Shopping

INTRODUCTION

Malls in India are a relatively new format for retailing. While this format may have existed in the
Western economies for several decades, in India this phenomenon could be estimated to be only
about fifteen odd years old.

One of the earliest large floor-area retailers in India, was "Shopper's Stop". However, the first of
the current format of the malls was the Crossroads mall in Mumbai, which was established by
the Piramals in period around 2000-01. Crossroads then had the highest rent per sq. meter of
establishment that the vendors had to bear. Due to the exorbitant rent, Crossroads initially had a
rough ride. Also, the mall format was new, and was a novelty for most Indian consumers. This
led several visitors to the mall, but never converted to actual purchases, since most were visiting
the place out of curiosity.

However, the situation had changed drastically now. Malls seem to be springing up across
several cities in India. Notable among these is Gurgaon, a upcoming city near Delhi.

Five Reasons why Indian Organized Retail is at the brink of Revolution:

• Scalable and Profitable Retail Models are well established for most of the categories

• Rapid Evolution of New-age Young Indian Consumers

• Retail Space is no more a constraint for growth

• Partnering among Brands, retailers, franchisees, investors and malls

• India is on the radar of Global Retailers Suppliers

Looking Ahead

Many strong regional and national players emerging across formats and product categories. Most
of these players are now geared to expand far more rapidly than the initial years of starting up
Most have regained / improved profitability after going through their respective learning curves

• A decade ago – not a single mall

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• A year ago – less than half a dozen

• Today – 70 malls

• 2 years from now – 300 malls

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LITERATURE REVIEW

Retailing is the final step in the distribution of merchandise - the last link in the Supply Chain -

connecting the bulk producers of commodities to the final consumers. Retailing covers diverse

products such as foot apparels, consumer goods, financial services and leisure.

A retailer, typically, is someone who does not effect any significant change in the product execs

breaking the bulk. He/ She are also the final stock point who makes products or services

available to the consumer whenever require. Hence, the value proposition a retailer offers to a

consumer is easy availabilities of the desired product in the desired sizes at the desired times.

In the developed countries, the retail industry has developed into a full-fledged industry where

more than three-fourths of the total retail trade is done by the organized sector. Huge retail

chains like Wal-Mart, Carr four Group, Sears, K-Mart, McDonalds, etc. have now replaced the

individual small stores. Large retail formats, with high quality ambiance and courteous, and well-

trained sales staff are regular features of these retailers.

Top Ten Retailers Worldwide

Rank Retailer No of stores owned
1 Wall-Mart Stores Inc. 4178
(USA)
2 Carrefour Group (France) 8130
3 The Kroger Co. (USA) 3445

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4 The Home Depot, Inc. 1134
(USA)
5 Royal Ahold (Netherlands) 7150
6 Metro AG (Germany) 2169
7 Kmart Corporation (USA) 2105
8 Sears, Roebuck and Co. 2231
(USA)
9 Albertson's, Inc. (USA) 2512
10 Target Corporation (USA) 1307

door-to-door solicitation and temporary displaying of merchandise (stalls). Broadly the organised

retail sector can be divided into two segments, In-Store Retailers, who operate fixed point-of-sale

locations, located and designed to attract a high volume of walk-in customers, and the non-store

retailers, who reach out to the customers at their homes or offices.

Apart from using the internet for communication (commonly called e-tailing), non-store retailers

did business by broadcasting of infomercials, broadcasting and publishing of direct-response

advertising publishing of traditional and electronic catalogues,

Major formats of In-Store Retailing have been listed in Table given below:

Format Description The Value Proposition
Branded Exclusive showrooms either Complete range available
Stores owned or franchised out by a for a given brand, Certified
manufacturer. product quality.
Speciality Focus on a specific consumer Greater choice to the

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Stores need, carry most of the brands consumer, comparison
available. between brands possible
Department Large stores having a wide One stop shop catering to
Stores variety of products, organized varied consumer needs.
into different departments, such
as clothing, house wares,
furniture, appliances, toys, etc.
Supermarkets Extremely large self-services One stop shop catering to
retail outlets. varied consumer needs.
Discount Stores offering discounts on the Low prices.
Stores retail price through selling high
volumes and reaping the
economies of scale.
Hyper-mart Larger than a Supermarket, Low prices, vast choice
sometimes with a warehouse available including services
appearance, generally located as cafeterias.
in quieter parts of the city
Convenience Small self-service formats Convenient location and
Stores located in crowded urban extended operating hours.
areas.
Shopping An enclosure having different Variety of shops available
Malls formats of in-store retailers, all close to each other.
under one roof.

Retailing in India

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The retail market size in India is estimated to be around $180 billion. Retailing provides jobs to

almost 15 percent of employable Indian adults and it is perhaps the largest contributor to India's

GDP.

But the flip side of the coin is that the average size of each of the retail outlets in India is only 50

square feet and though a large employer, the industry is very unorganized, fragmented and with a

rural bias.

Retail Industry in India

• Even though India has well over 5 million retail outlets of all sizes and styles (or non-

styles), the country sorely lacks anything that can resemble a retailing industry in the

modern sense of the term. This presents international retailing specialists with a great

opportunity.

• Retailing in India is thoroughly unorganised. There is no supply chain management

perspective. According to a survey by AT Kearney, an overwhelming proportion of the

Rs. 400,000 crore retail markets are UNORGANISED. In fact, only a Rs. 20,000 crore

segment of the market is organised.

• As much as 96 per cent of the 5 million-plus outlets are smaller than 500 square feet in

area. This means that India per capita retailing space is about 2 square feet (compared to

16 square feet in the United States). India's per capita retailing space is thus the lowest

in the world (source: KSA Technopak (I) Pvt Ltd, the India operation of the US-based

Kurt Salmon Associates).

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• Just over 8 per cent of India's population is engaged in retailing (compared to 20 per

cent in the United States). There is no data on this sector's contribution to the GDP.

• From a size of only Rs.20,000 crore, the ORGANISED retail industry grew to Rs.

160,000 crore by 2011. The TOTAL retail market, however, as indicated above have

grown 20 per cent annually from Rs. 400,000 crore in 2007 to Rs. 800,000 crore by

2011 (source: survey by AT Kearney)

• Given the size, and the geographical, cultural and socio-economic diversity of India,

there is no role model for Indian suppliers and retailers to adapt or expand in the Indian

context.

• The first challenge facing the organised retail industry in India is: competition from the

unorganised sector. Traditional retailing has established in India for some centuries. It is

a low cost structure, mostly owner-operated, has negligible real estate and labour costs

and little or no taxes to pay. Consumer familiarity that runs from generation to

generation is one big advantage for the traditional retailing sector.

• In contrast, players in the organised sector have big expenses to meet, and yet have to

keep prices low enough to be able to compete with the traditional sector. High costs for

the organised sector arises from: higher labour costs, social security to employees, high

quality real estate, much bigger premises, comfort facilities such as air-conditioning,

back-up power supply, taxes etc. Organised retailing also has to cope with the middle

class psychology that the bigger and brighter a sales outlet is, the more expensive it will

be.

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• The above should not be seen as a gloomy foreboding from global retail operators.

International retail majors such as Benetton, Dairy Farm and Levis have already entered

the market. Lifestyles in India are changing and the concept of "value for money" is

picking up.

• India's first true shopping mall – complete with food courts, recreation facilities and
large car parking space – was inaugurated as lately as in 1999 in Mumbai. (This mall is
called "Crossroads").

• Local companies and local-foreign joint ventures are expected to more advantageously
position than the purely foreign ones in the fledgling organised India's retailing
industry.

• These drawbacks present opportunity to international and/or professionally managed
Indian corporations to pioneer a modern retailing industry in India and benefit from it.

• The prospects are very encouraging. The first steps towards sophisticated retailing are
being taken, and "Crossroads" is the best example of this awakening. More such malls
have been planned in the other big cities of India.

The Indian retail industry is unorganized

There are nearly twelve million retail outlets in India and the number is growing. Two thirds of

these stores are in rural location. The vast majority of the twelve million stores are small "father

and son" outlets. According to the "Retailing in India" report published by the PwC Global Retail

Intelligence Program, share of the unorganized sector is 98%.

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The Indian retail industry is fragmented

Retail stores in India are mostly small individually owned businesses. The average size of an

outlet is 50 s.q. ft. and though India has the highest number of retail outlets per capita in the

world, the retail space per capita at 2 s.q. ft per person is amongst the lowest in the world.

The Indian retail industry has rural bias

Nearly two thirds of the stores are located in rural areas. The retail industry in rural India has

typically two forms: "Haats" and "melas". Haats are the weekly markets: they serve groups of

10-50 villages and sell day-to-day necessities. They are frequently used as replenishment point

for the small village retailer. Melas are larger in size and more sophisticated in terms of the

goods sold. Mela merchandise would include more complex manufactured products such as

televisions.

Evolution of Indian Retail Industry

For Indian retailing, things started to change slowly in the 1980s, when India first began opening

its economy. Textiles sector (which companies like Bombay Dyeing, Raymond's, S Kumar's and

Grasim) was the first to see the emergence of retail chains. Later on, Titan, maker of premium

watches, successfully created an organized retailing concept in India by establishing a series of

elegant showrooms.

For long, these remained the only organized retailers, but the latter half of the 1990s saw a fresh

wave of entrants in the retailing business. This time around it was not the manufacturer looking

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for an alternative sales channel. These were pure retailers with no serious plans of getting into

manufacturing. These entrants were in various fields, like - FoodWorld, Subhiksha and Nilgiris

in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books.

As of the year ending 2011 the size of the Indian organized retail industry was estimated at

around Rs. 13,000 crore. The various segments that make up the organised retail industry along

with their size are in table given below.

Segment Market Size (Rs. Crore)
Textiles and clothings 4050
Jewellery 2,000-2,500
Consumer Durables 1500
Footwear 1,300-7,500
Food and personal care 1000
Non-Store retail 900
Luggage, watches and tyre 500
Books and music 390

Retailing Formats in India

Some of the prevalent relating formats in India include:

Malls

Most malls give floor space out to individual shops on lease, and these are enticed by the

economies resulting from the sharing of costs. India's largest shopping arcade Spencar Plaza

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(600,000-sq-ft) in Chennai is an example. In malls like these, the combined brand pull of all

outlets is used to create a pull for the mall.

Branded Stores

Exclusive showrooms run by premium brands have been the catalysts in pushing up the Indian

retail scenario. This concept is now being used to introduce organized retailing to the second

rung towns. Madura Garments has started setting up exclusive outlets in cities like Trichy and

Thanjavur.

Departmental Stores

Departmental Stores are expected to take over the apparel business from exclusive brand

showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in

Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has

its own in store brand for clothes called Stop!.

Speciality Stores

Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's

Music World and the Times Group's music chain Planet M, are focusing on specific market

segments and have established themselves strongly in their sectors.

Absence of discounting as a dominant format of retailing in India is a glaring peculiarity. The

reasons are two-fold. Unlike most Western countries, Indian retailers have much less bargaining

power. They thrive as small store and don't have the clout to negotiate terms with the

manufacturers. The other reason is that the retailers themselves have no economies of scale to

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offer discounts on their own. However, the scenario is now changing. Increased investments and

the entry of big business houses in retailing is leading to the emergence of bigger retailers, who

can both bargain with the suppliers, as well as, reap economies of scale. Hence, discounting is

becoming an accepted practice.

Trends in Retailing

Retailing in India is at a nascent stage of is evolution, but within a small period of time certain

trends are clearly emerging which are in line with the global experiences. Organised retailing is

witnessing a wave of players entering the industry. These players are experimenting with various

retail formats. Yet, Indian retailing has still not been able to come up with many successful

formats that can be scaled up and applied across India. Some of the notable exceptions have been

garment retailers like Madura Garments & Raymonds who was scaled their exclusive showroom

format across the country.

Experimentation with formats

Retailing in India is still evolving and the sector is witnessing a series of experiments across the

country with new formats being tested out; the old ones tweaked around or just discarded. Some

of these are listed in Table below.

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Retailer Current New Formats. Experimenting With
Format
Shoppers' Department Quasi-mall
Stop Store
Ebony Department Quasi-mall, smaller outlets, adding
Store food retail
Crossword Large Corner shops
bookstore
Piramyd Department Quasi-mall, food retail
Store
Pantaloon Own brand Hypermarket
store
Subhiksha Supermarket Considering moving to self service
Vitan Supermarket Suburban discount store
Foodworld Food Hypermarket, Foodworld express
supermarket
Globus Department Small fashion stores
Store
Bombay Aggregation of Kiranas
Bazaar
Efoodmart Aggregation of Kiranas
Metro Cash and carry
S Kumar's Discount store

Retailers are also trying out smaller versions of their stores in an attempt to reach a maximum

number of consumers. Crossword bookstores is experimenting with Crossword Corner, to

increase reach and business from their stores. FoodWorld is experimenting with a format of one-

fourth the normal size called FoodWorld Express.

Store design

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Irrespective of the format, the biggest challenge for organised retailing is to create an

environment that pulls in people and makes them spend more time shopping and also increases

the amount of impulse shopping. Research across the world shows that the chances of senses

dictating sales are as much as 10-15% for certain categories. This reason is good enough for

organised retailers to bring in professional designers while developing a new property. And, that

is why retail chains like MusicWorld, Baristal, Piramyd and Globus and laying major emphasis

& investing heavily in store design.

MusicWorld spent three months in college campuses and metros studying the market and talking

to youngsters before starting work. The brand identity was created after extensive research: a

logo was designed and the look of the stores across the country was decided upon. Apart from

the visual impact, the functionality of the store design was also taken care of. Listening posts

have been created for people to listen to their favorite album and an area in the center of the

stores has been earmarked for celebrity visits and promotions.

Emergence of discount stores

What does Subhiksha In Chennai, Margin Free in Kerala and recent entrants like Bombay Bazaar

in Mumbai, RPG's - Giant in Hyderabad, Big Bazaar in Kolkata, Hyedrabad and Bangalore have

in common? Their products are below MRP.

Discount stores have finally arrived in India and they are expected to spearhead the revolution in

organisation retailing. Though this segment is growing, it is small compared to international

standards where around 60 per cent of the business comes from this format. Internationally, the

largest retailer in the world Wal-Mart is a discounter. These discount stores have advantages of

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price, assortment dominance and quality assurance and have the ability to quickly build scale and

pass on the benefits. However, the success would be for retailers who are able to build the scale

fast and manage their operations efficiently while offering value to the customer consistently.

Unorganized retailing is getting organized

To meet the challenges of organized retailing that is luring customers away from the unorganized

sector, the unorganized sector is getting organized. 25 stores in Delhi under the banner of

Provision mart are joining hands to combine monthly buying. Bombay Bazaar and Efoodmart

have also been formed which are aggregations of Kiranas.

In a novel move, six Delhi based restaurants have come together and formed a consortium: NFC,

to promote New Friends Colony, a posh locality in the Capital, as a branded place in town. The

aim is to increase footballs in the area, which is fast losing its sheen to its closest and upcoming

destinations such as large cineplexes, and malls, which are backed by the corporate house such

as 'Ansals' and 'PVR'.

Not all stories are a success

A lot of activity is happening in retail and though we do have may success stories, not all

ventures have been successful. Shoppers' Stop, for example, implemented JD Edwards ERP, but

could not reap much bssenefit due to less than optimal number of operating locations. A few

references of other such less successful ventures is given below:

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 Franchising, as a way to grow has not worked out well for Vitan, the second oldest food

supermarket. More than two third of its 19 odds outlets have either folded up or snapped

up ties with the parent.

 The foray of organized retailing in the small towns of India has met with limited success.

The notable example being Shoppers' Stop foray in Jaipur. The retailers are now focusing

their energies on the top six cities.

 India's oldest food supermarket chain, the Bangalore based Nigliris has been up for sale

for a few months now but yet to find takers.

 In Delhi, the Escorts group-promoted Nanz, a food supermarket has shut down after

being unable to find a white knight.

Source: Pwc Analysis

These failures and limited successes have happened both due to a lack of experience and
understanding of issues.

Vision 2012

The past 2-3 years have seen a number of development in the retailing business in India. The the

market. Bigger players like Shoppers Stop are in a position to take advantage of their sizes in

dealing with the manufacturers. Despite a slowdown in the economy, customer queues at the

stores are not decreasing. Retail sector is bound to grow in the coming years. But how much and

in what direction are the questions that need to be evaluated.entry of corporate houses like RPG,

Tatas and Piramals have increased the capital availability in Various agencies have made

different estimates of the size of organized market in 2012. The one thing in common amongst

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these estimates is that the Indian organized retailing industry will be very big in 2012. The status

of the industry will depend a lot on external factors like Government regulations and real estate

prices, besides activities of the retailers and demands of the customers. Based on our analysis of

present trends, and development of retailing elsewhere, we present our perspectives and

snapshots of organized retailing, as it would exit in 2012.

Demographics

In the next 10 years, India population is expected to grow by about 14 per cent. But this increase

will not be even. Important trends tha will effect retailers are lised below.

The number of children (0-15 years) will remain stable at 30 million: This will mean a lesser

growth for toys, games and some apparel segments.But given the current nascent stage of the

growth, these sectors will still offer high grwoh rates.

The number of people in 40-60 years of age will go up by 30%: Sales of cosmetics, skin care,

hair dyes, and other youth inducing products will rise. More consumer resources would be spent

on retirement planning and saving for retirement. Home improvement and financial services

firms would benefit from this trend.

The number of households will increase by 25%: This would lead to a higher growth in the

household-decor items vis-a-vis personal items as apparel and fashion accessories.

Regional differences will stay

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Although a few player will be able to form pan-Indian retail supply chains, the retail market is

unlikely to be a single entity. For example, food retailing in Chennai, Kolkata and Chandigarh is

vastly different in terms of shopping habits and consumer tastes. Many such differences will

remain.

Though a few national retail chains will develp, they would have to coexist with strong regional

players, whow would excel in thir understanding of the customers and strong barnd names. The

national players would primarily be is sectors like Apparel, Fashion, Food and Cmusic.

Importance of local supplies for grocery sector would ensure the regional chains would reign

supreme in these sectors. The key to success for national players will to maintain the efficiencies

that come from their large-scale operations while retaining the ability and the flexibility to salisfy

different needs of different consumers.

However, organised retailing, in some cases, will change and harmonise consumer habits,

purchasing patterns and consumer behavior. McDonalds and Barista have already been

successful in doing this.

Today, internationally all top-retailers (except Kart and Aldi) operat 3-4different formats, with

companies like Metro AG operating 13 formats. This diversity of formats allows the company to

utilise its brand value across different segments and categories of customers.

Signs of such a development are visible in India as well. A movement towards Class-I cities

necessitates modification of operating format5s to suit different needs. By 2012, top retailers

would be operating at least 3-4 formats.

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The biggest challenge that the retailers will have to face would be of maintaining different brand

images, and though clashing images would be formed, a few retailers would be able to use Brand

Extensions to estblish different images in different cities.

Dual focus on costs and time

With more dual income families consumer ability to spend will increase, but the time available

for shopping will go down. Customers will become more demanding in terms of rapid and

friendly service. Retailers would develop shopping as an entertaining experience, but the more

successful ones will be the ones who provide faster service.

On the other hand, increasing competition would push the prices down. Efficiencies in supply

chain and economies of scale would allow retailers to reduce their prices without compromising

either on the shopping experience or on their own profitability.

24 hours retailing

Time stressed consumers will also ask for round the clock retailing. As these consumers will be

ready to pay a premium for service at odd hours, the timings of shopping will have to adapt to

needs of these consumers. A number of 24 hours retail stores would emerge to cater to this need.

The assumption here is that the current administrative restrictions on running shops at nights will

be lifted. It is expected that in the face of increasing demand from both the consumers and the

industry fora, regulations regarding retailing will be eased.

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Small retailer will coexist

Within a decade, large organised retailers would be controlling a substantial portion of the retail

trade. Yet, it is not to say that small, independent and unorganised retailers will disppear in large

numbers. They will survive on their core strengths of personal relations with customers and

closeness to residences. The experiences of South East Asian countries has been that even after

10 to 15 years of allowing FDI in retailing, unrganised retailers still control a sizeable chunk of

the retailing market. The Indian experience in retailing is expected to be no different.

However, to compete with the big retailers on price, small retailers will form cooperatives for

purchasing, just as the once in France, spain and Italy have already done. This trend has also

started in Delhi, and is only expected to nicrease.

Supply chain dynamics

The balance of power between retailers and manufacturers will shift towards the retailers. The

bigger retailers would be able to seek the lowest prices, require their suppliers to assume greater

business risks, and colloborate with suppliers to achieve overall cost reduction in their

operations.

Scale economics would help in operating optimized supply chains and logistics network with

investments in information technology enabling process effeciencies and effectiveness. Increased

volumes would enable investments in specialised equipment for transportation of goods.

Retailers with large chains would negotiate and get central procurement but local dispatches

from their suppliers.

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Internet

Internet retailing will thrive in the coming decade. It may not be apparent now because internet

access is far behind the US and west, and high usage charges represent a serious impediment to

frequent consumer usage. The Government has already shown intent to deregulate the

telecommunications sector. Deregulation would increase Internet usage in the country and also

the trading on the net.

However, it is expected that the bricks and mortar stores converting to clicks and mortar model

would dominate the Internet sector. ?This is because of their already existing brand names and

economies of operations that they would be able to reap.

Organised versus Unorganised Retailing

In a sharp contrast to the retail sector in developed economies, retailing in India - though large in

terms of size - is highly fragmented and unorganised. With close to 12 million retail outlets the

country has one of the highest retail densities worldwide.

Retailers include street vendors, supermarkets, department stores, restaurants, hotels and even

two-wheeler and car showrooms.

Counter stores, kiosks, street markets and vendors, where the ownership and management rest

with one person, are classified as traditional or unorganised retail outlets.

These formats typically require employees with low skills and account for around two-thirds of

the sector's output. These are highly competitive outlets, with minimal rental costs (unregistered

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kiosks or traditional property), cheap labour (work is shared by family members) and negligible

overheads and taxes.

However, unorganised retailers suffer due to poor shopping experience and inability to offer a

wide range of products and value-addition due to lack of sourcing capabilities.

The modern Indian consumer is seeking more value in terms of improved availability and

quality, pleasant shopping environment, financing options, trial rooms for clothing products,

return and exchange policies and competitive prices. This has created a rapidly growing

opportunity for organised, modern retail formats to emerge in recent years and grow at a fast

pace.

Inefficiency in the existing supply chains presents further opportunity for organised players to

draw on this large market even as lack of consumer culture and low purchasing power restricted

the development of modern formats. Migration from unorganised to organised retail has been

visible with economic development in most countries.

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OBJECTIVES OF THE PROJECT

The first step in any Marketing Research calls for the researcher to define the project scope and

then define problem carefully and formulate the research Objectives. An oldage says, “A

problem well defined is half solved.”

To study the “Consumer Buying Behavior and Brand Perception of Consumers in Shopping

Malls on M.G.Road”, research was conducted on following objectives. : -

1. Find out the different types of buying behavior of consumers in different shopping malls

on M.G.Road.

2. To study which type of consumers visit the different shopping malls.

3. Purpose to come to shopping malls.

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4. What the consumer think about the particular shopping mall as a brand in shopping malls.

5. How consumers motivate to visit any shopping mall?

6. In shopping malls on which sector they spend the most.

7. How Shopping malls are different from each other regarding the types of consumers and

their buying behavior.

8. Analysis of buying behavior pattern and brand perception.

And based on above findings, Recommendations on followings: -

1. How to increase the conversion ratio of footfalls to buying in shopping mall?

2. How to increase the footfalls in shopping malls?

3. For what type of consumers, Shopping Mall should make its plans.

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RESEARCH METHODOLOGY

Research Plan is not specific for all types of research; it is decided depending upon the nature of

the problem. It can be – Exploratory, Descriptive or Causal

Exploratory – means to gather data to shed light on the real nature of the problem and suggest

possible solutions or new ideas.

Descriptive – It seeks to ascertain magnititide.

Causal- It is study of cause and effect relationship.

To study the consumer buying behavior and brand perception of consumers in shopping malls is

descriptive research.

Designing a research plan calls for decisions on the -
1. Data sources,
2. Research approaches,
3. Research Instruments,

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4. Sampling plan, and
5. Contact methods.

DATA SOURCES: -
The research involved gathering Secondary data as well as Primary data. For the purpose survey
was conducted by me to collect the data –
• CONSUMER SURVEY

PRIMARY – DATA
Customer survey was conducted to gather initial data from the market. Here, the main emphasis

was given on the consumers because they are the one’s on which I have to do my project.

Consumers decide the brand of any shopping mall and they are different to each other on various

aspects.

Consumer survey was done to know their purchasing behaviour in different shopping malls on

M.G.Road. They are the one who constitute the market and the target of the business. In

Shopping Malls Industry, until and unless we have the knowledge of consumer buying behavior

and where they spend the most and what they think, about the mall cannot increase the footfall

and conversition ratio. Hence a consumer survey was done to know their wants, purchasing

power, and buying habits to know their brand perception and buying behavior in shopping malls.

SECONDARY DATA: -
Secondary data regarding foot falls in shopping mall, buying pattern and other related was

collected from the internet and mall management itself.

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RESEARCH APPROACH: -
Primary data can be collected in four ways –

1. Observational research

2. Focus – group research

3. Survey research

4. Experimenntal research

Survey research - Survey research is best suited for my purpose i.e. for the Descripted

Research. Survey of consumers this mode helped me to know consumers, their preferences and

brand perception.

RESEARCH INSTRUMENT: -
In marketing research, the main research instrument used in collecting primary data is the

Questionnaire. For this research, two different set of questionnaire were structured one for the

consumer buying behavior and the other for the consumer brand perception. Both the

questionnaire was open ended i.e. allowed them to response in their own words.

Consumer Survey

Open Ended questionnaire was put to them. It had a set of option and the respondent made a

choice among them.

For detail of Questionnaire, See Annexure-

SAMPLE PLAN
The Sample Plan calls for three decision: -
• Sampling Unit,
• Sample Size,
• Sampling Procedure.

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CONSUMER SURVEY: -
Sample Unit: Consumers
Sample Size:
1. MGF Metropolitan Mall – 30
2. Sahara Mall – 25
3. MGF Plaza – 25
Total – 80
 Sample Procedure: Nonprobability Convenience Sample was adopted i.e. the most

accessible members of the population. Random selection of consumers.

RETAILER SURVEY:-
Sample unit: - retailers
Sample size:-50

Contact Method
The best-suited method for this kind of survey is Personal Interview. Through this method of

conducting research more questions can be asked and it helps in collecting additional

information, which may be useful for the company.

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LIMITATIONS OF PROJECT

1. Only a small population of the consumers were studied, which may not be enough to
throw correct picture.

2. The consumers were very reluctant to answer the question and the response may be
biased.

3. The answers given by the consumers were too vague to deduct exact figures.

4. The DLF City Centre was not studied due to the permission problem.

29

MGF GROUP

The Motor and General Finance Ltd. is one of India's oldest financial companies, and today

among the acknowledged leaders in the industry. We provide here an outline of the group's wide-

ranging development financing and fund management experience, and the scope of our

operations today. The motor and General Finance has now become the MGF Group, with

companies involved in Hire Purchase and leasing, construction and real estate development and

automotive dealerships.

Following are the companies within the MGF Fold:

1.MGF Developments Ltd. 8. The Motor and General Finance Ltd.

2.MGF Motors Pvt. Ltd. 9.MGF (INDIA) Ltd.

3.MGF Automobiles Pvt. Ltd. 10. India Lease Developments Ltd.

4. Capital Vehicle Sales Pvt. Ltd. 11.Jaybharat Credit Ltd.

30

5. Compact Motors Ltd. 12.Goodwill India Ltd.

6. Kerala Cars Pvt. Ltd. 13 MGF Services Ltd.

7.Omega Motors Pvt. Ltd.

Stretching hands across the globe, MGF became the first Indian finance company to set up a

joint venture called the India Lease Development Ltd. (ILD), with the International Finance

Corporation, the World Bank subsidiary, in Washington D.C.

MGF has actively considered an entry into the insurance business and in the current budget the

Government of India has opened the insurance sector to private participation. MGF is seeking

tie-ups to develop joint ventures dedicated to the conduct of automotive, casualty and property

insurance business in India.

31

Proud Association

Acknowledged as the leaders in private finance, MGF Limited is one of the respected members

of the Asian Leasing Association. It is also among the Founder Member of the Federation of

Indian Hire Purchase and Equipment Leasing Association of India.

Above all, MGF takes special pride in its close association with millions of satisfied customers in

every nook and corner of the country.

ANALYSIS

DATA ANALYSIS PREPARATION

RETAILERS

Do you agree that there is trend towards organised retail in India?

32

50
50

40

30

20

10
0
0
YES NO

Do you think large organized retailers would be controlling a substantial portion of the retail
trade?

50
50

40

30

20

10
0
0
YES NO

33

How do you perceive the development of Shopping malls in Delhi and NCR Region?

45
45
40
35
30
25
20
15
10 5
5
0
Healthy Trend Unhealthy Trend

What according to you is the purpose of the customers visit to the Shopping Malls?

50
50 45 45
42 40
38
40

30

20 12
8 10
10 5 5

0
Yes No

Food and Beverages Music and Entertainm ent
Life style products Latest Fashion and Clothing
Choosing gifts Consum er Durable

34

What according to you are the reasons for buying at that particular shopping mall (Please
rank them in order of preference?)

5

4 5

3 4
2 3
2
1
1
0

Nearness to house/locality Good range available
Friendly shopkeeper/ good relations Good ambience
Good bargain

Rank (1-6) the following factors, which influence the customer purchase decision at a shopping
mall.

6
6 5
4
4 3
2
2 1

0

Price Brand
Location of Mall Parking At Outlet/Mall
Appealing Ambience 3-D Column 6

35

Do shopping malls have the following advantages?

50 50
50 48
45
39
40
35 32 32
30
25
20 18 18
15 11
10
5 2 0 0
0
Yes No

Tim e Factor
Discount schem es
Adequate parking space
Individual sections for all categories
Good shopping experience in better place w ith convenience and variety.
Organized shops w ith international am bience &air condition all-around.

Do you think India has a potential in the Retail industry?

50
50

40

30

20

10
0
0
YES NO

36

Do you think that organized retail will provide many opportunities both to existing players as
well as new entrants?

50
50

40

30

20

10
0
0
YES NO

Do you think India is prepared for open competition?

50
50

40

30

20

10
0
0
YES NO

37

CONSUMER BUYING BEHAVIOUR IN
METROPOLITIAN MALL

1. Age group in Metropolitan mall.

Below 20 yrs. 20-25 yrs. 25-35 yrs. 35 yrs.& above

50 90 90 35

age group in metropolitan mall

35 50
Below 20 yrs.
20-25 yrs.
25-35 yrs.
90
35 yrs.& above
90

38

2. Category of consumers in the age group of below 20 years

HOME
STUDENT BUSINESS PROFESSION SERVICES MAKER
35 0 0 15 0

0%
30% STUDENT
BUSINESS
PROFESSSION

0% SERVICES
70% HOMEMAKERS
0%

3. Frequency of visit to the mall of age group below 20 yrs.

Everyday Once in a week Twice in a week Any other
5 35 5 5

10% 10%
10%
Everyday
Once in a week
Twice in a week
Any other

70%

39

4. Purpose to come to shopping mall of age group below 20yrs.

Fun & Entertainment Family Outing Shopping Eating’s
40 0 5 5

Fun &
10% Entertainment
10%
Family Outing
0%

Shopping
80%
Eating’s

5. Annual Household Income in the age group below 20 yrs.

Below Rs.2Lakhs Rs.2-5Lakhs Rs. 5-10Lakhs Rs. 10Lakhs & Above
5 40 5 0

10% 0% 10%

Below Rs.2Lakhs
Rs.2-5Lakhs
Rs. 5-10Lakhs
Rs. 10Lakhs & Above

80%

40

6. Spend per visit in shopping mall in the age group below 20 yrs.

Up to Rs. 200 Rs.200-500 Rs.500-2500 Rs.2500 & Above
5 30 15 0

0% 10% Up to Rs. 200
30%
Rs.200-500
Rs.500-2500
60% Rs.2500 & Above

7. Sectors on which they spend the most below 20yrs. Consumers.

Food & Beauty Music & Gifts &
Apparels Beverages Products Entertainment Watches Sportswear
5 5 0 40 0 0

Apparels
0%
0% Food & Beverages

10% 10%
Beauty Products
0%
Music &
80% Entertainment
Gifts & Watches

Sportswear

8. Favorite shopping mall on M.G.Road.

41

Metropolitan Mall Sahara Mall MGF Plaza
45 5 0

10% 0%

Metropolitan Mall
Sahara Mall
MGF Plaza

90%

9. Category of consumers of age group 20 – 25 yrs.
Student Business Professional Services Homemaker
30 5 35 20 0

0%
22%
33% Student
Business
Professional
Services
Homemaker
6%
39%

10. How often they come to shopping mall.
Everyday Once in a week Twice in a week Any other
10 60 15 5

42

6% 11%
17%
Everyday
Once in a week
Twice in a week
Any other
66%

11. Purpose to come to shopping mall.
Fun &
Shopping Entertainment Eating Family Outing
10 50 30 0

Shopping
0% 11%
33% Fun &
Entertainment
Eating
56%
Family Outing

12. Annual household’s income.
Below 2 lakhs 2- 5 lakhs 5 - 10 lakhs Rs. 10 lakhs & above
15 65 5 5

43

6% 6% 17%
Below 2 lakhs
2- 5 lakhs
5 - 10 lakhs
Rs. 10 lakhs & above
71%

13. Spend per visit in shopping mall.
Up to Rs.200 Rs.200-500 Rs.500-2500 Rs.2500 & Above
5 60 20 5

6% 6%
22%
Up to Rs.200
Rs.200-500
Rs.500-2500
Rs.2500 & Above
66%

14. Categories on which they spend the most.

Music & Gifts &
Apparels Food & Beverages Entertainment Sportswear Watches
5 15 60 5 5

44

Apparels

Food & Beverages
6% 6% 6%
16%
Music &
Entertainment

66% Sportswear

Gifts & Watches

15.Favourite shopping mall on M.G.Road.
70 10 10

11%
11%
Metropolitan Mall
Sahara Mall
MGF Plaza
78%

16.Category Of the consumer’s of age group between 25 – 35 yrs.
0 10 35 30 15

45

0% 11%
17%
Student
Business
Professional
39% Services
33%
Homemaker


Everyday Once in a week Twice in a week Other
0 70 5 15

17% 0%
6% Everyday
Once in a week
Twice in a week
Other
77%

18. Annual household’s income.
10 55 15 10

46

0 40 45 5

0%
6%
Up to Rs.200
44%
Rs.200-500
Rs.500-2500
50% Rs.2500 & Above

20. Favorite shopping mall on M.G.Road.

47

75 10 5

6%
11%
Metropolitan Mall
Sahara Mall
MGF Plaza

83%

221.
Category of consumer’s of age group 35 and above.
0 5 5 20 5

14% 0% 14%
Student
14% Business
Professional
Services
Homemaker
58%

0 5 0 30

48

0% 14%
0%
Everyday
Once in a week
Twice in a week
Other
86%

23. Purpose to come to shopping mall.
Shopping Fun & Entertainment Eating Family Outing
20 30 25 15

Purpose to come to shopping Mall

Shopping
15 20
Fun &
Entertainment
Eating

Family Outing
25
30

24. Annual household income.
0 25 10 0

49

0%
29% 0%
Below 2 lakhs
2- 5 lakhs
5 - 10 lakhs
71% Rs. 10 lakhs & above

5 15 10 5

14% 14%
Up to Rs.200
Rs.200-500
Rs.500-2500
29%
43% Rs.2500 & Above

26. Favourite shopping mall on M.G.Road.
10 15 10

50

29% 29%

Metropolitan Mall
Sahara Mall
MGF Plaza

42%

51

Consumer Buying Behavior in Sahara Mall
1. Age group of consumers in Sahara Mall.
20 35 85 125

age group

8%
13%
Below 20 yrs.
47%
20-25 yrs.
25-35 yrs.
35 yrs.& above
32%

2. Category of consumers in Sahara Mall.
15 25 50 50 125

Category of consumers

6% 9%
Student
47% 19% Business
Professional
Services
Homemaker
19%

3. How often Homemaker visit the Sahara mall.

0 35 15 75

52

0%
28%
Everyday
Once in a week
Twice in a week
60% Other
12%

4. Homemakers annual Households Income.
15 75 25 10

8% 12%
20% Below 2 lakhs
2- 5 lakhs
5 - 10 lakhs
60%

5. How much homemakers spend in Sahara Mall.
10 15 75 25

53

Category of consumers

25 10 Up to Rs.200
15
Rs.200-500
Rs.500-2500
Rs.2500 & Above

75

6. On which sector households spend the most.

Apparels Food & Beverages Households Sportswear
25 10 90 0

0% 20% Apparels
8% Food & Beverages
Households
72% Sportswear

7. What attracts them to come to shopping mall?

Branded Ambience &
Shops Discount Schemes Facilities Entertainment
10 100 15 0

54

Branded Shops
12% 0% 8%
Discount
Schemes
Ambience &
Facilities
80%
Entertainment

8. Favourite shopping mall of homemakers on M.G. road.

15 85 25

20% 12%
Metropolitan Mall
Sahara Mall
MGF Plaza
68%

9. How often Consumers (Services) visit the Sahara mall.
0 35 5 10

55

20% 0% Everyday
Once in a week
10% Twice in a week
70% Other

10. How much service consumers spend in Sahara Mall.
0 15 30 5

Up to Rs.200
10% 0%
30% Rs.200-500
Rs.500-2500

Rs.2500 & Above

60%

56

11. On which sector service consumers spend the most.
Apparels Food & Beverages Households
5 5 40

10%
10% Apparels
Food & Beverages
Households
80%

12. Favourite shopping mall on M.G.Road of Service Consumers.
Metropolitan
Mall Sahara Mall MGF Plaza
35 10 5

Favourite shopping mall
9%

27% Metropolitan Mall
Sahara Mall
64% MGF Plaza

13. On which sector professional consumers spend the most.

57

10 5 35

20%
Apparels
Food & Beverages
10%
Households
70%

14. How much professionals spend in Sahara Mall.

0 15 30 5

Up to Rs.200
10% 0%
30% Rs.200-500
Rs.500-2500
Rs.2500 & Above

60%

58

15. Annual household income of professionals.
0 35 15 0

Below 2 lakhs
0%
30% 0% 2- 5 lakhs

5 - 10 lakhs
70%
Rs. 10 lakhs &
above

16. How often professionals visit Sahara Mall.
0 5 5 40

0% 10%
10% Everyday
Once in a week
Twice in a week
Other
80%

59

17. Favourite shopping mall on M.G.Road of Professionals.

35 10 5

Favourite shopping mall
5

10
Metropolitan Mall
Sahara Mall
MGF Plaza
35

18. On which sector Business class consumers spend the most.

10 5 10

20%
40% Apparels
Food & Beverages
Households
40%

60

19. How often they come (Business Class) come to shopping mall.
0 5 0 20

0% 20%
Everyday
0%
Once in a week
Twice in a week
Other
80%

20. Annual household income of Business Class consumers.
0 10 15 0

0%
Below 2 lakhs
0%
40% 2- 5 lakhs

5 - 10 lakhs
60%

Rs. 10 lakhs &
above

21. How much business class consumers spend in Sahara Mall.

61

0 0 20 5

0%
20% Up to Rs.200
0%
Rs.200-500
Rs.500-2500
80% Rs.2500 & Above

22. Favourite shopping mall on M.G.Road of Business class Consumers.

15 5 5

Metropolitan
20% Mall
Sahara Mall
20% 60%
MGF Plaza

62

23. How often students visit the Sahara Mall.
0 0 0 15

0%
0%
0% Everyday
Once in a week
Twice in a week
100% Other

24. How much student consumers spend in Sahara Mall.
0 5 10 0

0%
0%
33% Up to Rs.200
Rs.200-500
Rs.500-2500
67% Rs.2500 & Above

63

25. Annual household income of student consumers.
Below 2 lakhs 2- 5 lakhs 5 – 10 lakhs Rs. 10 lakhs & above
0 10 5 0

0%

33% 0% Below 2 lakhs
2- 5 lakhs
5 - 10 lakhs
67% Rs. 10 lakhs & above

26. On which sector students consumers spend the most.

10 5 0

0%
33% Apparels
Food & Beverages
67% Households

64

27. Student favourite shopping mall on M. G. Road.

15 0 0

0%
Sahara Mall
MGF Plaza
100%

65

CONSUMER BUYING BEHAVIOR IN MGF PLAZA

1. Age group of consumers in MGF Plaza.

5 10 80 120

Age Group
Below 20 yrs.
2% 5% 20-25 yrs.

25-35 yrs.

56% 37% 35 & Above

2. Category of consumers in MGF Plaza.
5 50 25 20 115

Category

2% Student
23%
Business
Professional
54% Services
12%
9% Homemaker

66

3. How much Homemakers spend in the MGF Plaza.

0 5 25 85

0%
4%
22% Up to Rs.200
Rs.200-500
Rs.500-2500
74% Rs.2500 & Above

4. On which sector homemaker consumers spend the most.

Home furnishing Electronic Items Food & Beverages
90 25 0

22% 0%
Home furnishing
Electronic Items
Food & Beverages
78%

67

5. Annual household income of homemaker consumers.

0 50 45 20

Below 2 lakhs
17% 0%
2- 5 lakhs
44%

5 - 10 lakhs

39%
Rs. 10 lakhs &
above

7
6. How often homemakers visit the shopping mall.

0 15 0 100

13%
0% Everyday
0%
Once in a week
Twice in a week
87% Other

68

7. Homemakers favourite shopping mall on M. G. Road.

5 80 20

19% 5%
Metropolitan Mall
Sahara Mall
MGF Plaza
76%

8. How much Business class consumers spend in the MGF Plaza.

0 0 25 25

0%
0% Up to Rs.200
Rs.200-500
50% 50% Rs.500-2500
Rs.2500 & Above

69

9. On which sector business class consumers spend the most.

35 15 0

0, 0%
15, 30% Home furnishing
Electronic Items
35, 70% Food & Beverages

10. Annual household income of business class consumers.

0 25 15 10

20% 0%
Below 2 lakhs
2- 5 lakhs
50% 5 - 10 lakhs
30%

11. How often business class consumers visit the mall.

70

0 5 0 45

10%
0%
0% Everyday
Once in a week
Twice in a week
Other
90%

12. Business class favourite shopping mall on M. G. Road.

25 15 10

10, 20%

25, 50%
15, 30% Metropolitan Mall
Sahara Mall
MGF Plaza

13. How much professionals consumers spend in the MGF Plaza.

71

0 0 20 5

0%
20% 0% Up to Rs.200
Rs.200-500
Rs.500-2500
Rs.2500 & Above
80%

14. How often professional consumers visit the mall.

0 5 0 20

0% 20%
0% Everyday
Once in a week
Twice in a week
Other
80%

15. Annual household income of professional consumers.

72

0 20 5 0

0%
20% 0% Below 2 lakhs
2- 5 lakhs
5 - 10 lakhs
80%

16. On which sector professional consumers spend the most.

20 5 0

5, 20% 0, 0%

Hom e furnis hing

20, 80%
Electronic Item s

Food &
Beverages

17. Professionals favourite shopping mall on M. G. Road.

20 2 3

73

3, 12%
2, 8%
Metropolitan
Mall
20, 80%
Sahara Mall

MGF Plaza

18. How much service class spends in the MGF Plaza?

0 0 15 5

0%
25% 0%
Up to Rs.200
Rs.200-500
Rs.500-2500
Rs.2500 & Above
75%

74

19. How often service consumers visit the mall.

0 0 0 20

0%
Everyday
Once in a week
Twice in a week
Other
100%

20. On which sector services consumers spend the most.

10 10 0

0, 0%

Hom e furnis hing
10, 50% 10, 50%

Electronic Item s

Food &
Beverages

75

21. Annual household income of service class consumers.

0 10 10 0

0% Below 2 lakhs

0%
2- 5 lakhs

50% 50% 5 - 10 lakhs

Rs. 10 lakhs &
above

22. Service class consumer’s favourite shopping mall on M. G. Road.

2 10 8

10%
Sahara Mall
50% MGF Plaza

23. How much money student class spends in the MGF Plaza?

0 5 0 0

76

0%
0%
0% Up to Rs.200
Rs.200-500
Rs.500-2500
Rs.2500 & Above
100%

24. On which sector student consumers spend the most.

0 0 5

0%
0% Home furnishing
Electronic Items
Food & Beverages
100%

25. How often student consumers visit the mall.

0 0 0 5

77

0%
0%
0% Everyday
Once in a week
Twice in a week
Other
100%

26. Student consumer’s favorite shopping mall on M. G. Road.

5 0 0

0%
Sahara Mall
MGF Plaza
100%

78

CONSUMER BRAND PERCEPTION IN METROPOLITAN MALL

1. Brand image of metropolitan mall in consumers.

PVR Metropolitan Mall Shoppers Stops Mc Donald
150 70 65 30

10%
PVR
21%
47%
Metropolitan
Mall
22% Shoppers
Stops
Mc Donald

2. Perception of Metropolitan Mall as a Brand.

Good place for family
Good Eating Place shopping Good entertainment place
75 25 165

Good Eating
Place
28%
Good place for
family shopping
63% 9%
Good
entertainment
place

79

3. Which factors attracts to come to shopping mall.
Branded Shops Sales Services & Facilities Fun & Entertainment
50 20 45 150

19%
Branded Shops
8%
Sales
56% Services &
17%
Facilities
Fun &
Entertainment

4. What motivates the consumer to the shopping mall?
Promotional Friends &
Self Motivation Advertisements Activities Relatives
50 30 35 150

19%

11%
Self Motivation
57%
Advertisements
13%
Promotional Activities
Friends & Relatives

CONSUMER BRAND PERCEPTION IN SAHARA MALL

80

1. Brand image of Sahara Mall in consumers?
Big Bazaar Haldirams Pantaloons Sahara Mall
150 5 10 100

38%

Big Bazaar
56%
4% Haldirams
2% Pantaloons
Sahara Mall

2. Perception of consumers of Sahara Mall as a Brand.

Good eating place Middle Class mall Family shopping mall
15 150 100

Good eating place
6%
38%
Middle Class mall

56% Family shopping
mall

3. What factors attracts to come to shopping mall.
Branded Sales Services & Food & Entertainment

81

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