Project Report on Retail Stores

A Project Report On “The preference of customer towards Retail stores”

Submitted To: Punjab Technical University, Jalandhar. In partial fullfilment of the degree in Master of Business Adminstration MBA (Session 2009- 2011)

Submitted By: PRADEEP KUMAR ANINDYA KUMAR DAS MBA 2nd SEM Roll no- 94372236490 Roll no- 94372236423

Project Guide: Ms.Ishpreet Kaur Lect. (RM)

CT Institute Of Management & IT, Jalandhar

GUIDE CERTIFICATE

It is hereby certified that the project report on “The preference of customer towards the retail stores”, being submitted by Pradeep Kumar and Anindya Kumar Das students of the degree of Master of Business Administration (2nd sem) of CT Institute of Management and Information Technology, Jalandhar which is affiliated to Punjab Technical University, Jalandhar is an original work carried out successfully under my guidance and supervision and that no part of this project has been submitted for any other degree/ diploma. The sincerely efforts put in during the course of investigation is hereby acknowledged.

Project guide Ms. Ishpreet Kaur Lect. (RM)

DECLARATION

I hereby declare that the survey entitled, “The preference of customer towards the retail stores”, that no part of research work has been submitted for any other degree. We also undertake that our work is purely academic and no part has been copied or taken from anywhere.

PRADEEP KUMAR ANINDYA KUMAR DAS MBA 2nd SEM ROLL NO-94372236490 ROLL NO-94372236423

ACKNOWLEDGEMENT We take this opportunity to express our deep sense of gratitude to all my friends and seniors who helped and guide me to complete this project successfully. I am also thankful to the Residents of Jalandhar, Who helped me to fill up our questionnaires by giving their precious time. I highly grateful and indebted to Ms.Ishpreet Kaur, Lect. (RM) for her excellent and expert guidance in helping us in completion of project report.

PREFACE In the present context not only the theoretical knowledge is important, but the practical exposure of that theoretical knowledge has an equal importance too. To tame or to become an expert in a particular discipline a person needs practical doses of that knowledge from time to time. So keeping this thing into view and to get a practical exposure, we conducted a survey in the city of Jalandhar. By doing this survey we came to know about lot of problems which the students have to suffer while conducting the research works.

INDEX Chapter no 1

Topic Introduction -----About the topic.

2

Page no

7-11

Objective of the study.

11

Research Methodology

12-15

3

Data interpretation and analysis.

16-27

4

Findings.

28

recommendation

29

Limitations of the study.

30

Conclusion.

31

Bibliography.

32

Annexure.

33-35

5

INTRODUCTION OF TOPIC

RETAILING

INTRODUCTION: Retailing consists of the sale of goods or merchandise from a very fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like power Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-toconsumer (B2C) transactions and mail order, are forms of non-shop retailing. Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase. Retail shop (also called Retail Store) is the smallest unit of retail spectrum. Usually owned by family - retail shops are run from residential or commercial streets or from shopping centers. Such a retailer buys goods or products in moderate quantity from local stockiest, manufacturers or importers, either directly or through a wholesaler, and then sells individual items in small quantities to consumers who are general public or end user customers. Retailers are at the end of the supply chain. Marketers see retailing as part of their overall distribution strategy. A retail shop buys in small quantity, but in regular intervals. Small exporters, new entrants, small manufacturers find this sector very lucrative as they lack the ability to supply in large quantity because of financial and logistical constraints. Though profit per sale may be less compared to larger order but that gets compensated by higher percentage of margin and lower risk. If you wish to supply to Indian retailers only - concentrate on Indian section. If you wish to export - there is huge opportunity for supplying Indian products to thousands of retail stores in North America, Europe, Middle East, Asia, Oceania and Africa.

We have spent hundreds of man-hours in research - creating this database of thousands of retailers from all over the world. Fresh information on retailers, new opportunities, analysis, statistics, articles etc. is added regularly - making this portal extremely useful source of useful information.

Reason for studying Retailing Retailing is an important field to study because of its impact on the economy, its functions in distributions, and its relationship with firms selling goods and services to retailers for their resale or use. A fourth factor for students of retailing is the broad range of carrier opportunities, as highlighted with a “Careers in Retailing”.

The impact of Retailing on the Economy Retailing is a major part of U.S. and world commerce. Retail sales and employment are vital economic contributors, and retail trends often mirror trends in a nation’s overall economy. According to the department of commerce, annual U.S. retail store sales exceed $3.5 trillion- representing 31% of the total economy. Telephone and mail-order sales by non-store retailers, vending machines, direct selling, and the web generate hundreds of billions of dollars in additional yearly revenues. And personal consumption expenditures on financial, medical, legal, educational, and other services account for another hundred billion dollars in annual retail revenues. Outside the United States, retail sales are trillions of dollars per year. Durable goods stores – including the auto group; furniture and appliance group; and lumber, building materials, and hardware group – make up 42% of U.S. retail stores sales. Nondurable goods and services stores – including the general merchandise group, apparel group, gasoline services stations, eating and drinking places, food group, drug and proprietary stores, and liquor stores – together account for 58% of U.S. retail store sales. The world’s 100 largest retailers generate $2 trillion in annual revenues. They represent 16 nations. Forty- three of the 100 are based in the United States, 11 Great Britain, 10 in Japan, 9 in France, and 8 in Germany.

Retailing is a major source of jobs. In the United States alone, 23 million people – about one-sixth of the total labour force – work for traditional retailers. Yet this figure understates the true number of people who work in retailing because it does not include the several million persons employed by service firms, seasonal employees, proprietors, and unreported workers in family businesses or partnerships. From a cost perspective, retailing is a significant field of study. In the United States, on average, 31 cents of every dollar spent in department stores, 44 cents spent in furniture and home furnishing stores, and 27 cent spent in grocery stores go the retailers to cover operating costs, activities performed, and profits. Costs include rent, displays, wages, ads, and maintenance. Only a small part of each dollar is profit. In 2001, the 10 largest U.S. retailers’ after – tax profits averaged 2.6% of sales.

The Relationships among Retailers and Their Suppliers Relationships among retailers and suppliers can be complex. Because retailers are part of a distribution channel, manufacturers and wholesalers must be concerned about the calibre of displays, customer services, store hours, and retailers’ reliability as business partners. Retailers are also major customers of goods and services for resale, store fixtures, computers, management consulting, and insurance. Channel relation tend to be smoothest with exclusive distribution, whereby suppliers make agreements with one or a few retailers that designate the latter as the ones in specified geographic areas to carry certain brands or products. This stimulates both parties to work together to maintain an image, assign shelf space, allot profits and costs, and advertise. It also usually requires that retailers limit their brand selection in the specified products lines; they might have to decline to handle other suppliers’ brands. From the manufacturers’ perspective, exclusive distribution may limit their long- run total sales. Channel relations tend to be most volatile with intensive distribution, whereby suppliers sell through as many retailers as possible. This often maximize suppliers’ sales and lets retailers offer many brands and products versions. Competition among retailers selling the same items is high; and retailers may use tactics not beneficial to individual suppliers, as they are more concerned about their own results. Retailers may assign little shelf space to specific brands, set very high prices on them, and not advertise them.

With selective distribution, suppliers sell through a moderate number of retailers. This combines aspects of exclusive and intensive distribution. Suppliers have higher sales than in exclusive distribution, and retailers carry some competing brands. It encourages suppliers to provide some marketing support and retailers to give adequate shelf space.

The importance of Developing and Applying a Retail Strategy A strategy is the overall plan guiding a retail firm. It influences the firm’s business activities and its response to market forces, such as competition and the economy. Any retailer, regardless of size or type, should utilize these six steps in strategic planning: 1. Define the type of business in terms of the goods or service category and the company’s specific orientation (such as full service or “no frills”). 2. Set long-run and short-run objectives for sales and profit, market share, image, and so on. 3. Determine the customer market to target on the basis of its characteristics (such as gender and income level) and needs (such as product and brand preferences). 4. Device an overall, long-run plan that gives general direction to the firm and its employees. 5. Implement an integrated strategy that combines such factors as store location, product assortment, pricing, and advertising and displays to achieve objectives. 6. Regularly evaluate performance and correct weaknesses or problems when observed.

OBJECTIVES:

THE FOLLOWING OBJECTIVES HAVE BEEN FORMED SUCH AS:

 To Study the awareness regarding Retail Marketing among the customer.  To know the impact of organized marketing upon the unorganized marketing.  To study the problem faced by the retail marketing in the India.  To study the market potential for retail marketing in India.

RESEARCH METHODOLOGY

A. DEFINING THE RESEARCH PROBLEM AND RESEARCH OBJECTIVES The definition of the problem includes the study of “Preference of customer towards the Retail stores”.

B. DEVELOPING THE RESEARCH PLAN. It has the following types: 1. DATA SOURCES Two types of data were taken into consideration i.e., primary data and secondary data. But major emphasis was given on gathering primary data. The secondary data was used only to supplement the primary and make things clear. a) Primary Data: The collection of data for this source includes personal interviews of people by the filling of questionnaire. b) Secondary Data: In this study the secondary data is collected from the following.

Sources: 

Primary data



Questionnaire



Secondary data

  

Web. Site Journals Magazines.

2. SAMPLING PLAN Population: The population interviewed in the research is General public (employees, children’s) in the JALANDHAR city.

Sample Size: The sample size covered during the research is of 100.

Sample Element: The sample element of the research is public & other officials.

Sample Duration: The sample duration is between March 2010 and April 2010.

Sample Extent: The sampling procedure followed is convenience sampling.

Research Instrument: In this study the research instrument is Questionnaire. The questionnaire is structured with combinations of various close ended questions. Close ended questions already have the possible answers.

Data Analysis & Interpretation

Data Analysis and Interpretation Q1. Do you know about retail stores? Option Yes No

Total No 100 00

Percentage 100 % 00 %

Graphical Representation

Percentage, 0%

Percentage, 100%

Interpretation: - In the above mentioned data and diagram which is clearly shown with the help of pie diagram, which is clearly state that 100 % of customers know about the retail stores.

Q2. Whether you regular visit to retail stores? Option Yes No

Total No 70 30

Percentage 70 30

Graphical Representation

Interpretation: - In the above mentioned data and diagram, we interpret that 70% customers are regular visitor in the retail stores. It means that many people are willing to shopping from the retail stores.

Q3. Why you prefer retail stores? Option Quality Customer care Discount scheme Any other

Total No 26 31 34 9

Percentage 26 31 34 9

Graphical Representation

Interpretation: - In the above mentioned data and diagram, we came to know that many people prefer to the retail stores only for getting the product at the discount offer.

Q4. What benefit you get while purchasing / buying in the retail stores? Option Choice to select desired products Different products available Different department Better services

Total No 28

Percentage 28

35

35

23 14

23 14

Graphical Representation

Interpretation: - In the above mentioned data and diagram it shows that many customer get benefit in the sense of getting many desirable products at a place.

Q5. Do have you any misconceptions regarding the retail stores? Option Behaviour of salesman Fixed price Extra service charges Any other

Total No 27 20 25 28

Percentage 27 20 25 28

Graphical Representation

Interpretation: - In the above mentioned data and diagram, it state that many customers have misconception about the retail stores. It means that there is about 28% maximum misconception regarding other factor, 27% about the behaviour of the salesman, 25% about the extra service charges.

Q6. From which retail store do you shop more? Option V mart Spencer Easy day Reliance

Total No 12 8 60 20

Percentage 12 8 60 20

Graphical Representation

Interpretation: - In the above mentioned data and diagram, it states that many people prefer to do shopping from the Easy Day. There are about 60% maximum people who do shopping from the Easy Day.

Q7. Do you think stores provide convient opening houses? Option Yes No

Total No 78 22

Percentage 78 22

Graphical Representation

Interpretation: - In the above mentioned data and diagram, it shows that retail stores are the convient place for shopping. About 78% customers want to do shopping from the retail stores.

Q8. Do you think that you can gain individual attention from the staff? Option Yes No

Total No 44 56

Percentage 44 56

Graphical Representation

Interpretation: - In the above mentioned data and diagram, it shows that 56% customer don’t get individual attention from the staff. It means that there is no individual attention from the staff.

Q9. Is the staff experience and knowledgeable to answer your questions? Option Up to some extent Able to answer Not satisfaction Satisfied

Total No 62 24 12 2

Percentage 62 24 12 2

Graphical Representation

Interpretation: - In the above mentioned data and diagram which is clearly represented with the help of pie diagram clearly state that 62% staff is able to give the answer up to some extent and they are knowledgeable.

Q10. Would you recommend others to do shopping from the retail

stores? Option May be May not be Sure Up to some extent

Total No 27 7 31 35

Percentage 27 7 31 35

Graphical Representation

Interpretation: - In the above mentioned data and diagram which is clearly represented with the help of pie diagram clearly state that about 35% people advise to others for shopping from the retail stores up to some extent. There are about 31% people who advise to others for sure doing shopping from the retail stores.

Q11. Any suggestions for the growth of retail stores. Option More branches should be open Should cover the urban as well as rural area Focus upon the needs of the customer Better personnel

Total No 36

Percentage 36

27

27

26

26

11

11

Graphical Representation

Interpretation: - In the above mentioned data and diagram, it states that about 36% people advise for the growth of the retail stores through the opening of many branches across the world.

FINDING From above the study there are number of finding comes before us, there are some problems which are faced by the customers & not having proper information about what they want, which are given as follow:



The big reason is that some time customers do not aware about the

benefits of retail stores. 

Many people prefer to do shopping from the retail stores only due to

more discount offer. 

It is observed that retail stores are the convient place for doing

shopping because many products are available at one roof. 

It is come to knew that customer don’t get behaviour from the salesman.



It is observed that customer don’t get individual attention from the staff.



It is come to knew that staffs are able to give the answer of the question

which is asked by the customer and they are knowledgeable about the products. 

It is come to knew that many customer advices others for doing

shopping from the retail stores.

RECOMMENDATION •

Retail stores should to cover every type of the products of good quality.

•

They should give more focus on the demand and choice of the products.

•

There always should be properly telling them the facility provided by the

retail stores. •

If we provide the information to the customers about the products & the

facility given by retail stores then customer will prefer to the retail stores. •

These are the policies which may help to the company to sell their product &

make an image into the market. •

With these some points we can really change our strategy which helps us to

move ahead.

LIMITATIONS

Following were the limitations which I faced during doing this Research:•

The cost for doing the project was one of the limitations.

•

There was also time constraint, as people were busy in their own work.

•

Limited area is covered for doing this research work.

•

Respondents were giving answer to the questions that were written on the questionnaire, but efforts were made to get more and more information.

•

The respondents were not paying proper attention while filling the questionnaires.

•

Some of the respondents were not aware about the questions, so they were not to present their views.

Conclusion Retail stores have a huge influence on society. It tells the consumers that only purchasing products makes you happy and therefore people compare each other on their belongings. Now a day many retail stores are opening across the world. It has one major benefit that almost every type of products is available at a place and under a roof.

The retail stores have become such an important factor in the economy in many countries, that it also changes the economy itself, society, culture. The stimulation for the demand of products and services helps the economy grow stronger and stronger. If there are more people buying these products the overall costs will drop and the product will become cheaper for the customer which raises his willingness to buy even more.

BIBLIOGRAPHY 1. BOOKS: •

Research methodology- methods and techniques-by CR Kothari, New Age International Publishers.

2. WEB ADDRESS: •

www.indiaretailbiz.com

•

www.spencersretail.com

•

www.imagesretail.com

•

www.sony.co.in/section/retailshops

•

www.indiaretailbiz.com/

•

www.fibre2fashion.com/news/general...retailchain.../India/

•

www.infobanc.com/retail/

ANNEXURE The information collected from you will be kept confidential and used for research purpose only. TOPIC: “The preference of customer towards the Retail stores” General information Name…………………………………Age………Gender………………………… Address……………………………………………………………………………….. Education…………………............Occupation…………………………………… Contact no…………………………

Note:-please rank (1, 2, 3, 4) accordingly the box where necessary.

Questionnaire Q1. Do you know about retail stores? a) Yes ( )

b) No ( )

Q2. Whether you regular visit to retail stores? a) Yes ( ) Q3. Why you prefer retail stores? a) quality ( ) b) discount scheme (

b) No (

)

b) customer care ( )

d) any other (

)

)

Q4. What benefit you get while purchasing /buying in the retail store? a) Choice to select desired products ( ) b) Different products available ( c) Different department ( d) Better service (

)

)

)

Q5. Do have you any misconceptions regarding the retail stores? a) Behavior of salesman ( ) b) Fixed price ( ) c) Extra service charges ( ) d) Any other( ) Q6. From which retail store do you shop more? a) V mart ( ) b) Spencer ( ) c) Easy say ( ) d) Reliance ( ) Q7. Do you think stores provide convient opening houses? a) Yes ( ) b) No Q8. Do you think that you can gain individual attention from the staff? a) Yes ( ) b) No ( ) Q9. Is the staff experienced and knowledgeable to answer your questions? a) Up to some extent ( ) b) Able to answer ( c) Not satisfaction ( d) Satisfied (

) )

)

Q10. Would you recommend others to do shopping from the retail stores? a) May be ( )

b) May not be ( c) Sure (

)

)

d) Up to some extent (

)

Q11. Any suggestion for the growth of retail stores. a) More branches should be open. (

)

b) Should cover the urban as well as rural area. ( c) Focus upon the needs of the consumer. ( d) Better personnel. (

)

Thanking you

)

)