Services Management

Cygnus Medicare

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Ms. Ruchika Sharma Vijay Goel (110)Manish Kumar (116)Mohit Vats (119)Raghavendra Singh Pal (124)Every business conducted for the purpose of selling or offering for sale; any good, wares and merchandise, other than as a part of wholesale business to the final consumer can be defined as retail business.Retail is the second largest business in the United States both in number of establishments and the number of employees. The US retail industry generates $ 3.8 trillion in retail sales annually ($ 4.2 trillion if food service sales are included), approximately $11,993 per capita. The retail sector is also one of the largest worldwide.Wal-Mart is the worlds largest retailer and the worlds largest company with more than $ 312 billion (USD) in sales annually. Wal-Mart employs 1.3 million associates in the United States and more than 400,000 internationally. The second largest retailer in the world is finances Carrefour.What Is Retailing?Retailing is all the activities involved in selling goods and services directly to final consumers for their personal non business use.The word retail is derived from the French word retailer, meaning to cut a piece off or to break bulk. A retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells individual items or small quantities to the general public or end user customers, usually in a shop, also called a store. Retailers are at the end of the supply chain. Marketers see retailing as a part of their overall distribution strategy.

TYPES OF RETAILINGRetailing can be classified under two heads: Store Retailing Non- Store Retailing

Store RetailingRetail stores come in a variety of shapes and sizes, and new retail types keep emerging.They can be classified by one or more of several characteristics: Amount of service Product line Relative prices Control of outlets Type of store cluster

1) Amount of service:Different products require different amounts of services and customer service preferences vary.Self service retailers:Customers are willing to perform their own Locate Compare - Select process to save money. Today self service is the basis of all discount operations, and typically is used by sellers of convenience goods (such as super markets) and nationally branded; fast moving shopping goods (such as catalog showrooms).

Limited service retailers:Retailers provide more sales assistance because they carry more shopping goods about which consumers need information. Their increased operating costs result in higher prices.Full service retailers:Like specialty stores and first class department stores, have sales people to assist customers in every phase of the shopping process. Full service stores usually carry more specialty goods for which customers like to be waited on. They provide more liberal return policies, various credit plans, free delivery, home servicing and extras such as lounges and restaurants.2) Product line:Retailers can also be classified by the depth and breadth of their product assortments. The depth of a product assortment refers to the number of different versions of each product that are offered for sale. The breadth of the assortment refers to the number of different products that the store carries.Specialty stores carry a narrow product line with a deep assortment within that line. Examples include; stores selling sporting goods, books, furniture, electronics, flowers or toys. Today specialty stores are flourishing due to the increasing use of market segmentation, market targeting and product specialization.A department store carries a wide variety of product lines. Each line is operated as a separate department managed by specialist buyers and merchandisers.Super markets are large, low cost, low margin, high volume, Self service stores that carry a wide variety of food, laundry and household products.Convenience stores are small stores that carry a limited line of high turnover convenience goods. These stores located near residential areas and remain open long hours, seven days a week. Convenience stores much charge high prices to make up for higher operating costs and lower sales volume. But, they satisfy an important consumer need.Super stores, combination stores and hyper markets are all larger than the conventional super market. Many leading chains are moving towards super stores because their wider assortment allows prices to be 5-6 % higher than conventional super markets. Combination stores are combined food and drug stores. Examples are super centers. Hyper markets combine discount, super market and warehouse retailing, and operate like a warehouse.3) Relative prices:Retailers can also be classified by the prices they charge. Most retailers charge regular prices and offer normal quality goods and services at a higher price. Retailers that feature low prices include:Discount stores sell standard merchandise at lower prices by accepting lower margins and selling higher volume. Occasional discounts or specials do not make a store a discount store. A true discount store regularly sells its merchandises at lower prices, offering mostly national brands, not inferior goods.4) Control of outlets:About 80 % of all retail stores are independents accounting for 2/3 of retail sales. Other forms of ownerships include the corporate chain, the voluntary chain and retailer cooperative, the franchise organization, and the merchandising conglomerate.The chain store is one of the most important retail developments of this century. Corporate chains appear in all types of retailing, but they are strongest in department, variety, food, drug, shoe, and womens clothing stores. The size of corporate chains allows them to buy in large quantities at lower prices, and chains gain promotional economies because their advertising costs are spread out over many stores and over a large sales volume. The voluntary chain is a wholesaler - sponsored group of independent retailers that engage in group buying and common merchandising.The retailer cooperative is a group of independent retailers that set up a jointly owned central wholesale operation and conduct joint merchandising and promotion efforts.A franchise is a contractual association between a manufacturer, wholesaler, or service organization (the franchiser) and independent business people (the franchisees) who buy the right to own and operate one or more units in the franchise system.Merchandising conglomerates are corporations that combine several different retailing forms under central ownership and share some distribution and management functions. Examples include: Dayton Hudson and J.C Penney.

5) Types of store cluster: More stores today cluster together to increase their customer pulling power and to give consumers the convenience of one stop shopping.Central business districts: A central business district comprises of banks, departed stores, specialty stores, and movie theatres.A shopping center is a group of retail business planned, developed, owned and managed as a unit.Non Store RetailingAlthough most goods and services are sold through stores, Non store retailing has been growing much faster than store retailing.Traditional store retailers are facing increasing sales competition from catalogs, direct mail, telephone, home TV shopping shows, on line computer shopping services, home and office parties and direct retailing approaches.Non store retailing includes; direct marketing, direct selling and automatic vending.

RESEARCH OBJECTIVES1. To study the Consumers Perceptions towards various aspects of Mega Marts.2. To study the different demographic, psychographics and situational variables which are affecting the selections of retail outlets.3. To know the Products knowledge & promotional tools adapted by Organized Retailers in delhi.4. Understanding the needs of the customers.5. To study various parameters taken into consideration by customers, while making a buying decision.6. To study the satisfaction level of consumers for Organized FMCG Retail outlets like Hyper City, D-Mart, Big Bazaar, Reliance Super, Vishal Mega Mart. 7. To study about the changes those customers wants in these Organized FMCG Retail Outlets.8. To study about the quality, services, product range provided by these Organized FMCG Retail Outlets.9. To undertake a comparative analysis of Indian consumer buying habits at Local Kirana Walas v/s Organized Retail Formats in the city.10. To suggest improvements to these Organized FMCG Retail Outlets in the city.

INDIAN RETAIL INDUSTRYRetailing in India is one of the significant contributors to the Indian economy and accounts for 35% of the GDP. However this sector is in a fragmented state with over 12 million outlets operating in the country and only 4 % of them being larger than 500 sq. ft. in size. This is in comparison to 0.9 million outlets in USA, catering to more than 13 times of the total retail market size. Thus, India has the highest number of outlets per capita in the world with a variety spread retail network but, with the lowest per capita retail space (@ 2 sq. ft. per person as compared to 16 sq. ft. per person for USA).The Indian retailing industry is currently estimated Rs. 930,000 crores and is expected to grow at 5% p.a. The current size of the organized retail market is Rs. 28,000 crores, thereby a mere 3% of the total retailing market with a projected growth rate of 25-30 % p.a. and it became Rs. 35,000 crores by 2010 and Rs. 100,000 crores by 2014, with its contribution to total retailing sales likely to rise to 9% by decade end.INDIAN RETAIL MARKET

The retail sector in India is highly fragmented and mostly owner-run Mom and Pop outlets. The entire sector is dominated by small retailers consisting of local Kirana shops, general stores, footwear and apparel shops, hand-cart hawkers and pavement vendors. These together form the unorganized retail or traditional retail. According to the Investment Commission of India (ICI) estimates, there are over 15 million such Mom and Pop retail outlets in the country.

In terms of total sales, one can find a wide range of estimates and this definitely reflects lack of sound official government data. ICI had estimated Indian retail sales figure at US$262bn for 2010, although market estimates ranged from US$200bn to as high as US$386bn for that year. Various agencies have made efforts to project the growth rate of the total retail market till 2013 and the figures hover around 13-15.5 percent

INTRODUCTION TO THE COMPANYRELIANCE RETAIL PVT. LTD RELIANCE SUPERGrowth through Value Creation With a vision to generate inclusive growth and prosperity for farmers, vendor partners, small shopkeepers and consumers, Reliance Retail Limited, a subsidiary of RIL, was set up to lead Reliance groups foray into organized retail. With a 27% share of world GDP, retail is significant contributor to overall economic activity across the world. Of this, organized retail contributes between 20% to 55% in various developing markets. The Indian retail industry is pegged at $ 300 billion and growing at over 13% per year. Of this, presently, organized retailing is about 5%. This is expected to grow to 10% by 2015. RRL has embarked upon an implementation plan to build state-of-art retail infrastructure in India, which includes a multi-format store strategy of opening neighborhood convenience stores, hypermarkets, specialty and wholesale stores across India. RRL launched its first store in November 2006 through its convenience store format Reliance Fresh. Since then RRL has rapidly grown to operate 590 stores 13 states at the end of FY 20012-13. RRL launched its first Reliance Digital store in April 2007 and its Indias largest hypermarket Reliance Digital. This year, RRL has also launched its first few specialty stores for apparel (Reliance Trends), footwear (Reliance Footprints), jewellery (Reliance Jewels), books, music and other lifestyle products (Reliance Timeout), auto accessories and service format ( Reliance AutoZone) and also an initiative in the health and wellness business through Reliance Wellness. In each of these store formats, RRL is offering unique set of products and services at a value price point that has not been available so far to the Indian consumer. Overall, RRL is well positioned to rapidly expand its existing network of 590 stores which operate in 57 cities. During the year RRL also focused on building strong relationships in the agri-business value chain and has commenced marketing fruits, vegetables and staples that the company sources directly to wholesalers and institutional customers. RRL provides its customers with high quality produce that has better shelf life and more consistent quality than was available earlier. RRL has made significant progress in establishing state-of-the-art staples processing centers.Through the years, RRL has also expanded its supply chain infrastructure. The company is fully geared to meet the requirements of its rapidly growing store network in an efficient manner. Recognizing that strategic alliances are going to be a key driver to its retail business, RRL established key joint ventures with international partners in apparel, optical and office products businesses. Further, RRL will continue to seek synergistic opportunities with other international players as well. RRL will continue its focus on rapid expansion of the existing and the other new formats across India. Mukesh Ambani promoted Reliance Retail has launched its 1st hypermarket Reliance hypermarket in Ahmedabad that will sell from produce to general merchandise at budget friendly prices even as the company mulls setting up 500 such superstores across India by 2015.

VISHAL MEGA MARTVishal Mega Mart is the retail house in India. As of April 30, 2007 it operates 50 retail stores, including two stores which are operated by their franchisees. The 50 stores are spread over about 1,282,000 sq.ft and are located in 18 states across India. In its efforts to strengthen their supply chain, it has set up seven regional distribution centres and an apparel manufacturing plant.It started as a retailer of ready-made apparels in Kolkata in 2001. At the time of incorporation, the registered office of their Company was situated at 4, R.N. Mukherjee Road, Kolkata 700 001. In 2003, it acquired the manufacturing facilities from Vishal Fashions Private Ltd and M/s Vishal Apparels.It follows the concept of value retail in India. In other words, their business approach is to sell quality goods at reasonable prices by either manufacturing themselves or directly procuring from manufacturers.(Primarily from small and medium size vendors and manufacturers) it facilitates one-stop-stop convenience for their customers and to cater the needs of the entire family. It believes this concept has helped them grow to their current size within a short time frame of their years. Mr. Ram Chandra Agarwal has been ranked the 28th most pitiful person in the Indian retail industry.

Big BazaarAs the name sounds it is both big and bazaar. It is unlike, say, a Walmart or even a Food world. Big Bazaar is almost an air-conditioned version of Indian bazaar. There is huge crowd which can move in almost ant direction. You can buy anything (pretty much everything is available at Big Bazaar). It is not a place where you can browse through at leisure and pick up a few things here and there. This is a place if you are serious about shopping. The worst part is the checkout counter, where the line can stretch as much as a line for a famous a cricket match. Parking is also a pain too.the outlets dont have a place for customers to stand especially on weekends. Customers wait outside it some before it opens in the morning.delhi is slightly better. Big Bazaar offers good prices really very good prices that tempt customers to buy. Apart from price chopping, there are deals ( 2 for the price 1 or prices reduced on a combination etc.). The perception of Big bazaar is that it facilitated some serious savings on grocery shopping. It works and makes no mistakes for Big Bazaar , it attracts the well heeled as much as it attracts the Raju from across the street.They had filled a need gap which was there in the market. Apart from that, their competence in providing at lowest prices and greater quality in an ambience much better than what the customer were used to, has also contributed to their success.The focus is on continuing to provide value for money to customers by providing exciting offers throughout the year. It will be facilitated by constantly working on its buying and supply chain efficiencies.they intend to better their gains by opening new stores regularly.

Hyper city Retail (India) Ltd.Hyper city Retail (India) Ltd (Hyper CITY) was incorporated in May 2004, as an associate company of Shoppers Stop which has a stake of 19% in Hyper CITY. It is operational in the format of hypermarket/supermarket in India.

The company offers a wide range of product segments like food, home ware, home entertainment, appliances, furniture, sports, toys and fashion. The company provides a wide array of exclusive brands across all segments like Fresh basket, Hyper CITY, Waitrose in food & grocery; Ebano and Avorio in home, dcor & furnishing; Vive, City Sense, City Style, City Life, River Inc. in fashion segment; Technix in household appliances and Raleigh & Maxit in sports segment. It also has in-store restaurants named Desi Cafe and Brio.

HyperCity ( Malad Store)The Hyper city store is situated over 1.20,000 sq feet area. Its merchandise area 80,000 sp feet & consists of 1, 16,000 Skus in the store.The store is divided into two sections i.e. it has 2 floors. The 1st floor has all the grocery and household items that includes fruits, vegetables, diary, poultry etc. the 2nd floor consists of HAM ( Hi- Tech, Appliances, Multimedia), furniture, garments, sports materials etc. It also has a pharmacy, Presto Dry Clean and a Vodafone gallery.The store timings are from 10.00 am to 10.00 pm working from Monday to Sunday. There are 30 billing counters in the store, 26 are at the ground floor & 4 are at the 1st floor.Number of staff is approximately 328, out of which 280 are service associates and the number of shifts is 3. D MartD Mart, the R K Damani- promoted retail chain, is Maharashtra and Gujarat which gives an amazing shopping experience from the Upper Class to the Lower Middle Class of the society. It is located at Ground FloorStore No:G-6 The Metropolitan Mall A-2, District CentreSaket 110017New Delhi.D Mart provides a truly shopping experience, where customers can shop in comfort in a large, modern, exciting environment and stocks an astonishing array of products ranging from groceries, food, house items, fresh food, garments to consumer durables and offers consumers more variety and value for money, all under one roof. The nine-year-old chain would add at least 25 stores in the next one year to its existing 33 stores in Maharashtra & Gujarat. The retailer recently opened a 25,000 sq ft store in Hyderabad. R K Damani is one of the biggest stock market investor in the country. He will open the stores whenever he finds the right opportunity. He will mostly focus on key cities. Though D Mart was among the few retailers who owned properties rather than leasing them out, it is also looking, at taking properties on rent to increase its footprint. D Marts expansion plan coincides with the plans of other retail majors, such as Bharti Retail and reliance Retail, who have already hit the expansion trial, following recovery in economy and consumer spending.

MAKING OF THE STUDY To study the Consumer Attitude (Buying Behavior) towards the Organized FMCG Retail Outlets.Consumer AttitudeConsumer attitude helps the organization to understand the purchasing pattern of consumer. For example customer wants to buy from local Kirana store (Mom & Pop store) because of location is convenience for them. If the retailer comes to know what exactly is the reason of purchasing so the retailer can change his store accordingly, because the main reason for the existence of retailer is customer and I have to change according to customer.Consumer Attitude is very important in Retail consumer attitude means the behavior which a consumer shows while purchasing. The consumer shows different consumer attitude because of different names Demographics Psychographic SituationThe main aim of this study is to find out The Attributes that customers keep in mind while purchasing from Organized Retail Outlets. Location Ambience Pricing Quality Variety Customer Services

RESEARCH METHODOLOGYIn order to accomplish the objective of the study, The Research study was conducted in delhi, RESEARCH DESIGNThe study is aimed at describing the existing phenomenon of Consumer Buying Behavior. For that matter I will consult various internet sites.PRIMARY DATAQuestionnaire Survey: A questionnaire survey was conducted for the purpose of the study. The questionnaire was designed to find out the Consumers Buying Behavior at Organized FMCG Retail Outlets. SECONDARY DATASecondary data is the data, which already exists. Secondary data was collected mainly through the internet, company websites and some are taken from books and articles.SAMPLING DESIGNRandom Sampling Method was used.Sample Size: 50 Customers.STATISTICAL TOOLS USEDSpecially Structured QuestionnaireCustomers perceptions towards different aspects of Mega Marts were compared by using ranking based model and multiple choice based questions were also used

ANANLYSIS OF QUESTIONNAIRE1) Out of these Organized Retail Outlets, which you have visited the most?

This Question was asked so as to find out the customers preference in visiting organized retail outlets.

I tried to find out how many customers visited all the organized retail outlets and the one frequently visited by them.

It was found that almost all the respondents had visited Big Bazaar & Dmart.

36% of people said they visit Big Bazaar the most because of its presence in most of the places while 7% said they visit other outlets.

2) How many times do you visit the organized retail outlets in a month?

This question was asked to the customers to find out from which outlet they generally purchase. It was found that most of them purchased from Big Bazaar & D Mart, they are habituated to purchase as they are the oldest in the market & have wider network. These outlets have captured the customers psychology and have good reputation in the market.

As per the survey, 47% of people visit the Mega marts only once in a month because of time, convenience & monthly budget. 33% of people said they visit 2-3 times in a month especially to buy fruits & vegetables, beverages etc. 7% of the sample size population visit more than 5 times especially during weekends with friends just to browse & visit the food courts.

Thus we can say conclude that since India has the largest youth population, so the Browsing Behavior is the most common behavior noticed among them, having a food court, outlets such as Coffee Caf Day, Chat Centers, Ice-cream parlors etc, can increase the footfall of the Mega Marts.If Big Bazaar comes up with the concept of food courts inside their Mega marts than it can give the same amazing experience like that given by HyperCity or any other Mall and attract all class of people in the society

3) How frequently do you purchase?

As per the survey conducted,

People are purchasing their daily needs from Mom & Pop stores because of convenience and location as these stores are situated near to them. It has been observed that 67% of the population purchase on monthly basis because that is the time when they have sufficient money to carry out the purchase and store it for a month. Whereas 6% of population purchases Fortnightly depending on the requirements, family size, special occasions etc.

Thus we can say that it is this 67% of population moving slowly from local Kirana Wala to Organized Retail Outlets for purchasing their necessity goods4) How far you have to travel to go for purchasing?

It has been observed that people always prefer to buy their needful from the nearest outlet or store possible.

As per the survey,

48% of populations dont like to travel long distance to do purchasing; they prefer the outlets which are within the vicinity of 3 kms.

While in place like Mumbai where Traffic is the biggest obstacle, nobody prefers to travel more 5 kms to do purchasing.

Thus we can conclude that Location is the most important criteria for organized retail outlets, the more closer the outlet that better the footfall

5) When do you purchase more (in bulk)?

The question was designed to find out the purchasing trend followed by the customers. The core aspect was to find out when they carried out the bulk purchase. More than 32% of people purchase in bulk during special discounts & festive offers.

22% of population does the bulk purchasing during the 1st week of the month, these are service class people as their salary is credited on 1st week of every month.

Some families dont like to spend much time in shopping as this disturbs their monthly schedule.

While 4% of the population responded they do the bulk purchasing during End of the month.Thus we can say that special offers & schemes drive the customers to outlets and at the same time help in increasing the sales.

6) What is your average one time purchase at organized retail outlets in Rupees?

This question was asked to the respondents to find out how much of their monthly budget was spend on shopping from organized retail outlets. It is found that around 37% of the population spends around Rs 2500- 5000 of their monthly income on shopping from organized outlets.

9% of the respondents spend above Rs 5000 on shopping from these organized outlets. This segment mainly comprises of the upper class of the society.

Thus we can say that upper middle class & middle class of the society form the main target segment in purchasing from these outlets.

7) In buying products at organized retail outlets you are sensitive towards:

This question was asked to the customers to find out their perception about the different attributes while purchasing from organized retail outlets. As Indian customers are price sensitive, 42% of the population feels Price is the most important attribute while purchasing from organized outlets.

27% of the respondents give major weight age to the quality of the product that are being sold.

9% feel ambience is also very important for the survival of these organized outlets.Thus we can conclude that Indian customers are Price sensitive but at the same time Quality oriented. So a combination of affordable Price to good Quality should be maintained.

8.) Kindly rate below the parameters of an organized retail and unorganized retail based on your preferences?

This question was asked to derive a comparative analysis on the attributes of Organized and Unorganized Retail Outlets.From the graph we can say that all the attributes of Organized Retail Outlets on an average have a scale reading of score 4 and above, which states that almost all the parameters of Organized Retail Outlets are ranked much higher as compared to Unorganized Retail Outlets. India is slowly and steadily taking a shift towards adopting the modern organized retail formats and Indian Consumers are experiencing a change in their buying habits, along with the Metros most states are seen to have a paradigm shift in their purchasing pattern from Local Kirana Walas to Organized Retailers.

INTERPRETATION OF RESULTS Most of the people prefer to purchase their daily needs products from Mom & Pop stores and street vendors because of convenience in location. 50% of people come to know about the organized outlets through print media, public relations and good viral marketing so outlets should try to be focused on these communication channels. Consumers prefer to purchase from nearest organized retail outlets according to Location Pricing & discounts Quality Variety Customer service It has been observed that in Mumbai city that there is no fix time of purchasing daily need products but, whenever the need arises they immediately purchase it. While conducting the survey the sample size responded accordingly Prefer to buy:- Fruits & Vegetables n daily basis as they are perishable Grocery and staple items on monthly basis Beverages & Snacks are preferred to buy on weekly basis. Ready to eat foods like Maggie, Biscuits, Namkeens & Khakharas also form a part of consumers weekly purchase. Consumers dont prefer to eat frozen foods and readymade foods like frozen vegetables and meat much. The response for Big Bazaar, D Mart, HyperCity, Reliance Super etc from the survey is quite good, about 80% of the sample size have visited at least one of the above stores. Most of the people like to visit nearest organized retail stores in their locality, to save time & money. The survey reveals customers are satisfied with the service provided at organized retail outlets as compared to the unorganized one, but still feel that customer service associates need to be trained for better results

CONCLUSION From above survey we conclude that The main factors that affect the retail business in location Indians Consumers are price sensitive they seek value for money so price also matter for Indian customers. The purchasing pattern of the people in one location is totally different from other location in delhi city. Customers service is not so much important in grocery retail, Quality & Price matter a lot The reason for which people prefer to buy from organized retail store is variety of product available under one roof and customer has not to move from one shop to another shop for his/her daily needs. Most of the people in delhi use to purchase their daily needs whenever they require.Consumer Buying Behavior at Organized Retail Outlets

Name: _____________________________ Occupation: ____________________Age: ___Sex: Male Female

Questionnaire1) Out of these Organized Retail Outlets, which you have visited the most? Hypercity Dmart Big Bazar Reliance Super Vishal Megamart Others___________ 2) How many times do you visit the organized retail outlets in a month? Once 2-3 times 3-4 times More than 5 times 3) How frequently do you purchase? Daily Weekly Fortnightly Monthly More than a Month4) How far you have to travel to go for purchasing? Less than 3 K.M 3 K.M 6 K.M 3)7 K.M 10 K.M More than 10 K.M 5) When do you purchase more (in bulk)? First week of month Mid of the month End of the month When required During special discounts6) What is your average one time purchase at organized retail outlets in Rupees? Rs 500 1500 Rs 1500 - 2500 Rs 2500 5000 Rs 5000 & above7) In buying products at organized retail outlets you are sensitive towards, Price Quality Variety Customer service Ambience of the store8.) Kindly rate below the parameters of an organized retail and unorganized retail based upon your preferences?ParameterOrganized Retail(rate)(1-Poor, 5- Best)Un-Organized Retail(rate)(1-Poor, 5- Best)

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9) Any Good or Bad experiences you would like to share while shopping at retail outlets.________________________________________________________________________