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Supervisor: Prof. Mahendra Srivastava Lecturer: Marketing

Submitted by Rajat Srivastava 09061148101 Marketing

Remarks of Evaluator:
Approved/Disapproved Approved/Disapproved

(I Evaluation)

(II Evaluation)

Session 2009-2011 Directorate of Distance Education GJUS & T, Hisar


1. 2. 3. 4. 5.


: Mr.Mahendra Srivastava : Professor : Double MBA, MPhil (Management) : Marketing : 30 Years in Corporate & 6 Years Acedemics


School of Business B-II/1, MCIE, Delhi New Delhi 110044

Mathura Road
7. 8. MOBILE E-MAIL : 011 4167 6794/ Extn 227 :

I am willing to supervise Enrollment No.

On the topic

: Mr. Rajat Srivastava : 09061148101



(Signature) with seal

Countersigned by Director of Study Centre with SEAL


Retailing is the most active and attractive sector of the last decade. While the retailing industry itself has been present since ages in our country, it is only the recent past that it has witnessed so much dynamism. The emergence of retailing in India has more to do with the increased purchasing power of buyers, especially post-liberalization, increase in product variety, and increase in economies of scale, with the aid of modern supply and distributions solution. Indian retailing today is at an interesting crossroads. The retail sales are at the topmost point in history and new technologies are improving retail productivity. Though there are many opportunities to start a new retail business, retailers are facing numerous challenges. India has witnessed a frenetic pace of retail growth over the past five years. Goldman Sachs has estimated that the Indian Economic growth could actually exceed that of China by 2015. It is believed that the Country has potential to deliver the faster growth over the next 50 years. As we all know that India has been a nation of Dukandars, having around 12 million retailers. Obviously retailing is in our blood either as a shopkeeper or as a shopper. The Indian Retail market is estimated to grow from the current US $ 330 billion to US $ 427 billion by 2010 & U. S. $ 637 by 2015. Retail which contributes 10% of our GDP is the largest source of employment after agriculture. In the year 2004, ratio of organized-Unorganized retail was 3:97 which is expected to be 9:91 by 2010. (Annexure: 9 It is not just the global players like Wal-Mart, Tesco and Metro group are eying to capture a pie of this galloping market but also the domestic corporate behemoths like Reliance, NeelKamal, KK Modi, Aditya Birla group, and Bharti group too are at the same stage of retail development. There is augmented sophistication in the shopping pattern of customers, which has resulted to the emergence of big retail chains in most metros; mini metros and towns being the next target. Customer taste and preferences are changing leading to radical transformation in lifestyles and spending patterns which in turn is giving rise to new business opportunities. The generic growth is likely to be driven by changing lifestyles and by strong surge in income, which in turn will be supported by favorable demographic patterns. Development of mega malls in India is adding new dimensions to the booming retail sector. There is significant development in retail landscape not only in the metros but also in the smaller cities. Even ITC went one step ahead to revolutionize rural retail by developing Choupal Sagar; a rural mall, for the Rural India. On one hand there are groups of visionary corporate working constantly to improve upon urban shopping experience and on the other hand some companies are trying to infuse innovative retail experience into the rural Set up. Given the situation we can say that Indian Retailing is at boom.

India has sometimes also been called a nation of shopkeepers. This epithet has its roots in the large number of retail enterprises in India, which totaled over 12 million in 2003. About 78% of these are small family businesses utilizing only household labor. Even among retail enterprises that employ hired workers, the bulk of them use less than three workers. India's retail sector appears backward not only by the standards of industrialized countries but also in comparison with several other emerging markets in Asia and elsewhere. There are only 14 companies that run department stores and two with hypermarkets. While the number of businesses operating supermarkets is higher (385 in 2003), most of these had only one outlet. The number of companies with supermarket chains was less than 10. In a developing country like India, a large chunk of consumer expenditure is on basic necessities, especially food related items. Hence, it is not surprising that food, beverages and tobacco accounted for as much as 71% of retail sales in 2002. The remaining 29% of retail sales are nonfood items. The share of food related items fell over the review period, down from 73% in 1999. This is to be expected as, with income growth, Indians, like consumers elsewheref, spent more on non-food items compared with food products. Sales through supermarkets and department stores are small compared with overall retail sales. However, their sales grew much more rapidly (about 30% per year during the review period). As a result, their sales almost tripled during this time. This high acceleration in sales through modern retail formats is expected to continue during the next few years with the rapid growth in numbers of such outlets in response to consumer demand and business potential. The retail sector in India is witnessing a massive revamping exercise as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Rated the fifth most attractive emerging retail market, India is being seen as a potential goldmine. A recent McKinsey study titled Indias Retailing Comes of Age has predicted a retail revolution in India. While India is the last among the large Asian economies to liberalize its retail sector, the licensing raj has well and truly passed. Hence, focusing on two aspects of retail marketing i.e. Store Retailing and Non-store Retailing. Store Retailing as the departmental store, which is a store or multi brand outlet, offering an array of products in various categories under one roof, trying to cater to not one or two but many segments of the society and Nonstore Retailing as the direct selling, direct marketing, automatic vending. Most of these stores believe in creating not just a marketing activity with its customers, but rather favour relationship building with him so as to convert first time customers into a client. A number of Indian and international retailers are entering this nascent, though dynamic market. Market liberalization and increasingly assertive consumers are sowing the seeds of a retail transformation that will bring bigger Indian and multinational players on to the scene. Buoyed by a strong increase in private consumption, retailing is one industry that is waiting to explode. Though retail may well be our next sunrise industry after Information Technology, capitalizing on the opportunities is still a formidable task for retailers. We may have made several forays into the world of international retailing, but success has only been moderate. At about 2 per cent of the total global retail market, we are still only scraping the surface. (Economic Times Knowledge Series Changing Gears: Retailing in India, 2003). Says B S Nagesh, CEO of Shoppers Stop, Indian retailing is on the threshold of growth early leaders have to take their technology and current learning into much larger scales. Companies like us will lead in creating retail experiences and retail brands, whereas mall developers will

lead in providing retail space. But it is for the government to make India a great shopping and travel destination through right policy decisions and direction. Retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. Shopping in India have witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in India which have become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof. India retail industry is expanding itself most aggressively, as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new shopping centers. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of nonbranded items. India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort. Retailing in India can be categorized as: Unorganized Retailing Organized Retailing

Problem Statement

1. The first problem faced in Big Bazaar is the delivery system i.e. there is a delay in sending the product to the appropriate customers. 2. Another problem is that customers queries are not handled properly. 3. Product ranging from food items to other groceries cannot be found in small packages. 4. Quality of green groceries is below standards. 5. Another major problem is that immediately after billing the product is not replaced.


To study the buying behaviour of Delhi/NCR customers.

Understanding the present Indian Retail scenario with respect to emergence of big retail chains in most metros, mini metros and towns according to change in customer taste, preferences, lifestyle and spending patterns.

To study the reasons for buying from a particular retail store.

Understanding the various factors such as price, quality, service, offers etc. which influence the customers for buying from a particular retail store.

To study the nature and trends in buying patterns of customers.

Understanding the demographic segmentation and the respective buying patterns of the customers according to the latest trends in the market.

Understanding the needs of customers.

In a diverse culture of a country like India, it is important to understand that the needs of the customers may differ from person to person and culture to culture.

To provide recommendations to serve customers quickly, efficiently and conveniently.

Due to the highly competitive and nearly saturated market, only those retail stores will survive in the long run which will provide better services quickly, efficiently and conveniently.

The scope of the study involved getting knowledge about the retail industry. The major part of the study focused on understanding the buying behavior and patterns of Indian customers. My approach was to get a deep insight into the sector through a study which included a comprehensive analysis of the following:

Present retail scenario Retail formats Retail and plans of retailers Retail as an employment generator Emerging trends in the retail sector NCR/ Delhi current retail scenario Factors responsible for the development of the retail sector Challenges for the retail sector

Research Methodology adopted
The research methodology consisted of the following steps: 1. 2. 3. 4. Familiarization with the retail concepts and retail industry in India Collection of database from individuals through a questionnaire. Analysis and interpretation of data. Reaching at conclusions and suggestions based on analysis.

Sources of Data Collection 1. Primary Source


2. Secondary sources


Sample Size
100 people

Demographic Profile of Sample

22 years and above Randomly selected people.

Q1. Which outlets do you consider while shopping?
Visit Frequently Visit Sometime Rarely Never

Big Bazaar Kirana Store Others Q2.





Why do you prefer to shop in Retail Outlet? Brand Variety Ambience Location Time Saving Services Are you a member of any Retail Outlet? ___No


___Yes Q4.

If yes, then why to chose to be its member?

Free parking facility Extra services Special discounts



When do you prefer the most to visit Retail Outlet? When there is fresh stock When there are discounts Weekend outings Anytime How many times in a month you visit a Retail Outlet? Once Twice Thrice More than this Do you have any planned list before moving in to Retail Outlet?



Definitely Mostly Rarely Never


Rank the following factors of retail shopping on a scale of 1 to 10 where 10 denotes the most important and 1 denotes the least important. __________ __________ __________ __________ __________ __________ __________

Quality Prices Brand availability Services Advertisements Member facilities Ambience

Sales promotion offers __________ Q9. Does the recommendation of your family & friends influence your decision to visit Retail Outlet?

Yes No

Q10. Rank the retail outlets on the following factors on a scale of 1 to 10 where 10 denotes excellent and 1 denotes poor.

Quality Big Bazaar Lifestyle Others


Brand Services Advertisements Member Offers availability facilities

Personal Information:

Name: _______________________________ Age: Gender: ____Male ____Female

Contact No. _____________________ Which Social status you fall into:

Unemployed Receiving education Professional Business Other..

To which income group you fall in: (monthly)

Below 10,000 10,000 to 20,000 20,000 to 30,000 30,000 to 40,000 40,000 & above



Retail marketing, Philip Kotler In Search of Excellence, Peters & Waterman (Pg.107 -172) Retailing Management, Levy Weitz