Retail_Shoppers_Behaviour

TERM PAPER SUBJECT-retail shoppers behaviour TOPIC- Determine the factors that influence the buying behavior of a retail shopper at big BAZAAR, easy day and vishal Megamart SUBMITTED TO- Mr.nitin dhir sir SUBMMITTED BY: NIKHIL KUMAR NADDA ROLL NO: S1905 A17 CLASS: MBA (ENTREPRENEURESHIP & RETAIL MGT.) 3nd SEM REG NO: 10906313 Acknowledgement First, and for most, I want to thank my teacher who has assigned Me. This term paper is brings out my creative capabilities. I express my gratitude to my parent for being a continuous source of encouragement and for all their financial aid given to me. I would like to thanks the assistance provided by library staff of the L.P.U My heartfelt gratitude to my friends, for helping me and complete my work at time. Table of Contents:-- * Introduction of Big Bazar, Easy day and Vishal Mega Mart. * Consumers Behavior towards organized retailers. * Factors influencing the shoppers. * Types of Consumer Behavior. * Services providing by Big Bazar, Vishal Mega Mart and easy Day. * Analysis of consumer Behavior. * Why shoppers shop from Big Bazar, Vishal Mega Mart and Easy Day. * Other Retail Drivers. * Conclusion. Topic - Determine the factors that influence the buying behavior of a retail shopper at Big Bazaar, Easy Day and Vishal Mega Mart:-- INTRODUCTION OF BIG BAZAR:-- Big Bazar is a type of Hyper Market that is the chain of developed retail stores in India. There are 104 retail outlets of Big Bazar located in India. Future Group is the parent group of Big Bazar which is founded by Kishore Biyani in 2001. Head quarter of Big Bazar is in Jogeswari, Mumbai. Big Bazar has a very interesting tagline which always attract to the customers, it is “Is se sasta aur achha kahin nahi”. Big Bazar works by taking care of Porters five force model. 1) Revelry among the competitors: -- There are lot of competitors of Big Bazar is in the market like Reliance Retail, Aditya Birla Group, Vishal Retail, Bharti Walmart venture etc. These are the big competitors of this store available in India. This group always uses to provide uniqueness in its products. 2) Threat of Entrants: -- New entries are coming in the retail market so this is the big threat for the store. Domestic conglomerates are looking to start retail chains and International players are looking to foray India. 3) Bargaining power of Suppliers: -- The bargaining power of suppliers varies depending upon the target segment. The unrecognized sector has a dominant position in the market. 4) Bargaining power of Buyers: -- Indian consumers are price sensitive and availability of choices is more here. 5) Threat of Substitutes: -- People are turning to unrecognized sector because they are getting cheap prices and credit facilities so this is the big threat. Big Bazar target higher as well as upper middle class customers and also working women and home makers who are primarily decision makers. Product Mix of Big Bazar is very wide because it provides lot of products with different verities and brands. Electronics Bazar, Fashion and Jewellery, Furniture Bazar, child care and toys and other services like Mr. Right, Bakery, Loot Mart, Tulsi, Future money, and future generally this is the product mix of Big Bazar. INTRODUCTION OF EASYDAY:-- Bharti Wal-Mart neighborhood supermarket opened shop under the brand name "Easy Day". The launch was a very low profile one mainly to put-off resistance from local vendors. Sunil Mittal promoter of Bharti group who hails from the strictly vegetarian Marwari community will face resistance from them because of stocking meat in Easy Day stores. Bharti Retail has opened 59 Easy Day stores in Punjab, Haryana, Rajasthan, Uttar Pradesh and New Delhi. In addition, it also has launched three compact hyper stores called Easy Day Market in Punjab. The company has deliberately focused on north India in its first phase of operations in an effort to consolidate presence in one market, before expanding to another region. The Easy Day stores source fresh fruits and vegetables from Bharti-Walmart. In an interesting HR innovation the stores plan to tap workforce from the likes of cart vendors, housewives and retired personnel, by offering flexi-hour work schedules. Such groups of persons will also be enrolled for structured training modules at the Bharti Retail Academy. INTRODUCTION OF VISHAL MEGA MART:-- Vishal Mega Mart is founded by Mr. Ramchandra Agrawal, Mrs. Uma Agarwal and Mr. S.K. Agarwal. And first store was situated in Kolkata. What started as a humble one store enterprise in 1986 in Kolkata (erstwhile, Calcutta) is today a conglomerate encompassing 180 showrooms in 100 cities / 24 states. India’s first hyper-market has also been opened for the Indian consumer by Vishal. Situated in the national capital Delhi this store boasts of the single largest collection of goods and commodities sold less than one roof in India. The group had a turnover of Rs. 1463.12 million for fiscal 2005, under the dynamic leadership of Mr. Ram Chandra Agarwal. The group had a turnover of Rs 2884.43 million for fiscal 2006 and Rs. 6026.53 million for fiscal 2007. The group’s prime focus is on retailing. The Vishal stores offer affordable family fashion at affordable prices so that everyone can buy the products from these stores and it always suit every pocket. The group’s philosophy is integration and towards this end has initiated backward integration in the field of high fashion by setting up a state of the art manufacturing facility. Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all price ranges. The showrooms have over 70,000 products range which fulfills all our household needs, and can be catered to less than one roof. It is covering about 29, 90, 146 sq. ft. in 24 states across India. Each store gives you international quality goods and prices hard to match. The cost benefit that is derived from the large central purchase of goods and services is passed on to the consumer. INDIAN CONSUMER BEHAVIOUR TOWARDS ORGANIZED RETAIL FORMATS:-- Indian consumers are price sensitive they will by the products from that place where they are getting it on a cheaper price. There are only few peoples who prefer for quality. That is the reason in India there is only 8% is organized retail and rest 92 % is unorganized retail. And unorganized retailers are providing them goods on credit basis that is the main reason of these local convenient kirana stores. But in organized retail people are not getting this facility. In India 70% population comes under middle income group. They like to buy the products maximum on credit basis. That is the reason that consumers are giving more preference to mom and pop stores as we compared it big retail stores like “Big Bazar, Easy Day, Vishal Mega Mart, Reliance Fresh” etc. Indian consumers show committed behavior due to different types of utilities perceived by them. Functional utility by looking at price/performance equation or perception of value observed in their dealings with the firm, “symbolic utility”-In case of premium brands, certain segments stay loyal to prestige brands/stores as it helps self concept projection, group identification and status. Price-led loyalty: Shoppers which are price sensitive always look for price as the determinant attribute leading to loyalty. Super markets, warehouse stores offer cheapest price as a critical value. Insensitivity to competitive offers: Once consumers commit themselves to a store, bond gets created which make them insensitive to competitive offers. The willingness to sign in any loyalty program me emanates from the requirements of personal data to participate in the program me; participation costs (if any); buying volume and frequency; exclusivity of the program me and participation efforts. As against these, program me rewards and duration of the program me are weighed. After careful consideration of the above factors, consumers sign up such programmes and remain active. However, risk/value perception varies across different consumers. Research shows that some consumers may prefer “promotional drives”, while others may prefer hedonistic, functional & relational gratification. Thus rewards which are “economic, psychological and sociological” in nature lead to greater trust, commitment and development of long term relations. They create an emotional bond leading to high & irreversible switching costs. Even though loyalty programmes have various benefits, various aspects of programs trigger frustration sensations among consumers. Thus if customers find the program me inaccessible, worthless, having a qualification barrier, redemption costs being too high and discriminating and having lack of focus, the frustration triggers. Such eventualities bring about outcomes like protest, avoidance, negative perceptions of the relationship with the firm and adverse word of mouth. While designing such program, a manager needs to consider above aspects to avoid such frustrations or at best negative word of mouth. FACTORS THAT INFLUENCE THE BUYING BEHAVIOUR OF RETAIL SHOPPERS AT BIG BAZAR, EASY DAY, VISHAL MEGA MART:-- 1) Availability of products: -- Shoppers would like to shop only from those places where they are getting every product of their need. Because now people are so busy in their routine that they don’t have so much time to spend on shopping. And in Big bazar they are getting every product of their need available under one roof. They don’t need to round so many shops in a market. This is the reason that now people are going to shop from these retailers like “Big Bazar, Easy Day, Vishal Mega Mart” etc. 2) Brands and verity: -- These retailers are providing so many brands and verities of the products. People can prefer any brand that they like. Vishal Mega Mart is not providing so good brands it provides some local brands but in Easy day and Big Bazar shoppers can get private as well as national brands. This also the reason that people are influencing towards these retailers. 3) Visual Merchandising: -- Organized retailers always use to adopt so many strategies to influence the shoppers to buy the products. Visual merchandising is also a good strategy to force the people to buy the products from these retailers. These retailers always use to visualize their products in a proper manner that it attracts the peoples to buy the products. 4) Offers and Discounts: -- Big Bazar and Vishal Mega Mart provides offers and discounts on various occasions and festivals. It attracts the customers to buy the products. Because they wanted to get the benefits of these offers and discounts. So that they are attracting towards these retailers. 5) Range of Merchandise: --- The range of merchandize is perhaps the most important reason for customers to patronize a particular outlet. The initial curiosity of the store may draw a consumer to a retail store, but converting him into a buyer and retaining him over a period of time is largely dependent on the quality and the range of merchandise offered by the store. If the merchandise is similar to that of another store or what is commonly available, the customer may not see any reasons why he should not switch stores. The range of merchandise offered plays an important role in case of categories like durables, books and music, apparel and other lifestyle products. And only Big Bazar and Vishal Mega Mart such stores are providing this facility to the shoppers. 6) Internal Environment of the stores: -- Big Bazaar and also other retailer’s tries to recreate the “bazar environment” inside the store with announcements of offers on products, bells being run to catch people's attention towards their products. It truly sounds like a bazaar. This environment changes their mind to buy the products from only these kinds of retail formats. A special kind of fragrance attracts the shoppers when they enter such stores. 7) Good Music: -- Big retailers like big bazar, Vishal Mega Mart and Easy day are adopting this strategy to attract the younger age shoppers. It attracts both to the “fun shoppers” or “work shoppers”. Some time people during feel bored but music change the mind of shoppers and they enjoy it. 8) Brand Image: -- Sometimes brand image of the store also attract the customers to buy the products from their stores like Big Bazar has its good brand image. People like to buy the products from Big Bazar because they are loyal for the store. And they did not go to buy the products from any other retail store. Easy day also has its good brand image for grocery products and FMCG products. 9) Parking Facilities: -- Retailers like Big Bazar and Easy day and also other retailers are providing parking facilities to its customers. Because customers want to get the surety and safety for their vehicles. Every retailer is trying to give the best parking facility for the vehicles of their customers. 10) Economical Environment: -- Economic environment is the big factor that affects the consumers buying behavior. Did consumers have secure job or enough money to spend on shopping' If they have enough it then they obviously come to the retail stores for buying the products. 11) Marketing and Advertising: -- Marketing and advertising obviously influence consumers in trying to evoke them to purchase a particular product or service. Big Bazar, Easy Day and Vishal Mega Mart are paying lot of amount on marketing and advertising so that they can attract more and more customers for their products and services. TYPES OF INDIAN CONSUMER`S BUYING BEHAVIOUR:-- There are four typical types of buying behaviour based on the type of products that intends to be purchased. “Complex buying behaviour” is where the individual purchases a high value brand and seeks a lot of information before the purchase is made. The shoppers who come under this type of behaviour will always prefer Big Bazar or Easy day because they know that they can get the brands and verity for the products only in these retail stores. In this behaviour both type of shoppers comes fun shoppers as well as work shoppers. “Habitual buying behaviour” is where the individual buys a product out of habit e.g. a daily newspaper, sugar or salt. These shoppers are habitual they will by the product from where they are getting it conveniently. They did not prefer for such retail stores like Big Bazar, easy day or Vishal Mega mart etc. “Variety seeking buying behaviour” is where the individual likes to shop around and experiment with different products. So an individual may shop around for different breakfast cereals because he/she wants variety in the mornings. This type of shoppers uses to change the place of their shopping because they would like to change the products and brands frequently. “Dissonance reducing buying behaviour” is when buyers are highly involved with the purchase of the product, because the purchase is expensive or infrequent. There is little difference between existing brands an example would be buying a diamond ring, there is perceived little difference between existing diamond brand manufacturers. These are the shoppers who like to buy the products only from the good retailer because they want to get the value for their money. OTHER SERVICES PROVIDING BY BIG BAZAR, VISHAL MEGA MART AND EASY DAY: --- Dimension | Easy Day | Big Bazaar | Vishal Mega Mart | Name Of Loyalty Program me | Offers and discounts | 4 diff cards silver & gold ICICI Big Bazaar Card Shakti & future cards | Maha Meetha Offer | Card Type | Card with a bar | Co. branded with ICICI | Co. Branded with SBI | Card characteristics | Prepaid facility; no documents, paper card no minimum purchase required | | Rs. 1500purchase in single transaction | | Issued to anyone who requests | | Communication | World shopping experience, LP Program me beyond just rewards | In store counter distributing cards & leaflets | Manufacturing to Retailing international quality goods at prices hard to match by competitors. | Dimension | Easy Day | Food Bazaar | Vishal Mega mart | Benefits/rewards | Custom made deals, bonus points accruals, add-on cards for family members, shop-on home, cash-off vouchers, preview of promotions, event invitations every 100Rs spent, earning of 1 point, specific purchases, earning of bonus points, minimum 25 points to be accrued to start redemption, validity for reward points-2years | 4Point per Rs 100 EMIFacility with no charge priority payment counters for card holders, special preview day during annual sale, Shakti & future card holders slightly different terms and benefits point systems: points can be converted into vouchers for purchase at big bazaar Insurance cover | 11kg sugar free throughout year, Rs.250 discount voucher, 8 reward points for Rs 100 spend, credit- Point system, gifts, discounts, credit | Membership | 2.5 million members | N.A. | N.A. | % to total sales by LP holders | 37% | N.A. | N.A. | ANALYSIS OF CONSUMER BUYING BEHAVIOUR:-- Consumer behavior is a complex pattern and sophisticated understanding for marketing researches but simply defined as study of psychological, social and physical actions. Consumer behavior consist of ideas, feelings and actions of consumers with additional environmental factors like ads, prices etc. Consumer behavior is a dynamic process because of the continuous changes in ideas, perceptions and activities of consumers. This is the following chart which shows the total consumer buying behavior:-- Stimuli (marketer dominated, other) External search Memory Internal search Exposure Attention Comprehension Acceptance Retention Search Need recognition Alternative evaluation Purchase Outcomes Dissatisfaction Satisfaction Individual differences resources motivation & involvement knowledge attitudes personality, values, lifestyle Influences culture social class family situation Start The above chart is showing that how firstly consumer need for a product. After that he collects the various information about the product. Then he chose the best place from there he/ she can buy that products. Then he/she select alternatives according to their income. So that we can say that to buy a single product there are so many factors in our environment which affects his/her buying behavior. We saw that consumer need recognize when the current product did not perform well, When the consumer is running out of an product, When another product seems superior to the one currently used. After this consumer start searching information about the another product. Why Shoppers go to shop from Big Bazar:-- Big Bazar is a organized retail store where shoppers are getting so many things that they cannot get in the unorganized retail formats. These are followings:-- a) Shoppers are going to Big Bazar for shopping because they are getting the products of national as well as local brands. b) There are lots of verities of same products available in the store. c) Shoppers are getting value for their money. d) They can make lot of fun in the store. e) Shoppers are getting good internal environment of the store. f) Products are well displayed and their prices are also given there. g) Shoppers are getting so many kinds of products in a single store of Big Bazar. Why Shoppers go to shop from Vishal Mega Mart:-- Vishal Mega Mart is targeting the people of middle lower income group. These are the peoples who cannot go for high price brands. So that this store is using maximum local or private brands so that it can fulfill the demand of lower income group peoples. In this store only those peoples go to shop who want to buy products of local brands. The display of products in this store is also good. The people who have high income and prefer for national brands they use to go some other retail store like Big Bazar etc. In this store also the verity of products available and all the products have attached their signage. Maximum this store is famous for its apparels. 45% sale of it’s comes from this section. But there are only local branded apparels are in the store. Why Shoppers go to Shop from Easy Day:-- Easy Day also target the people of lower income group and also the housewife women’s. In this store we can also find goods of various categories. In this store we can find the goods of local brands displayed in a proper manner. This store is known for its food and grocery items. People influencing towards this store because they are getting these products in cheap prices. Easy Day store is providing good shopping experience to the shoppers. They are getting good value for their money. These are the reasons which are influencing the shoppers to come to shop from Easy Day. Other Key Drivers of retail which are influencing the shoppers to shop from Big Bazar, Easy Day, Vishal Mega Mart:--- 1) Changing Demographic profile: -- There is lot of changing coming in the lifestyle of Indian consumers like increase in income, high standard of lifestyle, increase in demands etc. These are the factors which are influencing the shoppers to shop from these retailers. 2) Rising Income:--The income of consumers is the very big factor which molding people to buy the products from big retailers like Big Bazar Easy day and Vishal Mega Mart etc. 3) Technology: -- Technology is changing day by day that is also the reason that people are shopping from organized retailers. Because these are using the latest technologies. 4) Increasing Younger population: -- Every year the younger population is increasing. These younger population is influencing towards the organized retailers. Conclusion:-- Organized retailers are always trying to make different strategies to increasing the customers. “Big Bazar, Vishal Mega Mart and Easy Day” are the retailers who are providing the good shopping experience to its customers. But every retailer has its own different policies of keeping the products. After comparing these three of the stores we found that people are more influenced towards the Big Bazar because this store is targeting the lower as well as upper income group of peoples. They are getting so many brands and verities of a single product. Vishal Mega Mart is just increasing only private brands not other brands. If we talk about Easy Day this store is good for its grocery and food items. But all these big retailers are trying to influence the shoppers to shop from their store. THANKS………………