A STUDY ON CONSUMER
BUYING BEHAVIOUR IN MALLS
(A SPECIAL FOCUS ON BIG BAZAAR)
CREATED BY:
BHAVESH SOMANATHAN
RAKESH DARJI
TUSHAR PATEL
1
FLOW OF PRESENTATION
1. Introduction to Retail Industry.
2. Evolution of retail market: Past, Present &
Future.
3. Future Endeavors in the retail market.
4. Introduction to Consumer Behavior.
5. Our Focus- Future Group, Big Bazaar.
6. Interpretation of Questionnaire.
7. Findings.
8. Conclusion.
2
INTRODUCTION TO
THE
RETAIL INDUSTRY
3
Retail Market
• One of the fastest growing sectors in Indian
economy.
• Retail industry is expected to grow 25-30%
annually.
• Retail accounts for over 10 percent GDP.
• Around eight percent of employment .
4
Evolution of retail mall in India : Past
• Evolution of retail mall in India Rural Traditional
Government Supports Modern Weekly Markets.
• Village Fairs, Kirana stores Mom and Dad does
shopping, Khadi Stores, Ration Shops, Hyper/Super
Department Stores Shopping malls.
• SOURCE: [Link]
5
Evolution of retail mall in India : Present
• India has been ranked as the most attractive
nation for retail investment among 30 emerging
markets by the US-based global management
consulting firm (2009).
• India remains among the leaders in the 2010
Global Retail Development Index (GRDI) and
presents major retail opportunities.
• India's retail market is expected to be worth
about US$ 410 billion, with 5 per cent of sales
through organized retail, meaning that the
opportunity in India remains immense.
SOURCE: [Link] 6
Evolution of retail mall in India : Future
• FDI up to 51 per cent under the Government route
is allowed in retail trade of Single Brand products,
according to the Consolidated FDI Policy
document.
• The BMI India Retail Report of 2010 forecasts that
the total retail sales will grow from US$ 353 billion
in 2010 to US$ 543.2 billion by 2014.
• China and India are predicted to account for
almost 91 per cent of regional retail sales in 2010
and by 2014 their share of the regional market is
expected to be more than 92 per cent.
SOURCE: [Link]
7
Evolution of retail mall in India : Future
• India continues to be among the most attractive
countries for global retailers. Foreign direct
investment (FDI) inflows between April 2000 and
April 2010, in single-brand retail trading, stood at
US$ 194.69 million, according to the Department of
Industrial Policy and Promotion (DIPP).
SOURCE: [Link]
8
Future Endeavors in the Indian Retail Market
• Leading watchmaker Titan Industries Limited plans to
invest about US$ 21.83 million for opening 50
premium watch outlets Helios in next five years to
attain a sales target of US$ 87.31 million.
• British high street retailer, Marks and Spencer (M&S)
plans to significantly increase its retail presence in
India, targeting 50 stores in the next three years.
• Spain's Inditex, Europe's largest clothing retailer
opened the first store of its flagship Zara brand in
India in June 2010. It further plans to open a total of
five Zara outlets in India.
• SOURCE: [Link]
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Future Endeavors in the Indian Retail Market
• Bharti Retail, owner of Easy Day store—
supermarkets and hyper marts—plans to invest
about US$ 2.5 billion over the next five years to
add about 10 million sq ft of retail space in the
country by then.
• Raymond Weil plans to invest US$ 883,665 in
India during 2010, according to Olivier Bernheim,
President and CEO, Raymond Weil.
10
INTRODUCTION TO
CONSUMER BEHAVIOR
11
What is Consumer Behavior?
• Those activities directly involved in obtaining, consuming and
disposing of products and services, including the decision
processes that precede and follow these actions.
12
Need to study ?
“You cannot take
the consumer for
granted any more”
Therefore a sound
understanding of
consumer behavior
is essential for the
long run success of
any marketing
program.
13
Why is this important?
• Out of 11000 products launched by 77 companies,
only 56% are present five years later
– Kuczmaski & Associates
• Only 8% of new product concepts offered by 112
leading companies reached the market. Out of
this 83% failed to reach marketing objectives –
(Group EFO Ltd., Marketing News, Feb 1, 1993,
Pg 26)
14
Variables involved in understanding consumer
behavior
• Stimulus – ads, products, hunger pangs
• Response – physical/mental reaction to the
stimulus.
• Intervening variables – mood, knowledge,
attitude, values, situations, etc.
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OUR FOCUS ….
• As we mentioned, the retail industry is really on
its highway to growth. So we have focused on
consumer buying behavior at Big Bazaar. Specially
the buying pattern at clothing Section.
16
THE FUTURE GROUP
MISSION STATEMENT
• We share the vision and belief that our customers and stakeholders
shall be served only by creating and executing future scenarios in the
consumption space leading to economic development.
We will be the trendsetters in evolving delivery formats, creating
retail realty, making consumption affordable for all customer
segments – for classes and for masses.
We shall infuse Indian brands with confidence and renewed ambition.
We shall be efficient, cost- conscious and committed to quality in
whatever we do.
• We shall ensure that our positive attitude, sincerity, humility and
united determination shall be the driving force to make us successful.
SOURCE: [Link]
17
THE FUTURE GROUP
• Future Group, led by its founder and Group CEO,
Mr. Kishore Biyani, is one of India’s leading
business houses with multiple businesses
spanning across the consumption space.
• Future Group, group subsidiaries are present in
consumer finance, capital, insurance, leisure and
entertainment, brand development, retail real
estate development, retail media and logistics.
SOURCE: [Link]
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THE FUTURE GROUP
• Led by its flagship enterprise, Pantaloon Retail,
the group operates over 16 million square feet of
retail space in 73 cities and towns and 65 rural
locations across India.
SOURCE: [Link]
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COMPANIES
•Pantaloon Retail (India) Limited
•Home Solutions Retail India Limited
•Future Brands Limited
•Future Media (India) Limited
•Future Supply Chain Solutions Limited
•Convergem Communication (India) Limited
•Pantaloon Food Product (India) Limited
•Future Knowledge Services Limited
•Future Capital Holdings Limited
• 20
SOURCE: [Link]
20
COMPANIES
•Future Generali India Insurance Company Limited
•Future Generali India Life Insurance Company
Limited
•Future Bazaar India Limited
•Weavette Texstyles Limited
•Winner Sports Private Limited
•Staples Future Office Products Private Limited
SOURCE: [Link]
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COMPANIES
•Talwalkars Pantaloon Fitness Private Limited
•ConvergeM
•Indus League Clothing
•Galaxy Entertainment Corporation Ltd
•Future Consumer Products Limited
•Future Ventures India Limited
•Foot Mart Retail
SOURCE: [Link]
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BIG BAZAAR
• Type- Hypermarket
• Found- 2001
• Head Quarters- Jogeshwari, Mumbai
• Founder- Kishore Biyani
• Parent company- Pantloon Retail India Ltd.
• Punch line- “Isse sasta aur achha kahi nahi”.
• Typical Size-15,000-1,00,000 Sq. Ft.
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Target Audience
• Big Bazaar targets the higher and the upper
middle class customers.
• The growing young working population is
considered as one of the preferred customer
segment.
• Big Bazaar specifically targets the working
women and the homemakers, who are the
primary decision makers.
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INTERPETATION OF THE QUESTIONNAIRE
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1) Where do you go for shopping?
Response
TOTAL
E- Shops
Traditional Shops
Super Markets
Shopping Malls
0 10 20 30 40 50 60 70
Options Response Percentage
Shopping Malls 12 17%
Super Markets 19 27%
Traditional Shops 33 47%
E- Shops 6 9%
TOTAL 70 100% 26
2) How many times do you visit a place like this?
Total
Daily
15-20 Days
Monthly
During Weekends
0 10 20 30 40 50 60 70
Options Response Percentage
During Weekends 30 43%
Monthly 21 30%
15-20 Days 15 21%
Daily 4 6%
Total 70 100% 27
3) Are you regular customer of Big Bazaar?
Total
No
Yes
0 10 20 30 40 50 60 70
Options Response Percentage
Yes 59 84%
No 11 16%
Total 70 100%
28
4) Why do you prefer Big Bazaar over other Shopping mall?
Total
Close to home/office
Easy Availability of Goods
Low Price
Attratctive Shop
0 10 20 30 40 50 60 70
Options Response Percentage
Attractive Shop 9 13%
Low Price 30 43%
Easy Availability of Goods 24 34%
Close to home/office 7 10%
Total 70 100%
29
5) Do you prefer buying clothes from big bazaar?
Preference
No
37%
Yes
63%
Options Response Percentage
Yes 44 63%
No 26 37%
Total 70 100%
30
6) Are you brand conscious?
Preference
No
37%
Yes
63%
Options Response Percentage
Yes 44 63%
No 26 37%
Total 70 100%
31
7) When you went to Big Bazaar a good selection of
clothes were available?
Very Strongly Disagree
Strongly disagree
Disagree
Agree
Strongly agree
Very Strongly agree
0 2 4 6 8 10 12 14 16
Options Response Percentage
Very Strongly agree 6 14%
Strongly agree 8 18%
Agree 16 36%
Disagree 7 16%
Strongly disagree 5 11%
Very Strongly Disagree 2 5%
TOTAL 44 100% 32
8) Clothes displayed were attractive?
Very Strongly Disagree
Strongly disagree
Disagree
Agree
Strongly agree
Very Strongly agree
0 2 4 6 8 10 12 14 16 18
Options Response Percentage
Very Strongly agree 2 5%
Strongly agree 5 11%
Agree 15 34%
Disagree 18 41%
Strongly disagree 3 7%
Very Strongly Disagree 1 2%
Total 44 100%
33
9) Are you satisfied with the service of Big Bazaar?
Satisfaction
NO
Level
18%
YES
82%
Options Response Percentage
YES 36 82%
NO 8 18%
Total 44 100%
34
10) I am very satisfied which the product
for the price what I paid?
Very strongly disagree
Strongly Disagree
Disagree
Agree
Strongly Agree
Very strongly agree
0 2 4 6 8 10 12 14 16
Options Response Percentage
Very strongly agree 3 7%
Strongly Agree 6 14%
Agree 16 36%
Disagree 4 9%
Strongly Disagree 12 27%
Very strongly disagree 3 7%
Total 44 100% 35
11) I am satisfied with the clothes I brought?
Very strongly disagree
Strongly Disagree
Disagree
Agree
Strongly Agree
Very strongly agree
0 5 10 15 20 25
Options Response Percentage
Very strongly agree 1 2%
Strongly Agree 18 41%
Agree 21 48%
Disagree 3 7%
Strongly Disagree 1 2%
Very strongly disagree 0 0%
Total 44 100%
36
12) Will you refer others to visit to Big Bazaar?
Reference
No
23%
YES
77%
Options Response Percentage
YES 54 77%
No 16 23%
Total 70 100%
37
FINDINGS
38
1. We in our study, found that even though in the
fast growth of retail industry and shopping
malls, 47% of the people prefer buying goods
from the traditional shops. We can say there is
still a lot of opportunity that can be grasped by
the big retailers.
2. We also came across people who were aware
about e-shopping but were skeptical about
experimenting the same.
3. We saw that maximum respondents visit a place
like malls at weekends on a regular basis. Many
said that one of the main reason was their
regular shopping, while many said the they
were just there to enjoy the weekend. 39
4. We found that in this cut throat competition, people
were quite loyal to Big Bazaar.
5. People were quite attracted to the schemes and
discounts that Big Bazaar offered like the Wednesday
Bazaar, 5 days MAHA BACHAT etc.
6. Customers were also unhappy with the long queue for
bill clearance .
7. People preferred to buy clothes from Big Bazaar, as
they believed that there were good brands and great
choices available.
8. As we see from the pricing perspective we
understood that, the customers believed they were
not totally happy with the pricing of clothes at BIG
BAZAAR.
40
9. The display of clothes were attractive, and we
noticed that they were displayed in a very
convenient way for the customers to buy.
10. Out of the total Big Bazaar customers, 82%
were happy with their service and majority of
them said that they would refer Big Bazaar to
others for shopping.
41
CONCLUSION
42
1. The first and most objective of our study is
comparative study of consumers buying behavior in
retail mall.
2. The study of consumer behavior is the most important
factor for marketing of any goods and services.
3. The consumer behavior suggest how individual, groups
and organization select, buy, use and dispose of
goods, services, ideas or experience to satisfy there
needs and wants. It also clues for improving or
introducing products or services, setting price,
devising channels etc.
4. The marketers always look for emergent trends that
suggest new marketing opportunities and here in India
a lot of opportunities are available.
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SOME RECENT RETAILING FACTS
Images Retail Awards 2010
•Most Admired Retailer of the year: Food & Grocery
FOOD BAZAAR
•Most Admired Retailer of the year: Foodservice
TH
KFC
•Most Admired Retailer of the year: Consumer Electronics
AN
CROMA K
•Most Admired Retailer of the year: Leisure
CROSSWORD
YO
•Most Admired Retailer of the year: Multiplex
PVR
U
•Most Admired Retailer of the year: Mobile & Telecom
THE MOBILE STORE
•IMAGES Award for Excellence in Retailing
KISAN SEVA KENDRA
HOME SHOP 18
•Most Admired Retailer of the year: Hypermarket
BIG BAZAAR
•Most Admired Retail Group of the Year
FUTURE GROUP
SOURCE: [Link]
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