Project On Consumer Behaviour at Shoppers Stop Ltd.

Consumer behavior at Shopper’s stop
A Study Of
“Customer Behavior at Shoppers’ stop”
Submitted in partial fulfillment of the requirements for the award of
The degree of
Master of Business Administration
Submitted to:
Punjab Technical University
Jalandhar
By:
“Shivraj Singh”
“Regd No”
9212400048
Under the guidance of
Prof. Nimbel Vivek, Faculty of IIBS (Bangalore)”
#70, 2nd Main Road, 3rd Cross, Kanaka Nagar, Nagawara,

BANGALORE – 560 032
2009 – 11
MBA project submitted to PTU (2011) 1

DECLARATION BY Student
I hereby declared that this project titled “ Customer Behavior at

Shoppers’ stop “ , is submitted to the Punjab Technical University as a
partial requirement for the award of Degree of Master of Business
Administration, during the year 2009-2011It is the record of an original
& independent study carried out by me, under the able guidance and
supervision of Pro. Nimble vivek of “International Institute of
Business Studies”, Bangalore. This project report has not been
submitted earlier by me or by anybody else for the award of any other
degree in any University in India or abroad.
Date : Signature of the Student

Place : ( Name of the Student )
Shiveraj Singh

WELCOME TO SHOPPERS STOP
ACKNOWLEDGEMENT
I feel immense pleasure to give the credit of our project work not only to one individual as
this work is integrated effort of all those who concerned with it. I want to owe our thanks to
all those individuals who guided us to move on the track. This report entitled “A study of
India Mart And its Value”. We sincerely express our gratitude and lot of thanks to Prof.
Nimbel Vivek (Faculty Guide) for helping us in completing our project work and making it
a great success. I would like to express our deep sense of gratitude to staff members of
International institute of Business and studies, who introduced us to the subject and under
whose guidance we are able to complete our project. Last but not least, I would thank all our
friends, faculty members and all respondents who rendered their precious time for
contributing their skills and to fill the questionnaire, which made my project more appealing
and attractive.
Date : Signature of the Student

Place : ( Name of the Student )

Shiveraj Singh
Executive Summary
Today, shopping is becoming more a delightful activity, then merely

looking for and buying products or offerings that satisfy one’s wants. The
process of acquiring these products is all the more fascinating to many. With
the retail environment undergoing a huge metamorphosis, a customer now is
more involved in the process of seeing, choosing and selecting what he wants,
and this can be done at his own leisure, space and time.
Initially, shopping was known to be inherently a female activity, but as

the offerings for males has also increased and people demand better lifestyles,
the male shopper also takes care about what is to be bought and after how
much of examination.

Shopper’s Stop, being a family store, caters to all kinds of customers and to
the entire family. The store is frequented by shoppers of various profiles and
ethnic diversities which is a big challenge for the store.
The objective of this project was to do a analysis of Customer Profile of

Shoppers’ Stop The survey helped us to know what was going on in the
customers mind, a sample was studied to know what kind of products they
were looking for, if the products were found, communication through signages
and effect of displays, staff approach and views on their shopping experience
at Shopper’s Stop.
The survey was done to know :

• Customer profiling - Who is buying & Who is not ?
• What are Customer Buying Preferences in SSL ?
• What are Customer Buying Preferences in mall ?
• Catch ment area for Garuda mall.
The methodology used was : Questionnaire , interviews , survey of Garuda

mall & its catch ment area , competitors . The main customers of Shoppers’
Stop are Customers who are in the age group 25 years – 35 years . About 60%
of them are working. The customers of Shoppers’ Stop are modern urban
double income group people who have the purchasing power to spend on
branded wear. The average value purchase that they do is mainly from Rs
1500-3000.
The findings of the survey throws light on the income group of the customers,
the frequency of visit etc & customers suggestions & feedback. The second
survey is conducted for understanding the customers & their views about
product they are looking for and where will they like to shop it from.
Indian fashion consumption is fantastic today and Indian fashion designers

are selling costumes at higher average prices than even those of international
designers. Bollywood superstars are further seducing the consumers through
direct consumption of luxuries of various kinds.
Attitudes have changed. The attitude of people has gone from saving nature to
spending nature, from basics to lifestyle. They are spending more on luxury
items, design and quality has acquired greater significance and women are
really coming out of the closet. Overall u sees women taking lead roles,
becoming entrepreneurs and this leading to big changes.

TABLE OF CONTENTS
No. TOPIC PAGE No.
Chapter.1 Introduction 8-9
Chapter.2 Research methodology 10-13
Chapter.3 Review of literature 14-15
Chapter.4 Profile of company 16-57
Chapter.5 Analysis of interpretation of data 58-69
Chapter.6 Summary of findings ,Conclusion& Recommendation 70-76

Chapter.7
Bibliography 79

Chapter.8
Annexure 80-83
1. Introduction
.
RETAIL INDUSTRY
In the Indian retailing industry, food is the most dominating sector

and is growing at a rate of 9% annually. 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. 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 non- branded
items.
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.

The Indian retail market, which is the fifth largest retail destination
globally, according to industry estimates is estimated to grow from the US$
330 billion in 2007 to US$ 427 billion by 2010 and US$ 637 billion by 2015.
Simultaneously, modern retail is likely to increase its share in the total retail
market to 22 per cent by 2010.
Continuing the robust growth of the organized retail in India,

according to the Credit Rating and Information Services of India, the industry
raked in US$ 25.44 billion turnover in 2007-08 as against US$ 16.99 billion in
2006-07, a whopping growth rate of 49.73 per cent.
India 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.
"The story is not about us, but this story is about the people who visit
our stores. This is a proud moment for India."
One of the biggest retail here in India we know is RAHEJA’s

SHOPPERS STOP. Shopper's Stop was founded by K Raheja Corp in
October 1991 with its first store in Mumbai. From being a men's ready to
wear store it soon evolved into a complete family lifestyle store. As of 2008,
Shopper's Stop had 1.3 million sq. feet. of retail space spread across 24
stores in 11 cities in India with a retail turnover of over Rs. 12.07 billion.
Thus here we will know about the company profile, operations and also
about the consumer behavior towards the schemes, discount, etc which are
offered by the store to facilitate customers.

2. Research methodology
Objective of research study
2.1. MARKET ANALYSIS
The research objectives of this project are:-
a). Marketing activities and operational activities are always driven with an aim of
getting sale increased with innovate ideas. Offers are designed in such a manner
that customers are made to go and experience the shopping. Marketing also gives
some offer to increase the bill size, taking in consideration the on going fashion in
vogue.
b). Marketing Strategies targeting the customer: Advertising Strategy –

Understanding the media consumption habits of the customer.
c). understanding the consumer behavior & its implication in business.

2.2. SOURCE OF DATA
a. SURVEY METHOD
Data are usually collected through the use of questionnaires.

The data is collected by mean of simple survey done in the retail store of
the customers.
b. CROSS-SECTIONAL SURVEYS
Cross-sectional surveys are used to gather information on a

population at a single point in time. The customers were surveyed to find out their
consumption behavior for the products in various schemes. A different cross-
sectional survey questionnaire might try to determine the relationship between two
factors, like religiousness of parents and views on Internet filtering.
3.2. SAMPLE SIZE
A sample size of 90 was considered in this project. That is, a total number of
respondents were 90 for survey.
2.3. TOOLS AND TECHNIQUES OF ANALYSIS

a. PERSONAL INTERVIEW
Personal interviews are highly susceptible to inadvertent “signaling”

to the respondent. The cumulative effect of several facial expressions is
likely to be felt. By the use of this method the facial expressions tell about
how a customer feels about the product, and his knowledge about the
product in the scheme.
This will let us know following:-

1.The reason could be known that why a product is not liked and what are
shortcomings in the product?
2.The preference for the product of the customer?
3.Who are the frequent customers?
b. PROJECTIVE TECHNIQUES
Projective techniques are used when a consumer may feel

embarrassed to admit to certain opinions, feelings, or preferences. It has
been found that in such cases, people will tend to respond more openly
about “someone else.” Thus, we may ask them to explain reasons why
others not buying the product, or why other customers are not willing to take
advantage of the scheme, or what changes they want should be there for
their convenience.
c. OBSERVATION OF CONSUMER

Observation of customers is often a powerful tool. Looking at how

consumers select products may yield insights into how they make decisions
and what they look for. Observing consumers, tells about:-
1.What is he looking in the product?
2.Is he brand loyal?
3.Is he more or less price sensitive?
4.Is he more interested in packaging, manufacturing, etc?
5.Whether his taste has shifted?
Observation may help us determine how much time consumers spend
comparing prices, or whether nutritional labels are being co
3. REVIEW OF LITERATURE
In order to write the literature review chapter component of my dissertation
you need to go through complete four basic stages.

i. Problem formulation stage:
ii. Literature Search:
iii. Data Evaluation:
iv. Analyze and Interpret Findings:
There are a number of key point that should be included in the actual
review of the literature. For example, you should provide an overview of the
subject as well as the theory or issue you are writing about. This area should
already be thoroughly covered in your dissertation and should connect
smoothly to the literature review component.
Introduction to Consumer Behavior: Role of Consumer Behavior in

Marketing, Distinction among consumer, customer, buyer, user and payer.
Framework of Consumer Behavior – Internal Influences, External Influences,
Self-Concept & Life Style and Decision Process. Interdisciplinary subject
encompassing concepts from psychology, sociology, anthropology, micro-
economics and organizational (buying) behavior. Applications of Consumer
Behavior.
Consumer Perception: Perception Process & Involvement, Sensation & Sensory

Thresholds, Sensory Overload & Selective Perception, Use of Gestalt Principles in
Marketing Communications, Common Perceptions of Colors, Interpretation –
Semiotics. Perceived Risk. Marketing Strategies targeting the customer: Advertising
Strategy –Understanding the media consumption habits of the customer.
Consumer Needs & Motivation: Needs & Wants, Latent & Manifest
Motives in a Purchase Situation, Maslow’s Needs & Consumer Behavior, Trio
of Needs Theory, Motivation Theories - Optimum Stimulation, Hedonic
Experiences, maintaining behavioral freedom, avoiding risk, attributing
causality. Motivational Conflict, Motivational Research.

Consumer Attitude Formation & Change: Attitude functions. Tri-

component attitude model, hierarchies of attitude components. Multi-attribute
attitude models. Attitude measurement. Changing consumer attitudes.
Consumer Learning: Applications of behavioral learning theories (classical

conditioning & operant conditioning) and cognitive learning theories (iconic
rote, vicarious/modeling and reasoning/analogy) to consumer behavior.
Consumer in the Market Place: Factors influencing consumer outlet

choice. Shopping orientation & shopping styles. Types of purchases. In-store
influences on purchase. Consumer responses to marketing communications.
Different forms of advertising appeals & consumer behavior.
Post-Purchase Behavior: Satisfaction/dissatisfaction – loyalty/non-

use or complaint behavior. Measuring satisfaction, handling complaints,
achieving customer loyalty. Post-purchase dissonance – causes and
approaches to reducing the same. Disposal alternatives
Dark Side of Consumer Behavior: Concerns of marketers and dark

side of consumer behavior (addictions, devious behaviors).
Organizational Consumer Behavior: Organizational buying roles,

buying situations & buying processes. Influences on organizational buying
behavior.
4. COMPANY PROFILE
a. Shoppers stop is ,as the brand calls itself, “the first store in the history of
modern retailing in India.
b. its present in 14 cities in India with multiples store in big metros
The foundation of Shoppers' Stop was laid on October 27, 1991 by the K.
Raheja Corp. group of companies. Being amongst India's biggest hospitality

and real estate players, the Group crossed yet another milestone with its
lifestyle venture - Shoppers' Stop.
From its inception, Shoppers' Stop has progressed from being a single
brand shop to becoming a Fashion & Lifestyle store for the family. Today,
Shoppers' Stop is a household name, known for its superior quality
products, services and above all, for providing a complete shopping
experience.
With an immense amount of expertise and credibility, Shoppers’ Stop has

become the highest benchmark for the Indian retail industry. In fact, the
company’s continuing expansion plans aim to help Shoppers’ Stop meet the
challenges of the retail industry in an even better manner than it does today.
Shoppers Stop Ltd has been awarded "the Hall of Fame" and won "the
Emerging Market Retailer of the Year Award", by World Retail Congress at
Barcelona, on April 10, 2008 Shoppers Stop is listed on the BSE. With the
launch of the Navi Mumbai departmental store, Shoppers Stop has 26 stores
in 13 cities in India.
Stores
Shoppers Stop began by operating a chain of department stores under
the name “Shoppers’ Stop” in India. Currently Shoppers Stop has twenty six
(26) stores across the country and three stores under the name Home Stop.
Shoppers Stop has also begun operating a number of specialty stores,
namely Crossword Bookstores, Mother care, Brio, Dies Café, and Arcelia.
Shoppers Stop retails a range of branded apparel and private label

under the following categories of apparel, footwear, fashion jewellery, leather
products, accessories and home products. These are complemented by cafe,
food, entertainment, personal care and various beauty related services.

In April 2008, Shoppers Stop changed its logo and adopted the mantra "Start
Something New".
Shoppers Stop's sister stores include:
• Crossword Bookstores (a specialised book store)
• Home Stop (store for furniture and home accessories)
• Brio
• Hyper city (offers food and grocery, general merchandise and apparel)
• Mother Care (offers products for expecting mothers, babies, toddlers and
children)
• Nuance Group (manages the outlets at the international airports at Bangalore

and Hyderabad)
Loyalty program
Shoppers Stop’s has a loyalty program called First Citizen. They also offer a
co-branded credit card with Citibank for their members. This is a Loyalty
Programme of Shoppers Stop which not only gives the customer Special
Offers, Benefits, & Privileges but also helps them earn points on their
purchases. These points can be redeemed for an equivalent value of
purchases at Shoppers’ Stop

➢ Benefits of being a First Citizen.

➢ First Citizen’s process
➢ Approach.
➢ Co Branded.
Importance of Enrolling
First Citizen’s.

♦ Knowing our customers more closely

♦ Retaining our Loyal Customers.
♦ Helps us identify our big customers.
♦ Helps in updating customers about our
♦ special privileges & benefits
♦ Contribution of First Citizen’s to store sales.
Points Benefits
• Classic Moments member earns 1 Reward point for every 100 Rs spent
at Shoppers’ Stop. i.e. 1%.(on net purchase)
• Silver Edge member earns 1 Reward point for every 50 Rs spent at
Shoppers’ Stop. i.e. 2%.(on net purchase)
• Golden Glow member earns 1 Reward point for every 34 Rs spent at
Shoppers’ Stop. i.e. 3%.(on net purchase)
• Reward Points On Exclusive Brands :
• Stop, Stop Boys
• Kasich, Life
• Austin Reed Acropolis
• I – Jeans Push & Shove
• Mario Zegnoti, Eliza Donate in
• Incense, Vitoria Farina
• Haute Curry, Stop Girls
• Life Junior
Other Benefits
• Card can be used at all the units Of Shoppers’ Stop.
• Free parking* at all the units of Shoppers’ Stop.
• Free Valet Parking.
• Regular updates on all the mega events at Shoppers’ Stop.
Parking charges reimbursable on purchases at Shoppers’ Stop only –for
classic and Silver members Where applicable
Associate Cards.
• Classic Moments can apply for 1 associate card by paying Rs 100.

• Silver Edge can apply for 2 associate cards by paying Rs 100 per card.
• Golden Glow can apply for 3 associate cards.2 complimentary & 1 paid.
(Associates can be – Parents, siblings (brothers & sisters), spouse,
children (18 yrs of age and above)
First Citizen First (short code service) – SMS 56161
• Know your membership related information on your mobile handsets
– Membership Number
– Points
– Offers in Store
– Offers out store (Tie ups-Restaurants, Clubs etc)
– Update your information – Mobile & Email
First Citizen’s Process

➢ Enrolment.
➢ Points Earning
➢ Redeeming Reward Points.
➢ Upgrade & Renewal.
➢ Exits

Shoppers Stop Presence
• North – 12 stores
• South – 8 stores + 2 airport stores.
• East - 3 stores
• West – 10 stores
COMPANY VISION
“To Be A Global Retailer In India And Maintain Its No. 1 Position In The
Department Store Category.”
COMPANY MISSION STATEMENT
“NOTHING BUT THE BEST”

We Will Provide the “BEST” Value In Terms Of Products And Services And
Adopt “best” Process For Stakeholders, Without Compromise, Thereby
Matching Global Standards Thereby Matching Global Standards Of
Performance.

INTRODUCTION TO SHOPPER’S STOP
SHOPPER’S STOP LTD.(SSL)
Setting up shop in 1991 (October)

with its flagship store in Adhere,
Mumbai, Shoppers’ Stop is a member
of the K. Raheja Corp. of Companies.
Shoppers’ Stop first retail venture by
the K. Raheja Corp. Promoted by Mr.
Chandra L. Raheja, Mr.Ravi C. Raheja
and Mr. Neel C. Raheja, K.Raheja
Corp. have been leaders in the
construction business for over 48
years.
With its wide range of

merchandise, exclusive shop-in-shop
counters of international brands and
world-class customer service,

Shoppers’ Stop brought international standards of shopping to the Indian

consumer providing them with a world class shopping experience.
Today, Shopper’s Stop has acquired the status of a pioneer in organized

retailing in the country. It has a very strong national presence and is also
well connected with the International Retailing scene. It is the only
department store chain in India to be a member of IGDS, “International Group
Of Department Store” where only the best store of each country gets an
opportunity to be a privileged member.
PRODUCT AND SERVICE PROFILE OF THE ORGANISATION
Shoppers’ Stop undertakes image makeover; revamps looks, logo, uniforms,

among others
“Change is essential. Our consumers are changing, their preferences are

constantly evolving. They are getting younger. And so, we have to change
along with them.”
- B S Nagesh, Customer Care Associate & Managing Director
After 17 years of existence K Raheja owned and B. S. Nagesh

managed India’s largest department stores retail chain Shoppers’ Stop has
decided to spend Rs. 20 cr. ($5 million) on image makeover.
In a major revamping exercise, it has changed its logo, baseline,

uniforms, shopping bags, and looks, among others, though, it will not
change its black and white colors. Explaining rationale behind retaining
colors, Govind Shrikhande, CCA & Chief Executive Officer, Shoppers’ Stop,
said, “It is more classical, rich and authoritative, something Shoppers’
customers connect with. Black and white gives us a strong brand recall
value.”

“The simple but classic new logo without the old elliptic ring, which has an
international look and a timeless appeal, carrying the new baseline ‘Start
something
MARKETING STRATEGY
PROCESS FOLLOWED
Segmentation, targeting, and positioning together comprise a three stage

process which Shopper’s stop follows:
a. Determine which kinds of customers exist,
b. Select which ones we are best off trying to serve,
c. Implement our segmentation by optimizing our products/services for that

segment and communicating that we have made the choice to distinguish
ourselves that way.
SEGMENTATION:

Segmentation involves finding out what kinds of consumers with different

needs exist. In the apparel market, for example, some consumers of
Shoppers’ stop demand latest fashion, while others are much more
concerned about comfort and price. In general, it holds true that “You can’t
be all things to all people,” and experience has demonstrated that firms that
specialize in meeting the needs of one group of consumers over another
tend to be more profitable.
Several different kinds of variables can be used for

segmentation:-
1. Demographic variables essentially refer to personal statistics such as
income, gender, education, location (rural vs. urban, East vs. West),
ethnicity, and family size. Tommy Hilfiger, for instance, has found the most
of their buyer is associated with elite group thus, you get a different product
in the same cans at the East and West coasts. Facing flat sales of “peter
England” dominated market, a manufacturer came out with this the Madura
f&l a more compact, Taking this a step farther, it is also possible to
segment on lifestyle and values.”
2. Some consumers want to be seen as similar to others, while a different
segment wants to stand apart from the crowd eg; Calvin Klein &
fcuk ,Tommy Hilfiger etc.
3. Another basis for segmentation is behavior. Some consumers are “brand
loyal”—i.e. they tend to stick with their preferred brands even when a
competing one is on sale. Some consumers are “heavy” users while others
are “light” users. For example, research conducted in this project shows
that most costly product of Shoppers ‘stop is bought by 35% of the total
customer that is 80% .—presumably a rather intoxicated group.
4. One can also segment on benefits sought, essentially bypassing
demographic explanatory variables. Some consumers, for example, like the
product of “Black berry” because its more comfortable while others prefer
the brand like Arrow & Allen Solly. Some consumers use cloth to hide the
body while other use it for the status & fashion.

TARGETING:
1. In the next step, we decide to target one or more segments. Our choice
should generally depend on several factors:-
➢First :- How well are existing segments served by other manufacturers? It
will be more difficult to appeal to a segment that is already well served than
to one whose needs are not currently being served well.
➢Secondly:- How large is the segment, and how can we expect it to grow?
➢Thirdly:- Shoppers stop target to the elite group of people which is higher
income group mainly but in some way it also target to the middle group as
well.
POSITIONING:
Positioning involves implementing our targeting. Shoppers stop has done

there positioning by introducing foreign brand such as FCUK, CK Jens and
Tommy Hilfiger etc.

MARKETING MIX
Main Aspects of Marketing Mix
The easiest way to understand the main aspects of marketing is through its
more famous synonym of "4Ps of Marketing". The classification of four Ps of
marketing includes marketing strategies of product, price, placement and
promotion. The following diagram is helpful in determining the main
ingredients of the four Ps in a marketing mix.

PRODUCT:
In simpler terms, product includes all features and combination of goods
and related services that a company offers to its customers.
Product is the most important aspect of marketing mix for two main
reasons. First, for manufacturers, products are the market expression of the
company's productive capabilities and determine its ability to link with
consumers. So product policy and strategy are of prime importance to an
enterprise, and product decisions dictate the scope and direction of
company activity. Moreover, the market indicators such as profits, sales,
image, market share, reputation and stature are also dependent on them.
Secondly, it is imperative to realize that the product of any organization is
both a component and a determinant of the marketing mix. as the Shopper’s

stop are of high quality & cater to all elite group of people like CALVIN KLEIN
,FCUK,TOMMY HILFIGHER,ALLEN SOLLY etc.
PRICING:
Pricing is basically setting a specific price for a product or service offered. In a
simplistic to the concept of price as the amount of money that customers
have to pay to obtain the product. Setting a price is not something simple.
Normally it has been taken as a general law that a low price will attract more
customers. It is not a valid argument as customers do not respond to price
alone; they respond to value so a lower price does not necessarily mean
expanded sales if the product is not fulfilling the expectation of the
customers
Generally pricing strategy under marketing mix analysis is divided into two
parts: price determination and price administration (ibid).
Price determination is referred to as the processes and activities employed

to arrive at a price for a product including consideration of relative prices of
products within the same line, and differences in price for similar products of
differing grades and qualities.
“ Shopper’s stop follows premium pricing strategy that is selling high quality
products at the higher price”.

PLACE:
Place under marketing mix involves all company activities that make the
product available to the targeted customer while planning placement
strategy under marketing mix analysis. Eg. location of Shoppers’s stop in all
the metros is on premium place in the like Garuda mall in Bangalore .
PROMOTION:
Promotional strategies include all means through which a company
communicates the benefits and values of its products and persuades
targeted customers to buy them . e.g. Shoppers stop communicate to
customers through news paper , fm, hoarding etc.
Limitation of Marketing Mix Analysis (4Ps of Marketing)

Despite the fact that marketing mix analysis is used as a synonym for the 4Ps
of Marketing, it is criticized on the point that it caters seller's view of market
analysis not customers view. To tackle this criticism, attempted to match 4
Ps of marketing with 4 Cs of marketing to address consumer views:
Product – Customer Solution
Price – Customer Cost
Placement – Convenience
Promotion – Communication
4.8. e. RETAIL MIX:
1.Merchandise assortment
The company was looking for a solution that would bring all of its
businesses and processes together. After a comprehensive evaluation of
different options and software companies, the management at Pantaloon
decided to go in for SAP.

Some of the qualities of SAP retail solutions are that it supports product
development, which includes ideation, trend analysis, and collaboration with
partners in the supply chain; sourcing and procurement, which involves
working with manufacturers to fulfill orders according to strategic
merchandising plans and optimize cost, quality, and speed–variables that
must be weighted differently as business needs, buying plans, and market
demand patterns change managing the supply chain, which involves
handling the logistics of moving finished goods from the source into stores
and overseeing global trade and procurement requirements; selling goods
across a variety of channels to customers, which requires marketing and
brand management; managing mark-downs and capturing customer
reactions, analyzing data, and using it to optimize the next phase of the
design process.
2. Place
In the channels of distribution, the physical facilities point of location.
3. Price; premium price
4. Visual merchandising
Visual merchandising supports:-
a. sales
b. retail strategies
c. communicates with customers
d. communicates image
e. supports retailing trends.

Visual merchandising includes:-
1. Interior merchandising
➢ Sufficient visual merchandizing within the store that included danglers,

signage, standees, distribution of pamphlets, which gave details of the offer.
Display, point of purchase, fixture, equipment and furnishings store layout.
➢Product packaging and labels.
2. Exterior merchandising
➢With the ramp show in om shanti om movie.
➢ Hoarding in the big metros & staff with announcements about the offer to
make people aware.
➢Advertising on fm.
➢ Store atmosphere.
RETAIL PROMOTION MIX

1. ADVERTISING:
Advertising is recognized as an indispensable tool of promotion. It has
acquired a lot of significance in the national and international markets.
With the advent of globalization and liberalization its imperativeness in
the Indian retail sector has increased as a result of competitions, latest
technologies, and the rapidly changing consumer lifestyles.
a. Objectives of Advertising:
The fundamental objective of advertising is to sell something –a product,

service. The Major Objectives of advertising are:

1. To promote a new product.

2. To warn the public against imitation of the retailer’s product.
3. To manage competition in the market.
b. Benefits:
1. Advertisement helps in creating awareness among the
customer about the existence, price, and availability of
product.
2. Increases the utility of existing products.
3. It educates customer about new product and their diverse
uses.
c. Types of advertising:
i. Informative Advertising:
Purchases of durable products are generally erratic and often too expensive
to buy, so the retailer spends a huge amount on informative
advertising.
ii. Corporate Advertising:
Its main motive is to build a corporate image. Corporate Advertising builds
up retailer image. It increases goodwill towards the retail
organization
iii. Financial Advertising
1.PROMOTION:
Promotion can be loosely classified as "above the line" and "below the line"
promotion. The promotional activities carried out through mass media like
television, radio, newspaper etc. is above the line promotion. The terms
'below-the-line' promotion or communications refers to forms of non-media
communication, even non-media advertising. Below-the-line promotions are
becoming increasingly important within the communications mix of many

companies, not only those involved in Fmcg products, but also for industrial
goods.

BELOW THE LINE SALES PROMOTION
Some of the examples of BTL (bridge to luxury) promotions are by

exhibitions, sponsorship activities, public relations and sales promotions
like giving freebies with goods, trade discounts given to dealers and
customers, reduced price offers on products, giving coupons which can be
redeemed later etc.
Below the line sales promotions are short-term incentives,

largely aimed at consumers. With the increasing pressure on the marketing
team to achieve communication objectives more efficiently in a limited
budget, there has been a need to find out more effective and cost efficient
ways to communicate with the target markets. This has led to a shift from
the regular media based advertising.
Methods of below the line sales promotion:-
i. Price promotions
Price promotions are also commonly known as" price discounting". These
can be done in two ways:-
1. A discount to the normal selling price of a product, or more of the product
at the normal price.
2. Price promotions however can also have a negative effect by spoiling the
brand reputation or just a temporary sales boost (during the discounts).
ii. Coupons
Coupons are very versatile, way of offering a discount. Following are the
examples of the use of coupons:-
-On a pack to encourage repeat purchase

-In coupon books sent out in newspapers allowing customers to redeem the
coupon at a retailer.
-A cut-out coupon as part of an advert.

The key objective with a coupon promotion is to maximize the redemption

rate – this is the proportion of customers actually using the coupon. It must
be ensured when a company uses coupons that the retailers must hold
sufficient stock to avoid customer disappointment. Use of coupon
promotions is often best for new products or perhaps to encourage sales of
existing products that are slowing down.
iii. Gift with purchase

The "gift with purchase" is a very common promotional technique. In this
the customer gets something extra along with the normal good purchased
eg.1)purchase of 5000/ get the perfume worth 2000.
2)buy three trouser of blackberry & get the gift voucher of 1000 rs.
iv. Competitions and prizes

Shoppers’s stop organize the event on the eve of new year that sing 6 songs of the
same starting word in 2 minutes get the 1000 rs. of gift voucher.
v. Money refunds
Here, a customer receives a money refund after submitting a proof of
purchase to the manufacturer. Customers often view these schemes with
some suspicion – particularly if the method of obtaining a refund looks
unusual.
vi. Frequent user / loyal incentives

Repeat purchases may be stimulated by frequent user incentives.

vii. Point-of-sale displays

A data collection system that electronically receives and stores bar code
information derived from a sales transaction. This could the zip codes for
library users, facilitating the library in determining geographic market are
that users reside in. Most of the big brands are following the suit of BTL
promotion because of rising prices of media based promotion, advertising
clutter and increased impulse purchasing.
BTL promotions are gaining popularity among all big companies nowadays
considering their effectiveness because of the "individual customer
promotion" at a price, which is much lesser than the normal media
promotions.
3. PERSONAL SELLING: Persuasive communication between a

representative of the company and one or more prospective customers,
designed to influence the person's or group's purchase decision.
4. PUBLICITY OF PRODUCT:
Publicity non-personal communication in news story form about an

organization, its products or both, that is transmitted through a mass
medium at no charge.
5. PUBLIC RELATION:
Public relations the planned and sustained effort to establish and maintain
goodwill and mutual understanding between an organization and its target
publics.

6.ATTRIBUTE
Envelope
Something that envelops; a wrapping. A products wrapping affects a lot on

its sale. More customers are attracted if envelope is very attractive.
7. LOGISTICS:
Logistics is the art and science of managing and controlling the flow of
goods , energy, information and other resources like products, services and
people from the source of production to the marketplace. It’s Important to
have professional logistical support logistical. The operating responsibility
of logistics is the geographical repositioning of raw materials, work in
process and finished inventories where required at the lowest cost possible.
8. SUPPLY CHAIN:
Supply chain, is a coordinated system of organizations, people, activities,
information and resources involved in moving a product or service in
physical or virtual manner from supplier to customer. Supply chain activities
transform raw materials and components into a finished product that is
delivered to the end customer.
9. COMPETITORS
Shoppers stop operates in a competitive environment. For each line of

business, they face competition from established national and regional
companies. In the fashion segment, they probably face competition from
pantaloon, Trent and Lifestyle. The hypermarket business is relatively new,
being just about three to four years old in the country. Shoppers stop faces
competition from the likes of RPG (Spencer’s), Trent (Star India Bazaar) .

a. RPG GROUP: Spencer & Company Limited is another

large retail group in the country
withsupermarkets,music stores, and the
beauty and health chain—Health &
Glow.
Food world, operated by Food World

Supermarkets Limited, while Health
&Glow by the RPG Group. It is also
Planning IPO, will have 450-plus Music
World, 50-plus Spencer's Hyper covering
4 mn sq.ft by 2010.
b.future group: Kishore biyani future group is one of the

biggest competitors.
It Operates big bazaar, pantaloon zone
d.RELIANCE Investing Rs.30000 cr. ($6.67 billion) in setting up
RETAIL: multiple retail formats with expected sales of

Rs.90,000 cr.-plus ($20 billion) by 2009-10.
e. LIFESTYLE: Investing Rs.400 cr.-plus ($90 mn) in next five years

on Max Hypermarkets & value retail stores, home
and lifestyle centers.
f. PIRAMYD Aiming to occupy 1.75 million sq.ft retail space
RETAIL: through 150 stores in next five years.

MAJOR PROBLEMS
a. Retailing is in a rapid state of change due to speedy technological

developments, changing competitive positions, varying consumer behaviors
as well as their expectations and liberalized regulatory environment. In such
a scenario, information is crucial to plan and control profitable retail
businesses and it can be an important source of competitive advantage so
long as it is affordable and readily available.
b. In west, retail businesses have been the early adopters of Information

Technology (IT). As there is a need to capture accurate information and make
it available not only within the store but send it to warehouse, distributors
and manufacturers in real time to manage the short shelf life of some goods
in grocery sector and costs of inventory, varied DSS tools have been
adopted by organized retailers. VMIs- vendor managed inventory systems,
Scanner, OLAP (online analytical processing), supply chain management
systems, forecasting systems, CRM- customer relationship management
systems, ERP- enterprise resource performance system etc. are the tools
used by organized retailers in developed nations.
c. Most retailers collect and have access to huge amount of data, collected
from day to day operations e.g. customer loyalty data, retail store sales and
merchandise data, demographic projection data etc. Currently retailers are
data rich but information poor. There is a great potential to develop systems.

FUTURE PLANS OF THE ORGANISATION:-
Shoppers' Stop aims to leverage brick and mortar strength news Retail
major Shoppers' Stop Ltd has just launched its virtual store “
shoppersstop.com. The website, apart from selling the usual wares --
apparel, books, gift articles, toys -- will also hawk flowers and furniture, not
stocked by the company's brick and mortar chain due space constraints.
The virtual store will be a boon for people who want to send gifts to their
loved ones living and within and without the city. Expecting sizeable
business from this segment, Shoppers' Stop is tying up with support service
providers to over come the myriad complexities involved in logistics and
back-end operations.
Says the company's general manager “ information systems, Anish Shah,

"We have made arrangements for logistics, payment gateways and call
centers for goods ordered over the website." However, virtual store
transactions will be initially restricted to the cities where the company has its
brick & mortar outlets. Interestingly, the `virtual store' -- a Net-enabled
computer -- will be there in every Shoppers' Stop store, enabling a shopper
to order on the web, specifying the place of delivery after seeing the goods in
the physical store.
Shoppers' Stop, the first retail chain in India to invest on an ERP package, is
again investing heavily on software. This time around, the company is buying
a software package called Arthur Planning, and a data warehousing solution
from JDA, USA from which it bought the ERP package. "Arthur Planning is
useful in measuring the stock position at the store shelf level and for auto
replenishment of the shelves," Mr Shah explains.
That aside, the software package helps in studying sales patterns and
identifying slow moving items and the reasons thereof. According to Mr. B.S.
Nagesh, managing director and chief executive officer, Shoppers' Stop, the
chain enjoys a comfortable stock turnover ratio of six times. The company's

six stores and three warehouses are networked with the corporate office at
Mumbai.
Apart from the virtual shop, Shoppers' Stop is to open its second store in
Mumbai and Hyderabad next month. "This is to increase our catchment
area," reasons Mr Nagesh. Though stores of this kind are termed as
destination stores, in reality people are not willing to travel beyond five
kilometres to shop, he adds.
After registering a turnover of Rs 160 crore for the year 1999-2000, Mr Nagesh
is targeting sales of Rs 270 crore and a net profit of Rs 16.2 crore in the
current fiscal, on an equity capital of Rs 24 crore. The company had privately
raised Rs 60 crore from financial institutions and venture capitalists. As per
the plans on the drawing board, Shoppers' Stop plans to have around 23
stores by the end of 2004, with major cities having multiple retail outlets.
Recently, the company opened its 50,000-sq.ft store in Chennai. Set up at an

outlay of Rs 10 crore, Mr Nagesh expects the Chennai store -- the company's
sixth outlet -- to break even in 18-24 months time. "We expect to clock Rs 30
crore sales in the first year of operations," he remarks.
One of the unique features of the Chennai store is the housing of

Crosswords, the bookstore, and Music World, the music store belonging to
the RPG group. The company has entered into a revenue sharing agreement
with Music World for the purpose. It may be recalled that the Rahejas
acquired 51 per cent equity stake in Crossword store some time back.
According to Mr Nagesh, this format will be implemented in all future stores.
In Mumbai, Shoppers' Stop has tied up with Planet M (of the Times of India
Group) for music retailing.
Responding to the query of why he is not looking at contract management of

stores on a profit sharing basis (similar to the practice in the hotel industry),
thereby saving heavy outlays and achieving faster brand growth, Mr Nagesh
replies, "We are still on the learning curve with lot of things still to be
mastered."
The company's experiment with the franchisee model through its Blues
Bizaar retail chain was not successful. "We were not able to devote sufficient
management time in managing the chain," says Mr. Nagesh. Of the three

Blues Bazaar stores -- two franchisee and one own-shop -- opened in

Mumbai, two have downed their shutters and the remaining one is in the
process closing the operations.
“Shoppers’ Stop to offer easy loan facilities for consumers

Targets existing loyalty card members, credit card holders
Mumbai, Sept. 24 This festival season Shoppers’ Stop is planning to create
lower variants in its credit card-based buying options. Reducing its credit
limits, the retail chain is looking at options that would not necessarily cater
to big-ticket items at its stores.
Mr. Govind Shrikhande, Chief Executive Officer, Shoppers’ Stop, told

Business Line, “We are looking at giving credit at lower values and there
would be new versions and models offered within our credit card facilities
currently available.”
With intentions of increasing consumption at its stores, the retailing chain is

planning to give credit between Rs 5,000 and Rs 10,000 for buying lower
value items.
Having associated with Citibank for its co-branded card for the past three
years, the credit facilities given so far have been restricted to big-ticket buys
such as furniture especially during the festival season. Adds Mr Shrikhande,
“All these years we have been offering credit to buy big-ticket items ranging
from Rs 50,000 to Rs 80,000. But now we are looking at giving easy loans
with lower interest rates.” The interest rates charged for these cheaper loans
would range between 9 and 10 per cent of the principal amount.
5. WORK ASSIGNED BY THE COMPANY
5.1 BUSINESS OBJECTIVE:
To increase footfalls and enhance sales by:

a. Attracting customers by giving them various offers.

b. Inculcating in their minds the value for money through these
offers.
c. Increasing the average consumption of existing customers.
OPERATINGSCHEME:
a. All Category provided offers well in advance.

b. I.T uploaded the offers one day in advance and rechecked them.
c. V.M also did splendid job by putting the required offer signage’s and
also decorated the store as per the SS3D theme.
d. HR managed the shift time of employee; Snaks were arranged for
thestaff.
e. unit head, rom, DM, ADM-Planned and managed micro analysis of
targets and staff was done by taking department wise meeting.
Understanding of the consumer behavior
Consumer behavior can be the prominent aspect in any business but in retail
sector it is very important because we have to deal with customer every day

& we have to be on the front to sell the product & to get profit for the
company by increasing the bottom line of the company.
To understand the consumer behavior we need to observe

the customer closely & know about them about these:
1)what they want
2)how much they wants to pay for that
3)whom they seek for the information
4)who can influence their decision
5)from where they manage the money
6)how they spend money
7)what location they choose for the purchase
8)are they innovators ,majority,laggard
9)are they satisfied with the product
10) are they getting after sell service that can be very crucial.

BUYING PROCESS
a. NEED RECOGNITION:
The customer first points out the things which he need. His good part of
income is spend on things of his daily requirement.
b. INFORMATION SEARCH:
Before purchasing of a product, customer research internally and

externally. Internally-retrieving information about similar purchase made
earlier, decision about choice criteria, brand included, or advertisement
related to the product. Externally- source such as family, friends, commercial
sources, etc.
c. EVALUATION OF ALTERNATIVES:
Before, purchasing customer looks for the alternatives of that product.

Customer goes for good quality in cheapest rate.
d. PURCHASES:
Purchaser many times faces cognitive dissonance which arises due to

uncertainty of making right decision. This is because choice of one product
often means rejection of attractive features of the alternatives.
e. AFTER PURCHASE EVALUATION:
Customer by using the product comes to know about the real value of
product. CONCLUSION:
It should be considered that shoper’s stop targets every class. Thus we

know that different people have different thinking style.
Most of their buying decisions or his behavior depends on his:-

a. PERCEPTION:
Perception is the process by which a customer makes sense of information

that he receives. Therefore, it is to be tried that customer receives the right
information about every product and about its scheme, because a single
error in communication to customer can create confusion to him and he may
not buy the product.
b. LEARNING:
It is the change in the content or organization of long time memory and is a

result of information processing. Thus company should try to hit the
customer’s memory. I.e. Company should have good impression on the
memory of the customer. As this memory acts as a internal information
source in the decision making process.
c. MOTIVATION:
Motivation helps a lot to maintain loyal customers. A customer is loyal only
when he sees any extra benefits. Thus discounts, free gifts, free coupons,
etc such schemes motivate them a lot. Many times, good quality of the
product, reasonable prices, packaging, etc also works as motivational tool.
d. PERSONALITY:
Personality can be of many types as introvert-extrovert, sociable-loner, and
competitive-cooperative. Brand personality is the characterization of brands
as perceived by customers. Brand may be as ‘for young’ like branded jeans
of Levi’s, Lee, ck, etc. that Shoppers stop has got in its portfolio.

CUSTOMER LOYALITY AND PROFITABILITY:

Relationship between loyalty and profitability should be decided on the basis
of loyal customers that are really profitable for company.
The loyal customers are believed to be cost less to serve, they are willing to
pay more than other customers and act as a word- of- mouth promoters for
the company. It is believed that one sure way to earn greater profits is to win
loyalty of customers.
TO GET THE RIGHT POSITIONING DONE OF THE PRODUCT

UNDER SCHEME:
It is the customer’s beliefs about the company’s product being of, say, high
quality, or low price, or durable, etc. Thus it is very necessary that product
should be according to the customers need. It should not be damaged, in
store product should be given open facing. For pack of two the products
were given alternate 4 facing. I.e., one row of single and other row of double.
TO MAINTAIN STOCK ON THE FLOOR:
In retail stores less stock is maintained. This stock on other hand is

sufficient enough to fulfill the demand of that vary product in store.
To know the exact amount to be maintained on floor it is very necessary to

know:-
a. Product facing
b. Capability to maintain stock in warehouse
c. Demand of the product.
d. Profit margin on the product.

TO UPDATE THE PRICES:
Pack of two was the new scheme, so its prices to be get changed on rem for
those products whose prices have changed by the producing company. The
work was to report DM or team leader about the increase in prices and get it
updated on rem so that discount could be given accordingly.
DISCOUNT CRITERION:
a. The discount was given on the scheme of pack of two.

b. The discount was 1/4th on the profit of the retail company.
c. I. e if the company is getting profit of rs10 on a product, whose mrp is 100.
d. Then after discount it is sold at rs97.5 in the store.
INVENTORY CONTROLL:
Since inventory represents cost, managers seek stock minimization. To

always have in stock every conceivable item that a customer might order
would normally be prohibitively expensive for companies marketing many
items.
One solution is to separate items into those that are in high demand and
those that are is slow moving. Two related inventory decisions are knowing
when and how much to order so that stocks are replenished. This is
because there is a lead time between ordering and receiving inventory, and
there should not be stock out as the company is waiting for the order items
to arrive. The more variable the lead time and higher will be the safety or
buffer stock that the company will be required to keep to prevent a stock out.

How to work on bar code tender
labels which shows price of product after giving the discount on that
product.
Bar tender is the software by which we use to take out the bar codes.
Process:-
a. To select items according to their EAN numbers Include for export

exit enter.
b. No. of quantity done.
c. now go to next program of print select the items;
ok

5. Analysis of interpretation of data
5.1 SURVEY ANALYSIS
1. Total people surveyed-90
2. Total people who responded well-72
1. Men: 22
2. Women: 30
3. Youngsters: 18
4. Children: 8
5. Old aged: 12
Result-total people surveyed were 90 & 72 responded well from the majority was of
women.
B.Marital status:-
1. Married: 74 2. Unmarried: 16
Result-from total 90 married were 74 & unmarried were 16.

d. Income group: -
1. 0-10000: 20
2. 10000-20000: 24
3. 20000-30000: 28
4. More than 30000: 18
Result-most of the people in the survey was having the income 20000-30000.
e. Is your home: -
1. A single family house: 55
2. Two family house: 25
3. Single: 10
Result-55 were the single family house.

25 were the two family house.
10 were the single.

f. Indicate activities/interests which you and/or

household members enjoy on a regular basis:
1. Bicycling/running: 1
2. Dieting: 25
3. Crafts: 5
4. Foreign travel: 15
5. Gourmet/fine food: 45
6. Fashion clothing: 40
7. Bible/devotional reading: 12
8. Physical fitness/exercise: 69
9. Stereo/records and tapes: 14
10. Art/antiques: 8
11. Outdoor gardening: 35
12. Wildlife/environment issues: 40
13. Health foods/vitamins: 70
14. Money making opportunities: 50
15. Book reading: 24
16. Self improvement: 45
17. Watching sports on TV: 40
18. Charities/volunteer work: 16
19. Other: 12

Result-from the analysis it is clear that most of the people were interested in
health foodsi.e70,physical fitness 69,fashion clothing 40 etc.
CONCLUSION FROM SURVEY ANALYSIS

a. Men and women both are responsive this shows that they have interest in
the products either they buy or not. They have good knowledge about the
product they buy.
b. Women are very careful about what they buy but sometimes men tend to
ignore some of the features of product.
c. Women are more attracted and keen to know about the schemes, discounts,
gifts, etc on product.
d. People have multiple life style and people have interest in music, fitness,
health, dieting, health food, vitamin rich products, and fashion clothing.
e. Women, children, youngsters, aged people frequently make visit to stores.
f. People of single family and apartment family are frequent customers.
g. People of middle class and upper middle class are frequent customers and
they spend good amount of their income.
6.2 TREND ANALYSIS
a. how often you used this product before the scheme?
1. Every day: 49
2. More than once a week: 21
3. Once a week: 20

Result-from the total 90 people 49 people were there who use the product before
the scheme every day.
b. How often do you use products from this
1. Every day: 55
2. More than once a week: 29
3. Once a week: 6
Result-55 people were using the product every day.
CONCLUSION FROM TREND ANALYSIS
Trend analysis shows that consumption rate of the products was good, as
the products were mainly daily used products. Earlier the rate of using of
product was less in comparison, after the scheme.

CONJOINT ANALYSIS
a. Stores are conveniently located:-
1. Very Strongly Agree: 20
2. Strongly Agree: 28
3. Agree: 27
4. Disagree: 15
Result-28 people were strongly agree that stores are conveniently

located.
b. Store atmosphere and decor are appealing:-
2. Agree: 40
3. Disagree: 21
Result-40 people were strongly agree that atmosphere & décor are
appealing.

c. A good selection of products was present.

2. Agree: 51
3. Disagree: 25
Result-51 people were strongly agree that the good selection of product was
available.
d. (Store) has the lowest prices in the area:-
2. Agree: 45
3. Disagree: 15
Result-45 people were strongly agree that store has the lowest price

e. Merchandise sold is of the highest quality:-
2. Agree: 52
3. Disagree: 12
Result-52 people were agree that sold merchandise was of the highest
cateogary.
f. Merchandise displays are attractive:-
2. Agree: 69
3. Disagree: 12
Result -69 people were agree that merchandise displayed were attractive that shows
the quality of the store.

h. Overall, I am very satisfied with the store:-
2. Agree: 30
3. Disagree: 5
Result-55 people were strongly satisfied from the store that shows a positive result.
Findings, Conclusion & Recommendation
Findings
1. it has been found by the research study that the Shoppers’s Stop has a
unique image in the mind of the customer for the superior quality of
product .
2. it has the prestigious brand like; Tommy Hilfiger, Fcuk, Calvin Klein,
Allen -Solly, Van Hausen etc. to which Shoppers’s Stop has provided the
gateway to India.
3. Shoppers’s Stop is one stop solution for all the need of customers.
4. It is the only one organization in India which has got the certificate from
IGDS(intercontinental group of departmental store).
5. It has got the highest numbers of the loyal customers more then 10
lacks in India which give them more then half of their business.

6. In India the retail sector is growing at the rate of 10% every year which is
more then any other country in the world.
7. Hardly there is 8% organized retail sector so there is the unlimited

potential to grow for the retail giants.
CONCLUSION
If this project proves to be of any usefulness to the reader then I will be very
proud of it, that all the hard work done by my faculty and me has been
fruitful.
Above all, I hope to have shown my reader that the answer of their
questions on the working of the company and its marketing strategies which
made it a retail giant and capture the big part of the market. how ever it is
difficult to know about a company but training provided to me helped me a
lot to know the retail store and consumers behavior to a great extent. i came
to know how a consumer reacts to every action made by retail to pursue
them with their promotional and marketing strategies.
This project helped me to clear my else doubts and step over the
boundaries of confusion and queries with reference to retail store and
helped to be more focused and helped me a lot to understand the concepts
in my studies.

Recommendation
➢ Target is placement of all merchandising units across the market in a month

time
➢Create Identity in a Short Span
➢Offering a wide range
➢Reach every nook & corner
➢Distinct Approach ( Innovative & Differentiated products)
➢Constant connection through technology
➢High level of transparancy
➢Pricepressure from webshops
➢Changed orientation and purchase behaviour
Shiftyourloyalty!
From Push tool to Pull platform
Producer Retail Consumer

EXPERIENCE SOCIAL RETAILING ORGANISED
SERVICE INFORMED
PRODUCT CONNECTED
➢ Providing social tools and platforms around products and services to

create better informed and better organized buying behavior.
➢ Giving away design
➢ Giving away assortment
➢ Give away marketing

ORGANIZED RETAILING
(i)promote quality employment;

(ii)improve business process practices;
(iii)spur investments in support industries; and
(iv)enable the modernization of the fragmented traditional retail industry.
➢Modern retail business focuses on maximizing customer footfalls and

capturing rising volume and share of the customer wallet.
➢While the competition strategy is largely price focused, the model works by:
(i)improving sourcing efficiencies;

(ii)expanding product assortment;
(iii)differentiating service; and
(iv) enhancing the store ambience. Thus, there are four drivers of modern
retail’s “one-stop shopping model”:price, product, service, and ambience
➢The main objective of these studies is to understand how these firms are:
1.penetrating markets;
2.introducing formats and product categories;
3.operating the end-to-end value chain;
4.pricing industries; and
5.capturing customer footfalls.
➢It helps to:

1.attain critical prospects;
2.economies of scope in sourcing by accruing costs across stores
BENEFITS OF ORGANIZED RETAILING
PRODUCT MARGIN

Modern retail penetration and consumer adoption in the apparel and clothing
category is the highest.
An organized retailer gets an average of 30 per cent gross margin or above
on MRP across women’s wear, gents’ wear, and kids’ wear on branded
labels. In the case of private labels of store brands, clothing margins are
higher than 60 per cent typically.
In the food and grocery section across hypermarket, supermarket, and

discount store formats, grocery covers around 45 per cent of store space in
FMCG and staple food products.
As regards fresh fruit and vegetables, however the store level penetration is
low compared to other categories for various reasons: (i) high wastage; (ii)
lack of temperature-controlled isles; and (iii) low profit margins in bulk
produce (potatoes, tomatoes, and onions). In addition, the customer
adoption rate is also low in fresh fruit and vegetables because of its daily
need-based requirement and the distance factor.
Nevertheless, fruit and seasonal vegetables are higher profit-margin
produce: fruit sell at 40 per cent margin on the cost price, and seasonal and
exotic vegetables around 30 per cent above the cost price. Across the fruit
and vegetable section, the net profit gain is between 8 per cent and 10 per
cent on an average. As a result, organized retail firms are strategizing
convenience format stores up to 2,000 sq. ft. area in order to penetrate the
local neighborhood markets.
MARKET PENETRATION STRATEGY:-
Large retailers are heading for a pyramidal approach by launching several

small-sized neighborhood convenience stores in tandem with a few large
hypermarket or department store formats. This strategy is beneficial to large

retail firms because they can absorb supply-chain costs across formats.
Further, bulk purchases enable them to squeeze profit margin from
suppliers. However, the local traditional retailers in the nearby locations feel
more intense competition.
The product mix in the hypermarket format is typically 60 per cent food and
40 per cent non-food. The format incorporates a larger share of apparel,
grocery products in staples, and FMCG goods, of which the share of apparel
merchandize is 30 per cent. Fruit and vegetables, mobile phones, alcohol-
based beverages and pharmaceutical electronics and household durable
product categories encompass a much smaller share.
Another dominant format used by modern retailers includes the department
and speciality stores focusing primarily in clothing, cosmetics, artificial
jewelry and watches, and household durables.
The discount and convenience formats largely concentrate on fruit and
vegetables and grocery products.
Gradually, the organized retail value chain would prefer to lean towards the
direct procurement approach in order to reduce the cost of the middleman.
The direct procurement model benefits modern retailers for the following
reasons: (i) maximizing its gains on large volume transactions; (ii)
implementing store brand promotional schemes; and (iii) minimizing the
operational cost.
In the case of apparel, a mix of large and small suppliers supply directly for
private labels.
Currently, the modern retailers work on a commission-based margin with

branded suppliers as opposed to the slotting-fee position where a
manufacturer or supplier gets shelf space by paying a certain fee structure.
By having commission-based direct contract terms with branded suppliers,
retailers are able to arrange various promotional schemes in order to attract
customer footfalls to their stores and secure discounted price on bulk
purchase. This business tactic is particularly disadvantageous to the

traditional retailers because their volume demand is very small and is

primarily on credit payments.
EMPLOYMENT GENERATION:
Finally, but most importantly, the employment generated by organized retail
is building a quality labor class that is gaining vocational training in skilled
and unskilled jobs at the graduate and tenth class level Foreseeing the
demand for trained staff, leading organized retailers are creating their
captive human resources pool through internal training and programmers
and tie-ups with retail management schools.
COMPETITORS STRATEGY:
Pantaloon
It focus on providing the latest fashion on the reasonable price & other
format of it big bazaar focus to the mass category people & provide value
for their money.
Trent Limited Lifestyle & Value

Single- brand strategy: leverages on high margins in private labels, and
targets consumers in socio-economic class B and C.
ITC Choupal Sagar & Choupal Fresh Value
Backward integration through IT-based business model: leverages by
building direct relationship with the supply source, the farmers, to sell as
well as purchase products and services.
Spencer’s Retail Value
The “duck and the duckling” model: by having two- or three- value segment
stores, backed by a cluster of small-sized Fresh, Daily, and
Express stores, to leverage on economies of scale at back-end value chain.
NDDB: Mother Dairy Value
Operates on a co-operative model with the objective of increasing farmers’
welfare. Has a strong presence in Delhi’s NCR region.
Strategically located in residential areas and follows a low-price strategy for
fruit and vegetables. Pantaloon s value
Provide the latest fashion to customers with the competitive price

CONCLUSION
If this project proves to be of any usefulness to the reader then I will be very
proud of it, that all the hard work done by my faculty and me has been
fruitful.
Above all, I hope to have shown my reader that the answer of their questions
on the working of the company and its marketing strategies which made it a

retail giant and capture the big part of the market. how ever it is difficult to
know about a company but training provided to me helped me a lot to know
the retail store and consumers behavior to a great extent. i came to know
how a consumer reacts to every action made by retail to pursue them with
their promotional and marketing strategies.
This project helped me to clear my else doubts and step over the boundaries
of confusion and queries with reference to retail store and helped to be more
focused and helped me a lot to understand the concepts in my studies.
BIBLOGRAPHY
BOOKS:
➢KOTLER PHILLIP,KELLER KELVIN

Marketing Management, Pataparganj, Delhi, Dorling Kindersley(India)Pvt.Ltd ,
2007,

“74 to 80”, “164 to 170”, “200 to 203”, “205 to 208”,”231 to 236”, “245 to 264”.
➢KUMAR ARUN AND MEENAKSHI N
Marketing Management, Naraina, New Delhi, Excel Books Pvt. Ltd.,2008, “11 to
14”,”29 to 31”, “70 to 75”, “82 to 98”, “103 to 104”,”112 to 115”, “126 to 128”,
“218 to 229”, “232 to 233”.
INTERNET:
www.managmenteducation.com
www.livemint.com/shoppers-stop-plans-to-open-15-st.
www.financialexpress.com/news/raheja-Group-to-live-off-shopper-stop
www.shoppersstop.com
www.indianretailnews.com
ANNEXTURE
SURVEY QUESTIONNAIRES
Dear Customer,
I m the student of INTERNATIONAL INSTITUTE OF BUSINESS STUDIES, is
conducting a study on the consumer behaviour of three retail outlets in
Shopper's Stop . Please fill in the following questionnaire to help us in our
survey.

NAME: OCCUPATION:
AGE: 18-28 28-38 38-48 48-58 58-

65
GENDER: Male Female
1) How often do you shop?
Once a week Fortnightly Once a

month
2) Which of the following stores do you shop at?
Big Bazaar Shopper's Stop Marks & Spencer

Others (specify) ____________________________________
3) What do you mostly shop for at the mentioned stores?
Clothing Accessories Groceries
Others (specify) ____________________________________
4) Why do you shop at the above-mentioned store?
5) Rank your preferences for shopping:
Proximity Quality

Brand Price
Store Layout One-stop shopping
6) Does advertising and promotion influence your shopping decisions?
Yes No
7) Which form of promotion do you think is most effective?
Print TV Radio
8) Indicate your satisfaction level based on the following parameters for

the following stores:
Unsatisfie Highly
Retail Outlet d Satisfied Satisfied Not Visited
Big Bazaar
Shopper's Stop
Shopper;s stop
9. Do you prefer branded clothing?

_Yes
_ No

_Sometimes
10. Are you member at the Shopper’s Stop?

_Yes
_No
11. What you look for the most while shopping in Shopper’s
Stop ?
(Rate your preferences)
_Price
_Quality
_Comfort and fitting
_Color
_Fashionable
12 .Low cost , good fitting and comfort , variety in clours, if all are given
for formals despite of brand name , will you like to buy the brand?
_Yes
_No
13.Which brand do you prefer for formals ?

_Austin reed
_Vanheusen
If others please specify ?___________________

14. Why?_________________________-
15. What do you prefer most in this brand ?

_Formal shirts
_Trousers
_Formal Skirts
_Casuals
12.Why ?____________________
16.What influences you to buy this brand ?
_Pricing
_Brand name
_Comfort &Fitting
_Fashionable /Trendy
17 . To what extent you are statisfied with this brand?
_Highly statisifed
_Satisified
_ Neutral
_Dissatisfied
_Highly dissatisfied
18. Suggestions for that particular brand :-

_________________________________________________________
_________________________________________________________
_________________________________________________________
Thank you , dear customer for your precious time and
response.

Project On Consumer Behaviour at Shoppers Stop Ltd.

Încărcat de

Informații document

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Project On Consumer Behaviour at Shoppers Stop Ltd.

Încărcat de

Drepturi de autor:

Formate disponibile

Consumer behavior at Shopper’s stop

#70, 2nd Main Road, 3rd Cross, Kanaka Nagar, Nagawara,

MBA project submitted to PTU (2011) 1

I hereby declared that this project titled “ Customer Behavior at

Date : Signature of the Student

MBA project submitted to PTU (2011) 2

WELCOME TO SHOPPERS STOP

Date : Signature of the Student

MBA project submitted to PTU (2011) 3

Today, shopping is becoming more a delightful activity, then merely

Initially, shopping was known to be inherently a female activity, but as

MBA project submitted to PTU (2011) 4

The objective of this project was to do a analysis of Customer Profile of

The survey was done to know :

The methodology used was : Questionnaire , interviews , survey of Garuda

Indian fashion consumption is fantastic today and Indian fashion designers

MBA project submitted to PTU (2011) 5

No. TOPIC PAGE No.

Chapter.1 Introduction 8-9

Chapter.2 Research methodology 10-13

Chapter.3 Review of literature 14-15

Chapter.4 Profile of company 16-57

Chapter.5 Analysis of interpretation of data 58-69

Chapter.6 Summary of findings ,Conclusion& Recommendation 70-76

MBA project submitted to PTU (2011) 6

In the Indian retailing industry, food is the most dominating sector

India retail industry is expanding itself most aggressively; as a result

MBA project submitted to PTU (2011) 7

Continuing the robust growth of the organized retail in India,

India retail industry is the largest industry in India, with an

One of the biggest retail here in India we know is RAHEJA’s

MBA project submitted to PTU (2011) 8

Objective of research study

2.1. MARKET ANALYSIS

The research objectives of this project are:-

b). Marketing Strategies targeting the customer: Advertising Strategy –

MBA project submitted to PTU (2011) 9

2.2. SOURCE OF DATA

Data are usually collected through the use of questionnaires.

Cross-sectional surveys are used to gather information on a

3.2. SAMPLE SIZE

2.3. TOOLS AND TECHNIQUES OF ANALYSIS

MBA project submitted to PTU (2011) 10

Personal interviews are highly susceptible to inadvertent “signaling”

This will let us know following:-

Projective techniques are used when a consumer may feel

MBA project submitted to PTU (2011) 11

Observation of customers is often a powerful tool. Looking at how

MBA project submitted to PTU (2011) 12

i. Problem formulation stage:

ii. Literature Search:

iii. Data Evaluation:

iv. Analyze and Interpret Findings:

Introduction to Consumer Behavior: Role of Consumer Behavior in

Consumer Perception: Perception Process & Involvement, Sensation & Sensory

MBA project submitted to PTU (2011) 13

Consumer Attitude Formation & Change: Attitude functions. Tri-

Consumer Learning: Applications of behavioral learning theories (classical

Consumer in the Market Place: Factors influencing consumer outlet

Post-Purchase Behavior: Satisfaction/dissatisfaction – loyalty/non-

Dark Side of Consumer Behavior: Concerns of marketers and dark

Organizational Consumer Behavior: Organizational buying roles,

MBA project submitted to PTU (2011) 14