touch with the news paper is aware it is lack of marketing done in partof the store. Marketing which plays a very important role in todaysmarket to make the customers aware about the companies ongoing process.

Q.8) According to you what does Apna Bazaar lack?

The customer has given more focus on customer service

and security. Security because there is no CCTV or asecurity near the entrance so the customers are not that save


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No

Yes

Yes

No

while shopping in the store. Shoplifting is a common fashion going on in the stores, due to lackof good security in the store. Information technology is not that satisfactory or the ambience

been created.

Q.9) Are you satisfied by the private label products of Apna Bazaar?

The private labels of Apna Bazaar they are Rice, Wheat,Pickles, Oils, Masalas etc which available in cheaper ratescompare to other companies private label products. Socustomers prefer to buy the products of Apna Bazaar whichare of good quality and guarantee.

Suggestions given by the customers-:

According to customers there should be some progress in the following factors like-:

- Security

- Information Technology

- Customer Service

- Good Ambience

As there is no security in Apna bazaar as there is no CCTV or any other technology .Thecustomers are not save while shopping and there are more cases of shop lifting. There should

be more security guards near the entrance of the store.

They are very satisfied with the private label products like oil, Masalas, rice, wheat etc.

As they are available in affordable prices as compare to the kirana rates.

There are frequent suggestions given by the customers are-:

-Good Ambience

-Trained Staff

- Security

- Good Product Display


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- Bar code system

- Technology

RECOMMENDATIONS-:

1) Getting more techs savvy i.e. adopting new methods for billing like computers and havingelectronic displays of the currents offers.

2) Have shorter size of racks so customers are able to reach the products more easily.

3) Change existing iron racks with steels ones which are polished.

4) Government interference has had a major effect on the democratic setup of Apna Bazaar.Therefore, lesser dependence on government should be opted for Government should helpstores like Apna Bazaar with credit at cheaper interest rates.

5) Changing according to times is inevitable. Apna Bazaar has to change its traditionalviewpoints. It should adopt new techniques and accept change wholeheartedly.

6) Recruit more staff and train existing ones on providing better customer service.

7) Get trolleys of different sizes i.e. small, medium and large for the convenience of customers.

8) Provide valet parking or else have a spacious parking area for its customers.

9) Have electronic detectors at the entrance and exit points to prevent shop lifting.

IMPORTANT RECOMMENDATION TO SUSTAIN IN TODAYS MARKET-:

1) Change the ambience:-

-Changing the flooring from tiles to marbles


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-Making the store centrally air conditioned

-Increase the size of the store vertically and horizontally to give a more spacious feel.

-Increase the number of cash counters so the rush will decrease.

-Improving the lighting to make the store look brighter

2) Train the employees -:

Though Apna Bazaar offers self-service, the staff needs to be more customer friendly, andinteract with the customers. There is also a need for professionalism.

3) Proper Division of staff -:

This is necessary as there can be overcrowding of staff at some places.

4) Introduction of a bar coding system -:

To mark items would make things easier for billing and payment procedures. The managementof accounts would also be easier.

5) Going Global -:In the fast moving market of consumer commodities, it is very essential for Apna Bazaar tounderstand the importance of making their customers happy and thus they must adopt reformsin their approach to work.

References:

Research Paper: Dr.K.T Chandy: consumer cooperative problem and challenges

Retail Management by V. V. Gopal

Retail Management by Swapna Pradhan

www.apnabazaar.com

Retailer,10th November 2010.
http://www.apnabazaar.com/http://www.apnabazaar.com/


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India today 25th November 2009

Manish Rai Research Paper -Revised

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