1

Consumer perception about buying products in

Arambagh Food Mart in Bolpur Super Market

A Study Paper Submitted Towards the Partial Fulfillment of 3

Year BBA(H)Course Under West Bengal
University of Technology

Paper Submitted By: Avik Mandal, BBA (H) 3rd Year (6th Sem),
Roll no: 16350061022 Reg No: 163205021001 of
2006-07

Bengal Institute of Technology & Management,

Santiniketan

Bengal Institute of Technology & Management

 2

Acknowledgement
I am thankful to all the people who were patient
enough to share their valued time and provided
their valuable perception about the topic & to
all the employees of ARAMBAGH Food Mart
who cooperated throughout my market survey. I
am also thankful to Prof. A. K. Baksi, Assistant
Professor, Department of Management, BITM,
Santiniketan, without whom this project work
would not have been completed.

……………………

Bengal Institute of Technology & Management

 3

Signature
Date:

Objectives of The Study

My objective is,
Consumers’ perception about buying
products from ARAMBAGH Food Mart In
Bolpur Super Market.

Bengal Institute of Technology & Management

 4

Scope of this project:

1. It will give information to prospective customers.

2. It will help us gain independent knowledge about the

customer perception of the outlet(Arambagh Food Mart).

3. The study can help the companies get additional research

information.

4. It facilitates evaluation of brand name & customer

satisfaction.

Bengal Institute of Technology & Management

 5

Introduction

Executive Summary

Retailing is emerging as a sunrise industry in India and is

presently the largest employer after agriculture. In the year
2004, the size of Indian organized retail industry was Rs
28,000 Crores, which was only 3% of the total retailing
market. Retailing in its present form started in the latter half
of 20th Century in USA and Europe and today constitutes
20% of US GDP. It is the 3rd largest employer segment in
USA. Organized retailing in India is projected to grow at the
rate of 25%-30% p.a. and is estimated to reach an
astounding Rs 1,00,000 Crores by 2010. The contribution of
organized retail is expected to rise from 3% to 9% by the
end of the decade. The projection for the current year ie
2005 is Rs 35,000 Crores. In India, it has been found out

Bengal Institute of Technology & Management

 6

that the top 6 cities contribute for 66% of total organized

retailing. With the metros already been exploited, the focus
has now been shifted towards the tier-II cities**. The 'retail
boom', 85% of which has so far been concentrated in the
metros is beginning to percolate down to these smaller cities
and towns. The contribution of these tier-II cities to total
organized retailing sales is expected to grow to 20-25%. In
the year 2004, Rs 28,000 Crores organized retail industry
had Clothing, Textiles & fashion accessories as the highest
contributor (39%), where as health & beauty had a
contribution of 2%. Food & Grocery contributed to 18%
whereas Pharma Retail had a contribution of 2%.

INDIAN RETAIL SCENARIO

OVERALL INDIA VIEW

Area(`000 sq km) =3,300

Population (million) =1,095

Medium Age =25 years

Government Type =Federal Republic

◊ Economic Overview : Indian is currently undergoing an

economic revolution which is generating fast-paced changes
and development.

Bengal Institute of Technology & Management

 7

There is stable 8 % annual growth,

• Rising foreign exchange reserves of close to USD 140

billion,
• Consistent and flowing Foreign Direct Investment(FDI)
of close to UDS 8 billion,
• Export surge in excess of 20%.
• India ranks 1st for top international destination for
retail investment.
• U.S $ 350 billion retail market.
• 96% market share is held by 12 million family run
shops.
• 4th largest economy in purchasing parity terms after
US , china & Japan.
• Retail sector will grow 35% in 2008.
These altogethers enable the Indian economy to expand in
coming years.

◊ Investment eccentric : With a rapidly expanding consumer

base (private consumption currently account for 61% of
India’s GDP) and stabilized consumer price index rate 4.2%.
India is now preferred investment destination and has
surpassed the U.S to become the second most favourable
destination for FDI, in the world after China.

GDP and CPI

2002 2003 2004 2005

GDP 3.6 8.3 8.5 8.5
Growth(%)
CPI(%) 4.3 3.8 3.8 4.2

Source : EIU, July 2006

Bengal Institute of Technology & Management

 8

FOREIGN DIRECT INVESTMENTS:

Foreign direct investment is opened to single brand

retailers.

Steady increase in FDI

2002 2003 2004 2005

FDI (INR 273530.2 201379.6 248062.4 295293.4
m)
FDI (FDI 5.6 4.3 5.5 6.7
bn)

ORGANISE SECTOR FACTS

 Virgin territory for organized retail investment.

 2-6% of total retail.
 Expected to increase to 15-18% by 2011.
 Food retailing is expected to grow to US$ 1.6 billion.
 Apparel to increase by 9.5% by 2010.

RETAIL SECTOR

 Street cards .
 Corner shops.
 Open air market “ MANDIS”

ORGANISE SECTOR

 Hyper market
 Super market
 Specialty chain stores.

Bengal Institute of Technology & Management

 9

 Factory outlets
 Malls

Company Profile
Arambagh’s Foodmart was started in the year 2000, in the concept of
convenience stores of average 600-1000 sqft area, with USP’s of good
quality, below MRP prices and location convenience. From 1 shop,
the division has expanded to 24 shops, out of which 18 are in Kolkata
and 6 in other cities of West Bengal.
The shops sell fast moving consumer goods like grocery, toiletry,
confectionery, frozen meat and of course the company’s own product
Arambagh’s Chicken. The food marts also sell the company’s own

Bengal Institute of Technology & Management

 10

brand of grocery which contributes to approximately 40% of its

turnover. The approximate annual turnover of the division is around Rs
28 crore and it has a market share of around 30% in organized retail
in Kolkata. There are around 250 employees in the division. All the
shops are managed by the company in rented or owned premises,
there are currently no franchisees.

Organizational Profile
The foundation stone of Arambagh Hatcheries Limited was laid by its
founder chairman Late Balai Krishna Roy, who not only established
Arambagh Hatcheries in 1973 but was one of the pioneer of B.K. Roy
group of companies. Due to his patronage, dynamism and vision,
starting in a sub-divisional town of West Bengal the company was able
to reach at international market. After his demise Sri. Prasun Kumar
Roy took over the leadership of the company, and at present the
company’s turnover has reached to rupees two billions. For the last 33
years the company is actively engaged in poultry breeding, poultry
farming, production of poultry and animal feed, export of day old
chicks, hatchable eggs, feed and poultry machinery. With the passage
of time the company along with its general line of business has
diversified into processing and marketing chicken meat and meat
products including ready-to eat cooked chicken meat items directly to
the consumers through more than 150 well equipped and hygienically
sophisticated retail outlets within and outside the city of Kolkata and in
other parts of West Bengal and neighboring states. The company has
also diversified into operating food marts and retail marketing of

Bengal Institute of Technology & Management

 11

consumer food items and other consumer goods including groceries,

confectioneries & toiletries in Kolkata and other parts of West Bengal.
From broiler breeding to state-of-the-art chicken processing to juicy
and tasty chicken products and convenience stores, the arambagh
brand is a house-hold name in the eastern part of India.
* 7 broiler breeding farms, having total capacity of 600,000 breeders
in ultra modern facilities producing 6 million hatching eggs a month.

* 8 hatcheries producing 4 million broiler chicks a month.

* 4 feed plants producing 600 tonnes of feed everyday.

* 2 million chickens reared monthly for wet market sale and

processing.

* State of the art chicken processing plant of capacity 5000 broiler per
hour.

* Arambagh's chicken the most popular branded chicken in eastern

India, sold raw, fresh, ready-to-cook, and, ready-to-eat items, through
over 150 retail outlets to direct consumers.
* The immensely popular Arambagh's Foodmart, 25 convenience
stores is one step ahead with over 6000 SKUs catering to wide
requirements of consumers.

* Coffee shop cum restaurant chain Adda Bites is an unique blend of

adda over coffee and family dining.

Management Team

Bengal Institute of Technology & Management

 12

Board of Directors

Smt. Namita Roy

Chairperson

Sri. Prasun Kumar Roy

Managing Director

Sri. Nihar Ranjan Chakravarty

Director

Smt. Bishakha Datta

Director

Smt. Jaya Roy

Director

The company was promoted by Late Balai Krishna Roy. Sri. Prasun
Kumar Roy, the managing director of the company, holds master
degree in Bio-Chemistry and specialization in nutrition from Calcutta
University and possessing more than 33 years of rich and varied
experience in the fields of agriculture, poultry breeding, hatchery,
animal feeds, marketing, horticultural products, administration,
management and finance. His wide knowledge, innovative ideas and
strong man management capabilities are well known in the domestic
and international parlance. The company is a board-managed one
where day-to-day activities are looked after by Sri. Roy assisted by a
team of professionally qualified and seasoned employees as per details
appended below

Bengal Institute of Technology & Management

 13

The Key Personnel

Name
Designation

Sri. Debabrata Thakurta

Company Secretary

Sri. S.C. Chatterjee

Vice President –Finance

Sri. Sri. A.K. Mitra

General Manager –HRD

Sri. Abhijit Nandi

General Manager -Finance

Mrs.Biyas Roy
Senior Manager- Corporate Affairs.

Sri. S.K. Ghosh

Executive-Advisor

Sri. Basudev Bhanja

Dy. Chief Accountant

Bengal Institute of Technology & Management

 14

Company Overview

Arambagh Hatcheries Limited is a multi-dimensional food based

company, incorporated in the year 1973 with primary interest in
chicken and chicken related products. In 32 yrs, it is a Rupees 2 billion
turnover company with over 3000 employees.
Business activities of the company has not only been concentrated in
the State of West Bengal but also in the states of Bihar, Jharkhand,
Assam, Uttar Pradesh, Andhra Pradesh and Karnataka. With the
passage of time Arambagh’s chicken has reached abroad and which
has been highly acclaimed by all its consumers.

CONSUMER PURCHASE BEHAVIOR

Introduction: Consumer buyer behavior refers to the buying

behavior of final consumers – individuals and households who
buy goods and services for personal consumption

The term ‘customer’ is typically used to refer to someone who

regularly purchases from a store or company. & the term
‘consumer’ generally refers to anyone engaging in activities like
evaluating, acquiring, using or disposing of goods & services.
Theoretically consumers are end users and customers are buyers
but this definition brings about some degree of ambiguity.
Therefore we define consumers as those who seek products to
consume and satisfy they needs. Based on this definition,

Bengal Institute of Technology & Management

 15

consumers are the most important element in marketing and

understanding their behavior makes really sense. Consumer
behavior is seen to involve a mental decision process as well as
physical activity that take place over time. It plays a significant
role in our lives.

By studying consumer behavior marketers being able to understand

different behavior of various consumers toward different products
and brand .then they can set proper set of strategies in marketing
mix policies to target and serve consumers in different segments
which in return would result in consumer satisfaction , consumers
satisfaction will undoubtedly lead to consumer loyalty and constant
profit for company.

Purpose: Consumers are often studied because certain decisions

are significantly affected by their behavior. For this reason,
consumer behavior is said to be an applied discipline. The micro
prospective purpose involves understanding consumers for the
purpose of helping a firm or organization accomplish its
objectives. On the macro or aggregate level we know that
consumers collectively influence economic social conditions
within an entire society. It provides an insight into aggregate
economic & social trends & can perhaps even predict such trends.
In addition, this understanding may ways to increase the efficiency
of the market system & improve the well being of people in
society.
The factors which influence the consumer
purchase behavior are:

Bengal Institute of Technology & Management

 16

1. Cultural Factors: Culture is the fundamental determinant of a

person’s want & behavior. Culture, sub-culture, & social class are
particularly important influences on consumer purchase behavior.
Subcultures provide more specific identification of their members.
It includes nationalities, religions, and geographical regions.
Companies often design specialized marketing programs to serve
them. Social class show distinct product & brand preference in
many areas.

2. Social factors: A consumer’s behavior is influenced by such

social factors as reference groups, family, & social roles & status.
People are significantly influenced by their reference groups which
have direct or indirect influence on his/her behavior. Family is the
most important consumer buying organization in society, & family
members constitute most influential primary reference group.
Social role consists of activities a person is expected to perform, &
people choose products that reflect & communicate their role &
status in society.

3. Personal factors: Personal factors include the consumers’ age &

stage in life cycle, occupation and economic circumstances;
personality & self-concept; and life-style & values. Because many
of these characteristics have a very direct impact on consumer
behavior, it is important for marketers to follow them closely.

4. Psychological factors: A set of psychological processes

combine with certain consumer characteristics to result in decision
process & purchase decision. Four key psychological processes-
motivation, perception, learning & memory- fundamentally
influence consumers’ purchase behavior. The marketer’s task is to
understand the psychological factors.

Bengal Institute of Technology & Management

 17

FACTORS INFLUENCING CONSUMER BUYING

PROCESS

Abraham Maslow sought to explain the consumer purchase

behavior. He tried to explain why people are driven by particular
needs at particular time. Human needs are arranged in hierarchy,
from most pressing to least pressing. In order of importance, they
are psychological needs, safety needs, social needs, esteem needs
& self actualization needs. People will try to satisfy their most
important needs first. When a person succeeds in satisfying an
important need, he or she will then try to satisfy the next most
important need. Maslow’s theory helps us to understand consumer
purchase behavior & helps the marketers to make strategies that fit
into the plan.

Hierarchy of needs

Bengal Institute of Technology & Management

 18

The Purchase Decision Process: The Five Stage Model

Marketing managers have developed a ‘stage model’ of the buying

decision process. Consumer’s passes through five stages: Problem
recognition, information search, evaluation of alternatives,
purchase decision, post purchase behavior. Clearly the buying
process starts long before the actual purchase & has long
consequences long afterward.

Purchase Decision Process

Bengal Institute of Technology & Management

 19

7. METHODOLOGY OF STUDY

a. Procedure:

The procedure that followed enlisted below:

Studying the product
Decision on objective needed to be work on.
Developing Survey instruments
Getting questionnaire filled through interacting with different Persons
who visits Arambagh
Finally analyzing the data of various areas and trying to study about
various influence factors.

b. Process adopted:

Gaining knowledge about the Arambagh:

Bengal Institute of Technology & Management

 20

At first I collected knowledge about Arambagh which proved useful

while developing the questionnaire.

Steps in the Development of the Survey Instruments

The main instruments required for survey was a well-developed

questionnaire. The questionnaire development took place in a series of
steps as described below:

Research objectives been transformed into

Step 1 information objectives.

The appropriate data collection methods been

Step 2 determined

The information required by each objective is being

Step 3 ermined.

Specific Questions/Scale
Question/Scale Measurement
Measurements format is
been evaluated.
Step
Step 45 developed.

Research objectives been transformed into

Step 6 information objectives.

The number of information needed is being

Research objectives been transformed into
Step 7 determined.
information objectives.

The questionnaire and layout been evaluated.

Bengal Institute of Technology & Management

 21

Step 8

Revise the questionnaire layout if needed.

Step 9

The Questionnaire format been finalized.

Step1
0

c. Consumer Survey:

The survey is important tool as clear perception of people about the

shop can be estimated and known.. It was very useful in knowing about
the requirements of the people.

d. Research Design:

A two stage Research been conducted:

• Secondary Research:

Collection of data from websites & books & analyzing the data
collected.

• Primary Research:

A Primary Research been conducted:

The questionnaire was prepared for the companies and following areas
covered:
Consumer profile.
Consumer satisfaction level of consumers.
Reason for the selection of specific shop.

e. Sampling Plan:

Bengal Institute of Technology & Management

 22

Elements:
The target population of the study included the general population
above the age of 20 yrs
Sampling design and sampling unit are as follows:
Target population: Adults meeting qualifications-over 20 years, working
class, businessman, Student, Job holders
Sampling frame- People who visits Arambagh shop in Bolpur.
Sample size: 50
Through this we would focus on the following area;
To identify critical factor (internal and external) which influence the
buying behavior of individual?
Why people chooses ‘Arambagh’ rather than the others. .
To know about mindset of people.
To analysis of customer perception of the quality of product, so that to
take steps to maximization of customer satisfaction.

DATA COLLECTIONS

a. Data Collection Plan:

The first of Research consisted of secondary data search from the
following sources:

Websites
Books

For the conclusive research, questionnaires been developed on basis of

secondary data to gather information on the research objective.
I conducted a study to test these questionnaires.
The final draft of the questionnaire (see Appendix) was then prepared
on basis of the observations from the study. These then finally filled by
50 consumers, for the conclusive study.
Finally, the collected data fed into the MS EXCEL, MS WORD using bar
diagrams.
b. Types of Primary Data collected:

1) Demographic /Socioeconomic Characteristics:

Demographic and socioeconomic characteristics sometimes called

“states of being” in that they represent the type of people. The factors

Bengal Institute of Technology & Management

 23

on which we are working are age, sex and occupation. Monthly income
is also an important parameter but it is difficult to verify.

2) Attitudes/Opinions:

Through the questionnaire we have tried to get hold of individual’s

preference, inclination and requirement from the products that
Arambagh delivers to the customer. Attitude is an important notion in
the marketing literature, since generally it is previewed that the
attitudes are relating to the behavior of individual.

3) Awareness/Knowledge:

They are used in marketing research refers to what respondents do or

do not know about the shop or the organization.

4) Motivation:

Through questionnaire have tried to find the hidden need or want of an

individual and have tried to find out that why people choose
Arambagh.

5) Behavior:

Behavior concerns what subjects have done or are doing. Through

made questionnaire I have tried to find out the behavior of the
individuals regarding the product and their responses;
What do you think about Arambagh?
What differs Arambagh from others?

Thus, it helps to draw a comparison between the Purchase and the

observed behavior of the individuals.

Data Analysis & Findings

Q.1 Familiarity of the people with the brand name ‘ARAMBAGH’:

Table 1
Yes No
50 0

Bengal Institute of Technology & Management

 24

50

40

30

20

10

0
Yes No

Findings: The above figure shows that every person (100%) is familiar to
the brand name ‘ARAMBAGH’.

Q.2 The type of identity familiar to people:

Table 2
Chicken item seller Food Mart Both
11 24 15

25

20

15

10

0
Chicken item seller Food Mart Both

Findings: Above figure shows that 11(22%) people know

ARAMBAGH as a chicken item seller, 24(48%) people know
as a Food Mart. 15(30%) people says that they know
ARAMBAGH for both.
Q.3 Are the customers’ satisfied with the products available here:
Table 3
Yes No Can’t say

Bengal Institute of Technology & Management

 25

42 2 6

50

40

30

20

10

0
Yes No Can’t say

Findings: 42(84%) person says that they are satisfied with the product
available here, 2(4%) persons says that they are’ not, & 6(12%) persons
can’t say about that.

Q.4 The type of product people normally buys here:

Table 4
FMCG Grocery Chicken All
product product Product
5 3 13 29

30
25
20
15
10
5
0
FMCG Grocery Chicken All
product product Product

Findings: Among the 50 person surveyed, 5(10%) person says that they
buy FMCG products here, 3(6%) person says they buy grocery product,

Bengal Institute of Technology & Management

 26

13(26%) person says they buy chicken products, & 29(58%) says that
they buy all the items here.

Q.5 Price of the products available here:

Table 5
High Low Average
13 3 34

35
30
25
20
15
10
5
0
High Low Average

Findings: 13(26%) people says that price of the products available here
is high, 3(6%) person says that it is low & 34(68%) person says it is
average.

Q.6 Quality of products available here:

Table 6
Good Poor Satisfactory
32 1 17

Bengal Institute of Technology & Management

 27

35
30
25
20
15
10
5
0
Good Poor Satisfactory

Findings: 32(64%) person says that quality of the goods is good, 1(2%)
person says that it is high & 17(34%) person says that it is satisfactory.
Q.7 Customer satisfaction level is:
Table 7
good Poor Average
26 0 24

30

25

20

15

10

0
good Poor Average

Findings: 52 %(26) people says that customer satisfaction level is good,

48%(24) people says it is average but nobody says it is poor.

Q.8 Does the customer get all of the required items here:
Table 8
Yes No
33 17

Bengal Institute of Technology & Management

 28

35
30
25
20
15
10
5
0
Yes No

Findings: 66% (33) people says that they found all the required products
here & 34%(17) says no.

Q.9 The stock level of the items available here:

Table 9
Good Bad Average
22 0 28

30

25

20

15

10

0
Good Bad Average

Findings: 44 %(22) people says good about the stock level of items &
56%(28) people says it is average.

Q10 Does the customer get any kind of offers /discounts on buying products:

Bengal Institute of Technology & Management

 29

Table 10
Yes No
40 10

40
35
30
25
20
15
10
5
0
Yes No

Findings: 80% (40) people says that they get offers & discounts on buying
products here, & 20%(10) people says no.

Q.11 How much a customer buy on an average from ARAMBAGH:

Table 11
Below 500 500-1000 Above 1000
20 26 4

30

25

20

15

10

0
Below 500 500-1000 Above 1000

Bengal Institute of Technology & Management

 30

Findings: The survey finds out that 40%(20) people buy less than 500
Rupees, 52%(26) people buys more than 500 but less than 1000 & 8%(4)
people buy more than 1000 rupees.

Q.12 How frequently does a customer visit the shop:

Table 12
Once in a week Twice in a week More than twice
36 10 4

40
35
30
25
20
15
10
5
0
Once in a week Twice in a week More than twice

Findings: 72%(36) people says that they visits the shop once in a week,
20%(10) people says they visit twice in a week, 8%(4) people says that they
visit more than twice in a week.
Q.13 Are the customer eager to return to the shop:
Table 13
Yes No
50 0

Bengal Institute of Technology & Management

 31

50

40

30

20

10

0
Yes No

Findings: 100%(50) people is eager to return to this shop.

Q.14 Characteristics of ARAMBAGH which are different from others:

1. It is a departmental store offering items of day to day use under a roof.

2. It offers good quality of products in fair price, in some cases, below
the MRP, a matchless balance between the both.
3. It has a very good stock of products,& a large no of alternatives.
4. Products are aimed towards the middle income group.

Limitations

Time was a limiting factor for the study in addition to cost and coverage of
survey area which compelled me to limit my survey.

Conclusion

Bengal Institute of Technology & Management

 32

After considering the graphical analysis we can draw a conclusion that

consumers are satisfied with the ARAMBAGH Food Mart & they are eager
to return to the shop & want to buy products here. Price of the products is
very much competitive in the market but in some cases it is much lower than
the market price.

For this reason we can say that ARAMBAGH Food Mart in Bolpur
Super Market is a shop offering every type of FMCG, grocery product,
chicken product & other goods in a single roof. Consumers are very much
satisfied on buying products here.

Reference

Books; Marketing Management, By Philip Kotler.

Consumer Purchase Behavior, By Loudon.
Class Notes

Web site; www.google.com

www.wikipedia.com
www.scribd.com
www.marketresearch.com
www.arambagh.com/foodmart

Bengal Institute of Technology & Management

 33

Appendix
Some other initiatives by Arambagh:

Bengal Institute of Technology & Management

 34

The recent venture of Arambagh’s has been

down the food line again – in April’06 it has
opened the first of its coffee shop & restaurant
chain under the brand name Adda Bites. The
concept is unique in the city – it is a blend of
coffee shop and hang-out place for young crowd
as well as a restaurant serving chinese and
continental food. As the name suggests, it is a
place for ‘Adda’ or pass-time for college and
school groups and young couples seeking
solitude. But don’t be disappointed if you are
looking for a place to grab a bite for lunch or
want to take your family out for dinner – check
out the continental menu in Adda Bites – you
would want to come back soon !! Food and
drink range from varieties of coffee, mocktails,
ice-creams, thai and chinese combo meals,
soup, snacks and continental delicacies. What
more do you want ! An average lunch for 2
costs as modest as Rs 300. With the first shop
in Kasba, near Ruby General Hospital, the chain
has expanded to 4 shops today. The recent one,
opened in Santoshpur is a combined format
with foodmart and adda bites together under
the same roof. So sit, eat and staff your bags
for all your needs- at destination
Arambagh's !!!

Bengal Institute of Technology & Management

 35

The company started selling processed chicken in 1997 and

a semi-automated processing plant of 1000 birds/hour
capacity was set up in the year 2000 , expanded to 5000
birds/hour capacity in 2004, with further processing lines
specially for preparation of special cuts including boneless
Kakugiri and Yakitori for the Japanese market. Processed
chicken is sold through around 140 retail outlets in and
around West Bengal, including exclusive chicken shops and

Bengal Institute of Technology & Management

 36

foodmarts. Processed chicken is also supplied to institutions

like hotels, restaurants, airlines, railways, consulates
(namely Japan) etc. and is exported to the middle east and
CIS countries. Ready-to-eat roast and fried food is also
prepared and sold through the retail outlets. The
approximate annual turnover of the chicken division is Rs
170 million.

Bengal Institute of Technology & Management

 37

Bengal Institute of Technology & Management