Vegetable Buying Behaviour@Retail Format 1st Year
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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
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INDEX
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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
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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.
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Last but not least, special thanks to all those persons forspending their valuable time in giving us guidance and suggestionfor better project work.
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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
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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.
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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
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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.
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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.
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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:
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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.
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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.
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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)
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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.
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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)
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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.
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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
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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 -
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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.
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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.
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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 -
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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.
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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.
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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
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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
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BRAND COMPETITION
Reliance freshSubhikshaBig bazaarTru martVishal mega mart
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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
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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
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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
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Augmented product Expected product
Basic product
Core benefits
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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:
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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
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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.
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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?
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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
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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.
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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.
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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.
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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
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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
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Organized Retail Format:
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
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Organized Retail Format:
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.
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Internal Marketing
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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
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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.
Organized Retail Format:
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.
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Behaviour of the staff reflects the picture of the company.
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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
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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.
Organized Retail Format:
Different retailers use the logo which are as under..
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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
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Appearance
Behavior and number of service personnel.
Quality and quantity of other competitors
Organized Retail Format:
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.
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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.
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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
Organized Retail Format:
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.
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What is Research?
Market Research means to study or analyze the factual
data of a particular product of the market.
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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
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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
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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:
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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
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GENDER
GENDER NUMBER OF
RESPONDENTS
MALE 557
FEMALE 1443
TOTAL 2000
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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
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AGE GROUP VENDORS RETAILER
Below 25 53% 47%
25 to 35 25% 20%
35 to 45 17.% 31.%
Above 45 5% 2%
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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.
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OCCUPATIONOCCUPATION ( % )
Business 5
Service 10
House wife 54
Profession 6
Student 24
Any other 1
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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
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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
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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
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EXPENDITURE ( % )
Below 500 25.51
500-1500 59.6
1500-3000 12.83
Above 3000 2.08
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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.
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FREQUENCY OF PURCHASE
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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
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FREQUENCY ( % )Daily 45
Weekly 18
Alternatively 16
As per the need 11
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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%.
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AWARENESS
AWARENESS ( % )
YES 71.67
NO 28.33
Awareness about retail
format
Yes
71.67%No
28.33%
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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.
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FROM WHERE DO YOU BUY?
WHERE DO YOU BUY? ( % )
Retailer 38.50
Vendor 61.50
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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.
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PURCHASE IN CASE OF INCREASE IN PRICE
OPINION ( % )
YES 43.25
NO 56.75
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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.
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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%
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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.
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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
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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.
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MODE (%)CASH 89
PLASTIC 10.11
PREFRENCE FOR HOME-DELIVERY
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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.
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OPINION ( % )
YES 66.46
NO 33.54
MEMBERSHIP-CARD
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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.
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MEMBERSHIP-CARD ( % )
YES 35
NO 65
RECOMMENDATION TO FRIENDS
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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
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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?
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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
( % )
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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.
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CHANGE IN PREFERENCE IF THEIR CRITERIAS ARE
FULFILED
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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
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PREFRENCE OF
RESPONDENTS
( % )
YES 81.33
NO 18.67
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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.
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RESONS CUSTOMERS
Quality 25%
Price 4%
Nearness 9%
Varieties 44.5%
Freshness 16%
Offers 1%
Other 0.50%
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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
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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
Highly satisfied Satisfied Neutral Dissatisfied Highly satisfied
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.
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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
Highly satisfied Satisfied Neutral Dissatisfied Highly satisfied
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.
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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
Highly satisfied Satisfied Neutral Dissatisfied Highly satisfied
Our findings shows that all the retail formats are providing goodamount of varieties and freshness of vegetables.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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
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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.
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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.
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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/ -
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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.
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K.S.SCHOOL OF BUSINESS MANAGEMENT
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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 ?
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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
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Section - 1
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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?
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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
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Section - 2
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-: 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 ?________________________________________________________________________________________________________________
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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.) :
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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?
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Yes NoIf yes,_________________________________________
Signature:__________
Date:______________