Vegetable Buying Behaviour@Retail Format 1st Year

8/6/2019 Vegetable Buying Behaviour@Retail Format 1st Year

1/117

A

PROJECT REPORT

ON

MARKET RESEARCH

OF

VEGETABLE BUYING BEHAVIOUR AT

RETAIL FORMAT

SUBMITTED BY :-

GROUP C

SECOND YEAR M.B.A.

2007-2008

SUBMITED TO :-

K.S.SCHOOL OF BUSINESS MANAGEMENT,

GUJRAT UNIVERSITY,

AHMEDABAD

Page 1 of 117


2/117


3/117

INDEX

Page 3 of 117


4/117

Page 4 of 117

SR.NO. CONTENTS PAGE

NO.

1)

ACKNOWLEDGEMENT

4

2)

PREFACE

6

3)INTRODUCTION TO SERVICE

INDUSTRY

8

4)

HISTORY OF RETAILING

10

5)COMPETITIVE SCENARIO

19

6)

7 Ps OF MARKETING

25

7)

MARKET RESRARCH

54

8)ANALYSIS OF CONSUMERS SURVEY

59

9)

DEALERS ANALYSIS

87

10)

SWOT ANALYSIS

90

11)SUGGESTIONS

97

12)

LIMITATIONS

100

13)

BIBLIOGRAPHY

102

15) CONCLUSION 10416) ANNEXTURE 106


5/117

Page 5 of 117


6/117

Any single work is product of efforts, guidance andblessing of many people. For our project this statement is alsoequally true.

We would like to express our sincere gratitude to theK.S.School of business Management for introducing the projectwork in our curriculum. Ships are safe at harbour but they are not meantfor that purpose

Through this acknowledgement we would like toexpress our sincere gratitude towards all those people who greatlycontributed in our project work. Being M.B.A students projectsreport stands as Another feather in a cap with M.B.A degree.

We are greatly thankful to our directorMrs.SarlaAchuthan and K.S.School of Business Management for giving thisvaluable opportunity.

Words are insufficient to express our gratitude to ourfaculty guideMrs.BindiyaPathakfor giving us best guidance forMarket Research. Under her supervision, we prepared our projectin a most appealing manner. And particularly, we receivedencouragement fromMrs.Rachna Gandhi. We are also thankful to

Mrs. Mala Sheth for teaching us the first step of marketingmanagement.

Continuing our thanks, we are thankful to ourcolleagues without their cooperation, this project could not havereached to its destination.

Page 6 of 117


7/117

Last but not least, special thanks to all those persons forspending their valuable time in giving us guidance and suggestionfor better project work.

Page 7 of 117


8/117

Experience is the best teacher

This proverb is really proven right as this project hasgiven us the rich experience of learning various theoreticalconcepts of management testing its linkage with the businessmarkets.

Knowledge in itself is a continuous process. Gettingpractical knowledge is an important thing for existence for anybusiness concern. In a competition prevailing in an industry. Total

awareness is the most vital thing.

Working smarter seems to be as important as workingharder and longer. Hence practical exposure at a bachelor of

business aspects. This practical training develops awarenessamong the management students about the difficulties andchallenges in the business world. Apart from this, we gain manyother benefits like developing communication skills, undertakingand changing business service and customer preference.

The survey on VEGETABLE BUYINGBEHAVIOUR AT RETAIL FORMATES has also given us achance to get along as a term which is much required in the

Page 8 of 117


9/117

process time as the organization increasingly value teamcohesiveness.

We have tried our best to present this project report

based on our finding from the survey.

Page 9 of 117


10/117

India is moving increasingly towards a service economy.Services are activities or benefits that one party can offer toanother that are essentially intangible and do not result in theownership of anything. During a past decade services haveincreasingly assumed an important role in the Indian economy.

The services provided by the retail formats are labour incentive butnot at the cost of low productivity.

When a good is purchased, something tangible is acquired,something that can be seen, touched, perhaps smelled or worth-services are consumed but not possessed the absence of tangiblefeatures means that it is difficult for the sells to demonstrate ordisplay survival and consumption therefore dictates that

production and marketing are highly integrated process. Services

are relatively intangible, produced and consumed simultaneouslyand often less standardized than goods.

Different service industries are as follow:

Retailing

Banking

Insurance Restaurant

Hospital

Transportation

Page 10 of 117


11/117

Page 11 of 117


12/117

What is retailing?

The word retail originates from a French-Italian wordretailer someone who cuts off or sheds a small piece from

something. Retailing is the seer of activities that markets productsor services to final consumers for their own personal; or householduse. It does this by organizing their availability on a relativelylarge scale and supplying them to customers on a relatively smallscale.

What drove the retailing in India?

India is currently in the second phase of the retail

evolution with domestic customers becoming more demandingwith their rising standard of living and changing lifestyles.

Change in customers focus from just buying to boardshopping ( buying, entertainment and experience ) has led to a

pick-up in organized formats of rating.Unavailability of quality retail space has been one of

the main constrains for development of organized formats in India.In the past negative yield on leased properly and lack of bankfunding due to unorganized property market resulted in thecountry.

Page 12 of 117


13/117

Pro-active steps taken by the government permittinguse of land commercial development in various cities, includingMumbai, Delhi have also contributed to increased availability ofretail space in the country.

Availability of retail space is expected to increasefurther whenever properly funds and investment trusts are

permitted which will help to create a secondary market for realestate in the country.

Consumerism and brand proliferation also enhancedorganized retailing in the country. Most of the worlds leading

brands including like LOreal, Espirit, Louis, and Vuition etc. are

now present in India.Another factor that accelerated the growth of organized

retailing is media proliferation. Increased advertisement and brandpromotions have led to a growing consumer spending across awide range of product categories.

As the retail marketplace changes shape andcompetition increases, the potential for improving retail

productivity and cutting costs is likely to decrease. Therefore it

will become important for retailers to secure a distinctive positionin the marketplace based on value, relationships or experiences.

Page 13 of 117


14/117

Retailing in India

Challenges and hurdle

How to cope with the challenges

The retailers in India have to learn both the art andretailing. The best way to learn is to understand how retail in other

parts of world are organizing, managing, coping up, and withchallenges offered by retailing.

a) Retailing format:

There are no standard retail formats used retailers;each of them has evolved their distinct identity over a period oftime. The focus should be on innovation and being different.Moreover the format is also dependent on the type of retail outleti.e., supermarket department store, specialty store or the premiumstore.

Use innovative retail formats to enhance shoppingexperience.

Incorporate eating out and entertainment options in retailing. Focus on basics like convenience but do not ignore

ambience.

b) Retail marketing:

Page 14 of 117


15/117

Marketing again is different in the context of retailas it revolves around the in store activities for examplemerchandising, point of sales material, promotional and discountsetc. Stock a wide variety of popular brands but start building store

brands too. Build loyalty by identifying regular shoppers and offerbenefits to them.

Track and offer segment customers, and focus on managinghigh value customers.Use advertising, promotions, net, email and tele-shopping to drive

customers to your stores.

c) Retail management:

Being a complex process, understanding andmanaging each process is the key to success, use of IT inmanaging the integrated retailing is assuming greater importance.Monitor customer needs and adapt the retail experience to suit

them. Use IT to enable front and back office applications to upefficiency. Build an IT enabled network with marketers toexchange information. Use customer level information to driveharder bargaining with retailers.

Traditional retail scene in India

India is the country having the most unrecognized retailmarket. Traditionally the retail business is run by the Mom & Pophaving shop in the front and house at the back. The pricing wasdone on ad hock basis or by seeing at the face of the customers.

Page 15 of 117


16/117

Generally the account of trading is not mentioned separately. Themanufactures were to distribute and wholesalers to end users.

Selling prices were largely not controlled by

manufacturers. Branding was not an issue for majority of thecustomers. Weekly bazaar in many small towns was held andalmost all the commodities were on the scene including live stock.Bargaining was the unwritten law of market. Educationqualification level of these retailers was always low. Hence marketwas controlled by handful of distributors and wholesalers virtuallythere were only one format of retaining and that was mass retail.

Impulsive buying or consumption is restricted to goodvegetable etc. having extra pair trousers. Leisure wear is till date isa luxury for majority population except for those living in metros.In the coming time also majority of organized retailers will find itdifficult to keep balance with rest of unbranded retail marketwhich is very huge.

There were 4 gears

1st gear - create awareness

2nd gear meet customers expectations

3rd gear back and management

4th gear consolidation

The next effort should be to encourage retailers to makesome investments in improving the interiors of their respectiveestablishment to make shopping an enjoyable experience for thecustomer.

Page 16 of 117


17/117

Scenario of index in India

Retailing is the most active and attractive sector of lastdecade, while the retailing industry itself has been present since

ages in our country.

The more to do with the increased purchasing power ofbuyers especially post-liberalization increase in product varietyand increase in economies of scale. Though there are manyopportunities to start a new retail business.

Present Indian scenario

Unorganized market: Rs.58300 crores

Organized market: RS.5000 crores

Over 4000 new modern outlets in the last 3 years.

Over 5000000 square feet of mall space under development. The top 3 modern retailers control over 750000 sq. feet of

retail space Over 400000 shoppers walk through their doors every week.

Growth in organized retailing on projection of last 5 yearsOn course to touch 35000 crores (us $ 7 billion)

Page 17 of 117


18/117

Retailing in India: A long way to go

South India particularly Chennai, Hyderabad and

Bangalore have seen emergence of large format stores but are no-where close to retailers in USA like wall-mark, k-mart or premiumdepartmental stores like Avenye or Macys or even specialtystores like IKEA for furniture and circuit city for consumerelectronics.

The following are the factors responsible fordevelopment of retail industry in India:-

Rising income and improvement in infrastructure areenlarging consumer markets and accelerating the convergence ofconsumers tastes.Liberalization of market for consumer good thus helped theMNCs brand to make in roads into India markets by offeringwide range of choices to Indian consumers Kellogg, P&G,Unilever, nestle etc.

Reduction of custom duties of CE, personal care dairy

products etc. Shift in consumer demand to foreign brands, MacDonald, Sony, Panasonic etc. Internet is making consumer moreaccessible. Reach of settled TV channels which are helping increating awareness about global products for local markets.

Page 18 of 117


19/117

Challenges of retailing

Retail management is a relatively new discipline in India; itis not marketing by another name. The most important difference

is that where marketing has the classic 4 Ps (product, promotion,price and place) in retailing a fifth P, people is added which iscritical. They are critical to a service business like retailing both anemployee who execute the business and the customers with whomretailers must interact.

The following are the key challenges of retailing:

Large transaction: retailers need to handle smallertransactions in large number and still be able to make money.

Lowest pricing everyday:A key to success for many retailers is the

ability to attract customers by offering low price guarantee.Creating enthusiasm among customers on continuous basis byoffering attractive sales problem and discounts.

Handling large inventory:Retailers have to deal with products, across 50-60k SKUs. (Stockkeeping units)

Page 19 of 117


20/117

Consumer behaviour: - Retailers have to understand howcustomer behaves, how they shop, what they want and when?

Location: - Retailing is all about location where sufficientparking space is available besides being close to shopping mall.Use of information technology (IT) in developing a supply chainand interacting all the retailing processes from procurement toafter sales.

Page 20 of 117


21/117

Reliance Fresh is the retail chain division of Reliance Industries of India which isheaded by Mukesh Ambani. Reliance has entered into this segment by opening new retailstores into almost every metropolitan and regional area of India. Reliance plans to invest

Rs 25000 crores in the next 4 years in their retail division and plans to begin retail storesin 784 cities across the country. The Reliance Fresh supermarket chain is RILs Rs25,000 crore venture and it plans to add more stores across different g, and eventuallyhave a pan-India footprint by year 2011. The super marts will sell fresh fruits andvegetables, staples, groceries, fresh juice bars and dairy products and also will sport aseparate enclosure and supply-chain for non-vegetarian products. Besides, the storeswould provide direct employment to 5 lakh young Indians and indirect job opportunitiesto a million people, according to the company. The company also has plans to trainstudents and housewives in customer care and quality services for part-time jobs.

Reliance Fresh recently (24th Jan, 2007) opened several "Fresh" outlets in Chennai,

New Delhi, Hyderabad,Jaipur, Mumbai, Chandigarh, Ludhiana increasing its total storecount to 40. Reliance is still testing its retail concepts by controlled entry beginning inthe southern states

According to Deccan Herald, the company is planning on opening new stores with store-size varying from 1,500 sq ft to 3,000 sq ft, which will stock fresh fruits and vegetables,staples, FMCG products and dairy products. Each store is said to be within a radius of 1-2 km of each other, in relation to the concept of a neighbour store. However, this is onlythe entry roll-out that the company has planned. Bangalore is said to have 40 stores in allby the end of the year.

In a dramatic change due circumstances prevaling in UP, West Bengal and Orissa, It wasmentioned recently in News Dailies that, Reliance Retail is moving out stocking.Reliance Retail has decided to minimise its exposure in the fruit and vegetable businessand position Reliance Fresh as a pure play super market focusing on categories like food,FMCG, home, consumer durables, IT, wellness and auto accessories, with foodaccounting for the bulk of the business. The company may not stock fruit and vegetablesin some states, Orissa being one of them. Though Reliance Fresh is not exiting the fruit

Page 21 of 117
http://en.wikipedia.org/wiki/Reliance_Industrieshttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mukesh_Ambanihttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Hyderabad%2C_Andhra_Pradeshhttp://en.wikipedia.org/wiki/Jaipurhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Chandigarhhttp://en.wikipedia.org/wiki/Ludhianahttp://en.wikipedia.org/wiki/Deccan_Heraldhttp://en.wikipedia.org/wiki/FMCGhttp://en.wikipedia.org/wiki/Reliance_Industrieshttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mukesh_Ambanihttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Hyderabad%2C_Andhra_Pradeshhttp://en.wikipedia.org/wiki/Jaipurhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Chandigarhhttp://en.wikipedia.org/wiki/Ludhianahttp://en.wikipedia.org/wiki/Deccan_Heraldhttp://en.wikipedia.org/wiki/FMCG


22/117

and vegetable business altogether, it has decided not to compete with local vendors partlydue to political reasons, and partly due to its inability to create a robust supply chain.This is quite different from what the firm had originally planned. When the first RelianceFresh store opened in Hyderabad last October, not only did the company said the storesmain focus would be fresh produce like fruits and vegetables at a much lower price, but

also spoke at length about its farm-to-fork theory. The idea the company spoke aboutwas to source from farmers and sell directly to the consumer removing middlemen out ofthe way. Reliance my exit some businesses If the businessdoes not increases by March2008.

R.Subramanian is an entrepreneur and started a retail chain calledSUBHIKSHA.There were not many entrepreneurs in India. For the name of thecompany, they looked at all sorts of names and finally they chosethe Sanskrit word subhiksha (prosperity) because it reflects theIndian ethos and it is a word that can be understood all over inIndia. What they were trying to do was different from the westernmodel; their model is truly Indian. Their theme was, WHY PAYMORE WHEN YOU GET IT FOR LESS AT SUBHIKSHA.In March 1997 they open their first store in Thiruvanmiyoar inChennai with an investment of around Rs.4 to 5 lakh. In the firstyear they opened ten stores in Chennai. They also started sellingmedicine at a discount.Medicine retailing is more of service than business for them. Ofcourse it is good business for them too. But their main motto isSERVICE

By March 1999 they started expanding rapidly from 14

stores; they expanded to 50 stores by June 2000.In the next 2 years they had 122 t0 130 stores across Tamilnadu.Another big thing was in 2000 ICICI venture invested in theircompany.

Page 22 of 117


23/117

They decided to look at every part of India which issignificantly literate and is a significant consumption market.

In 2004-2005 they decided to have 420 stores in placeslike Gujarat, Delhi, Andhra, Karnataka and Mumbai by 2006.

They are already Indias largest chain store with 500 plusstores. They planned to have 1000 plus stores by the end of thisyear.

Big Bazaar is a chain ofdepartment stores in India, currently with 75 outlets. It is ownedby the Pantaloon Retail India Ltd, Future Group. It works on the same economy model asWal-Mart and has considerable success in many Indian cities and small towns. The ideawas pioneered by entrepreneurKishore Biyani, the CEO of Future Group. Currently BigBazaar stores are located only in India. It is the biggest and the fastest growing chain ofdepartment store and aims at being 350 stores by the end of year 2010.

Page 23 of 117
http://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pantaloon_Grouphttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/w/index.php?title=Kishore_Biyani&action=edithttp://search.aol.in/aol/redir?src=image&requestId=9b28cb49484b8d42&clickedItemRank=18&userQuery=subhiksha+outlet&clickedItemURN=imageDetails%3FinvocationType%3DimageDetails%26query%3Dsubhiksha%2Boutlet%26img%3Dhttp%253A%252F%252Fwww.indiaretai%20http://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pantaloon_Grouphttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/w/index.php?title=Kishore_Biyani&action=edit


24/117

What started as a humble one store enterprisein 1986 in Kolkata(erstwhile, Calcutta) istoday a conglomerate encompassing 82showrooms in 56 cities. Indias first hyper-market has also been opened for the Indianconsumer by Vishal. Situated in the nationalcapital Delhi this store boasts of the singelargest collection of goods and commodities

sold under one roof in India.

Page 24 of 117
http://index.htm/


25/117

The group had a turnover of Rs. 1463.12 million for fiscal 2005,under the dynamic leadership of Mr.Ram Chandra Aggarwal . Thegroup had of turnover Rs 2884.43 million for fiscal 2006 and Rs.6026.53 million for fiscal 2007

The groups prime focus is on retailing. The Vishal stores offeraffordable family fashion at prices to suit every pocket.

The groups philosophy is integration and towards this end hasinitiated backward integration in the field of high fashion by settingup a state of the art manufacturing facility to support itsretailendeavors.

Vishal is one of fastest growing retailing groups in India. Itsoutlets cater to almost all price ranges. The showrooms have over70,000 products range which fulfills all your household needs, and

can be catered to under one roof. It is covering about 18.6 lakh sq.ft. in 18 state across India. Each store gives you internationalquality goods and prices hard to match. The cost benefits that isderived from the large central purchase of goods and services is

passed on to the consumer.

Page 25 of 117


26/117

Competition levels

1) Brand competition:-A company does its competitions as other companies

offering a similar product and services to the same customers atsimilar prices.Like Reliance fresh, Subhiksha, Big bazzar, Tru mart, Vishalmega mart etc

Page 26 of 117


27/117

2) Industry competition:-A company sees its competitors as all companies

making the same product or class of products. All retail formats invegetable are in direct competition.

3) Form competition :-A company sees its competitors as are companies

manufacturing products that supply the same services.As example, vegetables from local vendors.

3) Generic competition:-It is the level of competition where marketers

fight for consumers wallet.Eg. The amount in which consumers can purchase wheat, pulses,chocolates, rice etc.

COMPETITION LEVEL CHART

Page 27 of 117

BRAND COMPETITION

Reliance freshSubhikshaBig bazaarTru martVishal mega mart


28/117

Page 28 of 117

GENERIC

COMPETITION

WheatPulsesFood packetRice

INDUSTRY

COMPETITION

All the retailformats in

vegetable are indirect competition.

FORM COMPETITION

Vegetables from local

vendors

COMPETITION

LEVEL FOR

VEGETABLES

AT ORGANISED

RETAIL

FORMATS


29/117

Page 29 of 117


30/117

Vegetables

The product is very important factor of marketing exchange. Theproduct should be such that it satisfies the customers need and wants.Products that are marketed include physical goods, services,experiences, event, persons, places, properties, organization, information

Page 30 of 117


31/117

and ideas. It is said that Product is a key element in the marketofferings.

Kotler has identified 5 levels of a product which are asunder:

Core benefit:The most fundamental level is the CORE

BENEFIT. The fundamental benefit or services that product

Page 31 of 117

Augmented product Expected product

Basic product

Core benefits


32/117

provides to customers. It basically includes core ingredients of theproduct.

Vegetable: it should be fresh.

Organized retail format: get all the varieties of vegetables andfruits under the one roof.

Basic product:In this level the marketers task is to convert core

benefit into basic needs. At this level a marketer focuses on the basicneeds of the customers and then he takes action to satisfy the same.

Vegetable:the basic product here is vegetable itself.

Organized retail format:the basic product is fresh and qualitativevegetables.

Expected product:At this level the marketers introduce an expected

product and conditions that buyers normally expect while purchasing theproduct.

Vegetable:it should be economic.

Organized retail format: the expected product is available atreasonable price, as well as it should be available in appropriatequantity, eco friendly carry beg to carry vegetables.

Augmented product:

Page 32 of 117


33/117

At the 4 th level the marketers prepare an

augmented product that exceeds customers expectation. The

customer feels happiness with surprise by the product. It includes

features like Guarantees and Warranties after sales, service,

delivery, points for members, customer education and training,

payments options, replacement or return policy etc.

Vegetable: it should be organic.

Organized retail format: the augmented service is availability of

fresh vegetables at any time. The availability of cutting vegetablesis also an important factor.

Potential product:At the 5th level stands potential product with

encompasses all the possible augmentations and transformation the

product might undergo in the future. Innovative ideas of the marketerplay an important part to put the product in this stage,

Vegetable:it should be hygienic.

Organized retail format: Sectional arrangement especially for theirpeople, purchase of vegetables on phone facility is also fall in it.

The present era is of globalization so it is possible toexchange the vegetable on the world wide scale. So nowadays the

Page 33 of 117


34/117

varieties provided by retail sectors in case of vegetables have beenincreased. So the customers get more of varieties. Even in a product like

potato, customers may find 4 to 5 categories based on quality &economy. In the end we can say that in vegetables more & more

varieties are introducing by retail sector which leads to the greater levelof satisfaction & higher living standard of the people.

Page 34 of 117


35/117

Page 35 of 117


36/117

Price represents the quantity of money. Price is the mostimportant elements in determining market shares and profitability. Priceis the important factor which is operated as measure determinant of

buyers choice. Price also communicates to the market. The companysvalue is positioning of its product or brand. Price is a major factor thatrelate with the customers satisfaction. Its a duty of a marketer tocharge reasonable price. Moreover price should be always matched withthe quality. If it is not so than customers may be dissatisfied and mayswitch over to the competitors. In the end we can sum up that pricedepends upon quality and also features of product.

Vegetables are the basic and essential need of people so itshould be available at every place and at reasonable price. Vegetablesare the thing which is consumed by every class of people. Peoplegenerally use vegetables in their routine life and thus it is part of their

budgeting. Traditionally people buy the vegetables from vendors only.But now days we found many retail formats coming with freshvegetables selling business. Retail formats are applying value pricingmethod in which they ask the value of products and accordingly price iskept. The retail formats main aim is to sell fresh vegetables in the

market. In the retail format customer get the vegetables at a fixed priceso no question arises for bargaining.

Consumer changes their buying behaviour from one retailmarket to other retail market if they found vegetables very costly or notaffordable. It is so because price is a thing that generally changes onesmindset of from where to buy?

Page 36 of 117


37/117

PRICE AT ORGANISED RETAIL

FORMAT:

Here we have shown different prices of vegetables ofdifferent retail markets. However it is important to note that these pricesdo not remain same through the year.

Vegetable Subhiksha TrumartBig

Bazaar

Reliance

Fresh

Star

Bazaar

Onions 7.50 8.00 8.00 7.70 7.69

Potatoes 8.50 9.50 9.50 8.75 9.00

Tomatoes 8.00 8.00 8.50 7.25 7.15

Ladies

Fingers17.00 24.00 16.00 22.00 21.90

Capsicum 31.00 30.00 30.00 47.80 55.96

Spinach 9.00 8.00 13.00 10.00 11.00Cucumber 15.00 16.00 20.00 15.00 14.90

Total: 88.50 95.50 97.00 110.80 119.91

Price

Index100 108 110 125 135

Page 37 of 117


38/117

Page 38 of 117


39/117

This marketing mix deals with the decision about themanufacturing place, distribution network consisting of dealers etc.Place is key marketing mix tool which tends for the various activities. Itis an important element to attract the customers. Customer feels

comfortable at a good place. A producer needs to select appropriateplace for manufacturing a product in such a way that it fulfill the criteriaof availability to the prospective and present buyer.

Location:

This is the prime factor in determining the success ofthe retail chain. As the vegetables are basic need of people, it isnecessary that retail format should be located at different place andin more numbers so as to cover the maximum individualsdemands. Present scenario in Ahmedabad is very good and thereare many retail formats in Ahmedebad covering different area.

Location preference:

Retailers try to cater to their target market withstrategically located outlets. As nearness is considered as the majorfactor while purchasing the vegetables, retailers have opened theiroutlets in many residential areas.

Page 39 of 117


40/117

CFA

RETAILERS

LOCAL WAREHOUSE

Distribution Channel:

Distribution channel followed by retailers incase of vegetables is as follows:

Farmers

(Carrying and forwarding agent)

Inventory:

As far as the retailers are concerned, inventory is checkedfrequently as it is perishable in nature.

Transport:

Most of the retailers use their own mini trucks to transfer

vegetables from warehouses to different outlets.

Page 40 of 117


41/117

Page 41 of 117


42/117

Promotion is a term taken from Latin word promovere thatmeans moving from one to one and to another. In marketing,

promotion means all those tools through which a marketercommunicates its product to the consumer. A thing becomes

familiar if it is promoted well by the marketer. A marketer can useany of the following four tools.

1) Advertising2) Sales promotion3) Public relation4) Personnel selling

ADVERTISING:There are mainly 2 types of advertisement:

Informative advertisements:

Informative advertisements are those fromwhich the consumer sets information of the products or service andother knowledgeable things.

Influencing advertisements:This kind of advertisements influences

the customers to buy the product or service.

Page 42 of 117


43/117

Tools of advertising:

Advertising

Print media Visual media

News paper Television

Magazines Hoardings

Effective advertisement programme:

Advertising should have positive effect on contactpersonnel.

It should make the service offering easily beunderstood.

It should provide tangible clues to customers.

It should contribute to the continuity.

It should promise only what is possible.

Advertising offers reasons to buy

Page 43 of 117


44/117

Organized Retail Format:

Retailers use following advertising tools to market the

vegetables.

Vegetables are marketed more by print media thanvisual media.

Most of the retailers market vegetables by providingPamphlets regarding the price of the vegetables,Current offers, address of the different locations etc.

Newspaper is considered as very important tool by thedifferent retailers. Subhiksha, tru mart often advertisethrough the newspaper.

Apart from this, retailer like subhiksha also usestelevision or radio to market the vegetables.

SALES PROMOTION:Sales promotion means the technique

to attract the customers by different schemes and ideas of themarketer.

Example

Festival discount offersOff-season salesDifferent scheme

Sales promotion offers an incentive to buy

Page 44 of 117


45/117


Retailer like Big Bazaar keeps the price low on

Wednesday to attract the customers.

Most of the retailers provide some items ofvegetables at low price on a particular day.However this is not advertised and thus thisbenefit can be taken by those customers who visitthe retail format.

PUBLIC RELATION:Public relation involves a

variety of programmes assigned to promote or project acompanys image or individual products. Public relation

includes the following things.

Good relations with the customers

Fulfill their demands

Keep them loyal to the company

Page 45 of 117


46/117


Most of the retailer provides membership cards to thecustomers and they provide special discount or pointsystem to them.

Some retailers reward their customers who have filledup the feedback form.

PERSONNAL SELLING:

This involves selling of theproduction with the help of a salesman to its customers. Thisis very useful because a salesman can remove the queries andthe doubts of the customers regarding the products.Moreover as the explanation given face to face it is more

helpful in case of convincing customers then advertise.

Organized Retail Format:This promotion

strategy is not generally followed by the retailers.

Page 46 of 117


47/117

Internal Marketing

Page 47 of 117


48/117

Investing in peoples qualities in service business means

investing in product quality

Origin of the concept:

Judd, in 1087, came out with another

P people. His argument was it is the employees of anorganization, which represent the organization to the customers. Ifthese employees are not given training in how to go about face-to-face customer contact, the entire marketing effort may not prove to

be effective. He went further by recommending that people powercould be formalized, institutionalized and managed like the other4Ps as a distinctive component of the market-mix andconsequently as an element of an organization marketing or

business plan.

Role of the Staff

Consumers make judgment and deliver the perceptionof the service based on the employees. Staff should have the

Page 48 of 117
http://bp2.blogger.com/_bnTH_4QgfBA/RfFJNjHJOAI/AAAAAAAAASc/-ydpZNaqnzQ/s1600-h/reliance-fresh.jpg


49/117

appropriate interpersonal skill, aptitude and service knowledge toprovide the services that customers are paying for. Thus if theemployees are satisfied, they remain enthusiastic while performingtheir duties and while interacting with the customers. That is why

HR managers take an important role in organization.

In the essential ingredient to any service provision isthe use of appropriate staff, recruiting the right staff and trainingthem appropriately in the delivery of the service. Moreover thesatisfaction of the organizations staff leads to higher profitabilityof the organization.


Employee Code of Conduct:

Retailers have conveyed the messageto their employees that they are doing job and are also social withmany consumers. Their attributes and communication should be upto the mark. They are friend as well as guide of the customers.

Employees of retail format:

Employees at retail format are found with unique dress code.

They also help the customers and respond to their queries.

They keep on checking the vegetables and arrange itproperly.

Page 49 of 117


50/117

Behaviour of the staff reflects the picture of the company.

Page 50 of 117


51/117

A physical object is self-defining and therefore themarketing task in service industries are defining for the servicewhat the service cant define for itself. Though a customer cant

see a service but definitely he can see various tangible clues of theservice-offer like facility, communication material, object,employees, other customers, price etc. On the basis of his

perception on the tangible clues the customers make purchasedecision. These clues might be both intended and unintended onceand therefore managing evidence is integral to the service. Many

Page 51 of 117


52/117

service marketers give more emphasis to issue like exterior ofbuilding, office furniture, layout, colour of interior and even carrybag, cash memos, labels etc.

The 3 elements of service evidence are as follow.

Environment

Communication

Price

These 3 elements of service evidence are not mutuallyexclusive, rather they influence each other.

Logo and Image:

Logo is very useful for any brand to differentiate the

product. Design and colour creates separate identity or image inthe minds of the customer.This image and logo has its own Lifein the minds of the consumers.


Different retailers use the logo which are as under..

Page 52 of 117


53/117

Physical environment:Physical environment on the basis of

the following 3 factors

AMBIENT FACTORS

Aui quality

Quality scant

Degree of circulation

DESIGN FACTORS

Flower pots

Architecture colour scheme Functional dimensions of design in terms of layout comfort

SOCIAL FACTORS

Page 53 of 117


54/117

Appearance

Behavior and number of service personnel.

Quality and quantity of other competitors


Proper lighting factor is considered very important by mostof the retailers.

Proper cold storage facility for vegetables is given prime

importance by retailers.

Retailers also pay attention towards proper labelingregarding the price, name of vegetable etc.

Arrangement of vegetables is also taken as an importantfactor by retailers.

Clean environment is also taken into consideration so as tocreate good image in the minds of the consumers.

Page 54 of 117


55/117

Any service process is a combination of bothcomplexity and divergence.

In service sector, when there is no tangible product,the operation management is interactive that it would deliver theservice benefit. Without sound process management, balancingservice demand with service supply is extremely difficult.

Page 55 of 117


56/117

In case of vegetable service at retail format branchoffices get quickly delivery of vegetables as per the customersdemand. They also provide facility of different varieties ofvegetables, seasonal as well as non seasonal.

AREA OF OPERATION

Process planning and control

Operational planning Design

Scheduling

Inventory planning and control

Quality control

Forecasting and long term planning


Marketers in service industry process can not design a toolthat can substantially increase in their impact and roll in

marketing of their service.

A systematic and in some way unique process or procedure iscarry on by retailers to finish up with the task of deliver thevegetables to their destinations.

Page 56 of 117


57/117

What is Research?

Market Research means to study or analyze the factual

data of a particular product of the market.

Page 57 of 117


58/117

Market research is the function that links the customer

and public to marketer through information that` is used to identify

and define marketing opportunities and problems, define and

evaluate marketing actions, monitor marketing performance and

improve understanding of marketing as a process.

Effective marketing research involves following steps

1. Define the problems and purposes.2. Develop the research plan3. Collect the information4. Analyze the information5. Present the findings6. Make the decision

1. Define the problem and purposes

Market research is undertaken to achieve particular

objectives. Some research can be exploratory, descriptive orcausal.The first and famous objective of conducting a research

on vegetable buying behavior at organized retail formats was tofind out awareness level of various retail formats and what

Page 58 of 117


59/117

percentage of people who actually purchase or buy from that retailformat and due to which reason.

2. Develop the research plan

Sampling plan

After deciding on the research approach andinstruments, the marketing researcher must design a sampling

plan. This calls for three decisions.

1) Sampling unit:-Who is to be surveyed? The marketing

researched must define the target the marketing researcher mustdefine the target population that will be sampling.

We have done the survey of housewives,business man, professionals, students etc. we have covered therespondents of all the groups

2) Sample size: -How many people should be surveyed? We

decided to do the survey of 2000 people and we got 100%response.

3) Sampling procedure: -How should the respondents be

chosen? To obtain a representative sample, a probability sample of

Page 59 of 117


60/117

the population should be drawn. Accordingly to us every memberof the population has an equal chance of selection so we didsimple random sampling.

Contact method

Once the sampling plan has been determined themarketing researcher must decide how the subject should becontacted through mail, telephone, personal, or online interview.

Our survey is based on personal contact becausepersonal interviewer the most versatile method. The interviewer

can ask more questions to respondents.

3) Collection of informationThe next step is the collection of data. There are two sources for it.

Sources of data:Primary

Secondary

]

Primary source:Customers and dealers.

Secondary source:Magazines, Newspapers, Internet, Reports.

3. Findings:

Page 60 of 117


61/117

This is the last step where the findings of thedata have to be presented in a proper and easilyunderstandable manner. For this purpose we have formedwritten conclusion used various types of diagrams that is

column chart, pie chart, bar chart, pyramid diagram etc

Page 61 of 117


62/117

Page 62 of 117

GENDER

GENDER NUMBER OF

RESPONDENTS

MALE 557

FEMALE 1443

TOTAL 2000


63/117

Gender

72.15%

27.85%

female

male

We surveyed around 2000 people of Ahmedabad city. Out of these people around 28% were males and 72% were females. Theserespondents are selected randomly.

AGE GROUP

Page 63 of 117

AGE GROUP VENDORS RETAILER

Below 25 53% 47%

25 to 35 25% 20%

35 to 45 17.% 31.%

Above 45 5% 2%


64/117

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Customres

Age group

Below 25

25 to 35

35 to 45

Above 45

This graph shows different age groups of our survey. We tried to

cover people from almost all the age groups. It is relevant from the

chart that the respondents with age group between 20-35 are more.

Page 64 of 117

OCCUPATIONOCCUPATION ( % )

Business 5

Service 10

House wife 54

Profession 6

Student 24

Any other 1


65/117

People belonging to different occupations were surveyed. Out ofour survey of 2000 people, major respondents were ofHousewife. This shows that out of the all occupation people themajor part of vegetable purchaser is covered by housewives

Page 65 of 117

MONTHLY HOUSEHOLD INCOME

INCOME ( % )

Below 10000 40

10000-20000 42

20000-30000 11

Above 40000 7

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

%

OCCCUPATION

Business

Service

House wife

Profession

Student

Any other


66/117

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

%

MONTHLY HOUSE HOLD

INCOME

Below 10000

10000-20000

20000-30000

Above 40000

This graph shows people of different income groups. We tried to

find out which income class buy the vegetables more. Prices play a

significant role in service industry. People, who are spending their

hard earned money, also expect the best services in return.

MONTHLY HOUSEHOLSD EXPENDITURE

Page 66 of 117

EXPENDITURE ( % )

Below 500 25.51

500-1500 59.6

1500-3000 12.83

Above 3000 2.08


67/117

0.00%

10.00%20.00%

30.00%

40.00%

50.00%60.00%

%

Mothly household expenditure

Below 500

1500-2500

1500-3000

above3000

As per our survey, we have found that nearly 60% of the people

have the tendency to spend Rs. 500-1500 monthly on vegetables.

Page 67 of 117

FREQUENCY OF PURCHASE


68/117

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

%

Frequency of purchase of vegetable

Daily

Weekly

Alternatively

As per the

need

As per our findings we have found that majority of people are

buying vegetables on daily basis followed by as per need andalternatively and weekly

Page 68 of 117

FREQUENCY ( % )Daily 45

Weekly 18

Alternatively 16

As per the need 11


69/117

Around 70% of people are aware about retail format. This shows

that retail formats have created good mindshare of people. Because

it is a recent phenomenon it will take some time to cover entire

100%.

Page 69 of 117

AWARENESS

AWARENESS ( % )

YES 71.67

NO 28.33

Awareness about retail

format

Yes

71.67%No

28.33%


70/117

From where do you buy the vegetables?

Retailer

38.5%

Vendor

61.5%

As per our observation 70% of the people are aware of retailformats but because of some hindrances like nearness, price only35% of the people are buying from retailers and 65% buying fromvendors.

Page 70 of 117

FROM WHERE DO YOU BUY?

WHERE DO YOU BUY? ( % )

Retailer 38.50

Vendor 61.50


71/117

Would you like to continue

purchasing even if retailer increase

price?

Yes

No

Yes

No

43.25%

56.75%

We have found that at the current prevailing price the respondents

are satisfied. If the retailer will increase the price customers will

shift to vendors or other retailers. Retailers have to provide

vegetables at competitive price.

Page 71 of 117

PURCHASE IN CASE OF INCREASE IN PRICE

OPINION ( % )

YES 43.25

NO 56.75


72/117

0.00%

5.00%10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

customers

ORGANISED RETAIL SECTORS

Reliance fresh

Subhiksha

Big bazaar

Vishal mega

martStar bazaar

D-Mart

Tru-Mart

National

handloomOther

As per the observation more than 50% of market has been capturedby Reliance fresh and Subhiksha followed by Big bazaar, Vishalmega mart, Star bazaar and Tru mart.

Page 72 of 117

ORGANISED RETAIL FORMAT

ORGANISED RETAIL

FORMATS

CUSTOMERS

Reliance fresh 36%

Subhiksha 28%

Big bazaar 15%

Vishal mega mart 9%

Star bazaar 5%

D-Mart 3%

Tru-Mart 1.5%

National handloom 1.5%

Other 1%


73/117

As per

the survey we have seen that word of mouth has powerful effect on

customers. Apart from this retailers are communicating through

Media, different Newspapers which have also great effect on

consumer buying behaviour.

Page 73 of 117

SOURCE OF INFORMATION

SOURCES CUSTOMERS

Media 34.29%

Website 5.58%

Hoardings 19.35%

Friends & relatives 39.74%

Any other 1.04%

BASIS OF PAYMENT

H o w d id y o u c o m e to k n o w a b u

3 4 . 2 95 . 5 8

1 9 . 3 5

3 9 . 7 4

1 . 0 4

O the rs

F r ie nd

re la t iv eH o rd in

W e b s i t

M e d ia


74/117

0.00%

20.00%

40.00%60.00%

80.00%

100.00%

On which basis do you make

payment?

Cash 89.00%

Plastic

money

11.00%

Credit cards are the new concept and most people are habituated tomake payment on cash basis for purchasing the vegetables. Mostlythey are purchasing vegetables on daily basis. On an average they

purchase vegetables of Rs. 20 to 25 and for this small amount theyare not willing to use credit cards. But with the passage of time

they will use it.

Page 74 of 117

MODE (%)CASH 89

PLASTIC 10.11

PREFRENCE FOR HOME-DELIVERY


75/117

Do you prefer the facility of home

delivery?

Yes

66.46% No

33.54%

As per the observation, we have found that if the retailer provide

the facility of home delivery people are ready to accept it. Though,

only for vegetables people are not using the facility of home

delivery.

Page 75 of 117

OPINION ( % )

YES 66.46

NO 33.54

MEMBERSHIP-CARD


76/117

Do you have any membership

card?

No

65%

YES

35%

Now a days retailers have come with new strategy i.e. membership

card. They are providing membership card and prevailage card tothe consumers who purchase within their decided limit. It is a goodstrategy but as per our survey we have found that only 35% ofrespondents are using it.

Page 76 of 117

MEMBERSHIP-CARD ( % )

YES 35

NO 65

RECOMMENDATION TO FRIENDS


77/117

Respondents who are buying from the retailers, out of these86.75% respondents are ready to recommend about to their friendsand relatives. It shows a good opportunity for the retailers as wordof mouth strategy is more effective.

REASONS FOR PURCHASING FROM VENDORS

Page 77 of 117

MEMBERSHIP-CARD ( % )

YES 87

NO 13

REASONS ( % )

Quality 20.73%

Price 49.59%

Tradition 17.97%

Nearness 11.22%

Other 0.49%

Yes No

0.00%

50.00%

100.00%

Would you like to recommend your

friends?


78/117

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

Vendor

Why do you buy vegetables from

vendors?

Quality

Price

Tradition

Nearness

Other

More than half of respondents are buying from the vendorsbecause of the buying from the vendors because of the qualityfollowed by price, tradition, nearness. Because retail formats arecomparatively a newer concept it will take some time to capturethe market.

PURCHASE FROM RETAIER AND DISCONTINUSED

PURCHASED AND

THAN DISCONTINUSD

( % )

Page 78 of 117


79/117

YES 84.33

NO 15.67

Have you ever purchased from

retail market and then

discontinued?

Yes

15.67%

No

84.33%

This shows the satisfaction level of respondents, buying fromretailers is very high. Only around 15% of respondents are buying

from retailers and than discontinued.

Page 79 of 117

CHANGE IN PREFERENCE IF THEIR CRITERIAS ARE

FULFILED


80/117

0%

50%

100%

Yes No

Would you prefer to purchase

from retailer,If retailer fulfill your

preference criteria?

81.33%

18.67%

More than 80% of respondents are willing to purchase vegetables

from retailers, if the retailers fulfill some criteria. Overnight

Page 80 of 117

PREFRENCE OF

RESPONDENTS

( % )

YES 81.33

NO 18.67


81/117

changes are not possible but over a period of time if the specific

criteria are satisfied people will start buying from retailer.

RESONS FOR PURCHASING FROM RETAILERS

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

customers

Why do you buy vegetables from

retailers?

Quality

Price

Nearness

Varieties

Freshness

Offers

Any other

These retailers provide very good amount of verities under oneroof that attract the majority of people.

Page 81 of 117

RESONS CUSTOMERS

Quality 25%

Price 4%

Nearness 9%

Varieties 44.5%

Freshness 16%

Offers 1%

Other 0.50%


82/117

SATISFACTION LEVEL

.

21.82%

23.64%

19.23%

22.22%

14.81%

11.32%

18.51%

25.93%

16.36%

60%

58.18%

46.15%

50%

51.85%

33.96%

38.89%

40.74%

54.55%

18.18%

18.18%

26.93%

24.08%

18.52%

47.16%

35.19%

29.63%

25.45%

7.69%

9.26%

3.70%

7.55%

7.41%

3.70%

1.82%

5.56%

1.82%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00%

Quality

Price

Freshness

Location

Staff Behaviour

Sectional arrangeme nt

Billing facility

Varieties

Shopping experience

Highly satisfied Satisfied Neutral Dissatisfied Highly satisfied

As per our findings we come with the conclusion that consumers atSUBHIKSHA are highly satisfied by varieties followed by price,location, quality, freshness, billing facility etc.. moreover they are

Page 82 of 117


83/117

satisfied with quality and shopping experience. 9.26% of peopleare dissatisfied with staff behaviour so they should improve it.

SATISFACTION LEVEL

Reliance Fresh

39.13%

15.28%

36.36%

24.64%

10.110%

21.92%

21.21%

28.79%

18.84%

43.48%

54.17%

48.48%

42.03%

50.11%

46.58%

42.42%

50.00%

50.71%

15.94%

29.17%

15.16%

30.43%

29.23%

24.66%

34.83%

19.70%

26.09%

7.69%

2.90%

2.74%

1.52%

1.51%

1.45%

1.45%

1.38%

4.10%

1.54%

2.90%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00%

Quality

Price

Freshness

Location

Staff Behaviour

Sectional arrangeme nt

Billing facility

Varieties

Shopping experience


The above chart shows that the customers of Reliance fresh aresatisfied with the price at which it provides the vegetables. Butthey are not satisfied with staff behaviour.

Page 83 of 117


84/117

SATISFACTION LEVEL

General

28.11%

11.03%

33.09%

18.87%

19.770%

7.11%

12.09%

38.08%

6.76%

38.79%

51.60%

28.83%

34.16%

37.01%

20.99%

33.09%

27.75%

26.33%

25.96%

30.24%

20.91%

11.03%

24.91%

52.31%

48.75%

18.86%

64.76%

13.16%

16.72%

18.86%

19.22%

19.59%

6.07%

15.31%

1.77%

6.05%

4.62%

0.38%

3%

3%

1%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00%

Quality

Price

Freshness

Location

Staff Behaviour

Sectional arrangement

Billing facility

Varieties

Shopping exper ience


People who are purchasing vegetables from organized retailformats like Vishal mega mart, Tru mart, D-mart, Nationalhandloom are highly satisfied with the varieties of vegetables andfreshness. They are also satisfied with the price.

Page 84 of 117


85/117

SATIAFACTION LEVEL

Overall

28.11%

30.26%

15.97%

30.39%

21.82%

14.680%

13.64%

17.14%

31.43%

13.64%

38.79%

46.23%

54.29%

40.65%

41.30%

45.71%

33.77%

38.05%

39.22%

42.86%

25.96%

20.26%

26.62%

20.65%

21.69%

24.68%

40.91%

40.00%

22.20%

40.00%

2.21%

1.69%

9.09%

6.88%

12.21%

10.13%

4.81%

7.51%

6.05%

2.86%

1.43%

1.55%

1.81%

2.72%

6.01%

0.91%

0.39%

1%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00%

Quality

Quality

Price

Freshness

Location

Staff Behaviour

Sectional arrangement

Billing facility

Varieties

Shopping experience


Our findings shows that all the retail formats are providing goodamount of varieties and freshness of vegetables.

Page 85 of 117


86/117

Important factors while purchasing vegetables

Important factors while purchasing

58.96%

53.51%

34.29%

31.43%

13.64%

17.79%

33.90%

32.21%

31.43%

12.86%

13.64%

10.26%

23.64%

25.84%

20.13%

9.22%

36.62%

9.74%

6.75%

1.68%

1.56%

16.75%

0.64%

0.65%

2.86%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00%

Freshness

Quality

Price

Nearness

Others

Highly important Important Neutral Less important Least important

While purchasing the vegetables people first think about freshnessof the vegetables followed by quality, price and nearness.

Page 86 of 117


87/117

HOUSEHOLD EXPENDITURE AND PURCHASING FROM

RETAIL FORMAT

HOUSEHOLDEXPENDITURE

(RS)

ORGANISEDRETAIL FORMAT

( % )

Below 500 146 18.96

500-1500 489 63.50

1500-3000 108 14.03

3000 above 27 3.51

500-1500

below 500

3000 above

1500-3000

63.50 %

18.96%14.03%

3.51%

As per our survey, most of the respondents who purchasevegetables from the organized retail format, their householdexpenses for vegetables is rs.500 to rs.1500.

Page 87 of 117


88/117

MONTHLY HOUSEHOLD INCOME AND RATIO OF

PURCHASING FROM RETAIL FORMATS AND VENDORS

0

5

10

15

20

25

30

35

40

45

50

Local vendors ( % ) 44.72 46.59 5.36 3.33

Organised retailer ( % ) 35.33 37.66 15.53 9.48

below 10,000 10000-20000 20000-40000 above 40000

Generally, expenditure on vegetables depends on the size of

family. As per our findings, respondents who have the monthlyhousehold income of rs.10,000 to rs.20,000 have a tendency tomake expenditure on vegetables of rs.500 to rs.1500.

Page 88 of 117


89/117

HOUSEHOLD EXPENDITURE AND HOUSEHOLD

INCOME

0

50

100

150

200

250

300

350

400

450

500

HOUSEHOLD INCOME

BELOW 10000 (RS) 200 383 224 15

10000-20000 (RS) 337 497 17 12

20000-30000 (RS) 2 198 1 -

ABOVE 40000 (RS) 1 96 9 8

EXPEND

ITURE

BELOW

500500-1500

1500-

3000

3000

ABOVE

As per our findings, people who have the monthly householdincome of rs.10,000 to rs.20,000 have a tendency to makeexpenses on vegetables of rs.500 to rs.1500.

Page 89 of 117


90/117

Page 90 of 117


91/117


92/117

Page 92 of 117


93/117

Page 93 of 117


94/117

In retail format the customer gets more varieties under the sameroot, which facilities their purchase decision. It is rightly calledthe 'one stop shop

In retail markets the buyer gets to examine the productscarefully. He can go round the place & look for the items of hisinterest & liking. He can also compare across different brands,

prices & ranges of goods available. This is termed ascomparison shopping or 'shopping around

The retail markets attract people because they accept a varietyof payment methods.

The ranges of incentives being offered by retail market werefound to be more attractive to the consumers. Their incentiveswere in the form of price discount, free gifts at the time offestival, club memberships etc.

Page 94 of 117


95/117

Retail market is spread over large area & buyers have enoughspace to move around & pick up the items of their choice.

The display of wide varieties of goods on the racks also helps inthe purchase decision. Moreover, the categorization ofvegetables into different section eases the purchase.

The retail market usually provide for an adequate parking spacefor their customers. They have a special area reserved for the

parking of vehicles.

Self-selection & clear visual sight lines with information about

the product put the shopper in a comfort zone.

Page 95 of 117


96/117

Retail formats have to buy vegetables in bulk and all thevegetables are not sold every day, so there is so much wasteof vegetables everyday.

In retail formats if the workers or customers steal smallproducts they will not come to know about varieties.

People have a mindset that at retail formats prices ofvegetables are higher than vendors.They found quality ofvegetables are not good.

At retail format bargaining is not possible.

There are respondents who are still unaware about pressureof retail format.

Lack of no. of retail formats.For examples -True Mart.

Page 96 of 117


97/117

For every organization there is always possibility togrow more. Futures of retail sector in India or Gujarat regardingvegetables are very bright. There are many opportunities todevelop retail format. The points supporting these can besummarized as follows:

Many people tend to purchase vegetables from the localvendors because of some aspects like tradition, nearness,quality, price, freshness etc.

By the analysis we found that 38.5% customers prefer topurchase from retail format 61.5% of the people prefer tobuy from vendors but out of them 81.33% of the peopleare ready to buy from retailers if retailers fulfill their

preference criteria.

Government has favorable policy for retail industry. And itis also increasing awareness about retail format.

Page 97 of 117


98/117

As per our survey, there are many less no. of respondentswho have purchased from retail formats and thendiscontinued. It means that retailers treat their customersvery nicely. So now they just need to maintain their quality

and focus more to their potential customers. This is a verygood sign for the future of retailers.

As retailers purchases in bulk naturally the discount willbe more and thus cost of vegetables are reduced by gettingadvantage of these factors. They can reduce their price andcan be stand in the world of competition.

Page 98 of 117


99/117

Every business has some kind of threats. In the samemanner threats of retail formats according to us can be as follows:

There are some government restrictions because of whichretail formats can not enter in vegetables market. Forexample, In UP there was a big issue of Reliance fresh and

local vendors and therefore had to shut down their formats inUP. The vendors are against these most of retail formats.

By the analysis we found that only 38.5% of people fromAhmedabad buy the vegetables from retail format. That isalso a big threat for them.

We have found that from vendors 49% people are buying

vegetables because of quality, means they dont have trust onformats for the quality vegetables.

Absence of developed supply chain and integrated IT marketcan be the barrier in future

Page 99 of 117


100/117

Page 100 of 117


101/117

From the analysis of the questionnaires as well as

according to our observations, retailers are advised in followingmatter.

The arrangement of vegetables in retail formats are foundvery conjunctive. So retailers should keep some distance

between the varieties of vegetables. So that consumer caneasily move around along with the trolley.

According to to the people from low income group, andsome middle income group, the prices of retail sectors arehigher comparing to local vendors. So retailers are advisedto keep price low. For this they can provide vegetables ateconomic price by reducing some level of quality.

Retailers are advised to open more branches and locations atdifferent place.

Retailers are suggested to provide vegetables of non seasonalitems. So that the people from higher-income group areattracted to purchase those items.

In retail sectors right from beginning of the selection ofvegetables to the packing of the vegetables same has to bedone by a person himself. Some of the customers do not likeself services. So retailers are advised to be trained their

employees in such a manner that they identified suchcustomers and treat them well.

In many retail sectors, it is found that Jain items are not keptseparately that of non-Jain items. So retailers are suggested

Page 101 of 117


102/117

to keep it separate. So that religious problem does not ariseand they can attract more Jain customer.

Moreover they should advertise in such a manner that they

keep Jain food separately and by these they can bedifferentiated in the eyes of consumers.

Some time it is found that some items of vegetables havepurchased by consumers and baskets containing that itemseem to be empty. This create bad image in the minds ofconsumers. For this employee should be treated in such amanner that they check out all the basket containing

vegetables and put the appropriate items with the passageof the time through out the day.

Some of the consumers complaint that they found somespoiled items and stall items and this matter affects theconsumer buying behavior so retailers are suggested to treatthe employees in such a manner that the sort-out thevegetables and to remove the defective vegetables.

Retailers are advised to offer more schemes as well asdiscounts,especially to the customers having theirmembership cards.

Page 102 of 117


103/117

Page 103 of 117


104/117

The research conducted by us may not be exactlyaccurate. But we have tried our best to remove inaccuracy from

project. The following are the limitation of this research conductedby us.

Our survey was limited to Ahmedabad city only. The figures

can be different in other cities. The research could not givethe result on the whole because people might have differentattitude for the product at the different places.

Some respondents were hesitating to reveal the informationabout their income and other private data. We doubt the

accuracy of information given by such respondents.

Only 2000 customers survey cant give the precise idea aboutthe product or service but than also we tried to collect asmuch details as we could get from the customers. These 2000customers were from different area and no brief idea aboutthe product was collected and analyzed.

As we all were doing this kind of research for the first timethere can be some mistake done by us due to in-experience.Thus despite of the limitation we tried make as accurate aswe could make.

The details enclosed in this project are based on the surveyconducted by us. It is possible that we might have left outsome important details.

Page 104 of 117


105/117

Page 105 of 117


106/117

Marketing management by Philip kotler

Kevin Lane Keller (12th edition)

www.relianceinfo.com www.rediffnews.com www.subhiksha.com www.vishalmegamart.com

Page 106 of 117
http://www.relianceinfo.com/http://www.rediffnews.com/http://www.subhiksha.com/http://www.vishalmegamart.com/http://www.relianceinfo.com/http://www.rediffnews.com/http://www.subhiksha.com/http://www.vishalmegamart.com/


107/117

Page 107 of 117


108/117

Marketing research basically an experimental field wherestudents gain sufficient knowledge through practical experience.This marketing research is our first step through which we can getan opportunity to approach different kinds of people. It helps us toincrease our knowledge, communication, skills, ability anultimately helps to improve our personality.

The whole journey from beginning to completion of our

research on preference of people for different retailers, vendors ofvegetable were really full of experience and learning. It has taughtus how to apply the principles of research methodology in the

practical situation. This project is the result of what we havedigested out of the whole journey.

Basically our research revolves around the comparison of thesatisfaction level for the consumer, for retailers, for vendors. wehave tried to analyze different aspects of their preferences. All

these aspects have been neatly and logically shown in ourquestionnaire.Having completed the procedure of surveying around

2000 consumers we arrived at a juncture where we neglected togive a right direction to our research by formatting researchhypothesis very carefully. We have presented the result of oursurvey in tabulated form accompanied by graphical analysis.

Finally we have concluded our project thereby we have at theconclusion that the consumers of vendors are more than retailer

and market for retailers gradually increase.

Page 108 of 117


109/117

K.S.SCHOOL OF BUSINESS MANAGEMENT

Page 109 of 117


110/117

MARKET SURVEY ON

VEGETABLE BUYING BEHAVIOUR AT RETAIL FORMAT

Survey NO. : _____________ City : ____________

A) Name : ___________________________________________

B) Address : Area _______________________________________

City ________________________________________

C) Gender : Male Female

D) Age Group Below 25 25 to 35

( In years ) 35 to 45 above 45

E) Occupation :

Business Profession

Service Student

Housewife Any other _____________________(please specify)

F) Monthly household income : ( in Rupees )

Below 10000 10000 - 20000

20000 - 40000 above 40000

G) Monthly household expenditure on vegetables : ( in Rupees )

Below 500 500 - 1500

1500 - 3000 3000 & above

H) Frequency of purchase of vegetables.

Daily AlternativelyWeekly As per the need

I) Are you aware about retail format ?

Page 110 of 117


111/117

Yes NoJ) From where do you buy the vegetables ?

From Retailer [ please go to section 1 ]From local vendors [ please go to section 2 ]

1) From which of the following retailers do you buy the vegetables ?

Reliance fresh Subhiksha

Big Bazaar Star Bazaar

Vishal Mega Mart Tru Mart

D Mart National Handloom Any other ________________

( please specify )

2) Why do you purchase vegetables from above retailers?

Quality Freshness

Price Offers / schemes

Nearness Any other _______________

Variety (please specify)

3) Which are the different important factors for while purchasing vegetables?

( please give the rate )Highly Important Neutral Less Least

important important important

5 4 3 2 1

Freshness

Quality

Price

Nearness

Others 4) How did you come to know about this retailer ?

Media Through friends/relatives

Website Any other

Page 111 of 117

Section - 1


112/117

Hordings (please specify )

5) How long have you been purchasing from retailer?________years/months

6) Would you like to continue purchasing even if retailers increase prices ?

Yes No

7) Does the price of vegetables match with their quality ?

Yes No

8) Describe your satisfaction level for below mentioned parameters.

Particulars Highlysatisfied

Satisfied Neutral Dissatisfied Highlydissatisfied

Quality

Price

Freshness

Sectional

arrangemen

t

Locationfacility

Billing

facility

Staff

behavior

Variety

Shopping

experience

9) On which basis do you make payments?

Cash Plastic money

10) Do you prefer the facility of home delivery?

Page 112 of 117


113/117

Yes No

11) Do you have any membership card of any retailers ?

Yes No12) Would you like to recommend your friends about this retailer ?

Yes No

13) Please give your suggestions___________________________________________________

_

___________________________________________________

_

___________________________________________________

1) Why do you buy vegetables from vendors ?

Price Nearness Quality Any other ______________

Tradition ( please specify )

2) Have you ever purchased from retail market and then discontinued ?

Yes NoIf yes please give reason 1___________________________________

2___________________________________

3) Would you prefer to purchase from retailer if retailers fulfill your preference criteria?

Yes No

Page 113 of 117

Section - 2


114/117

-: Thank you :-

K.S.SCHOOL OF BUSINESS MANAGEMENT

QUESTIONNAIRE FOR DEALERS

_______________________________________________________________________

_

The information will be kept confidential and will be used only for study

purpose

1 Name of outlet : __________________________________________

2 Address : ____________________________________________________________________________________

3 Phone ( include city ) : _________________________________

4 Website : ___________________________________________

5 E-mail : ___________________________________________

6 Is it franchisee or company owned ? : _______________________

7 NO. of outlet : In Ahmedabad ______ In Gujarat _____In India ______ In Abroad _____

8 Numbers of years in business : ________

9 Numbers of employee : ________

10 What kind of training you provide to your employees ?________________________________________________________________________________________________________________

Page 114 of 117


115/117

11 Do you provide any incentives to your Employees ?

Yes No

Ifyes,___________________________________________

12 According to you who are the major Competitors ?________________________________________________________

13 How do you respond policies of your Competitors ?

________________________________________________________

14 Which type of vegetables are sold more ? specify variety

______________________________

15 Which promotional tools do you use for your outlet ?Advertising personal selling word of mouth

Direct marketing others ___________________

16 How do you treat with the stale vegetables ?__________________________

__________________________________________________

17 Briefly describe your distribution channel :___________________________

18 Your average optional expenses per week ( RS.) :

Below 5000 5000-10000 10000-15000 Abov15000

19 Average sales per week ( RS.) :

Page 115 of 117


116/117

Below 15000 15000-25000 25000-35000 Abov35000

20 When do you find more inflow of customer ?________________________

_______________________________________________________

21 What is the football of customers per day ?________________________

22 Which software do you use for Inventory management ?

_______________________________________________________

23 How do you manage over traffic customer ?_______________________________________________________

24 Do you have any sectional arrangement for JAIN customers ?Yes No

25 Do you have your own farms or any other suppliers supplies youvegetables ?

________________________________________________________

________________________________________________________

26 Do you offer any scheme to your customers ?Yes No

Ifyes_________________________________________

27 Which features of your outlet is different form others ?________________________________________________________

28 Have you ever got complaint from customers?Yes No

If yes, how you respond it?________________________________________

29 Are you planning for any expantion or diversification in near future?

Page 116 of 117


117/117

Yes NoIf yes,_________________________________________

Signature:__________

Date:______________

Vegetable Buying Behaviour@Retail Format 1st Year

Documents

Transcript of Vegetable Buying Behaviour@Retail Format 1st Year