PROJECT REPORT

ON

CONSUMER PREFERENCE TOWARDS ORGANIZED & UNORGANIZED RETAIL STORES

EXECUTIVE SUMMARY
After going thick on the thing now time is to make complete picture Organized Retail Stores are the market leader in the field of Retailing. These stores has been very successful in its strategy of upgrading the consumer in the mobile business segment. Organized stores has made sure that it makes its consumers move up the product chain by introducing same products to the new customers. Mostly respondents prefer Branded Product. Many respondents are buying products by brand name. Fewer respondents are purchase once in a month, Mostly respondents are usually visit these stores, some respondents purchase this brand by Friends and some respondents are preference of brand by brand name Customer satisfaction, a business term, is a measure of how products and services supplied by these stores meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.

Contents
1. Introduction 2. Company Profile 3. Importance & Scope 4. Research Objectives 5. Hypothesis 6. Research Methodology 7. Data Analysis 8. Findings 9. Suggestions
10. Limitations

11.Bibliography 12.Annexure

Companys Profile
COMPANY PROFILE NIELSEN COMPANY The Nielsen Company (erstwhile ACNielsen) was established in the United States in 1923 by Arthur C. Nielsen, Sr., one of the founders of the modern marketing research industry. Among many innovations in consumer-focused marketing and media research, Mr. Nielsen was responsible for creating a unique retail-measurement technique that gave clients the first reliable, objective information about competitive performance and the impact of their marketing and sales programs on revenues and profits. Nielsen information gave practical meaning to the concept of market share and made it one of the critical measures of corporate performance. Mr. Nielsen also founded the business known today as Nielsen Media Research, the global leader in television audience measurement and other media research services. ACNielsen opened its first international office in the UK in 1939 and, after World War II, progressively expanded its operations in Western Europe, Australia and Japan. The company increased its presence in Asia Pacific in 1994 by acquiring Survey Research Group, and in the Middle East and Africa in the late 1990s through the acquisition of AMER World Research. In 2001, ACNielsen became part of VNU, a world leader in marketing information, media measurement and information and business media. In 2003, VNU announced a new organisational structure for VNU Marketing Information (MI), its largest business group, to address evolving client needs and to create an enhanced platform for accelerated growth.

In 2005, VNU attempted to expand into healthcare and pharmaceutical information by acquiring IMS Health. Although the merger was terminated in the face of shareholder opposition, the two companies agreed to work together to develop new capabilities. In 2006, VNU was acquired and taken private by a consortium of six private equity firms. In 2007, VNU changed its name to The Nielsen Company. This new identity emphasizes its best known brand name and underscores its commitment to create an integrated, streamlined global organization. What We Do Nielsen offers an integrated suite of market information gathered from a wide range of sources, advanced information management tools, sophisticated analytical systems and methodologies, and dedicated professional client service to help our clients find the best paths to growth. Clients work with our services to: Measure their market performance Analyse market dynamics Diagnose and solve marketing and sales problems, and Identify and capture growth opportunities Our people work closely with clients to help them choose the right set of information and services and use it to make the best possible decisions. Market Measurement Our major market-measurement comprehensive coverage of: services provide

Sales to consumers of fast-moving consumer packaged goods, gathered at the point of sale in retail stores of all types and sizes. These retail measurement services provide

clients with essential facts on how their products are performing compared with their competitors, and on trends and changes in market conditions and sales results. They also provide critical information on the use of promotional activities at the retail level, such as special displays or pricing, and on distribution and stock conditions in retail stores. Purchases by consumers of packaged goods and other products, gathered through participating panels of consumer households and through customised studies. These consumer panel and consumer research services provide a foundation for understanding and analyzing consumers motivations, attitudes, behaviour, shopping patterns and demographic characteristics. Analytical Tools and Services We offer a wide range of software and professional services that enable clients to receive, select and evaluate our market-measurement information, integrate it with their own data and third-party information, and apply it to specific business issues and situations. Clients can view and analyse information from many perspectives, such as by specific product categories, by geographic area or by retail channel. We also organize and present information to suit the specific needs of many individuals in manufacturing, service and retail organisations, including general managers, marketing professionals, sales professionals, purchases, merchandisers and category managers. Diagnostic Services Our consumer panel and consumer research services provide clients with many opportunities and techniques to examine trends and understand the impact of the market forces that influence consumers purchasing decisions. Consumer panels link purchasing information to demographics and provide a controlled environment for examining motivational factors.

Our analytical and modelling services provide clients with a range of options to evaluate and understand why marketing campaigns succeed or fail, and to address specific future marketing opportunities and issues, such as promotion optimisation, pricing, consumer targeting and marketing mix optimisation. In many markets, we offer a suite of consumer-focused consumer research techniques and services that address clients unique and specific marketing and sales issues. Opportunity Identification While our major clients all share a common focus on consumers, each individual client has its own distinct set of business characteristics and marketing and sales concerns. Our information and services are designed to help each client identify and act upon unique growth opportunities. Using a structured and disciplined approach to building and managing long-term relationships, our people work in close partnership with their clients to understand their strategies and business objectives... To design the right suite of Nielsen services that fits their needs... To agree on clear and measurable business objectives... And to measure the results and clients return on their investment.

Where We Are Nielsens operations span more than 100 countries. Headquartered in New York, our major regional business centres are located in Schaumburg, Illinois; Wavre, Belgium; Hong Kong; Sydney, Australia; Buenos Aires, Argentina; and Nicosia, Cyprus. Americas Asia Pacific Europe Middle East & Africa

Argentina Bolivia Brasil Canada Chile Colombia Costa Rica Dominican Republic Ecuador El Salvador Guatemala Honduras Mexico Nicaragua Panam Paraguay Peru Puerto Rico United States Uruguay Venezuela

Australia Azerbaijan Bangladesh China Hong Kong India Indonesia Japan Kazakhstan Kyrgyzstan Malaysia Mongolia Nepal New Zealand Philippines Singapore South Korea Sri Lanka Taiwan Tajikistan Thailand Turkmenistan Vietnam

Albania Armenia Austria Belarus Belgium Bosnia Bulgaria Croatia Cyprus Czech Republic Denmark Estonia Finland France Georgia Germany Greece Hungary Ireland Italy Latvia Lithuania Macedonia Montenegro Netherlands, The Norway Poland Portugal Romania Russia Serbia Slovakia Slovenia Spain

Algeria Bahrain Cameroon Egypt Ethiopia Ghana Isral Ivory Coast Jordan Kenya Kuwait Lebanon Morocco Namibia Nigeria Oman Pakistan Qatar Saudi Arabia South Africa Tanzania Tunisia Uganda United Arab Emirates Yemen

Sweden Switzerland Turkey Ukraine United Kingdom

OUR LEADERSHIP

Meet The Nielsen Company's South Asia Leadership Team. Piyush Mathur President, India Region

Justin Sargent Managing Director-Consumer, Region

India

Farshad Family Managing Director-Media, India Region

Samipendra Chaudhury Senior Vice President-Finance, India Region

Prasun Basu Vice President & Region Head for BASES and Consumer Research Division Roosevelt D'Souza Executive Director, Retail Measurement Services, India Region

Radhika Chandok Executive Director-RMS Leadership, India Region

Product

Dipita Chakraborty Executive Director, Retailer & Shopper Practice, India Region

Adrian Terron Vice President, Global Communications & Marketing, India Region

Sathish Kumar Executive Director India Region

Infrastructure,

BRAND DYNAMICS
Brand Managers need to ensure they have the right range of products to maximise consumer sales, and that they manage the assortment they offer efficiently. Key questions include: Do we have an efficient assortment? What is the optimal number of SKUs within a category or brand? Where will volume go if SKUs are deleted? Pricing In a highly competitive world, it is essential that brands are priced correctly. With retailers increasingly focused on every-day low pricing, its important to the right tools to position a brand. Some of the key questions include: Can we afford to take a price increase without losing sales? How price sensitive are our consumers? What pricing strategies will maximise sales? What are the price sensitivity points? Category Dynamics Understanding what consumers are purchasing in and across stores is key to addressing issues such as: Which products drive category growth? Which categories drive store growth? Which categories drive department growth? Where are the retail opportunities for my category? How does my category perform by retail banner? In addition, getting the right mix and number of products in the category is a challenge. Category Managers face issues, including: Assortment what is the most appropriate product mix? What is the optimal number of SKUs within a category / brand? Where will volume go if SKUs are deleted?

COMPETITIVE ANALYSIS
Brand Management Competitive monitoring and analysis is one of Nielsens core roles for Brand Managers. Our services enable you to understand your competitive performance and stay one step ahead. Key questions and issues include: What are my market shares and trends? How are my brands performing compared with my competitors? How important is private label to my buyers? How successful are my competitors at building volume and loyalty? Category Management Category Managers must understand their performance in context with other categories that compete for the same share of consumer spending. Knowing which categories to watch is half the battle. Some issues to consider include: What other categories interact with mine, and which are important? What cross category opportunities are there? How loyal are category buyers? Sales Management Sales Managers must be aware of all the competitive action in a category. The issues in a competitive environment include: How does my price compare with competitors prices? What is my share of space compared with my competition? What is the relevance of private label to my competitive position

PRODUCTS & SERVICES Nielsen markets a wealth of information products, together with services and tools that help clients use information correctly to address specific business issues and decisions. Retail Measurement Our Retail Measurement Services (RMS) provide continuous tracking of product sales to consumers, based on information gathered at the retail point-of-sale. Clients receive detailed information on sales, market shares, distribution, pricing and merchandising and promotional activities. RMS information is available in more than 80 countries. Consumer Panel Consumer Panel research tracks the purchasing behaviour of consumers in over 125,000 households in 24 countries worldwide, primarily through the use of in-home scanners. Panel information reveals consumers purchasing from all outlets they visit and provides insights into who is buying, methods of payment, use of coupons and participation in frequent shopper programs. Assortment and In-Store Space Our team of experts work with retailers and manufacturers around the world to deliver business-driven, easy-toimplement solutions that provide a measurable return on their investment in managing assortment and in-store space. We help them make key decisions on issues such as shelf inventories, shelf space, category growth opportunities, product listings and how best to distribute merchandising information. Consumer Research Our diverse and powerful suite of Consumer Research services help clients obtain qualitative and quantitative measures of consumers attitudes and purchasing behaviour,

customer satisfaction, brand awareness and equity, advertising effectiveness and other marketing issues.

Retailer Services Our services for retailers are designed to help them understand what attracts consumers to their stores. Retailers work with us to evaluate competitive performance, increase traffic and sales, leverage their frequent-shopper data and build consumer loyalty, improve performance of their private label products and understand their results across all product classes and categories they carry. Modelling & Analytics Our advanced Modelling & Analytical Services help clients address such key business issues as pricing, promotion, marketing mix, assortment and product rationalisation, category placement, category structure and in-store, inmarket auditing and testing. Nielsen Online Nielsen's Internet audience measurement services, syndicated and proprietary tools and custom analytics provide actionable insights to help you measure your audience, evaluate and differentiate your site, track the competition and develop measurably-effective site content. NM Incite NM Incite, a Nielsen McKinsey company, helps businesses harness the full potential of social media intelligence to drive superior business performance across client organizations. NM Incite equips companies with the capabilities to better understand, value and take advantage of rich consumer insights available on social media. Decision Support We provide clients with a wide range of software tools and delivery methods designed to put the right information on the desks of decision-makers at the moment they need it. These tools range from advanced analytical and datamanagement systems for sophisticated users to standard reports for end-users that are automatically refreshed when our databases are updated.

Global Services Nielsen Global Services coordinates with local Nielsen offices throughout the world to deliver clear, consistent information across markets. This helps manufacturers effectively understand emerging marketing opportunities for global brands. Utilizing consistent and comparable cross-country data, combined with local country information, Nielsen Global Services provides information-based solutions to worldwide marketers with a broad international scope. Business Consulting Services Nielsen Business Consulting Services address your CEO agenda, bringing decades of data management, advanced analytics and strategic management expertise to bear on the high-level issues facing your business. We offer proven, prescriptive roadmaps to success that help your team answer the all-important where to play and how to win questions.

What IS RETAIL?
Introduction
Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser.[1] 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 electric 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-to-consumer (B2C) transactions and mail order, are forms of nonshop 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. Global retail giants such as Wal-Mart, Tesco, Germany's Metro AG and many others are ready to enter the retail markets. The rising demand of branded products and increase in purchasing power has lured these companies to enter the market.

The Apple Store retail location on the Magnificent Mile in Chicago. The world's only Garmin retail location is located on the Magnificent Mile in Chicago. Retail comes from the French word retailer, which refers to "cutting off my hands, clip and divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning of a "sale in small quantities" in 1433 (French). Its
[

literal meaning for retail was to "cut off, shred, off my toes paring".2] Like

the French, the word retail in both Dutch and German (detailhandel and Einzelhandel respectively), also refers to the sale of small quantities of items.

Importance and scope of retailing

While there is a lot of debate going on the impact of organized retailing on unorganized sector, there is little we know of how it will impact our economy in general. Common sense says that perhaps it will help the economy (every better looking thing is good for the economy. Swanky Call centers that brought outsourcing to us helped in fueling the feel good factor.. Same is for IT/BT companies.So similar should be the case with these retailers) Surprisingly there are not enough reasons to contest this belief. No matter what communists say or Mayawati does in UP, or what short term glitches we witness on Sensex or in US economy, organized retailing is here to stay and grow at a breathtaking place. So when it is so, I tried to look at it form a holistic point of view and no matter how much I desist to say this but yeah, I ultimately ended up with a PEST analysis.Here are the main points from that(I might post the complete version sometime later but before that I myself want to refine this and include the reaction that I get..if any :)) Political Even though the government is yet to give the sector an Industry status and we see aggressive political protests, some aspects of the Governments policy have been favourable on other fronts. For example- lets take Delhi, NCR and Mumbai. In Mumbai, the Government is releasing unused textile mill land for retail development. In Delhi & NCR, the Government has

released large tracts of land for retail development. Overall in politics, those in opposition will always oppose..so is there any point in talking about this? Anyway main points to look out for are : 1. Decision on FDI 2. Governments stand for foreign players Economical Although the organized retail sector constitutes only 4-5% of the USD 350 billion Indian retail market, it is expected to grow 400%- from USD 12-15 billion currently, to over USD 30.0 billion by 2010. There is hectic activity in the sector in terms of expansion, entry of international brands and retailers as well as focus on technology, operations and processes. All these present a tremendous opportunity in this new high growth industry. A large portion related to economic impact has already been covered in the previous sections The important thing is that the growth of this sector will create a totally new demand in our economy. Households across India are now exposed to products and services they had never seen before, the tempting value proposition and an inviting atmosphere is making them purchase these items. Without the new stores the same money would have been sitting idle in some bank lockers. But now the money is out in market, helping the manufacturers to come out with new and innovative products. A great aggregation is also taking place now.. you can go and buy as much low quantities that you want, and the systems assist you in this because no one is bothered.

Imagine what happened in the Shampoo sachet market in India, prior to the entry of Velvet which later transformed the industry landscape ..no one was catering to the huge demand of affordable hair care solution. And today sachets hold 76% of the total shampoo market in India.. that means at least 60% more demand generation. There is no doubt in my mind that we are seeing something similar in the case of organized retailers though the extent of this demand expansion and its wholesomeness can be debatable.

Social

There has been a demographic shift in India, emergence of a larger middle and upper middle classes and the substantial increase in disposable income has changed the nature of shopping in India from need based to lifestyle dictated. In addition to this, facilities like credit friendliness, availability of cheap finance and a drop in interest rates have changed consumer markets. Organized retail increases the efficiencies in the agriculture sector by removing intermediaries in the food chain; as a result, farmers are getting better prices for their produce. The private retail players can actually introduce new technology, seeds, and thus encourage farmers to improve their productivity. Unorganized retail is feeling the heat of the emergence of the organized retail due to the changing trends of the Indian consumers. Antagonist lobby claims, In the last four years, an estimated two crore traders have been rendered jobless due to the opening of big shopping malls in the country. However there is no evidence of a decline in overall employment in the unorganized sector as a result of the entry of organized retailers. According to the ICRIER survey, the unorganized sector witnessed a closure rate of 4.2% of which only 1.7% closures were attributed to competition from modern retail. Large retailers like Wal-Mart can never impact small kirana stores in India. This is largely due to Indias socio-cultural heterogeneity and consumer choice. The consumer wants small retail. The kirana store and the paan shop are seen as part of community life. Anyway its a long discussion and deserves a separate post in itself

Technological With increasing competition, slimmer profit margins and diminished returns-cost cutting at every point of value chain has become important. Todays global retail business strategies utilize technology. Ecommerce, Customer Relationship Management (CRM) software, Enterprise Resource Planning (ERP) and Point of Sale (POS) systems are all vital to retail businesses. Using these technologies retailers can actually gain key insights to further gain market share and increase revenue Indian retailer would feel the need for technology only when he wants to grow beyond a certain point. This is one of the reasons why the traditional grocery is here to stay, with 90% of sales in India done through them

OBJECTIVES OF THE STUDY

Objective of the Study: To know the consumer satisfaction. Financial performance in Retail industry. Market performance. Market position. Economic and the industry environment. Cost saving initiatives. To find out the satisfaction level of people. To find out the awareness level of customer. To find the satisfaction amongst the customers

TYPES OF RETAIL OUTLETS

San Juan de Dios Market in Guadalajara, Jalisco Inside a supermarket in Russia A market place is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless such markets are still in operation around the whole world. In some parts of the world, the retail business is still dominated by small family-run stores, but this market is increasingly being taken over by large retail chains. Retail is usually classified by type of products as follows:

Food products Hard goods ("hard line retailers") - appliances, electronics, furniture, sporting goods, etc. Soft goods - clothing, apparel, and other fabrics.

There are the following types of retailers by marketing strategy:

Department stores - very large stores offering a huge assortment of "soft" and "hard goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service. Discount stores - tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands. However the service is inadequate.; General merchandise store - a hybrid between a department store and discount store; Supermarkets - sell mostly food products; Warehouse stores - warehouses that offer low-cost, often highquantity goods piled on pallets or steel shelves; warehouse clubs charge a membership fee; Variety stores or "dollar stores" - these offer extremely low-cost goods, with limited selection; Demographic - retailers that aim at one particular segment (e.g., highend retailers focusing on wealthy individuals). Mom-And-Pop or Kirana Stores: is a retail outlet that is owned and operated by individuals. The range of products are very selective and few in numbers. These stores are seen in local community often are family-run businesses. The square feet area of the store depends on the store holder. Specialty Stores: A typical specialty store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be

regarded as a specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores.

Convenience Stores: is essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases. Hypermarkets: provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. A classic example is the Metro in Bangalore. Supermarkets: is a self service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000-40,000 square feet. Example: SPAR supermarket. Malls: has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof. Example: Sigma mall and Garuda mall in Bangalore, Express Avenue in Chennai. Category Killers or Category Specialist: By supplying wide assortment in a single category for lower prices a retailer can "kill" that category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is present in the

vicinity. For example: Pai Electronics store in Bangalore, Tata Croma.

E-tailers: The customer can shop and order through internet and the merchandise are dropped at the customer's doorstep. Here the retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. However it is important for the customer to be wary about defective products and non secure credit card transaction. Example: Amazon and EBay. Vending Machines: This is an automated piece of equipment wherein customers can drop in the money in machine and acquire the products. For example: Soft drinks vending at Bangalore Airport.

Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what income level they target. Other types of retail store include:

Automated Retail stores are self service, robotic kiosks located in airports, malls and grocery stores. The stores accept credit cards and are usually open 24/7. Examples include Zoom Shops and Red box. Big-box stores encompass larger department, discount, general merchandise, and warehouse stores. Convenience store - a small store often with extended hours, stocking everyday or roadside items;

General store - a store which sells most goods needed, typically in a rural area;

Retailers can opt for a format as each provides different retail mix to its customers based on their customer demographics, lifestyle and purchase behavior. A good format will lend a hand to display products well and entice the target customers to spawn sales.

A food vendor in India

Adidas store in Tel Aviv, Israel

Retail pricing The pricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount (or percentage) to the retailer's cost. Another common technique is suggested retail pricing. This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer. In Western countries, retail prices are often called psychological prices or odd prices. Often prices are fixed and displayed on signs or labels. Alternatively, when prices are not clearly displayed, there can be price discrimination, where the sale price is dependent upon which the customer is. For example, a customer may have to pay more if the seller determines that he or she is willing and/or able to. Another example would be the practice of discounting for youths, students, or senior citizen Transfer mechanism There are several ways in which consumers can receive goods from a retailer:

Counter service, where goods are out of reach of buyers and must be obtained from the seller. This type of retail is common for small expensive items (e.g. jewelry) and controlled items like medicine and liquor. It was common before the 1900s in the United States and is more common in certain countries. Delivery (commerce), where goods are shipped directly to consumer's homes or workplaces. Mail order from a printed catalog was invented

in 1744 and was common in the late 19th and early 20th centuries. Ordering by telephone is now common, either from a catalog, newspaper, television advertisement or a local restaurant menu, for immediate service (especially for pizza delivery). Direct marketing, including telemarketing and television shopping channels, are also used to generate telephone orders. Online shopping started gaining significant market share in developed countries in the 2000s.

Door-to-door sales, where the salesperson sometimes travels with the goods for sale. Self-service, where goods may be handled and examined prior to purchase, has become more common since the 1920s.

Second hand retail

Some shops sell second-hand goods. In the case of a nonprofit shop, the public donates goods to the shop to be sold. In give-away shops goods can be taken for free. Another form is the pawnshop, in which goods are sold that was used as collateral for loans. There are also "consignment" shops, which are where a person can place an item in a store and if it sells, the person gives the shop owner a percentage of the sale price. The advantage of selling an item this way is that the established shop gives the item exposure to more potential buyers. Customer service According to the book Discovery-Based Retail,[3] customer service is the "sum of acts and elements that allow consumers to receive what they need or

desire from your retail establishment." It is important for a sales associate to greet the customer and make himself available to help the customer find whatever he needs. When a customer enters the store, it is important that the sales associate does everything in his power to make the customer feel welcomed, important, and make sure he leave the store satisfied. Giving the customer full, undivided attention and helping him find what he is looking for will contribute to the customer's satisfaction. Retail Sales

US Retail Sales 1992-2010 The Retail Sales report is published every month. It is a measure of consumer spending, an important indicator of the US GDP. Retail firms provide data on the dollar value of their retail sales and inventories. A sample of 12,000 firms is included in the final survey and 5,000 in the advanced one. The advanced estimated data is based on a subsample from the US CB complete retail & food services sample.[4] It has been published by the US Census Bureau since 1951.

ORGANIZED RETAILING IN INDIA

According to Euro Monitor International, a leading provider of global consumer market intelligence, sales from large format stores (supermarkets and hypermarkets) is expected to increase by 30% in 2005. In the year 2002, food-related items accounted for nearly 71% of retail sales in India. However, it was interesting to note that there had been a decline in the purchase of food-related items. These had earlier registered a 73% sale in 1999. In recent years, there has been higher spending on non-food items. The main factors for this change are: Rising incomes and a consequent increase in disposable incomes (Refer Exhibit VI for household income across India). Better infrastructure. Rise in consumer awareness. Consumer keenness to buy branded products. Consumer desire to purchase quality products and services...

Organized retail
Organized sector refers to the sectors undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate retail formats of the exclusive brand outlets, hypermarkets, supermarkets, departmental stores and shopping malls.

Growth of Organized retail in India

Indian organized retail market is growing at a fast pace due to the boom in the India retail industry. In 2005, the retail industry in India amounted to Rs 10,000 billion accounting for about 10% to the country's GDP. The organized retail market in India out of this total market accounted for Rs 350 billion which is about 3.5% of the total revenues. Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010. Traditionally the retail industry in India was largely unorganized, comprising of drug stores, medium, and small grocery stores. Most of the organized retailing in India have started recently and is concentrating mainly in metropolitan cities. The growth in the Indian organized retail market is mainly due to the change in the consumers behavior. This change has come in the consumer due to increased income, changing lifestyles, and patterns of demography which are favorable. Now the consumer wants to shop at a place where he can get food, entertainment, and shopping all under one roof. This has given Indian organized retail market a major boost. Retail market in the organized sector in India is growing can be seen from the fact that 1500 supermarkets, 325 departmental stores, and 300 new

malls are being built. Many Indian companies are entering the Indian retail market which is giving Indian organized retail market a boost. One such company is the Reliance Industries Limited. It plans to invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500 supermarkets. Pantaloons is another Indian company which plans to increase its retail space to 30 million square feet with an investment of US$ 1 billion. Bharti Telecoms an Indian company is in talks with Tesco a global giant for a 750 million joint venture. A number of global retail giants such as Walmart, Carrefour, and Metro AG are also planning to set up shop in India. Indian organized retail market will definitely grow as a result of all this investments. Indian organized retail market is increasing and for this growth to continue the Indian retailers as well as government must make a combined effort.

Entry of Large Business Houses

Organized retailing in India started picking up in South India in cities like Chennai and Hyderabad, where real estate at prime locations was available at cheaper rates than in cities like Mumbai and Delhi. In the early 1990s, leading Indian business houses started taking a keen interest in the retailing sector...

Pantaloon Retail India Limited (PRIL)

Headed by Kishore Biyani (Biyani), Pantaloon Retail India Limited (PRIL) is one of the leading retail outlets in India. The retail chains which are a part

of PRIL include Pantaloons, Big Bazaar, Food Bazaar, Gold Bazaar and the Central Mall. PRIL was incorporated in October 1987 as Manz Wear Private Limited. It became a public limited company in September 1991. The company sold products under the Bare, Pantaloons and John Miller brand names. The first menswear Pantaloons Shoppe outlet was set up in 1993...

RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs. 84 billion in the fiscal 2004-05. The group has more than 20 companies in seven different industries Power, Tyres, Retail, Transmission, Entertainment, Technology and the Specialties sectors (Refer Exhibit XIII for contribution of business sectors to Groupsturnover)...

Tata Group
The Tata group is one of India's largest business houses. In 2005, the group owned 93 companies in seven business sectors, namely information systems and communications; engineering; materials; services; energy; consumer products; and chemicals, and employs nearly 220,000 people. In 1997, the Tata's sold their Lakme business to Hindustan Lever Limited (HLL) . The group started its retail business in 1998 with the purchase of the Littlewoods retail stores, originally owned by a UK-based firm, in Bangalore...

Raheja Group
The K. Raheja group of companies is among India's largest real estate players. They launched Shopper's Stop way back in October 1991. This was

the first mega apparel retail outlet to be established in India. Shoppers' Stop is projected as a Fashion & Lifestyle store for the family. From a single store in 1991, Shopper's Stop has today grown into a 16 store retail chain in major metropolitan cities across India...

Reliance
Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's expecting its sales to reach Rs. 90,000 crores by 2010.

AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in other segments of retail. It will invest Rs. 8000-9000 crores by 2010.

Indian unorganized retail sector

India is the only one country having the highest shop density in the world, with 11 outlets per 1000 people (12 million retail shops for about 209 million households). Rather we can see the democratic scenario in Indian Retail (because of low level of centralization, low capital input and due to a good number of self organized retail). India started its Retail Journey since ancient time.

In Ancient India there was a concept of weekly HAAT, where all the buyers & sellers gather in a big market for bartering. It takes a pretty long times to & step to shape the modern retail. In between these two concepts (i.e. between ancient retail concept & the modern one there exist modern kirana/ mom and pop shops or Baniya ki Dukan. Still it is predominating in India So the Indian retail industry is divided into two sectors- organized and unorganized.

Unorganized retailing
Unorganized sector on the other hand, refers to the traditional formats of low-cost retailing, for example, hand cart and pavement vendors, & mobile vendors, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hardware shop at the corner of your street selling everything from bathroom fittings to paints and small construction tools; or the slightly more organized medical store and a host of other small retail businesses in apparel, electronics, food etc.

Characteristics of unorganized retail

Small-store (kirana) retailing has been one of the easiest ways to generate self-employment, as it requires limited investment in land, capital and labour. It is generally family run business, lack of standardization and the

retailers who are running this store they are lacking of education, experience and exposure. This is one of the reason why productivity of this sector is approximately 4% that of the U.S. retail industry.

Unorganized retail sector is still predominating over organized sector in India, unorganized retail sector constituting 98% (twelve million) of total trade, while organized trade accounts only for 2%. The reasons might be1. In smaller towns and urban areas, there are many families who are traditionally using these kirana shops/ 'mom and pop' stores offering a wide range of merchandise mix. Generally these kirana shops are the family business of these small retailers which they are running for more than one generation. 2. These kirana shops are having their own efficient management system and with this they are efficiently fulfilling the needs of the customer. This is one of the good reasons why the customer doesnt want to change their old loyal kirana shop. 3. A large number of working class in India is working as daily wage basis, at the end of the day when they get their wage, they come to this small retail shop to purchase wheat flour, rice etc for their supper. For them this the only place to have those food items because purchase quantity is so small that no big retail store would entertain this.

4. Similarly there is another consumer class who are the seasonal worker. During their unemployment period they use to purchase from this kirana store in credit and when they get their salary they clear their dues. Now this type of credit facility is not available in corporate retail store, so this kirana stores are the only place for them to fulfill their needs. 5. Another reason might be the proximity of the store. It is the convenience store for the customer. In every corner the street an unorganized retail shop can be found that is hardly a walking distance from the customers house. Many times customers prefer to shop from the nearby kirana shop rather than to drive a long distance organized retail stores. 6. This unorganized stores are having n number of options to cut their costs. They incur little to no real-estate costs because they generally operate from their residences. Their labour cost is also low because the family members work in the store. Also they use cheap child labour at very low rates. As they are operating from their home so they can pay for their utilities at residential rates.Even they cannot pay their tax properly. Currently the value of the retail market is estimated at around $ 270 billion with a growth rate of 5.7 per cent per annum according to the Indian retail report which creates a big threat for the small unorganized retailers. The well established organized retail sector in India are Pantaloon Retail, Shoppers Stop, Spencers, HyperCITY, Lifestyle, Subhiksha & newly emerging Reliance etc.

Over 20,000 new retail outlets are expected to open within this segment. Major corporate retail like Wal-Mart and have started to try and take over the Indian retail sector. But in India the unorganized retail is a source foods and other necessities of millions of Indians , major link between rural and urban societies. Not only that it is also act like a convenience store for the customer offering right product at right time at right place. In a country with large numbers of people, and high levels of poverty, this model of retail democracy is the most appropriate. So these unorganized retail sector need to be promoted so that they can organize & supply food to Indian consumer. Now the question is how to promote this sectorThe suggestions might be(a) Establishment of Retailer co-operatives among retailers which is highly required for the sustenance of the unorganized retail sector (b) Merger and buy-out of weak retailers by a stronger one that would give a new horizon to the small retailer (c) Setting up of franchisee organization may also help in strengthening the position of the retailers. The franchiser can exert a tremendous control over the way retailing is done.

(d) There must be good network connection between retail organizations, the suppliers and other channel members to use compatible technology so that they can build strong distribution set-up to satisfy the customers. (e) Setting up of more and more non-store retailing centers would also ensure a strong retailing organization. Non-store retailing makes implementation of modern principles easier and less costly. (d) Moreover there must be a change in the mindset of the unorganized retailer. They have to understand the pulse of the trend. They have to understand, come forward & lead this change management then only this

"Kirana Stores Vs Organized Retail"

Small stores, also called kirana stores, will continue to grow alongside organized retail, but at a slower rate, and it might be a decade before such store owners lose business to the big retailers, providing an ample window for India to help make the smaller players part of the transition in retailing, But in the recent times it is said that kirana stores are joining together to combat the organized retail stores, so this will be going on all the time like who is better, but right now the kirana stores are happy at the moment with crisis going on people are coming back to kirana stores. India is currently the twelfth largest consumer market in the world. According to a study by McKinsey Global Institute, India is likely to join the premier league of the worlds consumer markets by 2025, improving its position to the fifth. But this growth is not going to happen is smooth way. Any change always comes up with some friction, and Indian retail sector is and will be witnessing the same friction.

Indian retail sector is still in its nascent form if we consider its full potential. While most of the developed market of US and Europe and also some SE Asian emerging market economies have reaped the benefits of modern retail,

India has not yet entered into advanced phase of modern retail forms. Tug of war: organized vs. unorganized sector Future of retail sector in India is swerving- on one side organized retail is marching into life of urban consumers, while on the other our own neighborhood kirana stores are resisting fiercely with their existing strong foothold. India today is at the crossroads with regard to the retail sector. A shift between organized and unorganized retail sector is evident, which has led to a number of speculations on the fate of Indian retail sector.

Unorganized sector cannot be ignored

In any newspaper or television channel, we find hordes of news about happening in organized retail sectors, which is indeed fairly real situation. While the role of organized retail sector in growth of economy cannot be denied, but one thing is also of extreme importance that unorganized retail format is a support to a large chunk of population- providing direct employment to 39,500,000 individuals. So there is no way that government

or anyone can discount these foundation stone of Indian economy.

Changing landscape of Indian consumerism The face of Indian consumerism is changing: not Indian consumerism is evolving from Bajaj Scooter family man to Bajaj Pulsar trendy youngster. This changing consumers taste and lifestyle, somewhere automatically give some advantage to organized sector. This makes imperative for unorganized retail sector to restructure itself in order to withstand the increasing competition and to meet consumer expectations by moving with trends. What they can do and what they are doing, some o these

issues will be discussed in future parts of article.

Role of government
As in other countries, government policy can and should play an important role in modernizing the unorganized sector and improve its competitiveness. But question is what should be exact role of government. Should it go for policies for protection of traditional retailers by restricting organized retail or encourage organized retail to reap benefits that are generated by it? What should be mechanism to promote or protect one or other? Can government act only as a facilitator or enablers or both? In the said context, it is imperative to develop a strategic roadmap for unorganized retail form to be able to survive, compete and keep the economy growing

Chapter 2 Classification of Indian retail sector

2. Classification of Indian retail sector:

a) FOOD RETAILERS There are large number and variety of retailers in the food-retailing sector Traditional types of retailers, who operate small single-outlet businesses mainly using family labour, dominate this sector In comparison, super markets account for a small proportion of food sales in India, However the growth rate of super market sales has being significant in recent years because greater numbers of higher income Indians prefer to shop at super markets due to higher standards of hygiene and attractive ambience. b) HEALTH & BEAUTY PRODUCTS With growth in income levels, Indians have started spending more on health and beauty products .Here also small, single-outlet retailers dominate the market .However in recent years, a few retail chains specializing in these products have come into the market. Although these retail chains account for only a small share of the total market their business is expected to grow significantly in the future due to the growing quality consciousness of buyers for these products. C) CLOTHING & FOOTWEAR Numerous clothing and footwear shops in shopping centers and markets operate all over India. Traditional outlets stock a limited range of cheap and popular items; in contrast, modern clothing and footwear stores have modern products and attractive displays to lure customers. However, with rapid urbanization, and changing patterns of consumer tastes and preferences, it is unlikely that the traditional outlets will survive the test of time.

D) HOME FURNITURE & HOUSEHOLD GOODS Small retailers again dominate this sector. Despite the large size of this market, very few large and modern retailers have established specialized stores for these products. However there is considerable potential for the entry or expansion of specialized retail chains in the country. E) DURABLE GOODS The Indian durable goods sector has seen the entry of a large number of foreign companies during the post liberalization period. A greater variety of consumer electronic items and household appliances became available to the Indian customer. Intense competition among companies to sell their brands provided a strong impetus to the growth for retailers doing business in this sector. F) LEISURE & PERSONAL GOODS Increasing household incomes due to better economic opportunities have encouraged consumer expenditure on leisure and personal goods in the country. There are specialized retailers for each category of products (books, music products, etc.) in this sector. Another prominent feature of this sector is popularity of franchising agreements between established manufacturers and retailers. Today trend is the development of integrated retail cum Entertainment centers or shopping malls. An increasing number of retailers are focusing on malls now as opposed to stand-alone developments. While the number of shopping malls has seen a massive surge in the recent past in the metros and

their suburbs, the latest trend in this sector is the increasing focus on providing leisure activities such as multiplexes, facilities for kids' entertainment, eateries etc. within the mall premises. Customer less the time consumes and more entertainment with his family in malls because they within shopping mall number of retail shop and variety of products and selected the product they want. Good environment in mall. Less crowed and These are enclosed, air-conditioned, multi-level malls of at least 100,00 sq ft. Critical to these malls is the concept of the anchor, the key outlet or store around which other outlets cluster. The most popular Indian anchors include Shoppers' Stop, Globus, Pantaloon, Lifestyle and hypermarkets like Big Bazaar and Giant. Cinemas also often anchor malls. Driven by the lucrative tax breaks, the old single screen theatres are being divided into three-five smaller screens, as was done in the US, years ago. Example for wave and PVR.

Chapter 3

Consumer behavior and retailing decisions

3. Consumer behavior and retailing decisions: Consumer behavior refers to the mental and emotional process and the observable behavior of consumers during searching, purchasing and post consumption of a product or service. Consumer behavior involves study of how people buy, what they buy, when they buy and why they buy. It blends the elements from psychology, sociology, sociopsychology, anthropology and economics. It also tries to assess the influence on the consumer from groups such as family, friends, reference groups and society in general. Buyer behavior has two aspects: the final purchase activity visible to any observer and the detailed or short decision process that may involve the interplay of a number of complex variables not visible to anyone.

Factors Affecting Consumer Buying Behavior

Consumer buying behavior is influenced by the major three factors: Social Factors Psychological Factors Personal Factors.

A. Social Factors

Social factors refer to forces that other people exert and which affect consumers purchase behavior. These social factors can include culture and subculture, roles and family, social class and reference groups. B. Psychological Factors

These are internal to an individual and generate forces within that influence her/his purchase behavior. The major forces include motives, perception, learning, attitude and personality.

C. Personal Factors These include those aspects that are unique to a person and influence purchase behavior. These factors include demographic factors, lifestyle, and situational factors.

Consumer decision-making process generally involves five stages: Information Search Problem Recognition Purchase Action Alternative Evaluation

Post purchase Actions

3.1 Retail outlet selection and brand selection: There are three fundamental patterns, which a consumer can follow and they could be: (I) Brand first, retail outlet second (ii) Retail outlet first, brand second (iii) Brand and retail outlet simultaneously. A consumer wanting to buy a car may collect information on brands and purchase it from a retail outlet based on his perception of price offered or after sales service provided by the outlet (typically, search for information on brands is followed by retail outlet selection in durables). In certain product categories, especially where `category killers' exist, consumers may think of the retail outlet initially and then the brands (television, refrigerator and audio products retailed through outlets like Vivek and Co. in the South, could be an example). One more dimension may be to compare brands in the evoked set at retail outlets which also exist in an evoked set of their own. This is highly possible, especially in the Indian context where dealers develop a social relationship with consumers, especially in semi-urban and rural areas. Primary research could be used to discover the specific sequence involved in a situation of this kind. A `brand first' dimension may need feature-based advertising and a `retail outlet first' dimension may require a set of point-ofpurchase (POP) materials and special training to sales personnel to recognize the needs of consumers. Brand first and outlet second: The brand was probably thought of by the consumers because-

(i) the consumers may not have developed a relationship with any retailer which is strong enough to get into the `evoked retail set' or (ii) the brand has got into the evoked set because of advertising or positive word of mouth. Local advertising with the mention of brand names which have already got into the evoked set would enable consumers to be `pulled' to the outlet. Primary research may be required to identify the brands in the evoked set.

Organized vs Unorganized Retail

4. Organized vs Unorganized Retail:

In the developed economies, organized retail is in the range of 75-80 per cent of total retail, whereas in developing economies, the unorganized sector dominates the retail business. The share of organized retail varies widely from just one per cent in Pakistan and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 2.2). Modern retail formats, such as hypermarkets, superstores, supermarkets, discount and convenience stores are widely present in the developed world, whereas such forms of retail outlets have only just begun to spread to developing countries in recent years. In developing countries, the retailing business continues to be dominated by family-run neighbourhood shops and open markets. As a consequence, wholesalers and distributors who carry products from industrial suppliers and agricultural producers to the independent familyowned shops and open markets remain a critical part of the supply chain in these countries.
Table 2.2: Share of Organized Retail in Selected Countries, 2006 CountryTotal Retail Sales (US$ bn) Share of Organized Retail (%)

USA Japan China United Kingdom France Germany India

2,983 1,182 785 475 436 421 322

85 66 20 80 80 80 4

Source: Planet Retail and Technopak Advisers Pvt. Ltd

Research Methodology
The purpose of methodology is to describe the process involved in research work. This includes the overall research design, data collection method, the field survey and the analysis of data. Research is a common parlance refresh to a search for knowledge. One can also define research as a scientific & systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The advance learners dictionary of current English lay down the meaning research as a careful investigation & inquiry specially search for new facts in any branch knowledge.

Research Design
Research Design is the arrangement for conditioned for data collection & analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure. A research design is a master plan or model for the conduct of formal investigation. It is blue print that is followed in completing study. The research conducted by me is a descriptive research. This is descriptive in nature because study is focused on fact investigation in a well structured from and is based on primary data. RESEARCH PLAN Type of study: For completing my study I have gone for sample study because looking at the size of population & the time limitation it was not convenient for me to cover entire population. Hence, I have gone for sample study rather than census study.

Sampling Plan
A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample i.e. the size of sample. Sampling plan is determined before data are collected.

Steps in Sampling
Sampling Frame: The list of sampling units from which sample is taken is called sampling frame. SAMPLING SIZE: Total sample size is 25. SAMPLING PROCEDURE: The selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure, evaluate and cooperative. It was a randomly area sampling method that attempts to obtain the sample of convenient.

Data Analysis
Sources of Data Collection
Primary: For my survey primary data have been used as a questionnaire to collect the data. SECONDARY: The secondary data has been collected from the following modes: Books Data through internet sources.

Q2. If organized then what type of organized stores? A) Branded Showrooms B) Malls

Org anizedS tores

00

Branded Showroom s Malls 49% 51%

Q3. If Unorganized then what type of unorganized stores? A) Kirana Shops B) Small society shops

Q4.Do you think is there any price difference between products of organized and unorganized stores? A) Yes B) No

Q5. Do you think organized stores provide more facilities then unorganized stores? A) Yes B) No

F acilitiesProvided

Yes

No

Q6. Do you find any quality difference between the products of both the stores? A) Yes B) No

Q7) Do you think that the price difference is due to the extra facilities provided by the organized stores? A) Yes B) No

Q8. Is the method of payment in organized stores is better then unorganized stores? A) Yes B) No

Q9. Do the facilities provided by organized stores attract you?

A) Yes B) No

Q10. Which store do you find more comfortable for shopping? A) Organized B) Unorganized

Org nized a Unorg anized

Findings
In this study we had find out that in todays world more then 50% of the total population is interested in shopping from organized retail stores. From the study we have concluded that consumers think that there is quality as well as price differentiation between organized & unorganized retail stores, & this differentiation is due to the extra facilities provided by the organized retail stores.

Suggestions *People
stores. * Sometimes the organized stores charge high prices, so consumer should be aware. *Consumers should also have there attention towards the quality of the products. should not attract towards the facilities provided by organized

Limitations of the Study

I will have to rely upon the information get from secondary sources and given by respondents, which may not be fully true. This study will be limited to only some areas of Moradabad in Uttar Pradesh. It is only for short period of time. Lack of professional approach since researcher is a student The sample size is only 25 so the sample may not be truly representative of Moradabads population.

Webliography
www.wikipideia.com www.google.com www.relianceindustry.com www.vishalmegamarts.com www.bigbazar.com www.raheja.com

Annxure
Q1. What type of retail stores you prefer? A) Organized B) Unorganized C) Both Q2. If organized then what type of organized stores? C) Branded Showrooms D) Malls

Q3. If Unorganized then what type of unorganized stores? C) Kirana Shops D) Small society shops

Q4.Do you think is there any price difference between products of organized and unorganized stores? C) Yes D) No Q5. Do you think organized stores provide more facilities then unorganized stores? C) Yes D) No

Q6. Do you find any quality difference between the products of both the stores? C) Yes D) No

Q7) Do you think that the price difference is due to the extra facilities provided by the organized stores? C) Yes D) No

Q8. Is the method of payment in organized stores is better then unorganized stores? C) Yes D) No

Q9. Do the facilities provided by organized stores attract you? C) Yes D) No

Q10. Which store do you find more comfortable for shopping?

C) Organized D) Unorganized